AAON, Inc. (AAON) 10-Year Financial Performance & Capital Metrics

AAON • • Industrial / General

IndustrialsConstructionHVAC & Building SystemsHVAC Equipment Manufacturers

AboutAAON, Inc., together with its subsidiaries, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment in the United States and Canada. The company operates through three segments: AAON Oklahoma, AAON Coil Products, and BasX. It offers rooftop units, data center cooling solutions, cleanroom systems, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls. The company markets and sells its products to retail, manufacturing, educational, lodging, supermarket, data centers, medical and pharmaceutical, and other commercial industries. It sells its products through a network of independent manufacturer representative organizations and internal sales force. The company was incorporated in 1987 and is based in Tulsa, Oklahoma.Show more

Revenue $1.2B +2.7%
EBITDA $272M -0.8%
Net Income $169M -5.1%
EPS (Diluted) 2.02 -5.2%
Gross Margin 33.07% -3.1%
EBITDA Margin 22.66% -3.5%
Operating Margin 17.42% -10.5%
Net Margin 14.04% -7.6%
ROE 21.61% -21.2%
ROIC 17.61% -26.8%
Debt/Equity 0.21 +201.6%
Interest Coverage 71.99 +53.2%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 22.9%
✓Strong 5Y profit CAGR of 25.7%
✓Strong 5Y sales CAGR of 20.7%
✓Healthy 5Y average net margin of 13.4%
✓Efficient asset utilization: 1.0x turnover

✗Weaknesses

✗Weak Piotroski F-Score: 3/9
✗Negative free cash flow
✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y12.92%

5Y20.67%

3Y30.96%

TTM8.77%

Profit (Net Income) CAGR

10Y14.33%

5Y25.7%

3Y42.09%

TTM-47.49%

EPS CAGR

10Y14.32%

5Y24.33%

3Y40.39%

TTM-46.7%

ROCE

10Y Avg27.21%

5Y Avg23.54%

3Y Avg24.77%

Latest23.04%

Peer Comparison

HVAC Equipment Manufacturers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
AAONAAON, Inc.	6.97B	85.37	42.26	2.75%	7.62%	11.62%		0.21
LIILennox International Inc.	18.7B	533.25	23.66	7.21%	15.74%	78.63%	4.18%	1.75
CARRCarrier Global Corporation	46.64B	55.38	9.00	18.65%	18.05%	26.83%	0.09%	0.88

