Latest Ratios: P/E Ratio 61.4x · EV/EBITDA 29.9x · ROE 12.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.5B | $6.3B | $9.8B | $6.2B | $4.1B | $4.3B | $3.5B | $2.6B | $1.8B | $1.9B | $1.8B |
| Enterprise Value | $6.9B | $6.8B | $10.0B | $6.2B | $4.1B | $4.3B | $3.5B | $2.6B | $1.8B | $1.9B | $1.7B |
| P/E Ratio → | 61.45 | 59.11 | 58.26 | 34.68 | 40.49 | 72.53 | 44.87 | 48.44 | 43.28 | 35.46 | 32.88 |
| P/S Ratio | 4.50 | 4.39 | 8.20 | 5.27 | 4.58 | 7.98 | 6.87 | 5.54 | 4.25 | 4.81 | 4.60 |
| P/B Ratio | 7.36 | 7.08 | 11.94 | 8.37 | 7.27 | 9.15 | 10.08 | 8.96 | 7.40 | 8.21 | 8.58 |
| P/FCF | — | — | — | 112.69 | 558.59 | 733.11 | 57.95 | 42.80 | 104.97 | 119.66 | 47.33 |
| P/OCF | — | — | 51.12 | 38.72 | 66.45 | 69.75 | 27.45 | 26.56 | 33.66 | 33.59 | 27.63 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.69 | 8.34 | 5.31 | 4.67 | 8.06 | 6.72 | 5.48 | 4.25 | 4.75 | 4.54 |
| EV / EBITDA | 29.86 | 29.18 | 36.80 | 22.62 | 25.57 | 43.20 | 27.12 | 28.67 | 25.26 | 21.59 | 18.81 |
| EV / EBIT | 45.41 | 46.16 | 47.79 | 27.21 | 32.61 | 62.13 | 36.25 | 38.22 | 33.22 | 25.88 | 21.91 |
| EV / FCF | — | — | — | 113.61 | 568.57 | 739.76 | 56.66 | 42.36 | 104.86 | 118.35 | 46.68 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 26.7% | 26.7% | 33.1% | 34.1% | 26.7% | 25.8% | 30.3% | 25.4% | 23.9% | 30.5% | 30.8% |
| Operating Margin | 10.6% | 10.6% | 17.4% | 19.5% | 14.3% | 13.0% | 19.8% | 14.3% | 12.8% | 18.3% | 20.7% |
| Net Profit Margin | 7.5% | 7.5% | 14.0% | 15.2% | 11.3% | 11.0% | 15.4% | 11.4% | 9.8% | 13.4% | 13.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.5% | 12.5% | 21.6% | 27.4% | 19.5% | 14.4% | 24.7% | 19.9% | 17.4% | 24.6% | 27.7% |
| ROA | 7.5% | 7.5% | 15.9% | 20.2% | 13.7% | 10.7% | 19.3% | 15.8% | 14.0% | 19.7% | 21.8% |
| ROIC | 9.9% | 9.9% | 17.6% | 24.0% | 16.7% | 13.4% | 28.5% | 19.7% | 17.9% | 28.0% | 33.8% |
| ROCE | 12.9% | 12.9% | 23.0% | 30.7% | 20.6% | 14.5% | 28.9% | 23.3% | 21.8% | 32.0% | 39.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.47 | 0.47 | 0.21 | 0.07 | 0.14 | 0.09 | 0.00 | — | — | — | — |
| Debt / EBITDA | 1.83 | 1.83 | 0.63 | 0.18 | 0.48 | 0.42 | 0.00 | — | — | — | — |
| Net Debt / Equity | — | 0.47 | 0.21 | 0.07 | 0.13 | 0.08 | -0.22 | -0.09 | -0.01 | -0.09 | -0.12 |
| Net Debt / EBITDA | 1.83 | 1.83 | 0.63 | 0.18 | 0.45 | 0.39 | -0.62 | -0.30 | -0.03 | -0.24 | -0.26 |
| Debt / FCF | — | — | — | 0.92 | 9.98 | 6.65 | -1.29 | -0.44 | -0.11 | -1.32 | -0.65 |
| Interest Coverage | 8.26 | 8.26 | 72.12 | 47.08 | 48.41 | 525.11 | — | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.63 | 2.63 | 2.79 | 3.23 | 2.40 | 2.51 | 3.73 | 3.35 | 2.96 | 3.07 | 3.61 |
| Quick Ratio | 1.84 | 1.84 | 1.72 | 1.54 | 1.03 | 1.01 | 2.34 | 2.03 | 1.33 | 1.66 | 2.40 |
| Cash Ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.04 | 0.03 | 1.34 | 0.48 | 0.04 | 0.61 | 1.12 |
| Asset Turnover | — | 0.86 | 1.02 | 1.24 | 1.09 | 0.82 | 1.15 | 1.26 | 1.41 | 1.37 | 1.50 |
| Inventory Turnover | 4.04 | 4.04 | 4.29 | 3.60 | 3.27 | 3.05 | 4.36 | 4.75 | 4.26 | 3.98 | 5.62 |
| Days Sales Outstanding | — | 149.05 | 87.24 | 57.26 | 58.44 | 56.17 | 33.61 | 53.04 | 45.49 | 46.85 | 46.83 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.5% | 0.3% | 0.4% | 0.6% | 0.5% | 0.6% | 0.6% | 0.9% | 0.7% | 0.7% |
| Payout Ratio | 30.3% | 30.3% | 15.5% | 14.9% | 22.8% | 33.9% | 25.1% | 31.0% | 39.5% | 25.1% | 23.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.6% | 1.7% | 1.7% | 2.9% | 2.5% | 1.4% | 2.2% | 2.1% | 2.3% | 2.8% | 3.0% |
| FCF Yield | — | — | — | 0.9% | 0.2% | 0.1% | 1.7% | 2.3% | 1.0% | 0.8% | 2.1% |
| Buyback Yield | 0.5% | 0.5% | 1.0% | 0.4% | 0.3% | 0.5% | 0.9% | 0.8% | 1.5% | 0.9% | 1.1% |
| Total Shareholder Yield | 1.0% | 1.0% | 1.3% | 0.8% | 0.9% | 1.0% | 1.4% | 1.4% | 2.4% | 1.6% | 1.8% |
| Shares Outstanding | — | $83M | $84M | $83M | $81M | $81M | $80M | $79M | $79M | $80M | $80M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying AAON stock.
AAON, Inc.'s current P/E ratio is 61.4x. The historical average is 26.4x. This places it at the 97th percentile of its historical range.
AAON, Inc.'s current EV/EBITDA is 29.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.5x.
AAON, Inc.'s return on equity (ROE) is 12.5%. The historical average is 22.4%.
Based on historical data, AAON, Inc. is trading at a P/E of 61.4x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
AAON, Inc.'s current dividend yield is 0.49% with a payout ratio of 30.3%.
AAON, Inc. has 26.7% gross margin and 10.6% operating margin. Operating margin between 10-20% is typical for established companies.
AAON, Inc.'s Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin compression from commodity costs
Metrics are mathematically derived from official filings.
Premium Pricing for Data Center Pivot
AAON trades at 68x trailing earnings and 32.9x EV/EBITDA, a steep premium to peers like Lennox (19x P/E) and Trane (37x P/E), reflecting expectations of sustained high growth from data center demand.
The forward P/E of 38.8x implies the market is pricing in continued double-digit earnings growth, consistent with the 20% revenue surge in Q2 2026. However, the PEG of 12.5x suggests that even with growth, the valuation is stretched relative to near-term earnings expansion. Investors should monitor whether the BasX integration and liquid cooling initiatives can justify the premium over the next 12-18 months.
Margin Compression Masks Underlying Strength
Gross margin fell to 24.3% in Q2 2026 from 36.1% a year earlier, as reported in financial statements, yet operating margin improved to 11.0% from 7.6% sequentially, indicating cost discipline is partially offsetting input cost pressures.
