CAPS Rating: 5 out of 5

The Company is engaged in the manufacture and sale of air-conditioning and heating equipment consisting of standardized and custom rooftop units, chillers, air-handling units, make-up air units, heat recovery units, condensing units, coils and boilers.


Player Avatar shaileshnita (69.65) Submitted: 1/15/2010 2:55:28 PM : Outperform Start Price: $5.40 AAON Score: +227.29

This company sells air-conditioning and heating equipment in N. America. It has a very attractive valuation (P/E~12, P/S~1.4, P/B~3) in the current environment. It is on a growth trajectory as PEG = 0.9. Its balance sheet is clean as it has seen no loss in the past 3 years. It pays a dividend yield of 1.8% with a payout ratio of 21%. Additionally its return on equity is a solid 26%. It has no debt with a current ratio of 2.6. There is something intriguing about its price change since March 2009. It hasn't seen much which is puzzling. It appears that this company is languishing in obscurity even though the insider ownership is a whopping 27%.

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Member Avatar Marcus87 (< 20) Submitted: 2/19/2010 1:17:58 AM
Recs: 0

what drives Aaon's sales?

Member Avatar SalukiFool (66.36) Submitted: 4/7/2010 1:12:32 PM
Recs: 0

in my opinion they get specifiers like Engineers to spec their units which in my opinion are overpriced. They're able to write very tight control specifications which the medical industry in particular likes. I don't feel they're very customer (end-user) friendly, their timeline to production is slow and in general, other than having what is generally viewed as a Cadilac product, I don't like dealing with the company at all. Profits should be high since they're typically twice the standard, but as soon as someone else can provide customer service with tightly spec'd equipment, you'll see the price and profits fall.

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