NasdaqGS:AEIS

Stock Analysis Report

Executive Summary

Advanced Energy Industries, Inc., together with its subsidiaries, designs, manufactures, sells, and supports power conversion, measurement, and control solutions.

Rewards

Trading at 56% below its fair value

Earnings are forecast to grow 32.79% per year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months



Snowflake Analysis

Exceptional growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Advanced Energy Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AEIS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.6%

AEIS

2.6%

US Semiconductor

2.0%

US Market


1 Year Return

54.2%

AEIS

46.5%

US Semiconductor

23.6%

US Market

Return vs Industry: AEIS exceeded the US Semiconductor industry which returned 48.5% over the past year.

Return vs Market: AEIS exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

AEISIndustryMarket
7 Day4.6%2.6%2.0%
30 Day5.3%4.4%3.9%
90 Day39.2%19.0%12.0%
1 Year54.2%54.2%49.4%46.5%26.2%23.6%
3 Year30.5%30.5%94.7%83.7%53.2%43.3%
5 Year195.2%195.2%152.2%127.3%75.7%56.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Advanced Energy Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AEIS ($73.28) is trading below our estimate of fair value ($166.52)

Significantly Below Fair Value: AEIS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AEIS is poor value based on its PE Ratio (43x) compared to the Semiconductor industry average (34.5x).

PE vs Market: AEIS is poor value based on its PE Ratio (43x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AEIS is overvalued based on its PB Ratio (4.3x) compared to the US Semiconductor industry average (3.3x).


Next Steps

Future Growth

How is Advanced Energy Industries forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

32.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEIS's forecast earnings growth (32.8% per year) is above the savings rate (1.7%).

Earnings vs Market: AEIS's earnings (32.8% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: AEIS's revenue (33.5% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: AEIS's revenue (33.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AEIS's Return on Equity is forecast to be high in 3 years time (20.7%)


Next Steps

Past Performance

How has Advanced Energy Industries performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEIS has high quality earnings.

Growing Profit Margin: AEIS's current net profit margins (10.8%) are lower than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: AEIS's earnings have grown by 8.5% per year over the past 5 years.

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

Earnings vs Industry: AEIS had negative earnings growth (-34%) over the past year, making it difficult to compare to the Semiconductor industry average (-15.8%).


Return on Equity

High ROE: AEIS's Return on Equity (9.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Advanced Energy Industries's financial position?


Financial Position Analysis

Short Term Liabilities: AEIS's short term assets ($880.0M) exceed its short term liabilities ($355.9M).

Long Term Liabilities: AEIS's short term assets ($880.0M) exceed its long term liabilities ($579.4M).


Debt to Equity History and Analysis

Debt Level: AEIS's debt to equity ratio (52%) is considered high.

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

Debt Coverage: AEIS's debt is not well covered by operating cash flow (19.4%).

Interest Coverage: AEIS's interest payments on its debt are well covered by EBIT (253.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: AEIS's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

What is Advanced Energy Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AEIS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AEIS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AEIS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AEIS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AEIS'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 Advanced Energy Industries's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Yuval Wasserman (64yo)

5.3yrs

Tenure

US$4,316,713

Compensation

Mr. Yuval Wasserman has been President, Chief Executive Officer, and Director of Advanced Energy Industries, Inc. since October 2014. Mr. Wasserman has been Director of FARO Technologies, Inc. since Decemb ...


CEO Compensation Analysis

Compensation vs Market: Yuval's total compensation ($USD4.32M) is about average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

1.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: AEIS's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

5.2yrs

Average Tenure

62yo

Average Age

Experienced Board: AEIS's board of directors are considered experienced (5.2 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.


Ownership Breakdown

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


Management Team

  • Tom McGimpsey (57yo)

    Executive VP

    • Tenure: 10.8yrs
    • Compensation: US$1.17m
  • Yuval Wasserman (64yo)

    President

    • Tenure: 5.3yrs
    • Compensation: US$4.32m
  • Greg Provenzano (57yo)

    Senior Vice President of Industrial Technologies

    • Tenure: 1yrs
  • Bill Trupkiewicz (55yo)

    Vice President and Corporate Controller

    • Tenure: 5.8yrs
    • Compensation: US$550.56k
  • Edwin Mok

    Vice President of Strategic Marketing & Investor Relations

    • Tenure: 1.3yrs
  • Paul Oldham (56yo)

    Executive VP & CFO

    • Tenure: 1.7yrs
    • Compensation: US$1.05m
  • Neil Brinker (43yo)

    Executive VP & COO

    • Tenure: 1.6yrs
    • Compensation: US$1.34m
  • Isabel Yang

    Senior VP & Chief Technology Officer

    • Tenure: 1.5yrs
  • Randy Heckman

    Senior Vice President of Business & Corporate Development

    • Tenure: 2yrs
  • Dave McCarron

    Senior Vice President of Global Operations

    • Tenure: 1.5yrs

Board Members

  • Fred Ball (57yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$444.88k
  • Ed Grady (72yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$433.88k
  • Grant Beard (58yo)

    Independent Chairman of the Board

    • Tenure: 3.7yrs
    • Compensation: US$481.38k
  • Ron Foster (68yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$431.88k
  • Yuval Wasserman (64yo)

    President

    • Tenure: 5.3yrs
    • Compensation: US$4.32m
  • Tom Rohrs (68yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$431.88k
  • John Roush (54yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$426.38k
  • Tina Donikowski (60yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$410.88k

Company Information

Advanced Energy Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Advanced Energy Industries, Inc.
  • Ticker: AEIS
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$2.835b
  • Shares outstanding: 38.31m
  • Website: https://www.advancedenergy.com

Number of Employees


Location

  • Advanced Energy Industries, Inc.
  • 1625 Sharp Point Drive
  • Fort Collins
  • Colorado
  • 80525
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AEISNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDNov 1995
AVXDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1995

Biography

Advanced Energy Industries, Inc., together with its subsidiaries, designs, manufactures, sells, and supports power conversion, measurement, and control solutions. It offers process power solutions, including direct current (DC), pulsed DC, low frequency alternating current, high voltage, and radio frequency (RF) power supplies, as well as RF matching networks and remote plasma sources for reactive gas applications and RF instrumentation. The company also provides power control modules and thermal instrumentation products for rapid thermal processing, chemical vapor deposition, crystal growing, and other semiconductor and adjacent thin film applications, as well as in chemical processing, metal and glass manufacturing, and other general industrial power applications; and high voltage products for semiconductor wafer processing and metrology, electrostatic clamping of substrates, scientific instrumentation, mass spectrometry, and analytical X-ray systems for industrial and analytical applications. In addition, it offers gas detection and monitoring products for the automotive, energy, environmental control, aerospace, medical, and research industries; and MIL-COTS power supplies for radar systems, communications equipment, and test and measurement equipment. Further, the company provides amplifiers, generators, and electrostatic discharge sensors and monitors; electrostatic detection and measurement instrumentation products; and photonic-based measurement and monitoring solutions. In addition, it offers repair services, conversions, upgrades, and refurbishments and used equipment to companies. The company offers its products through direct sales force, independent sales representatives, and distributors in North America, Europe, and Asia. Advanced Energy Industries, Inc. has a collaboration agreement with the University of Colorado Boulder. The company was founded in 1981 and is headquartered in Fort Collins, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/18 23:31
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
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.