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	358.63M	383.98M	405.23M	433.95M	469.33M	514.55M	534.52M	888.79M	1.17B	1.2B
Revenue Growth %	0.01%	0.07%	0.06%	0.07%	0.08%	0.1%	0.04%	0.66%	0.31%	0.03%
Cost of Goods Sold+	249.95M	265.9M	281.58M	330.41M	349.91M	358.7M	396.69M	651.22M	769.5M	803.53M
COGS % of Revenue	0.7%	0.69%	0.69%	0.76%	0.75%	0.7%	0.74%	0.73%	0.66%	0.67%
Gross Profit+	108.68M	118.08M	123.65M	103.53M	119.42M	155.85M	137.83M	237.57M	399.02M	397.11M
Gross Margin %	0.3%	0.31%	0.31%	0.24%	0.25%	0.3%	0.26%	0.27%	0.34%	0.33%
Gross Profit Growth %	0%	0.09%	0.05%	-0.16%	0.15%	0.3%	-0.12%	0.72%	0.68%	-0%
Operating Expenses+	37.38M	38.49M	49.42M	48.18M	52.41M	54.01M	68.58M	110.81M	171.53M	187.99M
OpEx % of Revenue	0.1%	0.1%	0.12%	0.11%	0.11%	0.1%	0.13%	0.12%	0.15%	0.16%
Selling, General & Admin	36.56M	37.76M	48.47M	47.07M	50.55M	60.49M	68.6M	110.82M	157.78M	167.47M
SG&A % of Revenue	0.1%	0.1%	0.12%	0.11%	0.11%	0.12%	0.13%	0.12%	0.14%	0.14%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	1.32M	1.15M	1.49M	1.87M	1.86M	-6.48M	-21K	-12K	13.75M	20.52M
Operating Income+	71.3M	79.59M	74.23M	55.35M	67.01M	101.84M	69.25M	126.76M	227.49M	209.12M
Operating Margin %	0.2%	0.21%	0.18%	0.13%	0.14%	0.2%	0.13%	0.14%	0.19%	0.17%
Operating Income Growth %	0.05%	0.12%	-0.07%	-0.25%	0.21%	0.52%	-0.32%	0.83%	0.79%	-0.08%
EBITDA+	83.04M	92.63M	89.24M	73.01M	89.78M	127.47M	99.67M	162.19M	274.29M	272.04M
EBITDA Margin %	0.23%	0.24%	0.22%	0.17%	0.19%	0.25%	0.19%	0.18%	0.23%	0.23%
EBITDA Growth %	0.04%	0.12%	-0.04%	-0.18%	0.23%	0.42%	-0.22%	0.63%	0.69%	-0.01%
D&A (Non-Cash Add-back)	11.74M	13.04M	15.01M	17.66M	22.77M	25.63M	30.42M	35.43M	46.79M	62.92M
EBIT	71.19M	79.53M	74.46M	55.51M	67.35M	95.36M	69.31M	127.16M	228M	209.5M
Net Interest Income+	161K	292K	298K	196K	66K	88K	-132K	-2.63M	-4.84M	-2.9M
Interest Income	161K	292K	298K	196K	66K	88K	0	0	0	0
Interest Expense	0	0	0	0	0	0	132K	2.63M	4.84M	2.9M
Other Income/Expense	37K	397K	389K	149K	20K	139K	-71K	-2.23M	-4.34M	-2.53M
Pretax Income+	71.34M	79.99M	74.62M	55.5M	67.03M	101.97M	69.18M	124.53M	223.15M	206.59M
Pretax Margin %	0.2%	0.21%	0.18%	0.13%	0.14%	0.2%	0.13%	0.14%	0.19%	0.17%
Income Tax+	25.61M	26.61M	20.79M	13.17M	13.32M	22.97M	10.42M	24.16M	45.53M	38.03M
Effective Tax Rate %	0.64%	0.67%	0.73%	0.76%	0.8%	0.77%	0.85%	0.81%	0.8%	0.82%
Net Income+	45.73M	53.38M	54.5M	42.33M	53.71M	79.01M	58.76M	100.38M	177.62M	168.56M
Net Margin %	0.13%	0.14%	0.13%	0.1%	0.11%	0.15%	0.11%	0.11%	0.15%	0.14%
Net Income Growth %	0.04%	0.17%	0.02%	-0.22%	0.27%	0.47%	-0.26%	0.71%	0.77%	-0.05%
Net Income (Continuing)	45.73M	53.38M	53.83M	42.33M	53.71M	79.01M	58.76M	100.38M	177.62M	168.56M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	0.56	0.67	0.69	0.54	0.68	0.99	0.73	1.24	2.13	2.02
EPS Growth %	0.06%	0.2%	0.03%	-0.22%	0.26%	0.46%	-0.26%	0.7%	0.72%	-0.05%
EPS (Basic)	0.57	0.67	0.69	0.54	0.69	1.01	0.75	1.26	2.19	2.07
Diluted Shares Outstanding	54.48M	80.17M	79.62M	79M	78.95M	79.59M	80.59M	81.15M	83.3M	83.63M
Basic Shares Outstanding	81.66M	80.06M	79.62M	79M	78.12M	78.25M	78.61M	79.58M	81.16M	81.47M
Dividend Payout Ratio	0.26%	0.24%	0.25%	0.4%	0.31%	0.25%	0.34%	0.23%	0.15%	0.15%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	124.21M	140.98M	153.73M	140.66M	187.55M	220.25M	218.08M	349.12M	408.95M	488.21M
