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AAON

Nasdaq:AAON
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AAON
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

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 last earnings update was 17 days ago. More info.


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AAON Share Price and Events
7 Day Returns
7%
NasdaqGS:AAON
-0.5%
US Building
-1%
US Market
1 Year Returns
14.2%
NasdaqGS:AAON
-1.9%
US Building
-0.4%
US Market
AAON Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AAON (AAON) 7% -8% 0.7% 14.2% 70.2% 153.5%
US Building -0.5% -0.6% 4.5% -1.9% 7.2% 22.5%
US Market -1% -3.3% 0.8% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • AAON outperformed the Building industry which returned -1.9% over the past year.
  • AAON outperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
AAON
Industry
5yr Volatility vs Market

Value

 Is AAON undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AAON to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AAON.

NasdaqGS:AAON Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:AAON
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Building Unlevered Beta Simply Wall St/ S&P Global 1.16
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.161 (1 + (1- 21%) (0%))
1.108
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.108 * 5.96%)
9.33%

Discounted Cash Flow Calculation for NasdaqGS:AAON using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AAON is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:AAON DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.33%)
2020 80.32 Analyst x1 73.46
2021 98.93 Est @ 23.18% 82.76
2022 115.80 Est @ 17.04% 88.60
2023 130.56 Est @ 12.75% 91.36
2024 143.28 Est @ 9.74% 91.71
2025 154.23 Est @ 7.64% 90.28
2026 163.74 Est @ 6.17% 87.67
2027 172.15 Est @ 5.14% 84.30
2028 179.74 Est @ 4.41% 80.51
2029 186.77 Est @ 3.91% 76.51
Present value of next 10 years cash flows $847.16
NasdaqGS:AAON DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $186.77 × (1 + 2.73%) ÷ (9.33% – 2.73%)
$2,904.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,904.99 ÷ (1 + 9.33%)10
$1,190.04
NasdaqGS:AAON Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $847.16 + $1,190.04
$2,037.20
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,037.20 / 52.11
$39.1
NasdaqGS:AAON Discount to Share Price
Calculation Result
Value per share (USD) From above. $39.10
Current discount Discount to share price of $47.07
= -1 x ($47.07 - $39.10) / $39.10
-20.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of AAON is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AAON's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AAON's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:AAON PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.97
NasdaqGS:AAON Share Price ** NasdaqGS (2019-08-16) in USD $47.07
United States of America Building Industry PE Ratio Median Figure of 30 Publicly-Listed Building Companies 18.5x
United States of America Market PE Ratio Median Figure of 3,096 Publicly-Listed Companies 17.26x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AAON.

NasdaqGS:AAON PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:AAON Share Price ÷ EPS (both in USD)

= 47.07 ÷ 0.97

48.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AAON is overvalued based on earnings compared to the US Building industry average.
  • AAON is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does AAON's expected growth come at a high price?
Raw Data
NasdaqGS:AAON PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 48.63x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
37.2%per year
United States of America Building Industry PEG Ratio Median Figure of 25 Publicly-Listed Building Companies 1.29x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NasdaqGS:AAON PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 48.63x ÷ 37.2%

1.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AAON is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AAON's assets?
Raw Data
NasdaqGS:AAON PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $5.08
NasdaqGS:AAON Share Price * NasdaqGS (2019-08-16) in USD $47.07
United States of America Building Industry PB Ratio Median Figure of 37 Publicly-Listed Building Companies 2.02x
United States of America Market PB Ratio Median Figure of 5,273 Publicly-Listed Companies 1.7x
NasdaqGS:AAON PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:AAON Share Price ÷ Book Value per Share (both in USD)

= 47.07 ÷ 5.08

9.27x

* Primary Listing of AAON.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AAON is overvalued based on assets compared to the US Building industry average.
X
Value checks
We assess AAON's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Building industry average (and greater than 0)? (1 check)
  5. AAON has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
37.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AAON expected to grow at an attractive rate?
  • AAON's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • AAON's earnings growth is expected to exceed the United States of America market average.
  • AAON's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:AAON Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:AAON Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 37.2%
NasdaqGS:AAON Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 12.3%
United States of America Building Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United States of America Building Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:AAON Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:AAON Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 554 116 84 2
2019-12-31 495 95 57 3
NasdaqGS:AAON Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 459 54 50
2019-03-31 449 59 49
2018-12-31 434 55 43
2018-09-30 426 60 46
2018-06-30 426 60 46
2018-03-31 418 59 49
2017-12-31 405 58 54
2017-09-30 393 59 50
2017-06-30 384 68 51
2017-03-31 385 58 52
2016-12-31 384 64 53
2016-09-30 390 64 55

