AAON (NasdaqGS:AAON) - Share price, News & Analysis

AAON fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	1/6
Financial Health	5/6
Dividends	3/6

AAON Stock Overview

AAON, Inc., together with its subsidiaries, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment in the United States and Canada.

Rewards

Earnings are forecast to grow 35.15% per year

Risk Analysis

High level of non-cash earnings

Profit margins (10%) are lower than last year (14.9%)

AAON Competitors

Johnson Controls International

NYSE:JCI

US$35.4b

Carrier Global

NYSE:CARR

US$32.2b

Trane Technologies

NYSE:TT

US$30.8b

Lennox International

NYSE:LII

US$7.2b

Price History & Performance

Summary of all time highs, changes and price drops for AAON
Historical stock prices
Current Share Price	US$50.99
52 Week High	US$83.79
52 Week Low	US$47.50
Beta	0.73
1 Month Change	-9.16%
3 Month Change	-9.96%
1 Year Change	-22.70%
3 Year Change	10.15%
5 Year Change	41.05%
Change since IPO	56,696.28%

Recent News & Updates

May 22

AAON's (NASDAQ:AAON) Dividend Will Be US$0.19

AAON, Inc. ( NASDAQ:AAON ) will pay a dividend of US$0.19 on the 1st of July. This means the annual payment will be...

Shareholder Returns

	AAON	US Building	US Market
7D	-1.7%	-4.4%	-4.0%
1Y	-22.7%	-20.4%	-13.2%

Return vs Industry: AAON underperformed the US Building industry which returned -19.3% over the past year.

Return vs Market: AAON underperformed the US Market which returned -12.3% over the past year.

Price Volatility

Is AAON's price volatile compared to industry and market?
AAON volatility
AAON Average Weekly Movement	6.7%
Building Industry Average Movement	6.1%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: AAON is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AAON's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	2,881	Gary Fields	https://www.aaon.com

AAON, Inc., together with its subsidiaries, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment in the United States and Canada. The company operates through three segments: AAON Oklahoma, AAON Coil Products, and BasX. It offers rooftop units, data center cooling solutions, cleanroom systems, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls.

AAON Fundamentals Summary

How do AAON's earnings and revenue compare to its market cap?
AAON fundamental statistics
Market Cap	US$2.71b
Earnings (TTM)	US$60.44m
Revenue (TTM)	US$601.50m

44.8x

P/E Ratio

4.5x

P/S Ratio

Is AAON overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAON income statement (TTM)
Revenue	US$601.50m
Cost of Revenue	US$450.76m
Gross Profit	US$150.74m
Other Expenses	US$90.30m
Earnings	US$60.44m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.14
Gross Margin	25.06%
Net Profit Margin	10.05%
Debt/Equity Ratio	13.5%

How did AAON perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

33%

Payout Ratio

Does AAON pay a reliable dividends?

See AAON dividend history and benchmarks

When do you need to buy AAON by to receive an upcoming dividend?
AAON dividend dates
Ex Dividend Date	Jun 02 2022
Dividend Pay Date	Jul 01 2022
Days until Ex dividend	7 days
Days until Dividend pay date	36 days

Does AAON pay a reliable dividends?

See AAON dividend history and benchmarks

Valuation

Is AAON undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

44.77x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: AAON ($50.99) is trading above our estimate of fair value ($33.55)

Significantly Below Fair Value: AAON is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: AAON is poor value based on its Price-To-Earnings Ratio (44.8x) compared to the US Building industry average (16.8x).

PE vs Market: AAON is poor value based on its Price-To-Earnings Ratio (44.8x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: AAON is poor value based on its PEG Ratio (1.3x)

Price to Book Ratio

PB vs Industry: AAON is overvalued based on its Price-To-Book Ratio (5.6x) compared to the US Building industry average (2.2x).

Future Growth

How is AAON forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

35.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAON's forecast earnings growth (35.2% per year) is above the savings rate (1.9%).

Earnings vs Market: AAON's earnings (35.2% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AAON's revenue (19% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: AAON's revenue (19% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if AAON's Return on Equity is forecast to be high in 3 years time

Past Performance

How has AAON performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

9.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AAON has a high level of non-cash earnings.

Growing Profit Margin: AAON's current net profit margins (10%) are lower than last year (14.9%).

Past Earnings Growth Analysis

Earnings Trend: AAON's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: AAON's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AAON had negative earnings growth (-17.8%) over the past year, making it difficult to compare to the Building industry average (27.3%).

Return on Equity

High ROE: AAON's Return on Equity (12.6%) is considered low.

Financial Health

How is AAON's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AAON's short term assets ($283.7M) exceed its short term liabilities ($114.2M).

Long Term Liabilities: AAON's short term assets ($283.7M) exceed its long term liabilities ($123.1M).

Debt to Equity History and Analysis

Debt Level: AAON's net debt to equity ratio (12.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if AAON's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AAON's debt is well covered by operating cash flow (39.3%).

Interest Coverage: AAON's interest payments on its debt are well covered by EBIT (230x coverage).

Balance Sheet

Dividend

What is AAON current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.49%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: AAON's dividend (1.49%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: AAON's dividend (1.49%) is low compared to the top 25% of dividend payers in the US market (4.05%).

Stability and Growth of Payments

Stable Dividend: AAON's dividends per share have been stable in the past 10 years.

Growing Dividend: AAON's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33%), AAON's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: AAON is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure

CEO

Gary Fields (61 yo)

5.5yrs

Tenure

US$2,912,108

Compensation

Mr. Gary D. Fields has been Chief Executive Officer at AAON, Inc. since May 12, 2020. Mr. Fields has been the President of AAON, Inc. since November 1, 2016. Mr. Fields is an Owner and President of GKR Par...

CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD2.91M) is below average for companies of similar size in the US market ($USD6.83M).

Compensation vs Earnings: Gary's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: AAON's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.

Board Members

Experienced Board: AAON's board of directors are considered experienced (5.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: AAON insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31