Cash & Short-Term Investments	30.43M	43.75M	30.41M	1.99M	26.8M	79.03M	2.86M	5.45M	287K	14K
Cash Only	7.91M	24.15M	21.46M	1.99M	26.8M	79.03M	2.86M	5.45M	287K	14K
Short-Term Investments	22.52M	19.59M	8.96M	0	0	0	0	0	0	0
Accounts Receivable	54.75M	49.27M	52.01M	54.08M	68.2M	47.39M	82.25M	142.31M	183.3M	286.97M
Days Sales Outstanding	55.72	46.83	46.85	45.49	53.04	33.61	56.17	58.44	57.26	87.24
Inventory	38.5M	47.35M	70.79M	77.61M	73.6M	82.22M	130.27M	198.94M	213.53M	187.42M
Days Inventory Outstanding	56.22	65	91.76	85.74	76.78	83.66	119.86	111.5	101.29	85.14
Other Current Assets	0	0	0	5.93M	17.58M	7.85M	628K	498K	8.74M	13.81M
Total Non-Current Assets+	108.64M	115.55M	143.05M	167.34M	183.88M	228.76M	432.1M	464.79M	532.48M	687.02M
Property, Plant & Equipment	101.06M	114.89M	142.38M	163M	179.78M	224.91M	275.04M	311.87M	381.72M	525.79M
Fixed Asset Turnover	3.55x	3.34x	2.85x	2.66x	2.61x	2.29x	1.94x	2.85x	3.06x	2.28x
Goodwill	0	0	0	3.23M	3.23M	3.23M	85.73M	81.89M	81.89M	81.89M
Intangible Assets	0	0	0	506K	272K	38K	70.12M	64.61M	68.05M	78.26M
Long-Term Investments	6.92M	0	0	598K	597K	579K	1.22M	0	0	0
Other Non-Current Assets	661K	657K	678K	0	0	0	0	6.42M	816K	242K
Total Assets+	232.85M	256.53M	296.78M	307.99M	371.42M	449.01M	650.18M	813.9M	941.44M	1.18B
Asset Turnover	1.54x	1.50x	1.37x	1.41x	1.26x	1.15x	0.82x	1.09x	1.24x	1.02x
Asset Growth %	0.03%	0.1%	0.16%	0.04%	0.21%	0.21%	0.45%	0.25%	0.16%	0.25%
Total Current Liabilities+	43.41M	39.04M	50.06M	47.49M	56.03M	59.03M	86.77M	145.57M	126.75M	174.91M
Accounts Payable	6.18M	7.1M	10.97M	10.62M	11.76M	12.45M	29.02M	45.51M	27.48M	44.65M
Days Payables Outstanding	9.02	9.75	14.22	11.73	12.27	12.67	26.7	25.51	13.04	20.28
Short-Term Debt	0	0	0	0	0	0	0	0	0	16M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	9.07M	8.54M	11.07M	5M	13.01M	6.82M	14.15M	30.12M	24.51M	15.32M
Current Ratio	2.86x	3.61x	3.07x	2.96x	3.35x	3.73x	2.51x	2.40x	3.23x	2.79x
Quick Ratio	1.97x	2.40x	1.66x	1.33x	2.03x	2.34x	1.01x	1.03x	1.54x	1.72x
Cash Conversion Cycle	102.92	102.08	124.39	119.49	117.55	104.61	149.33	144.44	145.51	152.1
Total Non-Current Liabilities+	10.52M	11.59M	9.49M	11.06M	25.26M	39.11M	97.24M	107.62M	79.46M	175.75M
Long-Term Debt	0	0	0	0	0	0	40M	71M	38.33M	138.89M
Capital Lease Obligations	0	0	0	0	0	0	0	5.99M	10.2M	13.59M
Deferred Tax Liabilities	8.71M	9.53M	7.98M	9.26M	15.3M	28.32M	31.99M	18.66M	12.13M	0
Other Non-Current Liabilities	1.12M	561K	0	146K	9.96M	10.79M	25.25M	11.96M	18.8M	23.26M
Total Liabilities	53.94M	50.63M	59.55M	58.55M	81.28M	98.14M	184.01M	253.19M	206.21M	350.65M
Total Debt+	0	0	0	0	0	202K	41.58M	78.25M	50.55M	170.96M
Net Debt	-7.91M	-24.15M	-21.46M	-1.99M	-26.8M	-78.82M	38.72M	72.8M	50.26M	170.95M
Debt / Equity	-	-	-	-	-	0.00x	0.09x	0.14x	0.07x	0.21x
Debt / EBITDA	-	-	-	-	-	0.00x	0.42x	0.48x	0.18x	0.63x
Net Debt / EBITDA	-0.10x	-0.26x	-0.24x	-0.03x	-0.30x	-0.62x	0.39x	0.45x	0.18x	0.63x
Interest Coverage	-	-	-	-	-	-	524.64x	48.25x	46.97x	71.99x
Total Equity+	178.92M	205.9M	237.23M	249.44M	290.14M	350.87M	466.17M	560.71M	735.22M	824.58M
Equity Growth %	0.03%	0.15%	0.15%	0.05%	0.16%	0.21%	0.33%	0.2%	0.31%	0.12%
Book Value per Share	3.28	2.57	2.98	3.16	3.67	4.41	5.78	6.91	8.83	9.86
