Advanced Energy Industries, Inc. Fundamental Analysis (NASDAQ: AEIS)
Advanced Energy Industries, Inc. Fundamental Analysis (NASDAQ: AEIS)
Advanced Energy Industries, Inc. (NASDAQ: AEIS) shows moderate financial fundamentals with a PE ratio of 31.21, profit margin of 12.72%, and ROE of 19.94%. The company generates $2.3B in annual revenue with strong year-over-year growth of 21.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze AEIS's fundamental strength across five key dimensions:
Efficiency Score
WeakAEIS struggles to generate sufficient returns from assets.
Valuation Score
ModerateAEIS shows balanced valuation metrics.
Growth Score
ModerateAEIS shows steady but slowing expansion.
Financial Health Score
ExcellentAEIS maintains a strong and stable balance sheet.
Profitability Score
ModerateAEIS maintains healthy but balanced margins.
Key Financial Metrics
Is AEIS Expensive or Cheap?
P/E Ratio
AEIS trades at 31.21 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AEIS's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values Advanced Energy Industries, Inc. at 5.84 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.43 times EBITDA. This signals the market has high growth expectations.
How Well Does AEIS Make Money?
Net Profit Margin
For every $100 in sales, Advanced Energy Industries, Inc. keeps $12.72 as profit after all expenses.
Operating Margin
Core operations generate 16.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.94 in profit for every $100 of shareholder equity.
ROA
Advanced Energy Industries, Inc. generates $7.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Advanced Energy Industries, Inc. generates limited operating cash flow of $229.23M, signaling weaker underlying cash strength.
Free Cash Flow
Advanced Energy Industries, Inc. produces free cash flow of $72.67M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.79 in free cash annually.
FCF Yield
AEIS converts 0.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How AEIS Stacks Against Its Sector Peers
| Metric | AEIS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.21 | 32.70 | Neutral |
| ROE | 19.94% | 758.00% | Weak |
| Net Margin | 12.72% | -4312.00% (disorted) | Strong |
| Debt/Equity | 0.88 | 0.96 | Neutral |
| Current Ratio | 3.62 | 12.15 | Strong Liquidity |
| ROA | 7.91% | 1067467.00% | Weak |
AEIS outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Advanced Energy Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.46%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
12.28%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
18.14%
Industry Style: Growth, Innovation, High Beta
High Growth