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Fundamentals snapshot

AAON, Inc.

AAON · NMS · Industrials · Building Products & Equipment

Current price

$73.73

52-week range

$73.19 - $150.46

Market cap

$6.08B

One-glance verdict

Overvalued

$-4.16 our estimate vs market $73.73

Wall Street consensus: $134.75 (-3,339.2% lower than our fair-value estimate)

Balance sheet

Watch

8.59x Adequate

Net debt $452.07M. Interest coverage shows how many times profit covers the interest bill.

What this company does

AAON, Inc.

AAON, Inc. makes and sells air conditioning and heating systems for businesses like stores, schools, and hospitals across the US and Canada. Their money mainly comes from selling these units and parts, which matters because it shows how much demand there is for their climate control solutions in the commercial building market.

Price history

How the share price has moved

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Earnings history

Last 8 quarters — what happened

Click any quarter to read the call summary and what the numbers say.

Revenue —
Net income $56.66M
Diluted EPS 0.68
Operating cash flow $20.97M
Free cash flow —
Revenue —
Net income $39.81M
Diluted EPS 0.48
Operating cash flow $33.99M
Free cash flow —
Revenue —
Net income $32.03M
Diluted EPS 0.38
Operating cash flow $19.32M
Free cash flow —
Revenue —
Net income $30.78M
Diluted EPS 0.37
Operating cash flow $12.26M
Free cash flow —
Revenue —
Net income $15.49M
Diluted EPS 0.19
Operating cash flow $-21.83M
Free cash flow —
Revenue —
Net income $29.29M
Diluted EPS 0.35
Operating cash flow $-9.21M
Free cash flow —
Revenue —
Net income $24.69M
Diluted EPS 0.31
Operating cash flow $845.00K
Free cash flow —
Revenue —
Net income $52.62M
Diluted EPS 0.63
Operating cash flow $63.77M
Free cash flow —

Is it cheap or expensive?

Fair value $-4.16 vs current price $73.73

Wall Street consensus is the average analyst price target: $134.75 (-3,339.2% lower than our fair-value estimate).

Our most-likely fair value is $-4.16 a share — about 105.6% below today's price of $73.73, so the stock currently looks expensive (overvalued).

overvalued

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 20.0% · Discount 10.0% · Terminal 3.0%

$-4.16

Bear

Growth 8.0% · Discount 10.0% · Terminal 3.0%

$-4.79

Bull

Growth 25.0% · Discount 10.0% · Terminal 3.0%

$-3.77

Is it drowning in debt?

Watch

Net debt $452.1M. Interest coverage 8.6x.

Net debt $452.07M
Interest coverage 8.59x

AAON, Inc.'s profit covers its interest bill about 8.6 times over.

Watch
Worse cushion Baseline Better cushion
AAON BASELINE AAON, Inc.

Total debt $452.08M Interest coverage 8.59x This is the baseline the peer rows are being compared against.

Total debt $2.02B Interest coverage 22.70x +164% vs AAON Carries about 2.6x more debt cushion than AAON.

Total debt $12.39B Interest coverage 4.16x -52% vs AAON Carries about 2.1x less debt cushion than AAON.

Total debt $4.62B Interest coverage 17.50x +104% vs AAON Carries about 2.0x more debt cushion than AAON.

Total debt $369.91M Interest coverage 188.03x +2,088% vs AAON Carries about 21.9x more debt cushion than AAON.

Total debt $7.64B Interest coverage 10.65x +24% vs AAON Carries about 1.2x more debt cushion than AAON.

What you should know

The case for and against AAON

3 Rewards 2 Risks

Rewards

  • Revenue grew 3.2% last year.
  • Returns 17.3% on equity, ahead of 33% of its peers.
  • Free cash flow was positive in 1/10 years.

Risks

  • Net debt grew 483.3% over 3 years.
  • Operating margin compressed from 14.3% to 11.0% over 3 years.

The numbers

All the key metrics, grouped by purpose

Tap any ? icon to learn what it means.

Valuation

How expensive the stock looks

P/E (TTM)
38.81x
Forward P/E
20.66x
P/B
6.02x
P/S
3.15x
EV/EBITDA
21.77x
PEG ratio
0.85x

Profitability

How much profit each dollar creates

Gross margin
25.6%
Operating margin
11.0%
Net margin
8.2%
ROE
17.3%
ROA
8.2%

Health

Liquidity and balance-sheet strength

Debt / equity
0.45x
Current ratio
3.01x
Quick ratio
1.93x
Total debt
$452.08M
Total cash
$13.00K

Growth

How the business has been compounding

Revenue TTM
$418.24M
Revenue 5Y CAGR
6.0%
EPS TTM
1.90
EPS 5Y CAGR
1.3%

Cash flow

How much cash the business throws off

Operating CF TTM
$86.54M
Free CF TTM
$-204.36M
FCF margin
-48.9%

Dividend

Shareholder payout

Yield
0.5%
Payout ratio
21.1%
Last ex-div date
2026-09-04