Total Shareholders' Equity	178.92M	205.9M	237.23M	249.44M	290.14M	350.87M	466.17M	560.71M	735.22M	824.58M
Common Stock	212K	211K	210K	208K	208K	209K	210K	322K	326K	326K
Retained Earnings	178.71M	205.69M	237.02M	249.24M	286.3M	345.5M	384.31M	461.66M	612.84M	755.31M
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	55.35M	63.92M	57.99M	54.86M	97.92M	128.81M	61.18M	61.32M	158.9M	192.53M
Operating CF Margin %	0.15%	0.17%	0.14%	0.13%	0.21%	0.25%	0.11%	0.07%	0.14%	0.16%
Operating CF Growth %	0.03%	0.15%	-0.09%	-0.05%	0.79%	0.32%	-0.53%	0%	1.59%	0.21%
Net Income	45.73M	53.38M	54.5M	42.33M	53.71M	79.01M	58.76M	100.38M	177.62M	168.56M
Depreciation & Amortization	11.74M	13.04M	15.01M	17.66M	22.77M	25.63M	30.42M	35.43M	46.79M	189K
Stock-Based Compensation	2.89M	4.36M	6.31M	7.86M	11.8M	11.34M	11.81M	13.7M	16.38M	16.73M
Deferred Taxes	1.17M	825K	-749K	2.64M	6.04M	13.03M	3.67M	-13.33M	-6.53M	-6.61M
Other Non-Cash Items	446K	779K	-209K	318K	1.84M	-5.21M	669K	2.72M	1.52M	63.03M
Working Capital Changes	-6.62M	-8.45M	-16.87M	-15.95M	1.77M	5.01M	-44.14M	-77.57M	-76.89M	-49.37M
Change in Receivables	-5.88M	7.05M	-7.52M	-2.83M	174K	16.04M	-9.74M	-47.51M	-9.98M	-10.04M
Change in Inventory	-1.06M	-9.48M	-23.7M	-5.6M	2.56M	-9.73M	-45.95M	-71.41M	-16.23M	27.08M
Change in Payables	-5.11M	654K	3.04M	-1.18M	280K	-2.15M	10.9M	11.57M	-18.32M	16.96M
Cash from Investing+	-23.19M	-16.93M	-31.05M	-34.63M	-37.05M	-61.27M	-158.72M	-76.21M	-109.31M	-213.07M
Capital Expenditures	-20.97M	-26.6M	-41.71M	-37.27M	-37.17M	-67.8M	-55.36M	-54.02M	-109.49M	-213.15M
CapEx % of Revenue	0.06%	0.07%	0.1%	0.09%	0.08%	0.13%	0.1%	0.06%	0.09%	0.18%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	54K	52K	60K	66K	120K	6.53M	73K	-21.94M	180K	76K
Cash from Financing+	-43.76M	-30.75M	-29.64M	-39.68M	-18.5M	-29.63M	18.73M	17.36M	-46.51M	18.03M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-11.86M	-12.68M	-13.66M	-16.73M	-16.64M	-19.82M	-19.95M	-22.92M	-26.45M	-26.08M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	2.44M	-823K	-1.61M	-1.1M	-1.51M	-1.17M	-1.59M	-1.02M	-1.7M	-8.7M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	31.94M	37.32M	16.28M	17.59M	60.76M	61.01M	5.82M	7.29M	54.6M	-3.13M
FCF Margin %	0.09%	0.1%	0.04%	0.04%	0.13%	0.12%	0.01%	0.01%	0.05%	-0%
FCF Growth %	-0.12%	0.17%	-0.56%	0.08%	2.45%	0%	-0.9%	0.25%	6.49%	-1.06%
FCF per Share	0.59	0.47	0.20	0.22	0.77	0.77	0.07	0.09	0.66	-0.04
FCF Conversion (FCF/Net Income)	1.21x	1.20x	1.06x	1.30x	1.82x	1.63x	1.04x	0.61x	0.89x	1.14x
Interest Paid	0	0	0	6K	0	0	0	2.41M	4.82M	2.81M
Taxes Paid	24.13M	27.35M	16.95M	14.98M	0	0	7.89M	19.29M	63.38M	49.92M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	25.91%	27.74%	24.6%	17.4%	19.91%	24.65%	14.38%	19.55%	27.41%	21.61%
Return on Invested Capital (ROIC)	33.1%	33.85%	28.01%	17.92%	19.68%	28.53%	13.37%	16.7%	24.05%	17.61%
Gross Margin	30.3%	30.75%	30.51%	23.86%	25.45%	30.29%	25.79%	26.73%	34.15%	33.07%
Net Margin	12.75%	13.9%	13.45%	9.75%	11.44%	15.35%	10.99%	11.29%	15.2%	14.04%
Debt / Equity	-	-	-	-	-	0.00x	0.09x	0.14x	0.07x	0.21x
Interest Coverage	-	-	-	-	-	-	524.64x	48.25x	46.97x	71.99x
FCF Conversion	1.21x	1.20x	1.06x	1.30x	1.82x	1.63x	1.04x	0.61x	0.89x	1.14x
Revenue Growth	0.65%	7.07%	5.54%	7.09%	8.15%	9.63%	3.88%	66.28%	31.47%	2.75%

