Advanced Energy Industries, Inc.
Advanced Energy Industries, Inc. Fundamental Analysis
Advanced Energy Industries, Inc. (AEIS) shows weak financial fundamentals with a PE ratio of 83.19, profit margin of 8.25%, and ROE of 11.51%. The company generates $1.8B in annual revenue with weak year-over-year growth of -10.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AEIS's fundamental strength across five key dimensions:
Efficiency Score
WeakAEIS struggles to generate sufficient returns from assets.
Valuation Score
WeakAEIS trades at a premium to fair value.
Growth Score
WeakAEIS faces weak or negative growth trends.
Financial Health Score
ExcellentAEIS maintains a strong and stable balance sheet.
Profitability Score
WeakAEIS struggles to sustain strong margins.
Key Financial Metrics
Is AEIS Expensive or Cheap?
P/E Ratio
AEIS trades at 83.19 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AEIS's PEG of 35.68 indicates potential overvaluation.
Price to Book
The market values Advanced Energy Industries, Inc. at 9.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 54.13 times EBITDA. This signals the market has high growth expectations.
How Well Does AEIS Make Money?
Net Profit Margin
For every $100 in sales, Advanced Energy Industries, Inc. keeps $8.25 as profit after all expenses.
Operating Margin
Core operations generate 9.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.51 in profit for every $100 of shareholder equity.
ROA
Advanced Energy Industries, Inc. generates $5.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Advanced Energy Industries, Inc. produces operating cash flow of $234.24M, showing steady but balanced cash generation.
Free Cash Flow
Advanced Energy Industries, Inc. produces free cash flow of $126.41M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.35 in free cash annually.
FCF Yield
AEIS converts 1.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
83.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
35.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How AEIS Stacks Against Its Sector Peers
| Metric | AEIS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 83.19 | 26.76 | Worse (Expensive) |
| ROE | 11.51% | 1300.00% | Weak |
| Net Margin | 8.25% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.57 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.59 | 10.68 | Neutral |
| ROA | 5.83% | -1545134.00% (disorted) | Weak |
AEIS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Advanced Energy Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
91.89%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-14.72%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
175.99%
Industry Style: Cyclical, Value, Infrastructure
High Growth