AAONAAON, Inc.
Is the business good?
More warning than reassurance: 3 of 9 health tests passed, thin cash backing (0.5×), and margins compressing.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 13% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AAON?
AAON, Inc. earns 17% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 7.7 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Building Products & Equipment median 9.3% · 12 months to Q2 2026
- Cash conversion
- 0.49×
Cash conversion · 0.26× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- +0.92%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 20% |
| FY2021 | 13% |
| FY2022 | 14% |
| FY2023 | 19% |
| FY2024 | 17% |
| FY2025 | 10% |
Details›
- Gross margin12 months to Q2 2026
- 26%
- Operating margin12 months to Q2 2026
- 11%
- Net margin12 months to Q2 2026
- 8.2%
- Free cash flow margin
- −6.2%
- Revenue, trailing twelve months
- $1.93B
- Free cash flow, trailing twelve months
- −$119M
- Net income, trailing twelve months
- $159M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 17%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.