Advanced Energy Industries Inc. Common Stock (AEIS)

FairStock Score: 33/100 — RISKY

Key Financials

Strengths

• Generates $120 million in annual free cash flow (0.8% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 11.6% above cost of capital
• Altman Z-Score of 8.5 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 17.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($56) with negative 580% margin of safety—limited downside protection

AI Analysis

Advanced Energy Industries Inc. Common Stock is a mid-cap industrials company valued at $14.5 billion. The business generates $1.8 billion in annual revenue with a 2.9% net margin and $120 million in free cash flow. From a quality standpoint, Advanced shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 8.5 confirms fortress-level solvency. On valuation, the stock is commanding a steep 98.3x multiple, with trades far above its Graham Number ($56) with no margin of safety. Growth dynamics show revenue growing at 17.8% and profit growth of 7.0%. Our composite FairStock Score of 33/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Advanced's 18% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $120 million in annual free cash flow (0.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 98x 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