AAON, Inc. (AAON) stock analysis

P/E below its 5-year median

AAON's P/E of 31.0 is below its own 5-year median of 49.6.

P/E above the industry

AAON's P/E of 31.0 is above the Industrial and Commercial Machinery and Computer Equipment median of 27.5.

EV/EBITDA below its 5-year median

AAON's EV/EBITDA of 16.9 is below its 5-year median of 29.0.

P/S above the industry

AAON's price-to-sales of 2.78 is above the Industrial and Commercial Machinery and Computer Equipment median of 2.44 (book value is negative, so we use sales).

Trading below fair value

The share price of $76.33 is below our fair value estimate of $96.89.

Margin of safety over 20%

The price is 21.2% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 17.5% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 1.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 104% over the last twelve months, against a 5-year average of 6.4% a year.

Growing faster than the industry

Revenue grew 72.3% over the last twelve months; the Industrial and Commercial Machinery and Computer Equipment median is 7.8%.

Guidance raised

AAON raised its 2026 net sales growth outlook on Aug 10, 2026.

Gross margin slipping

Gross margin was 25.9% over the last twelve months, against 26.9% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 6.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 9.0% over the last twelve months, against a 5-year average of 11.8%.

Net margin above the industry

AAON's net margin of 9.0% is above the Industrial and Commercial Machinery and Computer Equipment median of 5.3%.

No debt

AAON has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 2.82 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.10; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

AAON paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; AAON yields 0.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 16.0% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.