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AAON's earnings are expected to grow significantly at over 20% yearly.
  • AAON's revenue is expected to grow by 12.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:AAON Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from AAON Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AAON Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.60 1.69 1.50 2.00
2019-12-31 1.08 1.14 1.03 3.00
NasdaqGS:AAON Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.97
2019-03-31 0.94
2018-12-31 0.81
2018-09-30 0.87
2018-06-30 0.89
2018-03-31 0.92
2017-12-31 1.04
2017-09-30 0.95
2017-06-30 0.97
2017-03-31 0.99
2016-12-31 1.01
2016-09-30 1.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if AAON will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess AAON's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AAON has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has AAON performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AAON's growth in the last year to its industry (Building).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AAON's year on year earnings growth rate has been positive over the past 5 years.
  • AAON's 1-year earnings growth exceeds its 5-year average (8.7% vs 3%)
  • AAON's earnings growth has exceeded the US Building industry average in the past year (8.7% vs 8.2%).
Earnings and Revenue History
AAON's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AAON Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AAON Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 458.54 50.48 46.63
2019-03-31 448.69 49.21 46.94
2018-12-31 433.95 42.57 45.87
2018-09-30 425.77 45.81 48.32
2018-06-30 426.50 46.44 48.19
2018-03-31 418.24 48.54 47.15
2017-12-31 405.23 54.50 47.81
2017-09-30 392.74 50.15 42.87
2017-06-30 383.64 51.11 40.30
2017-03-31 384.63 52.04 38.92
2016-12-31 383.98 53.38 37.34
2016-09-30 389.54 54.90 38.57
2016-06-30 379.33 52.48 37.79
2016-03-31 367.29 48.88 36.66
2015-12-31 358.63 45.73 36.06
2015-09-30 346.13 43.31 34.60
2015-06-30 354.69 42.50 35.91
2015-03-31 356.72 42.74 36.11
2014-12-31 356.32 44.16 35.48
2014-09-30 344.97 41.39 35.29
2014-06-30 331.74 39.47 33.91
2014-03-31 330.67 40.23 33.48
2013-12-31 321.14 37.55 32.90
2013-09-30 325.77 37.36 31.59
2013-06-30 312.90 32.84 29.04
2013-03-31 304.99 30.02 27.05
2012-12-31 303.11 27.45 25.26
2012-09-30 288.51 20.74 25.24

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • AAON has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • AAON used its assets more efficiently than the US Building industry average last year based on Return on Assets.
  • AAON's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AAON's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AAON has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is AAON's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AAON's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AAON is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • AAON's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AAON's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • AAON has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AAON Company Filings, last reported 1 month ago.

NasdaqGS:AAON Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 264.57 0.00 17.68
2019-03-31 259.37 0.00 7.14
2018-12-31 247.50 0.00 1.99
2018-09-30 249.63 0.00 10.68
2018-06-30 238.44 0.00 24.33
2018-03-31 239.61 0.00 23.12
2017-12-31 237.23 0.00 30.41
2017-09-30 230.30 0.00 39.90
2017-06-30 217.75 0.00 51.80
2017-03-31 211.80 0.00 41.88
2016-12-31 205.90 0.00 43.75
2016-09-30 204.78 0.00 41.31
2016-06-30 194.98 0.00 44.34
2016-03-31 188.67 0.00 43.20
2015-12-31 178.92 0.00 30.43
2015-09-30 198.37 0.00 48.93
2015-06-30 187.43 0.00 49.94
2015-03-31 182.12 0.00 42.69
2014-12-31 174.06 0.00 40.02
2014-09-30 179.04 0.00 42.12
2014-06-30 177.69 0.00 45.65
2014-03-31 172.06 0.00 51.58
2013-12-31 164.11 0.00 36.24
2013-09-30 161.93 0.00 21.90
2013-06-30 152.52 0.00 30.23
2013-03-31 145.02 0.00 16.85
2012-12-31 138.14 0.00 9.11
2012-09-30 136.99 0.00 10.29
  • AAON has no debt.
  • AAON has not taken on any debt in the past 5 years.
  • AAON has no debt, it does not need to be covered by operating cash flow.
  • AAON has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess AAON's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AAON has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.68%
Current annual income from AAON dividends. Estimated to be 0.68% next year.
If you bought $2,000 of AAON shares you are expected to receive $14 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AAON's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • AAON's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:AAON Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Building Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2010 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:AAON Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.32 1.00
2019-12-31 0.32 1.00
NasdaqGS:AAON Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-20 0.320 0.663
2018-11-08 0.320 0.793
2018-11-01 0.320 0.781
2018-05-18 0.320 0.899
2017-11-07 0.260 0.737
2017-11-02 0.260 0.753
2017-05-17 0.260 0.747
2016-11-09 0.260 0.759
2016-11-03 0.220 0.777
2016-05-25 0.220 0.792
2015-11-02 0.220 0.913
2015-05-20 0.220 1.010
2015-02-27 0.180 0.768
2014-11-06 0.180 0.824
2014-08-07 0.180 0.978
2014-05-05 0.173 0.824
2013-11-07 0.133 0.685
2013-05-22 0.133 0.826
2013-03-14 0.107 0.853
2012-11-08 0.107 1.092
2012-08-08 0.107 1.237
2012-05-17 0.107 1.250
2012-03-14 0.107 1.215
2011-11-10 0.107 1.188
2011-11-08 0.107 1.094
2011-08-04 0.107 1.346
2011-05-19 0.107 1.085
2011-03-10 0.107 1.136
2010-11-10 0.107 1.291
2010-11-08 0.107 1.441
2010-08-06 0.107 1.537
2010-05-26 0.107 1.495
2010-03-15 0.107 1.563
2009-11-23 0.107 1.784
2009-11-02 0.107 1.833
2009-05-20 0.107 1.791
2009-05-06 0.107 1.765
2008-11-13 0.095 1.768
2008-11-05 0.095 1.714

