AAON, Inc. is a world leader in creating comfortable and efficient indoor environments through the manufacturing and sales of semi-custom heating, ventilation and air-conditioning equipment (HVAC). Formed in 1988, this organization has received many awards and recognitions for product innovation and successful business performance from Forbes Best Small Companies, including being listed as 77th in 2010.
Overall, AAON, Inc.’s financial stability is sound. Although Revenues slightly declined from 2008 to 2010, 2011 proved to be a very successful year earning 266.2 million in revenues- up from 244.6 million the year before. (S&P, Financials, 2012) The first quarter of 2012 appears to suggest that the company will continue their growth in sales and revenues throughout the year. Furthermore, Standard and Poor’s Net Advantage (S&P) ranks this company’s earnings and dividends as average (B+) with a 58% relative strength rating. (S&P, Estimates and Opinions, 2012)
As the economy improves, the building product sub-industry has also begun to gain momentum as the demand for building products and new-home construction has increased. With the new home markets reduced prices and the lowest mortgage rates that the Country has seen in over 40- plus years, it is projected that this particular industry will continue to grow and recover from the 2007 housing crash.
Investors seeking an opportunity to invest in a growing and financially stable company with a relatively strong industry should consider AAON, Inc. This company has had continuous overall growth with the exception of the effects of the 2008 housing crisis. Even still, this company and industry has recovered relatively quickly and will continue to grow.
References:
AAON, Inc., (2012) Financials, Retrieved on May 17, 2012 from http://www.netadvantage.standardandpoors.com.ezproxy.liberty.edu:2048/NASApp/NetAdvantage/cp/companyFinancials.do
AAON, Inc., (2012) Estimates and Opinions, Retrieved on May 17, 2012 from...