Revenue by Segment

	2018	2019	2020	2021	2022	2023	2024
Part Sales	26.73M	33.33M	32.56M	-	-	67.7M	76.9M
Part Sales Growth	-	24.69%	-2.31%	-	-	-	13.60%
Rooftop Units	333.11M	349.43M	400.95M	-	-	804.25M	-
Rooftop Units Growth	-	4.90%	14.74%	-	-	-	-
Air Handlers	21.91M	24.27M	23.93M	-	-	61.83M	-
Air Handlers Growth	-	10.77%	-1.38%	-	-	-	-
Condensing Units	18.28M	18.48M	21.15M	-	-	42.8M	-
Condensing Units Growth	-	1.06%	14.47%	-	-	-	-
Product and Service, Other	-	-	-	-	-	29.04M	-
Product and Service, Other Growth	-	-	-	-	-	-	-
Water Source Heat Pumps	14.66M	25.45M	19.05M	-	-	15.9M	-
Water Source Heat Pumps Growth	-	73.58%	-25.13%	-	-	-	-
Outdoor Mechanical Rooms	2.41M	1.64M	2.84M	-	-	506K	-
Outdoor Mechanical Rooms Growth	-	-31.77%	72.98%	-	-	-	-
AAON Oklahoma	-	-	-	463.85M	663.85M	-	-
AAON Oklahoma Growth	-	-	-	-	43.12%	-	-
BasX	-	-	-	4.08M	117.65M	-	-
BasX Growth	-	-	-	-	2781.53%	-	-
AAON Coil Products	-	-	-	66.59M	107.29M	-	-
AAON Coil Products Growth	-	-	-	-	61.12%	-	-
Other Product and Services	16.86M	16.75M	14.07M	-	-	-	-
Other Product and Services Growth	-	-0.65%	-15.98%	-	-	-	-

Frequently Asked Questions

Valuation & Price

AAON, Inc. (AAON) has a price-to-earnings (P/E) ratio of 42.3x. This suggests investors expect higher future growth.

Growth & Financials

AAON, Inc. (AAON) reported $1.32B in revenue for fiscal year 2024. This represents a 394% increase from $266.2M in 2011.

AAON, Inc. (AAON) grew revenue by 2.7% over the past year. Growth has been modest.

Yes, AAON, Inc. (AAON) is profitable, generating $100.3M in net income for fiscal year 2024 (14.0% net margin).

Dividend & Returns

Yes, AAON, Inc. (AAON) pays a dividend with a yield of 0.37%. This makes it attractive for income-focused investors.

AAON, Inc. (AAON) has a return on equity (ROE) of 21.6%. This is excellent, indicating efficient use of shareholder capital.

AAON, Inc. (AAON) had negative free cash flow of $231.9M in fiscal year 2024, likely due to heavy capital investments.

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