In Focus – AAON

Determining whether a company is one of the best stocks to buy now requires investors to focus in on the company of interest and to do detailed examination of that company. In this report, we will do focused analysis of AAON Incorporated.


AAON Incorporated (AAON) designs, manufactures and sells air conditioning and heating equipment for commercial and residential use. The company has two operating subsidiaries: AAON, Inc. and AAON Coil products. AAON is headquartered in Tulsa, Oklahoma.

Stock Fundamentals

We like AAON in many ways. Its growth has been outstanding. The growth of its sales, profits, and many other financial metrics has been strong, steady and balanced. And more importantly, we feel they will continue to be strong in the future.

Its cash flows and free cash flows have been reliably positive. Because of this, it has consistently paid (and usually increased) its dividend since at least 2008. And it dividend appears very safe. It has a very low dividend-to-cash-flow-from-operations ratio (0.242).

Furthermore, AAON has a solid balance sheet. Its equity-to-asset ratio is low relative to other firms, and relative to this own firm’s history. And AAON has no long-term debt. If we had to rank AAON on quality alone, we would unhesitatingly rank AAON as one of the best stocks we cover.

Unfortunately, (as is usually the case) the market recognizes the outstanding features of AAON and has priced it accordingly. The price multiples on AAON are mostly on the high side. AAON is not cheap. We consider its overall fundamentals as only average. And we cannot classify AAON as one of the best stocks to buy now.

However, we like this firm. If its price should drift downward without deterioration in its fundamentals, we will upgrade this company without delay.

Stat Sheet – AAON Incorporated   4/27/16

Ticker AAON
Industry Miscellaneous Capital Goods
Price $ 27.21
Market Cap  $ 1,475
Dividend Yield 0.81
Dividend/CFOp 0.242
Equity/Assets 0.778
Average Equity/Assets 0.731
Financial Strength Above Average
Growth Prospects Above Average
Beta 1.52
Price Volatility Average
Stock Fundamentals C

(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)

Though we do not consider AAON one of the best stocks to buy now, we cover almost 2,000 companies, many of which are some of the best stocks to buy now. To see this research, click the link below.

Best Stocks to Buy Now

To see why we have a bias in favor of the best dividend stocks, click the link below.

Best Dividend Stocks

Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.

In Focus – AAON

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