In the current market session, AAON Inc. (NASDAQ:AAON) share price is at $94.91, after a 0.35% decrease. Over the past month, the stock went up by 19.33%, but over the past year, it actually decreased by 15.54%. With good short-term performance like this, and questionable long-term performance, long-term shareholders might want to start looking into the company's price-to-earnings ratio.Comparing AAON P/E Against Its PeersCompared to the aggregate P/E ratio of 29.77 in the Building Products industry, AAON I ...

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Group 1 - Aaon Inc. (NASDAQ:AAON) is rated as a Strong Buy by 5 Wall Street analysts, with an average price target of $119, indicating a 37.97% upside potential from the current price of $86.25 per share [1] - The company announced the promotion of Doug Wichman to executive vice president and general manager of its AAON Business Unit, effective January 1, 2026, to lead strategic planning and product development [2] - Ryan Merkel of William Blair highlighted the company's unique market approach and strong relationships with major hyperscaler customers, such as Amazon, as key differentiators that strengthen its market position [3] Group 2 - The company focuses on delivering solutions for thermal management, which differentiates it in the HVAC segment, and utilizes advanced technologies like liquid-to-liquid direct-to-chip cooling [4] - AAON, Inc. designs and manufactures high-efficiency, customizable HVAC systems and components for various applications, including commercial, industrial, and data centers, emphasizing superior performance in rooftop units, air handlers, chillers, and energy recovery systems [5]

Core Insights - AAON, Inc. has announced the promotion of Doug Wichman to executive vice president and general manager of its AAON Business Unit effective January 1, 2026, succeeding Stephen Wakefield who will transition to a consultancy role [1][3]. Group 1: Leadership Transition - Doug Wichman will lead the teams responsible for translating corporate objectives into strategic business plans, developing product roadmaps, overseeing engineering and R&D for semi-custom HVAC solutions, and providing technical support to channel partners and end-users [2]. - Wichman has been with AAON since 2012, progressing from a production and manufacturing engineer to plant manager and director of manufacturing, and most recently serving as vice president of business strategy and performance [4][5]. - Stephen Wakefield, who has over 25 years of experience, will continue to support the organization as a principal engineering advisor [5][6]. Group 2: Company Overview - AAON, founded in 1988, is a leader in HVAC solutions for commercial and industrial indoor environments, focusing on designing and manufacturing highly configurable equipment [6]. - The company is headquartered in Tulsa, Oklahoma, where it has a world-class innovation center and testing lab to advance the industry [6].

Core Insights - Baron Real Estate Fund delivered a strong performance in Q3 2025, appreciating 10.25% compared to the MSCI US REIT Index's 4.49% and the MSCI USA IMI Extended Real Estate Index's 5.65% [1] Company Analysis - AAON, Inc. (NASDAQ:AAON) has a market capitalization of $8.482 billion and is involved in the engineering, manufacturing, marketing, and distribution of air conditioning and heating equipment [2] - The stock of AAON, Inc. experienced a one-month return of -0.35% and a 52-week decline of 22.83%, closing at $103.90 per share on November 11, 2025 [2] - Baron Real Estate Fund began purchasing shares of AAON, Inc. after a 40% decline from its peak earlier in 2025, attributing the decline to an overreaction to the company's Investor Day guidance and temporary issues related to a new Enterprise Resource Planning implementation [3]

Core Insights - AAON reported Q3 CY2025 revenue of $384.2 million, exceeding analyst expectations by 17.4% year-on-year and beating estimates by 13.8% [1][6] - Non-GAAP profit per share was $0.37, which is 14.9% above analysts' consensus estimates of $0.32 [1][6] Revenue and Financial Performance - Revenue growth of 17.4% year-on-year, surpassing analyst estimates of $337.5 million [6] - Adjusted EBITDA was $63.55 million, with a margin of 16.5%, beating estimates by 3.8% [6] - Operating margin decreased to 11.4% from 20% in the same quarter last year [6] - Backlog at the end of the quarter reached $1.32 billion, reflecting a 104% increase year-on-year [6] - Market capitalization stands at $8.16 billion [6] Operational Highlights - Sales momentum attributed to improved production throughput at Tulsa and Longview facilities, along with strong demand for the BASX brand [3][5] - BASX-branded backlog grew to $896.8 million, up 119.5% from a year ago, indicating strong performance in data center cooling solutions [3][5] - Despite facing margin pressures due to operational inefficiencies and ramp-up costs at the new Memphis facility, there was a sequential improvement in gross margin [3][4] Future Outlook - Management expects continued double-digit revenue growth and further margin improvement as new manufacturing capacity ramps up [4] - The BASX segment is anticipated to remain a key growth driver, supported by robust demand for data center cooling products and a strong order pipeline for 2026 [4] - Company plans to address ERP implementation challenges and optimize manufacturing processes to support long-term profitability [4]

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Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1]. Group 1: Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]. Group 2: Market Focus - The investment strategy encompasses markets in the US, Canada, and Europe, indicating a broad geographical focus for potential investment opportunities [1].

Core Insights - AAON's shares surged 18% following the release of its third-quarter 2025 results, which exceeded Wall Street expectations for both revenue and earnings [1] - The company reported revenue of $384.2 million, marking a 17.4% year-over-year increase, and adjusted earnings per share of $0.37, surpassing analyst estimates [1] - AAON's order backlog reached $1.32 billion, reflecting a 104% increase from the previous year, indicating strong future demand despite a decline in operating margin [1] Market Reaction - AAON's stock has shown significant volatility, with 23 movements greater than 5% in the past year, suggesting that the recent news has notably influenced market perception [3] - The broader market experienced caution, with the tech-heavy Nasdaq falling approximately 1.4%, as investors engaged in profit-taking amid concerns over high valuations following an AI-driven rally [4] - Leadership at Goldman Sachs and Morgan Stanley indicated a potential correction in equity markets over the next couple of years, viewing this cooling-off as a healthy aspect of a long-term bull market [4] Historical Performance - Year-to-date, AAON's stock is down 15%, trading at $100.20 per share, which is 28.8% below its 52-week high of $140.75 from November 2024 [5] - An investment of $1,000 in AAON shares five years ago would now be worth $2,365, indicating substantial long-term growth despite recent fluctuations [5]