AAON Inc. Common Stock (AAON)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and sell at sensible prices. AAON is a real industrial: it engineers and manufactures HVAC equipment, data-center cooling, cleanrooms, and air handling units. Recent demand looks strong. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $627.0M, net income was $56.7M, and diluted EPS was $0.68. That compares with fiscal Q2 2025, revenue $311.6M, net income $15.5M, and diluted EPS $0.19. But the full-year record is uneven. In FY2025, revenue was $1.4B, net income $107.6M, and diluted EPS $1.29, down from FY2024 net income $168.6M and EPS $2.02, and FY2023 net income $177.6M and EPS $2.13. FairStock calls it a slow grower because profit compounded 6.4% a year over five years. Financial health is mixed: ROE is 17.28%, debt/equity is 0.45, and Altman Z is 6.57, but ROCE is only 8.24%, and trailing free cash flow is -$131.4M, a -1.8% FCF yield. Valuation leaves no room for error. At the $86.19 close on 2026-10-13, the P/E is 45.36, P/B is 7.03, EV/EBITDA is 25.27, and the Graham Number is $22.89. FairStock's margin of safety is -276.54%, and its score is 40/100. A moat may exist in engineered products and data-center cooling, but I cannot see it in these figures as durable pricing power. I want to buy quality at a discount; here quality may be improving, but the price already assumes a lot.

In plain English: AAON makes heating and cooling equipment, including systems for data centers and cleanrooms. In its latest reported quarter, sales and profit rose sharply from a year earlier, and the company carries only modest debt. But full-year profit has slipped, the business is using more cash than it brings in, and at $86.19 the shares look expensive compared with current profits and net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer