Latest Ratios: P/E Ratio 84.8x · EV/EBITDA 40.5x · ROE 12.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.0B | $6.3B | $9.8B | $6.2B | $4.1B | $4.3B | $3.5B | $2.6B | $1.8B | $1.9B | $1.8B |
| Enterprise Value | $9.4B | $6.8B | $10.0B | $6.2B | $4.1B | $4.3B | $3.5B | $2.6B | $1.8B | $1.9B | $1.7B |
| P/E Ratio → | 84.77 | 59.11 | 58.26 | 34.68 | 40.49 | 72.53 | 44.87 | 48.44 | 43.28 | 35.46 | 32.88 |
| P/S Ratio | 6.21 | 4.39 | 8.20 | 5.27 | 4.58 | 7.98 | 6.87 | 5.54 | 4.25 | 4.81 | 4.60 |
| P/B Ratio | 10.15 | 7.08 | 11.94 | 8.37 | 7.27 | 9.15 | 10.08 | 8.96 | 7.40 | 8.21 | 8.58 |
| P/FCF | — | — | — | 112.69 | 558.59 | 733.11 | 57.95 | 42.80 | 104.97 | 119.66 | 47.33 |
| P/OCF | — | — | 51.12 | 38.72 | 66.45 | 69.75 | 27.45 | 26.56 | 33.66 | 33.59 | 27.63 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.69 | 8.34 | 5.31 | 4.67 | 8.06 | 6.72 | 5.48 | 4.25 | 4.75 | 4.54 |
| EV / EBITDA | 40.53 | 29.22 | 36.80 | 22.62 | 25.57 | 43.20 | 27.12 | 28.67 | 25.26 | 21.59 | 18.81 |
| EV / EBIT | 61.64 | 46.22 | 47.79 | 27.21 | 32.61 | 62.13 | 36.25 | 38.22 | 33.22 | 25.88 | 21.91 |
| EV / FCF | — | — | — | 113.61 | 568.57 | 739.76 | 56.66 | 42.36 | 104.86 | 118.35 | 46.68 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 26.7% | 26.7% | 33.1% | 34.1% | 26.7% | 25.8% | 30.3% | 25.4% | 23.9% | 30.5% | 30.8% |
| Operating Margin | 10.6% | 10.6% | 17.4% | 19.5% | 14.3% | 13.0% | 19.8% | 14.3% | 12.8% | 18.3% | 20.7% |
| Net Profit Margin | 7.5% | 7.5% | 14.0% | 15.2% | 11.3% | 11.0% | 15.4% | 11.4% | 9.8% | 13.4% | 13.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.5% | 12.5% | 21.6% | 27.4% | 19.5% | 14.4% | 24.7% | 19.9% | 17.4% | 24.6% | 27.7% |
| ROA | 7.5% | 7.5% | 15.9% | 20.2% | 13.7% | 10.7% | 19.3% | 15.8% | 14.0% | 19.7% | 21.8% |
| ROIC | 9.8% | 9.8% | 17.6% | 24.0% | 16.7% | 13.4% | 28.5% | 19.7% | 17.9% | 28.0% | 33.8% |
| ROCE | 12.9% | 12.9% | 23.0% | 30.7% | 20.6% | 14.5% | 28.9% | 23.3% | 21.8% | 32.0% | 39.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.48 | 0.48 | 0.21 | 0.07 | 0.14 | 0.09 | 0.00 | — | — | — | — |
| Debt / EBITDA | 1.87 | 1.87 | 0.63 | 0.18 | 0.48 | 0.42 | 0.00 | — | — | — | — |
| Net Debt / Equity | — | 0.48 | 0.21 | 0.07 | 0.13 | 0.08 | -0.22 | -0.09 | -0.01 | -0.09 | -0.12 |
| Net Debt / EBITDA | 1.87 | 1.87 | 0.63 | 0.18 | 0.45 | 0.39 | -0.62 | -0.30 | -0.03 | -0.24 | -0.26 |
| Debt / FCF | — | — | — | 0.92 | 9.98 | 6.65 | -1.29 | -0.44 | -0.11 | -1.32 | -0.65 |
| Interest Coverage | 8.26 | 8.26 | 72.12 | 47.08 | 48.41 | 525.11 | — | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.63 | 2.63 | 2.79 | 3.23 | 2.40 | 2.51 | 3.73 | 3.35 | 2.96 | 3.07 | 3.61 |
| Quick Ratio | 1.84 | 1.84 | 1.72 | 1.54 | 1.03 | 1.01 | 2.34 | 2.03 | 1.33 | 1.66 | 2.40 |
| Cash Ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.04 | 0.03 | 1.34 | 0.48 | 0.04 | 0.61 | 1.12 |
| Asset Turnover | — | 0.86 | 1.02 | 1.24 | 1.09 | 0.82 | 1.15 | 1.26 | 1.41 | 1.37 | 1.50 |
| Inventory Turnover | 4.04 | 4.04 | 4.29 | 3.60 | 3.27 | 3.05 | 4.36 | 4.75 | 4.26 | 3.98 | 5.62 |
| Days Sales Outstanding | — | 149.05 | 87.24 | 57.26 | 58.44 | 56.17 | 33.61 | 53.04 | 45.49 | 46.85 | 46.83 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.4% | 0.5% | 0.3% | 0.4% | 0.6% | 0.5% | 0.6% | 0.6% | 0.9% | 0.7% | 0.7% |
| Payout Ratio | 30.3% | 30.3% | 15.5% | 14.9% | 22.8% | 33.9% | 25.1% | 31.0% | 39.5% | 25.1% | 23.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.2% | 1.7% | 1.7% | 2.9% | 2.5% | 1.4% | 2.2% | 2.1% | 2.3% | 2.8% | 3.0% |
| FCF Yield | — | — | — | 0.9% | 0.2% | 0.1% | 1.7% | 2.3% | 1.0% | 0.8% | 2.1% |
| Buyback Yield | 0.3% | 0.5% | 1.0% | 0.4% | 0.3% | 0.5% | 0.9% | 0.8% | 1.5% | 0.9% | 1.1% |
| Total Shareholder Yield | 0.7% | 1.0% | 1.3% | 0.8% | 0.9% | 1.0% | 1.4% | 1.4% | 2.4% | 1.6% | 1.8% |
| Shares Outstanding | — | $83M | $84M | $83M | $81M | $81M | $80M | $79M | $79M | $80M | $80M |
Liquidity and Working Capital
According to current market data, AAON trades at a P/E of 98.28, a valuation multiple that appears to price in aggressive long-term growth while ignoring the significant margin compression and cash flow volatility observed in recent quarterly filings compared to diversified industrial peers like Trane Technologies.
The elevated forward P/E of 56.00 suggests investors are paying a substantial premium for the company's exposure to data center cooling, yet this valuation appears disconnected from the recent contraction in profitability metrics. Investors should monitor whether this scarcity premium can be sustained if the company fails to demonstrate a clear path back to the 20% operating margins achieved in early 2024.
Based on reported financial statements, AAON's ROIC has trended downward from 6.1% in 2023Q4 to 3.8% in 2026Q1, indicating that the company's recent aggressive capital deployment into manufacturing capacity is currently failing to generate returns that exceed the cost of capital for a typical industrial manufacturer.
The decline in ROIC suggests that the integration of new assets and the expansion into specialized cooling segments have not yet reached the necessary scale to drive value creation. This trend warrants further investigation into whether the current capital intensity is a temporary byproduct of growth investments or a structural shift toward lower-return operations.
As evidenced by the latest quarterly data, AAON's cash conversion cycle has remained elevated at 116 days in 2026Q1, a figure that highlights persistent inefficiencies in managing inventory and receivables compared to the more streamlined operational cycles typically seen in high-volume industrial manufacturing peers.
The extended DSO of 80 days and DIO of 69 days suggest that cash is being trapped in the production and sales pipeline, which directly contributes to the company's precarious liquidity position. This working capital intensity appears to be a structural hurdle that limits the company's ability to self-fund operations without relying on external credit facilities.
According to the most recent balance sheet, AAON maintains a cash balance of only $13,000, a level that appears exceptionally low for a company with $1.8 billion in assets and suggests a highly aggressive treasury management style that leaves virtually no buffer for operational stress.
While the current ratio of 2.62 suggests adequate short-term solvency, the near-zero cash position implies that the company is entirely dependent on its revolving credit facilities to manage day-to-day fluctuations. This lack of liquidity warrants close monitoring, as any disruption in credit market access could immediately threaten the company's ability to meet its short-term obligations.
The P/E ratio is frequently misapplied to AAON, as it obscures the company's significant non-cash expenses and the lumpy nature of its project-based revenue, failing to capture the true cash-generating capacity of the business model in the context of its current capital-intensive growth phase.
Investors should instead focus on EV/EBITDA or FCF-based metrics, which better account for the company's heavy investment in manufacturing infrastructure and the volatility of its working capital requirements. Relying on P/E in this context may lead to an overestimation of earnings quality, particularly given the recent disconnect between net income and actual cash flow generation.
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Quick answers to the most common questions about buying AAON stock.
AAON, Inc.'s current P/E ratio is 84.8x. The historical average is 26.4x. This places it at the 100th percentile of its historical range.
AAON, Inc.'s current EV/EBITDA is 40.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.5x.
AAON, Inc.'s return on equity (ROE) is 12.5%. The historical average is 22.4%.
Based on historical data, AAON, Inc. is trading at a P/E of 84.8x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
AAON, Inc.'s current dividend yield is 0.36% with a payout ratio of 30.3%.
AAON, Inc. has 26.7% gross margin and 10.6% operating margin. Operating margin between 10-20% is typical for established companies.
AAON, Inc.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.