AAON, INC.

AAONdata completeness 88%17 fiscal years on file
The thesis, from the filings

AAON, INC. earns about 17% on invested capital, comfortably above its ~9% cost of capital, but has diluted owners by 3% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $1.56 and $13.42 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$534.5M1$888.8M2$1.17B3$1.2B3$1.44B3
Net income$58.8M4$100.4M5$177.6M6$168.6M6$107.6M6
Operating cash flow$61.2M7$61.3M8$158.9M9$192.5M9$534,0009
Capital expenditure$55.4M10$54M10
Free cash flow (derived)$5.82M7$7.29M8
Total debt$011$16M12$012
Cash & equivalents$2.86M13$5.45M14$287,00015$14,00016$13,00016
Diluted shares80.6M81.1M83.3M83.6M83.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$107.69
your share of equity
Profit it earned you last year
$12.95
Free cash flow it threw off
Debt you’d be carrying
$0

10 shares is a claim on $107.69 of net worth that earned you $12.95 last year, against $0 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
17% avg · 5y
FY21 13%FY22 18%FY23 24%FY24 20%FY25 10%

It earned about 17% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
+3% shares · 5y

Share count is up 3% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $1.56 and $13.42 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$1.69
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$7.29M
DCF · Growth Exit 5Y
$1.56
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$7.29M
Earnings Power Value
$13.42
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$107.6M
  • growthAssumed0.0%
Graham Number
$17.68
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $1.56
The three cases
Bear0.0%$1.25
Base5.0%$1.56
Bull10.0%$1.92

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000824142-24-000030 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000824142-25-000039 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000824142-26-000005 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0000824142-24-000030 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000824142-25-000039 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000824142-26-000005 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000824142-24-000030 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000824142-25-000039 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000824142-26-000005 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000824142-23-000019 (PaymentsToAcquireProductiveAssets)
  11. 10-K · period ending 2023-12-31 · accession 0000824142-25-000039 (DebtCurrent)
  12. 10-K · period ending 2024-12-31 · accession 0000824142-26-000005 (DebtCurrent)
  13. 10-K · period ending 2021-12-31 · accession 0000824142-23-000019 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0000824142-24-000030 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0000824142-25-000039 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0000824142-26-000005 (CashAndCashEquivalentsAtCarryingValue)