Electronic Components, NEC
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
Discounted Cash Flow Valuation of Advanced Energy Industries Inc
Growth
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Discount
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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 |
In the chart Earnings are multiplied by this value.
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 | 12-2015 | 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% |
The average Net Margin over the past 5 years is +11%.
The trend of Net Margin over the past 5 years is -1.6%.
The average ROA over the past 5 years is +10.28%.
The trend of ROA over the past 5 years is -1.76%.
The average ROE over the past 5 years is +15.95%.
The trend of ROE over the past 5 years is -1.1%.
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 | 12-2015 | 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% |
The Debt/FCF trailing twelve month is 7.41.
The trend of Debt/FCF over the past 5 years is -1.73.
Graham’s Stability measure stands at 0.47.
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 | 12-2016 | 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% |
The Revenue CAGR over the past 5 years is +18.16%.
The trend of Revenue growth rate over the past 5 years is +0.54%.
The Earnings CAGR over the past 5 years is -2.69%.
The trend of Earnings growth rate over the past 5 years is +0.26%.
The Equity CAGR over the past 5 years is +13.51%.
The trend of Equity growth rate over the past 5 years is +1.33%.
The FCF CAGR over the past 5 years is +2.99%.
The trend of FCF growth rate over the past 5 years is +5.17%.