Advanced Energy Industries Inc

AEIS

Electronic Components, NEC

Mkt Cap

$4.016B

PE

39.15

Debt

$945M

Cash

$1.018B

EV

$3.944B

FCF

$127.6M

Market Cap

$4.016B

P/E Ratio

39.15

Debt

$945M

Cash

$1.018B

EV

$3.944B

FCF

$127.6M

Charts data: {"Earnings":[{"time":"2014-12-30","value":46982000},{"time":"2015-12-30","value":-158486000},{"time":"2016-12-30","value":127454000},{"time":"2017-12-30","value":137861000},{"time":"2018-12-30","value":147025000},{"time":"2019-12-30","value":64941000},{"time":"2020-12-30","value":134675000},{"time":"2021-12-30","value":134736000},{"time":"2022-12-30","value":199660000},{"time":"2023-12-30","value":128284000}],"Sales":[{"time":"2014-12-30","value":369886000},{"time":"2015-12-30","value":268257000},{"time":"2016-12-30","value":327397000},{"time":"2017-12-30","value":453095000},{"time":"2018-12-30","value":718892000},{"time":"2019-12-30","value":788948000},{"time":"2020-12-30","value":1415826000},{"time":"2021-12-30","value":1455954000},{"time":"2022-12-30","value":1845422000},{"time":"2023-12-30","value":1655810000}],"Net Margins":[{"time":"2014-12-30","value":0.12701751350416074},{"time":"2015-12-30","value":-0.5907991217377365},{"time":"2016-12-30","value":0.3892949538328085},{"time":"2017-12-30","value":0.30426510996590117},{"time":"2018-12-30","value":0.20451611646812037},{"time":"2019-12-30","value":0.08231340975577604},{"time":"2020-12-30","value":0.0951211518929586},{"time":"2021-12-30","value":0.09254138523607201},{"time":"2022-12-30","value":0.10819205580078703},{"time":"2023-12-30","value":0.07747507262306666}],"Assets":[{"time":"2014-12-30","value":684569000},{"time":"2015-12-30","value":462688000},{"time":"2016-12-30","value":571529000},{"time":"2017-12-30","value":733308000},{"time":"2018-12-30","value":816484000},{"time":"2019-12-30","value":1532406000},{"time":"2020-12-30","value":1647662000},{"time":"2021-12-30","value":1817340000},{"time":"2022-12-30","value":1992168000},{"time":"2023-12-30","value":2556757000}],"Stockholders Equity":[{"time":"2014-12-30","value":474965000},{"time":"2015-12-30","value":263580000},{"time":"2016-12-30","value":392074000},{"time":"2017-12-30","value":520641000},{"time":"2018-12-30","value":607302000},{"time":"2019-12-30","value":677260000},{"time":"2020-12-30","value":815340000},{"time":"2021-12-30","value":871496000},{"time":"2022-12-30","value":1066267000},{"time":"2023-12-30","value":1144182000}],"ROE":[{"time":"2014-12-30","value":0.09891676228774751},{"time":"2015-12-30","value":-0.6012823431216329},{"time":"2016-12-30","value":0.3250763886409198},{"time":"2017-12-30","value":0.26479090198428473},{"time":"2018-12-30","value":0.24209536606169582},{"time":"2019-12-30","value":0.09588784218763842},{"time":"2020-12-30","value":0.16517649078911864},{"time":"2021-12-30","value":0.1546031192340527},{"time":"2022-12-30","value":0.18725141076297025},{"time":"2023-12-30","value":0.11211852659804122}],"ROA":[{"time":"2014-12-30","value":0.05904883218492219},{"time":"2015-12-30","value":0.23051386679576735},{"time":"2016-12-30","value":0.22196074039987473},{"time":"2017-12-30","value":0.27378673081433724},{"time":"2018-12-30","value":0.21139912110953796},{"time":"2019-12-30","value":0.046077867092663434},{"time":"2020-12-30","value":0.1068319837442388},{"time":"2021-12-30","value":0.08346319345857132},{"time":"2022-12-30","value":0.12134568972094723},{"time":"2023-12-30","value":0.047897003899862206}]}

Advanced Energy Industries, Inc. designs, manufactures, sells, and supports precision power conversion, measurement, and control solutions worldwide. It offers plasma power solutions, including direct current (DC), pulsed DC, low frequency alternating current, and high voltage systems, as well as radio frequency (RF) power supplies, RF matching networks, and RF instrumentation products; and remote plasma sources for reactive gas applications. The company also provides power control modules and thermal instrumentation products for etch, deposition, thermal processing, epitaxy, crystal growing, and chemical processing, as well as metal, carbon fiber, and glass manufacturing and other industrial power applications; high voltage DC-DC products for semiconductor equipment, electrostatic clamping of substrates, scientific instrumentation, mass spectrometry, and x-ray systems for industrial and analytical applications; low voltage board mounted power solutions for a range of industrial applications; and programmable DC power supplies for use in a range of test, measurement, and scientific research applications. In addition, it offers embedded power products for medical equipment or International Electrotechnical Commission 60950-1 for information technology equipment. Further, the company provides calibration, conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. It offers its products through a direct sales force, independent sales representatives, channel partners, and distributors. Advanced Energy Industries, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
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3/31/22
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10-K
12/31/19
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10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Advanced Energy Industries Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$127.6M	$126.9M	$126.2M	$125.5M	$124.8M	$124M	$123.3M	$122.7M	$122M	$121.3M	$120.6M	$1.206B
DCF		$110.3M	$95.41M	$82.49M	$71.33M	$61.67M	$53.33M	$46.11M	$39.87M	$34.47M	$29.81M	$298.1M
Value	$922.9M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 2.2%

Earnings Stability -5.4%

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.

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

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-59%	39%	30%	20%	8.2%	9.5%	9.3%	11%	7.7%	6.6%
ROA	23%	22%	27%	21%	4.6%	11%	8.3%	12%	4.8%	3.6%
ROE	-60%	33%	26%	24%	9.6%	17%	15%	19%	11%	9%

What is the average Net Margin?

The average Net Margin over the past 5 years is +11%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -1.6%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +10.28%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.76%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +15.95%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.1%.

Safety & Stabiliy

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.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	-	-	15.46	2.06	3.81	3.16	6.25	7.41
Debt Equity	-	-	-	-	0.53	0.42	0.48	0.37	0.83	0.83
MIN
Graham Stability	-	-	100%	100%	47%	100%	100%	100%	82%	47%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 7.41.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -1.73.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.47.

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.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	26%	18%	5.4%	-10%	0.54%
Net Income	0.093%	-2.7%	-1.6%	-36%	0.26%
Stockholders Equity	17%	14%	12%	7.3%	1.3%
FCF	3.4%	3%	-2.8%	22%	5.2%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +18.16%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.54%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -2.69%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +0.26%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +13.51%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.33%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +2.99%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +5.17%.