Advanced Energy Industries Inc

Technology
Industrial Machinery/Components
www.advancedenergy.com

Earnings Score
Moat Score
Safety Score

Market Cap $4.42B
PE 103
Debt $575.00M
Cash $657.29M
EV $4.33B
FCF $76.67M

Earnings

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Sales & Net Margins

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Earnings	$42.84M
EBIT	$27.99M
ROE	4%
ROA	1%
FCF	$76.67M
Equity	$1.16B
Growth Stability	47%
PE	103.08
PEG	27.66
PB	3.79
P/FCF	57.6
P/S	3
Price/Cash	0.15
Debt/Equity	0.49
Debt/FCF	7.5
Net Margins	1%
Gross Margins	35%
Op. Margins	2%
Earnings CAGR	-1%
Sales Growth YoY	-9%
Sales Growth QoQ	3%
Sales CAGR	29%
FCF CAGR	-1%
Equity CAGR	16%
Earnings Stability	0.01
Earnings Growth YoY	-146%
Earnings Growth QoQ	-199%
Earnings CAGR 5Y	4%

Sales CAGR 5Y	11%
FCF CAGR 5Y	14%
Equity CAGR 5Y	13%
Earnings CAGR 3Y	-1%
Sales CAGR 3Y	-1%
FCF CAGR 3Y	14%
Equity CAGR 3Y	12%
Market Cap	$4.42B
Revenue	$1.47B
Dividend Yield	0%
Payout Ratio	36%
Assets	$2.19B
Total Debt	$575.00M
Cash	$657.29M
Shares Outstanding	37.46M
EV	4.33B
Earnings Score	6%
Moat Score	33%
Safety Score	55%
Final Score	31%
Working Capital	1.05B
Current Ratio	4.62
Gross Profit	$517.50M
Shares Growth 3y	-0%
Equity Growth QoQ	-0%
Equity Growth YoY	6%

Assets & ROA

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Stockholders Equity & ROE

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Advanced Energy Industries Inc provides precision power-conversion measurement and control solutions that transform power into various forms for use in manufacturing and industrial equipment and applications. The firm serves original equipment manufacturers and end customers in the semiconductor, flat panel display, solar panel, and other industrial capital equipment markets. Products include thin-film power-conversion systems, which control and modify raw electrical power into a customizable, predictable power source, and power control modules, which control and measure temperature during manufacturing cycles. A majority of the firm's revenue is generated in the United States, with the rest primarily from Asia and Europe.

SEC Filings

Direct access to Advanced Energy Industries Inc (AEIS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Advanced Energy Industries Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Advanced Energy Industries Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -1%

Stability 1%

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Advanced Energy Industries Inc Discounted Cash Flow

Fully customizable DCF calculator online for Advanced Energy Industries Inc.

Years

Calculation mode

= $722M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$77M	$76M	$75M	$75M	$74M	$73M	$73M	$72M	$71M	$71M	$70M	$702M
DCF		$69M	$62M	$56M	$51M	$46M	$41M	$37M	$33M	$30M	$27M	$271M
Value	$722M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	13%	-59%	39%	30%	20%	8%	10%	9%	11%	8%	1%
ROA	-	23%	22%	27%	21%	5%	11%	8%	12%	5%	1%
ROE	-	-60%	33%	26%	24%	10%	17%	15%	19%	11%	4%

Bad Net Margins (0.5%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	15.46	2.06	3.81	3.16	6.25	7.5
Debt over Equity	0	-	-	-	-	0.53	0.42	0.48	0.37	0.83	0.49
Growth Stability	-	-	-	100%	100%	47%	100%	100%	100%	82%	47%

Bad Debt/FCF ratio (7.5)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.49)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (47%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-27%	22%	38%	59%	10%	79%	3%	27%	-10%	11%
Earnings YoY growth	-	-437%	-180%	8%	7%	-56%	107%	0%	48%	-36%	4%
Equity YoY growth	-	-45%	49%	33%	17%	12%	20%	7%	22%	7%	13%
FCF YoY growth	-	73%	0%	50%	-28%	-82%	614%	-34%	14%	22%	14%