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.

Rewards

Earnings are forecast to grow 24.68% per year

Earnings grew by 26.9% over the past year

Risk Analysis

No risks detected for AAON from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

13.0%

AAON

6.0%

US Building

5.3%

US Market


1 Year Return

5.5%

AAON

-16.4%

US Building

-10.7%

US Market

Return vs Industry: AAON exceeded the US Building industry which returned -16.4% over the past year.

Return vs Market: AAON exceeded the US Market which returned -10.7% over the past year.


Shareholder returns

AAONIndustryMarket
7 Day13.0%6.0%5.3%
30 Day-16.5%-25.2%-13.6%
90 Day-3.2%-29.6%-19.8%
1 Year6.2%5.5%-15.1%-16.4%-8.9%-10.7%
3 Year44.6%41.3%-14.5%-18.5%15.5%8.0%
5 Year112.4%104.0%1.7%-11.5%35.2%20.4%

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?

46.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AAON ($48.32) is trading above our estimate of fair value ($35.53)

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 (46.8x) compared to the Building industry average (17.3x).

PE vs Market: AAON is poor value based on its PE Ratio (46.8x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: AAON is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: AAON is overvalued based on its PB Ratio (8.7x) compared to the US Building industry average (1.2x).


Next Steps

Future Growth

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

24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAON's forecast earnings growth (24.7% per year) is above the savings rate (1.7%).

Earnings vs Market: AAON's earnings (24.7% 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 (9.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: AAON's revenue (9.3% 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


Next Steps

Past Performance

How has AAON performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAON has high quality earnings.

Growing Profit Margin: AAON's current net profit margins (11.4%) are higher than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: AAON's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: AAON's earnings growth over the past year (26.9%) exceeds its 5-year average (2% per year).

Earnings vs Industry: AAON earnings growth over the past year (26.9%) exceeded the Building industry -15.9%.


Return on Equity

High ROE: AAON's Return on Equity (18.5%) is considered low.


Next Steps

Financial Health

How is AAON's financial position?


Financial Position Analysis

Short Term Liabilities: AAON's short term assets ($187.5M) exceed its short term liabilities ($56.0M).

Long Term Liabilities: AAON's short term assets ($187.5M) exceed its long term liabilities ($25.3M).


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?

0.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AAON's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: AAON's dividend (0.66%) is low compared to the top 25% of dividend payers in the US market (5.37%).


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?

5.4yrs

Average management tenure


CEO

Norm Asbjornson (83yo)

31.25s

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 ($USD1.95M) is below average for companies of similar size in the US market ($USD5.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Norman Asbjornson
Founder31.25yrsUS$1.95m18.71% $471.0m
Gary Fields
President & Director4.92yrsUS$1.37m0.062% $1.6m
Scott Asbjornson
VP of Finance & CFO7.67yrsUS$766.42k2.69% $67.6m
Mikel Crews
Vice President of Operations3.17yrsUS$650.08k0.12% $3.1m
Rebecca Thompson
Chief Accounting Officer & Treasurer7.33yrsUS$579.12k0.024% $597.3k
Rony Gadiwalla
VP of Information Technology & Chief Information Officer1.42yrsno data0.063% $1.6m
Luke Bomer
Secretaryno datano datano data

5.4yrs

Average Tenure

59yo

Average Age

Experienced Management: AAON's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Norman Asbjornson
Founder31.25yrsUS$1.95m18.71% $471.0m
Gary Fields
President & Director4.92yrsUS$1.37m0.062% $1.6m
Paul Lackey
Independent Director12.75yrsUS$206.67k0.16% $4.0m
Arthur McElroy
Independent Director12.75yrsUS$203.67k0.16% $4.0m
Jack Short
Lead Independent Director1.25yrsUS$209.67k0.065% $1.6m
Caron Lawhorn
Independent Director1.25yrsno data0.0065% $163.1k
Stephen LeClair
Independent Director2.92yrsUS$201.67k0.023% $578.4k
Angela Kouplen
Independent Director3.92yrsUS$201.67k0.033% $823.1k

3.7yrs

Average Tenure

58yo

Average Age

Experienced Board: AAON's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AAON insiders have only sold shares 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$2.517b
  • Shares outstanding: 52.09m
  • 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, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal and water-source heat pumps, self-contained units, coils, and controls. The company markets and sells its products to retail, manufacturing, educational, lodging, supermarket, medical, and other commercial industries. It sells its products through a network of manufacturers’ representatives and internal sales force. The company was incorporated in 1987 and is based in Tulsa, Oklahoma. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 02:57
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.