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AAON is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • AAON is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of AAON's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of AAON's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of AAON's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess AAON's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AAON afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AAON has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Norm Asbjornson
COMPENSATION $1,946,466
AGE 83
TENURE AS CEO 30.6 years
CEO Bio

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 Canada Inc. (AAON Canada) and AAON Properties Inc. (AAON Properties), all wholly-owned subsidiaries of Aaon Inc. He served as the President of AAON Inc. since 1989 until November 1, 2016. Mr. Asbjornson has been the Chairman of the Board of AAON, Inc. since November 1, 2016. He has provided the leadership and vision for Aaon's growth. Mr. Asbjornson has been a Director of Aaon Inc. since 1989.

CEO Compensation
  • Norm's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Norm's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the AAON management team in years:

4.7
Average Tenure
59
Average Age
  • The tenure for the AAON management team is about average.
Management Team

Norm Asbjornson

TITLE
Founder
COMPENSATION
$2M
AGE
83
TENURE
30.6 yrs

Gary Fields

TITLE
President & Director
COMPENSATION
$1M
AGE
59
TENURE
2.8 yrs

Scott Asbjornson

TITLE
VP of Finance & CFO
COMPENSATION
$766K
AGE
50
TENURE
7 yrs

Mikel Crews

TITLE
Vice President of Operations
COMPENSATION
$650K
AGE
61
TENURE
2.5 yrs

Rebecca Thompson

TITLE
Chief Accounting Officer & Treasurer
COMPENSATION
$579K
AGE
40
TENURE
6.7 yrs

Rony Gadiwalla

TITLE
VP of Information Technology & Chief Information Officer
TENURE
0.8 yrs

Luke Bomer

TITLE
Secretary
Board of Directors Tenure

Average tenure and age of the AAON board of directors in years:

3
Average Tenure
58
Average Age
  • The tenure for the AAON board of directors is about average.
Board of Directors

Gary Fields

TITLE
President & Director
COMPENSATION
$1M
AGE
59
TENURE
4.3 yrs

Chip McElroy

TITLE
Independent Director
COMPENSATION
$204K
AGE
56
TENURE
12.1 yrs

Norm Asbjornson

TITLE
Founder
COMPENSATION
$2M
AGE
83
TENURE
2.8 yrs

Ken Lackey

TITLE
Independent Director
COMPENSATION
$207K
AGE
75
TENURE
12.1 yrs

Caron Lawhorn

TITLE
Independent Director
AGE
57
TENURE
0.6 yrs

Jack Short

TITLE
Lead Independent Director
COMPENSATION
$210K
AGE
78
TENURE
0.6 yrs

Angela Kouplen

TITLE
Independent Director
COMPENSATION
$202K
AGE
45
TENURE
3.3 yrs

Steve LeClair

TITLE
Independent Director
COMPENSATION
$202K
AGE
50
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • AAON individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Jun 19 Sell Rebecca Thompson Individual 11. Jun 19 11. Jun 19 -1,100 $47.97 $-52,767
10. Jun 19 Sell Scott Asbjornson Individual 07. Jun 19 07. Jun 19 -3,824 $48.83 $-186,726
09. May 19 Sell Stephen Wakefield Individual 07. May 19 07. May 19 -1,118 $47.83 $-53,474
06. Mar 19 Sell Gary Fields Individual 05. Mar 19 05. Mar 19 -2,000 $42.39 $-84,770
06. Mar 19 Sell Stephen Wakefield Individual 05. Mar 19 05. Mar 19 -635 $41.88 $-26,596
09. Nov 18 Sell Jack Short Individual 08. Nov 18 08. Nov 18 -9,123 $43.81 $-399,670
09. Nov 18 Sell Gary Fields Individual 08. Nov 18 08. Nov 18 -1,600 $44.22 $-70,749
21. Aug 18 Sell Rebecca Thompson Individual 21. Aug 18 21. Aug 18 -5,533 $42.69 $-236,204
X
Management checks
We assess AAON's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AAON has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Much is AAON, Inc.'s (NASDAQ:AAON) CEO Getting Paid?

