AAON Inc. Common Stock (AAON)

FairStock Score: 40/100 — MIXED

Key Financials

Strengths

• Solid return on equity of 12.5% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.47, providing financial flexibility
• Altman Z-Score of 7.6 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 42.5% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($18) with negative 459% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

AAON Inc. Common Stock is a small-cap industrials company valued at $8.2 billion. The business generates $1.4 billion in annual revenue with a 2.2% net margin. From a quality standpoint, AAON shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 7.6 confirms fortress-level solvency. On valuation, the stock is commanding a steep 76.5x multiple, with trades far above its Graham Number ($18) with no margin of safety. Growth dynamics show revenue growing at 42.5% and profit growth of 29.7%. Our composite FairStock Score of 40/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

AAON's 42% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 77x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer