NasdaqGS:AAON

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has AAON's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.2%

AAON

1.4%

US Building

1.3%

US Market


1 Year Return

45.2%

AAON

13.0%

US Building

5.9%

US Market

Return vs Industry: AAON exceeded the US Building industry which returned 13% over the past year.

Return vs Market: AAON exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

AAONIndustryMarket
7 Day4.2%1.4%1.3%
30 Day-6.0%-2.0%-1.9%
90 Day-7.6%1.9%-1.8%
1 Year46.3%45.2%14.8%13.0%8.3%5.9%
3 Year63.7%59.8%26.6%16.0%45.6%36.2%
5 Year170.0%159.2%59.9%40.5%66.1%47.9%

Price Volatility Vs. Market

How volatile is AAON's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

4.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: AAON ($46.83) is trading below our estimate of fair value ($48.98)

Significantly Undervalued: AAON is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AAON is poor value based on its PE Ratio (48.4x) compared to the Building industry average (20x).

PE vs Market: AAON is poor value based on its PE Ratio (48.4x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low 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 PB Ratio (9.2x) compared to the US Building industry average (2.1x).


Next Steps

Future Growth

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

36.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAON's forecast earnings growth (36.6% per year) is above the savings rate (2.7%).

Earnings vs Market: AAON's earnings (36.6% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: AAON's revenue (11.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: AAON's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has AAON performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AAON's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: AAON's earnings growth over the past year (8.7%) exceeds its 5-year average (3% per year).

Earnings vs Industry: AAON earnings growth over the past year (8.7%) exceeded the Building industry 7.7%.


Return on Equity

High ROE: AAON's Return on Equity (19.1%) is considered low.


Return on Assets

ROA vs Industry: AAON has a higher Return on Assets than the Building industry average last year.


Return on Capital Employed

ROCE Improving: AAON's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is AAON's financial position?


Financial Position Analysis

Short Term Liabilities: AAON's short term assets ($168.6M) exceeds its short term liabilities ($59.0M)

Long Term Liabilities: AAON's short term assets (168.6M) exceeds its long term liabilities (18.7M)


Debt to Equity History and Analysis

Debt Level: AAON is debt free.

Reducing Debt: AAON has not had any debt for past 5 years.

Debt Coverage: AAON has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AAON has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AAON has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AAON's debt is covered by short term assets.


Next Steps

Dividend

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

0.68%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.5%markettop25%3.8%industryaverage1.8%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AAON's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: AAON's dividend (0.68%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: AAON is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: AAON is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AAON is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AAON's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of AAON's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Norm Asbjornson (83yo)

30.8yrs

Tenure

US$1,946,466

Compensation

Mr. Norman H. Asbjornson, also known as Norm, is the Founder of AAON, Inc. and has been its Chief Executive Officer since 1989. Mr. Asbjornson serves as the President AAON Coil Products, Inc., (ACP), AAON  ...


CEO Compensation Analysis

Compensation vs. Market: Norm's total compensation ($USD1.95M) is about average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Norm's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.9yrs

Average Tenure

59yo

Average Age

Experienced Management: AAON's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

58yo

Average Age

Experienced Board: AAON's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$52,76712 Jun 19
Rebecca Thompson
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Treasurer
Shares1,100
Max PriceUS$47.97
SellUS$186,72610 Jun 19
Scott Asbjornson
EntityIndividual
Role
Chief Financial Officer
VP of Finance & CFO
Shares3,824
Max PriceUS$48.83
SellUS$53,47409 May 19
Stephen Wakefield
EntityIndividual
Shares1,118
Max PriceUS$47.83
SellUS$84,77006 Mar 19
Gary Fields
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares2,000
Max PriceUS$42.39
SellUS$26,59606 Mar 19
Stephen Wakefield
EntityIndividual
Shares635
Max PriceUS$41.88
SellUS$399,67009 Nov 18
Jack Short
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares9,123
Max PriceUS$43.81
SellUS$70,74909 Nov 18
Gary Fields
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares1,600
Max PriceUS$44.22

Ownership Breakdown


Management Team

  • Norm Asbjornson (83yo)

    Founder

    • Tenure: 30.8yrs
    • Compensation: US$1.95m
  • Scott Asbjornson (50yo)

    VP of Finance & CFO

    • Tenure: 7.2yrs
    • Compensation: US$766.42k
  • Rebecca Thompson (40yo)

    Chief Accounting Officer & Treasurer

    • Tenure: 6.8yrs
    • Compensation: US$579.12k
  • Gary Fields (59yo)

    President & Director

    • Tenure: 4.4yrs
    • Compensation: US$1.37m
  • Luke Bomer

    Secretary

    • Tenure: 0yrs
  • Mikel Crews (61yo)

    Vice President of Operations

    • Tenure: 2.7yrs
    • Compensation: US$650.08k
  • Rony Gadiwalla

    VP of Information Technology & Chief Information Officer

    • Tenure: 0.9yrs

Board Members

  • Norm Asbjornson (83yo)

    Founder

    • Tenure: 30.8yrs
    • Compensation: US$1.95m
  • Ken Lackey (75yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$206.67k
  • Chip McElroy (56yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$203.67k
  • Jack Short (78yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$209.67k
  • Caron Lawhorn (57yo)

    Independent Director

    • Tenure: 0.8yrs
  • Steve LeClair (50yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$201.67k
  • Gary Fields (59yo)

    President & Director

    • Tenure: 4.4yrs
    • Compensation: US$1.37m
  • Angela Kouplen (45yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$201.67k

Company Information

AAON, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AAON, Inc.
  • Ticker: AAON
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$2.440b
  • Shares outstanding: 52.11m
  • Website: https://www.aaon.com

Number of Employees


Location

  • AAON, Inc.
  • 2425 South Yukon Avenue
  • Tulsa
  • Oklahoma
  • 74107
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AAONNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1991
AAODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1991

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:30
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.