Aaon Intrinsic Value Calculation – AAON Leads Construction Industry with Impressive Stock Performance in 2021
September 12, 2024

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While the construction industry as a whole has been struggling due to the ongoing pandemic and economic uncertainties, AAON ($NASDAQ:AAON) has managed to stand out and surpass its peers in terms of stock growth. Its dedication to quality and customer satisfaction has earned the company a strong reputation and a loyal customer base. This, coupled with its strategic business decisions, has contributed to its success in the stock market. One of the reasons for AAON’s impressive stock performance is its strong financials.
Additionally, AAON’s focus on research and development has enabled the company to stay ahead of its competitors and continue to bring innovative products to the market. Moreover, AAON’s commitment to sustainability has also played a significant role in its success in the stock market this year. With an increased focus on energy-efficient buildings and environmental conservation, AAON’s products have become highly sought after by customers looking to reduce their carbon footprint. This has not only contributed to the company’s growth but also its reputation as a socially responsible business. In comparison to its competitors, AAON’s stock has outperformed many construction companies this year. This further solidifies AAON’s position as a top performer in the industry. In conclusion, AAON’s strong financials, focus on innovation and sustainability, and outperforming stock have solidified its position as a leader in the construction industry. As the world slowly recovers from the pandemic, AAON’s continued success and growth are promising signs for both the company and the construction industry as a whole.
Share Price
This upward trend in the company’s stock price has caught the attention of investors and industry experts alike. One of the main factors driving AAON’s stock performance is the increasing demand for its products and solutions in the construction industry. With the ongoing pandemic and the growing focus on indoor air quality, the HVAC sector has seen a surge in demand for energy-efficient and high-quality systems. AAON, with its extensive range of HVAC equipment, has been well-positioned to meet this demand and has witnessed a significant increase in sales and revenue. In addition to its strong financial performance, AAON has also been making strategic moves to expand its market presence and gain a competitive edge. The company recently announced plans to open a new manufacturing facility in Tulsa, Oklahoma, which is expected to increase its production capacity and support its growth initiatives. This expansion aligns with AAON’s long-term goal of becoming a top player in the HVAC industry. The company has been investing in research and development to bring new and improved HVAC solutions to the market, catering to the evolving needs of customers.
Additionally, AAON’s focus on sustainable practices, such as energy-efficient manufacturing processes and the use of eco-friendly materials, has resonated with consumers and helped strengthen its brand reputation. As the construction industry continues to grow, fueled by the economic recovery and increasing demand for HVAC solutions, AAON is well-positioned to capitalize on these opportunities and maintain its leadership position. aaon&utm_title=AAON_Leads_Construction_Industry_with_Impressive_Stock_Performance_in_2021″>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aaon. aaon&utm_title=AAON_Leads_Construction_Industry_with_Impressive_Stock_Performance_in_2021″>More…
| Total Revenues | Net Income | Net Margin |
| 1.17k | 177.62 | 15.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aaon. aaon&utm_title=AAON_Leads_Construction_Industry_with_Impressive_Stock_Performance_in_2021″>More…
| Operations | Investing | Financing |
| 158.9 | -109.31 | -46.51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aaon. aaon&utm_title=AAON_Leads_Construction_Industry_with_Impressive_Stock_Performance_in_2021″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 941.44 | 206.21 | 9.02 |
Key Ratios Snapshot
Some of the financial key ratios for Aaon are shown below. aaon&utm_title=AAON_Leads_Construction_Industry_with_Impressive_Stock_Performance_in_2021″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.4% | 33.5% | 19.5% |
| FCF Margin | ROE | ROA |
| 4.2% | 20.1% | 15.1% |
Analysis – Aaon Intrinsic Value Calculation
As a fundamental analyst, I have thoroughly examined the key aspects of AAON, a leading manufacturer of HVAC equipment. My analysis, based on the company’s financial data and industry trends, suggests that the current fair value of AAON shares is around $74.7. To arrive at this valuation, I have used our proprietary Valuation Line methodology, which takes into account various factors such as revenue, earnings, and industry growth projections. This gives us a comprehensive view of the company’s financial health and future potential. However, when comparing this fair value to the current market price of AAON stock, we can see that it is currently trading at $88.59. This indicates that the stock is overvalued by 18.6% at the moment. While it is common for stocks to trade at a premium to their fair value, it is important for investors to consider this information when making investment decisions. The current overvaluation of AAON shares may suggest that it is not the best time to buy into the company, as there may be better opportunities for growth in the future. Overall, my analysis indicates that AAON is a fundamentally strong company with good growth potential. However, investors should carefully consider the current market price before making any investment decisions. aaon&utm_title=AAON_Leads_Construction_Industry_with_Impressive_Stock_Performance_in_2021″>More…

Peers
The competition between AAON Inc and its competitors is fierce. Each company is trying to get a leg up on the other by offering better products and services. Kyoritsu Air Tech Inc, Harbin Air Conditioning Co Ltd, and Zhejiang Langdi Group Co Ltd are all major players in the industry, and they are all constantly innovating to stay ahead of the competition.
– Kyoritsu Air Tech Inc ($TSE:5997)
Kyoritsu Air Tech Inc has a market cap of 2.25B as of 2022, a Return on Equity of 4.9%. The company is engaged in the manufacture and sale of air conditioning equipment and related products. The company’s products are used in a variety of industries, including commercial, industrial, and residential. Kyoritsu Air Tech’s products are sold through a network of distributors and dealers in Japan and overseas.
– Harbin Air Conditioning Co Ltd ($SHSE:600202)
Harbin Air Conditioning Co Ltd is a Chinese company that manufactures air conditioners. The company has a market capitalization of 1.97 billion as of 2022 and a return on equity of 4.63%. The company’s products are sold in over 60 countries and regions. Harbin Air Conditioning Co Ltd is a publicly traded company listed on the Shenzhen Stock Exchange.
– Zhejiang Langdi Group Co Ltd ($SHSE:603726)
Zhejiang Langdi Group Co Ltd is a Chinese company that manufactures and sells construction materials. The company has a market cap of 2.88 billion as of 2022 and a return on equity of 7.03%. The company’s products include concrete, bricks, tiles, and other building materials.
Summary
AAON, a manufacturer of HVAC equipment, has seen strong performance in its stock this year compared to its peers in the construction industry. This is likely due to the company’s consistent revenue growth and profitability, as well as its strong financial position.
Additionally, AAON has shown resilience during the COVID-19 pandemic, with minimal impact on its operations. Its ongoing focus on innovation and market expansion also bodes well for future growth. Overall, AAON seems to be a promising investment option in the construction sector, with potential for continued success and shareholder value in the long term.
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