Advanced Energy Industries Inc (AEIS) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Advanced Energy Industries's EV/EBITDA of 21.3 is below its 5-year median of 22.0.

P/B above the industry

Advanced Energy Industries's price-to-book of 5.83 is above the Electronic Components and Accessories median of 3.49.

Trading above fair value

The share price of $231.60 is above our fair value estimate of $214.79.

Margin of safety under 20%

The price is 7.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -0.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -10.1% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 31.7% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance issued

The latest outlook (Q4 2026 GAAP earnings per share, Nov 2, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 40.3% over the last twelve months, against 37.3% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 23.9%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

High debt

Debt is 79.6% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 39.5% five years ago to 79.6%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 17.7% of total debt; we look for at least 20%.

Interest well covered

Operating income covers interest expense 25.0 times.

Short-term assets cover short-term debts

Current assets are 3.62 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.81; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Advanced Energy Industries paid dividends worth 0.2% of the share price over the last twelve months.

Yield below Treasuries

The 0.2% 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; Advanced Energy Industries yields 0.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 22.9% of free cash flow.