First, this article will compare CEO compensation with compensation at similar sized companies. … See our latest analysis for AAON How Does Norm Asbjornson's Compensation Compare With Similar Sized Companies? … Most shareholders would consider it a positive that Norm Asbjornson takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders.

Simply Wall St -

Should You Be Holding AAON, Inc. (NASDAQ:AAON)?

AAON is a company with impressive financial health as well as an optimistic growth outlook. … This indicates that AAON has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. … NasdaqGS:AAON Past and Future Earnings, August 5th 2019 Next Steps: For AAON, there are three key aspects you should further research: Historical Performance: What has AAON's returns been like over the past?

Simply Wall St -

Investors Who Bought AAON (NASDAQ:AAON) Shares Five Years Ago Are Now Up 156%

Over half a decade, AAON managed to grow its earnings per share at 5.3% a year. … It is important to consider the total shareholder return, as well as the share price return, for any given stock. … A Different Perspective We're pleased to report that AAON shareholders have received a total shareholder return of 41% over one year.

Simply Wall St -

Did AAON, Inc. (NASDAQ:AAON) Insiders Sell Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in AAON, Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for AAON AAON Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Lead Independent Director, Jack Short, for US$400k worth of shares, at about US$43.81 per share. … Insiders at AAON Have Sold Stock Recently The last quarter saw substantial insider selling of AAON shares.

Simply Wall St -

AAON, Inc. (NASDAQ:AAON) Earns Among The Best Returns In Its Industry

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for AAON: 0.24 = US$66m ÷ (US$320m - US$44m) (Based on the trailing twelve months to March 2019.) Therefore, AAON has an ROCE of 24%. … The Bottom Line On AAON's ROCE Low current liabilities and high ROCE is a good combination, making AAON look quite interesting.

Simply Wall St -

Is There Now An Opportunity In AAON, Inc. (NASDAQ:AAON)?

According to my valuation model, AAON seems to be fairly priced at around 8.63% above my intrinsic value, which means if you buy AAON today, you’d be paying a relatively reasonable price for it. … AAON’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

Estimating The Intrinsic Value Of AAON, Inc. (NASDAQ:AAON)

Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $48.59 $76.60 $101.18 $124.73 $146.07 $164.76 $180.87 $194.73 $206.77 $217.41 Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 32.08% Est @ 23.28% Est @ 17.11% Est @ 12.8% Est @ 9.78% Est @ 7.66% Est @ 6.18% Est @ 5.15% Present Value ($, Millions) Discounted @ 9.33% $44.44 $64.09 $77.42 $87.30 $93.52 $96.48 $96.88 $95.40 $92.66 $89.11 Present Value of 10-year Cash Flow (PVCF)= $837.30m "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage.

Simply Wall St -

AAON, Inc. (NASDAQ:AAON): Did It Outperform The Industry?

In this commentary, I will examine AAON, Inc.'s (NASDAQ:AAON) latest earnings update (31 March 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the building industry performed. … AAON's trailing twelve-month earnings (from 31 March 2019) of US$49m has … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 3.5%, indicating the rate at which AAON is growing has slowed down.

Simply Wall St -

Should You Worry About AAON, Inc.'s (NASDAQ:AAON) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Norm Asbjornson's Compensation Compare With Similar Sized Companies. … has a market capitalization of US$2.5b, and pays its CEO total annual compensation worth US$2.1m.

Simply Wall St -

Should You Be Concerned About AAON, Inc.'s (NASDAQ:AAON) Historical Volatility?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Company Info

Description

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, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, self-contained units, and coils. The company markets and sells its products to retail, manufacturing, educational, lodging, supermarket, medical, and other commercial industries. AAON, Inc. sells its products through a network of manufacturers’ representatives and internal sales force. AAON, Inc. was founded in 1987 and is based in Tulsa, Oklahoma.

Details
Name: AAON, Inc.
AAON
Exchange: NasdaqGS
Founded: 1987
$2,452,678,984
52,107,053
Website: http://www.aaon.com
Address: AAON, Inc.
2425 South Yukon Avenue,
Tulsa,
Oklahoma, 74107,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS AAON Common Stock Nasdaq Global Select US USD 03. Jan 1991
DB AAO Common Stock Deutsche Boerse AG DE EUR 03. Jan 1991
Number of employees
Current staff
Staff numbers
2,221
AAON employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/18 23:30
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/05
Last earnings filing: 2019/08/01
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.