Advanced Energy Industries (NasdaqGS:AEIS) - Share price, News & Analysis

AEIS fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	1/6
Financial Health	5/6
Dividends	0/6

AEIS Stock Overview

Advanced Energy Industries, Inc. designs, manufactures, sells, and supports precision power conversion, measurement, and control solutions worldwide.

Rewards

Trading at 45.2% below our estimate of its fair value

Earnings are forecast to grow 22.32% per year

Risk Analysis

Significant insider selling over the past 3 months

Advanced Energy Industries Competitors

Novanta

NasdaqGS:NOVT

US$4.4b

OSI Systems

NasdaqGS:OSIS

US$1.4b

ABB

SWX:ABBN

CHF55.2b

Murata Manufacturing

TSE:6981

JP¥5.2t

Price History & Performance

Summary of all time highs, changes and price drops for Advanced Energy Industries
Historical stock prices
Current Share Price	US$75.47
52 Week High	US$114.73
52 Week Low	US$72.22
Beta	1.61
1 Month Change	-5.19%
3 Month Change	-12.58%
1 Year Change	-23.04%
3 Year Change	49.80%
5 Year Change	-2.57%
Change since IPO	654.70%

Recent News & Updates

Apr 10

Advanced Energy Industries: Hiccups In The Advancement

Advanced Energy has been well positioned and has built up a solid track record over the past decade. Continued electrification of the economy should provide further tailwinds, but recent performance is a bit soft, not entirely explainable by supply chain issues. A good positioning and softer recent performance goes hand in hand with a very non-demanding multiple, amidst a nice bolt-on deal. Right here, shares look fairly valued, as I am willing to commit capital on dips here.

Shareholder Returns

	AEIS	US Electronic	US Market
7D	-5.1%	-2.7%	-2.7%
1Y	-23.0%	-15.4%	-12.9%

Return vs Industry: AEIS underperformed the US Electronic industry which returned -15.4% over the past year.

Return vs Market: AEIS underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is AEIS's price volatile compared to industry and market?
AEIS volatility
AEIS Average Weekly Movement	7.0%
Electronic Industry Average Movement	7.7%
Market Average Movement	7.9%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.0%

Stable Share Price: AEIS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AEIS's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1981	10,000	Steve Kelley	https://www.advancedenergy.com

Advanced Energy Industries, Inc. designs, manufactures, sells, and supports precision power conversion, measurement, and control solutions worldwide. It offers plasma power solutions, including direct current (DC), pulsed DC, low frequency alternating current, high voltage, and radio frequency (RF) power supplies, as well as RF power supplies, RF matching networks, and RF instrumentation products; and remote plasma sources for reactive gas applications. The company also provides power control modules and thermal instrumentation products for rapid thermal processing, chemical vapor deposition, epitaxy, crystal growing, and chemical processing, as well as metal, carbon fiber, and glass manufacturing and other industrial power applications; high voltage DC-DC products for semiconductor wafer processing and metrology, electrostatic clamping of substrates, scientific instrumentation, mass spectrometry, and X-ray systems for industrial and analytical applications; and low voltage DC-DC board mounted solutions for use in healthcare, telecommunications, test and measurement, instrumentation, and industrial equipment applications, as well as distributed power in server and storage systems.

Advanced Energy Industries Fundamentals Summary

How do Advanced Energy Industries's earnings and revenue compare to its market cap?
AEIS fundamental statistics
Market Cap	US$2.83b
Earnings (TTM)	US$133.18m
Revenue (TTM)	US$1.50b

21.3x

P/E Ratio

1.9x

P/S Ratio

Is AEIS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AEIS income statement (TTM)
Revenue	US$1.50b
Cost of Revenue	US$953.95m
Gross Profit	US$547.85m
Other Expenses	US$414.66m
Earnings	US$133.18m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.55
Gross Margin	36.48%
Net Profit Margin	8.87%
Debt/Equity Ratio	43.0%

How did AEIS perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

11%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

45.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AEIS ($75.47) is trading below our estimate of fair value ($137.84)

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 (21.3x) compared to the US Electronic industry average (16.2x).

PE vs Market: AEIS is poor value based on its PE Ratio (21.3x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: AEIS is good value based on its PEG Ratio (1x)

Price to Book Ratio

PB vs Industry: AEIS is overvalued based on its PB Ratio (3.1x) compared to the US Electronic industry average (1.9x).

Future Growth

How is Advanced Energy Industries forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

22.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEIS's forecast earnings growth (22.3% per year) is above the savings rate (1.9%).

Earnings vs Market: AEIS's earnings (22.3% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: AEIS's revenue is expected to decline over the next 3 years (-7.3% per year).

High Growth Revenue: AEIS's revenue is forecast to decline over the next 3 years (-7.3% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-3.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AEIS has high quality earnings.

Growing Profit Margin: AEIS's current net profit margins (8.9%) are lower than last year (10.7%).

Past Earnings Growth Analysis

Earnings Trend: AEIS's earnings have declined by 3.8% 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 (-14.1%) over the past year, making it difficult to compare to the Electronic industry average (34.4%).

Return on Equity

High ROE: AEIS's Return on Equity (14.8%) is considered low.

Financial Health

How is Advanced Energy Industries's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AEIS's short term assets ($1.2B) exceed its short term liabilities ($363.4M).

Long Term Liabilities: AEIS's short term assets ($1.2B) exceed its long term liabilities ($567.6M).

Debt to Equity History and Analysis

Debt Level: AEIS has more cash than its total debt.

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 well covered by operating cash flow (24.7%).

Interest Coverage: AEIS's interest payments on its debt are well covered by EBIT (32.4x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.53%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AEIS's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: AEIS's dividend (0.53%) is low compared to the top 25% of dividend payers in the US market (4.11%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: AEIS is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: AEIS is not paying a notable dividend for the US market.

Discover strong dividend paying companies

Management

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

1.3yrs

Average management tenure

CEO

Steve Kelley (59 yo)

1.17yrs

Tenure

US$6,506,021

Compensation

Mr. Stephen D. Kelley, also known as Steve, serves as Chief Executive Officer, President and Director of Advanced Energy Industries, Inc., since March 1, 2021. He served as Consultant at Amkor Technology,...

CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD6.51M) is about average for companies of similar size in the US market ($USD6.86M).

Compensation vs Earnings: Insufficient data to compare Steve's compensation with company performance.

Leadership Team

Experienced Management: AEIS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: AEIS's board of directors are considered experienced (5 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: AEIS 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31