The 12-point gross margin decline over two years appears tied to product mix shifts toward lower-margin BasX projects and commodity cost inflation. However, operating leverage is evident: operating income grew 192% year-over-year, suggesting SG&A is scaling slower than revenue. Net margin of 9.0% remains respectable, but investors should watch whether gross margin stabilizes as pricing catches up to input costs.
Returns Compress as Capital Base Expands
ROIC fell to 3.6% in Q2 2026 from 6.2% a year earlier, according to the latest quarterly data, as debt-funded capacity expansion and the BasX acquisition outpaced earnings growth.
The decline in ROIC from 6.2% to 3.6% over four quarters suggests that new investments are not yet generating returns at historical levels. ROE also dropped from 6.8% to 5.8% over the same period, reflecting a larger equity base. This may be a temporary phase as capacity comes online, but if returns do not recover within 2-3 quarters, it could signal diminishing capital efficiency.
Working Capital Cycle Lengthens Sharply
Cash conversion cycle expanded to 102 days in Q2 2026 from 132 days a year earlier, as per the ratio data, driven by a jump in DSO to 72 days from 56 days, indicating slower collections.
DSO rose from 56 to 72 days year-over-year, suggesting that customers, possibly data center operators, are taking longer to pay. DIO remained elevated at 62 days, reflecting inventory build-up for growth. DPO improved to 32 days from 10 days, indicating better supplier terms, but the overall CCC of 102 days still ties up significant cash, contributing to negative free cash flow.
Debt Rises but Coverage Remains Adequate
Debt-to-equity climbed to 0.46 in Q2 2026 from 0.14 a year earlier, as reported in financial statements, yet interest coverage of 11.1x remains comfortable, suggesting manageable debt service despite increased borrowing.
The rise in leverage is deliberate, funding capacity expansion and the BasX acquisition. D/EBITDA of 4.08x is higher than the 0.87x seen in Q3 2024, but still below the 5x threshold that might raise concerns. Interest coverage of 11.1x provides a cushion, though it has declined from 183x in Q2 2024, reflecting the higher debt load. Investors should monitor whether EBITDA growth keeps pace with debt service.
Liquidity Strong but Cash Position Minimal
Current ratio stands at 3.01 in Q2 2026, as per the balance sheet, but cash is only $13K, suggesting reliance on working capital and credit facilities for short-term obligations.
The current ratio of 3.01 indicates ample short-term assets to cover liabilities, but the near-zero cash balance is unusual and may reflect an aggressive cash sweep or heavy reinvestment. Quick ratio of 2.01 shows inventory is not a liquidity concern. However, negative free cash flow and rising receivables could strain liquidity if credit markets tighten, warranting close monitoring of the revolver usage.
Premium Valuation vs. Operational Peers
AAON's P/E of 68x and EV/EBITDA of 32.9x are far above Lennox (19x, 14.8x) and Trane (37x, 25.8x), as per peer data, reflecting a scarcity premium for pure-play data center exposure.
While AAON's ROE of 5.8% lags Lennox's 65.3% and Trane's 34.5%, its growth trajectory and niche positioning justify a higher multiple in the market's view. The gap in profitability metrics may narrow as BasX scales and margins recover. Investors should compare AAON to Vertiv for data center exposure, where multiples are also elevated, rather than solely to traditional HVAC peers.
P/E Misleads for High-Growth Industrial
The trailing P/E of 68x is often misapplied to AAON, as it fails to capture the earnings inflection from data center demand; forward P/E of 38.8x and EV/EBITDA of 18.6x better reflect expected growth.
Using trailing P/E penalizes AAON for past margin compression that may not persist. The forward multiples, based on analyst estimates, suggest the market expects a significant earnings rebound. A more appropriate metric is EV/EBITDA, which normalizes for capital structure and non-cash items, or a PEG ratio based on forward growth. Investors should focus on the sustainability of the data center pipeline rather than the trailing multiple.