NasdaqGS:AAON

Stock Analysis Report

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Market Cap

US$3.3b

Last Updated

2021/08/04 23:10 UTC

Data Sources

Company Financials +

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. More Details

Rewards

Earnings are forecast to grow 8.75% per year

Earnings have grown 8.1% per year over the past 5 years

Risk Analysis

No risks detected for AAON from our risk checks.


Snowflake Analysis

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

Stable Share Price: AAON is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AAON's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.0%

AAON

3.8%

US Building

0.9%

US Market


1 Year Return

3.4%

AAON

69.0%

US Building

34.7%

US Market

Return vs Industry: AAON underperformed the US Building industry which returned 69% over the past year.

Return vs Market: AAON underperformed the US Market which returned 34.7% over the past year.


Shareholder returns

AAONIndustryMarket
7 Day2.0%3.8%0.9%
30 Day-1.7%5.1%0.2%
90 Day-3.1%6.6%4.7%
1 Year4.0%3.4%70.9%69.0%36.8%34.7%
3 Year62.9%59.7%97.6%80.8%62.5%52.4%
5 Year135.2%126.8%132.5%101.3%123.1%98.4%

Long-Term 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?

44.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AAON ($62.04) is trading above our estimate of fair value ($12.06)

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 PE Ratio (44.1x) compared to the US Building industry average (26.1x).

PE vs Market: AAON is poor value based on its PE Ratio (44.1x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: AAON is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: AAON is overvalued based on its PB Ratio (8.7x) compared to the US Building industry average (2.7x).


Future Growth

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

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAON's forecast earnings growth (8.7% per year) is above the savings rate (2%).

Earnings vs Market: AAON's earnings (8.7% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: AAON's earnings are forecast to grow, but not significantly.

Revenue vs Market: AAON's revenue (6.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: AAON's revenue (6.8% 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?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAON has high quality earnings.

Growing Profit Margin: AAON's current net profit margins (14.9%) are higher than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: AAON's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: AAON's earnings growth over the past year (10.1%) exceeds its 5-year average (8.1% per year).

Earnings vs Industry: AAON earnings growth over the past year (10.1%) underperformed the Building industry 48%.


Return on Equity

High ROE: AAON's Return on Equity (19.7%) is considered low.


Financial Health

How is AAON's financial position?


Financial Position Analysis

Short Term Liabilities: AAON's short term assets ($245.4M) exceed its short term liabilities ($66.7M).

Long Term Liabilities: AAON's short term assets ($245.4M) exceed its long term liabilities ($43.7M).


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


Dividend

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

0.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AAON's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: AAON's dividend (0.61%) is low compared to the top 25% of dividend payers in the US market (3.54%).


Stability and Growth of Payments

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 the US market.


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

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

1.0yrs

Average management tenure


CEO

Gary Fields (61 yo)

1.25yrs

Tenure

US$2,387,673

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 Part...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD2.39M) is below average for companies of similar size in the US market ($USD5.32M).

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


Leadership Team

Experienced Management: AAON's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: AAON's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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.


Top Shareholders

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$3.253b
  • Shares outstanding: 52.44m
  • Website: https://www.aaon.com

Number of Employees


Location

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

Listings


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 Analysis2021/08/04 23:10
End of Day Share Price2021/08/04 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.