Advanced Energy (AEIS) AI Stock Analysis

• Market Cap: $7.96B
• Dividend Yield: 0.18%
• Average Volume (3M): 314.48K
• Price to Earnings (P/E): 57.8
• Beta (1Y): 1.85
• Revenue Growth: 17.18%
• EPS Growth: 235.76%
• Country: US
• Employees: 10,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.74
• Shares Outstanding: 37,745,487
• 10 Day Avg. Volume: 281,966
• 30 Day Avg. Volume: 314,484
• PEG Ratio: -1.39
• Price to Book (P/B): 3.60
• Price to Sales (P/S): 2.92
• P/FCF Ratio: 58.59
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 3.75
• Enterprise Value/Gross Profit: 9.98
• Enterprise Value/Ebitda: 28.51
• 1Y Price Target: $220.63
• Price Target Upside: 4.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $205.00 ▼(-2.84% Downside)

Advanced Energy's overall stock score is driven by strong financial performance and positive earnings call highlights, particularly in data center revenue growth. However, the high P/E ratio and low dividend yield suggest valuation concerns. Technical indicators show mixed signals, with potential short-term weakness but medium-term strength. The company's strategic initiatives and operational improvements provide a positive outlook, but attention to valuation and market conditions is necessary.

Positive Factors

Revenue Growth

Consistent revenue growth over four consecutive quarters indicates strong market demand and effective sales strategies, enhancing long-term business stability.

Data Center Expansion

The significant growth in data center revenue, driven by AI demand, positions the company well in a rapidly expanding sector, ensuring future revenue streams.

Operational Efficiency

Improved operating margins reflect enhanced cost management and operational efficiency, contributing to better profitability and competitive positioning.

Negative Factors

Semiconductor Revenue Decline

Declining semiconductor revenue could indicate challenges in a key market segment, potentially affecting overall growth and market share.

Tariff Challenges

Rising tariffs may increase production costs, impacting profit margins and pricing strategies, thereby affecting long-term financial performance.

Profitability Concerns

Low net profit margins suggest limited profitability, which could hinder reinvestment capabilities and shareholder returns over time.

Advanced Energy Business Overview & Revenue Model

Company Description

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, high voltage, and radio frequency (RF) power supplies, as well as 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 rapid thermal processing, chemical vapor deposition, 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 wafer processing and metrology, electrostatic clamping of substrates, scientific instrumentation, mass spectrometry, and X-ray systems for industrial and analytical applications; and low voltage DC-DC board mounted solutions for use in healthcare, telecommunications, test and measurement, instrumentation, and industrial equipment applications, as well as distributed power in server and storage systems. In addition, it offers gas sensing and monitoring products for the energy market, air quality monitoring, and automobile emission monitoring and testing; and embedded power products for medical equipment or IEC 60950-1 for information technology equipment. Further, it offers conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. The company provides 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.

How the Company Makes Money

Advanced Energy generates revenue primarily through the sale of its core products, which include high-performance power supplies, thermal management solutions, and advanced measurement instruments. The company serves a diverse customer base, including semiconductor manufacturers, industrial equipment producers, and renewable energy developers. Key revenue streams come from the sale of equipment and components, as well as ongoing services such as installation, maintenance, and technical support. Additionally, AEIS benefits from strategic partnerships with leading technology firms and collaborative projects that enhance its market reach and product offerings, contributing to its earnings growth.

Advanced Energy Financial Statement Overview

Summary

Advanced Energy demonstrates a solid financial position with strong cash flow generation and a stable balance sheet. The income statement shows recovery in revenue growth and consistent profitability margins. While the company has reduced its leverage significantly, maintaining this trajectory will be crucial for sustaining growth and profitability. The financial health is robust, but attention to revenue volatility and maintaining profitability will be key to future success.

Income Statement

Advanced Energy shows a solid performance in its income statement with a Gross Profit Margin of 37.16% and a Net Profit Margin of 8.41% for TTM (Trailing-Twelve-Months). The company has demonstrated a positive Revenue Growth Rate of 5.45% in the latest TTM period, recovering from previous declines. EBIT and EBITDA margins are stable, indicating efficient operations. However, the historical fluctuations in revenue growth suggest potential volatility.

Balance Sheet

The balance sheet reflects a strong equity position with a Debt-to-Equity Ratio of 0.09 in the latest TTM, significantly improved from previous years. Return on Equity is moderate at 6.91%, indicating decent profitability. The Equity Ratio stands at 53.61%, showcasing a stable financial structure. The reduction in debt levels over time is a positive sign, although the ROE has seen a decline from previous highs.

Cash Flow

Cash flow analysis reveals robust Free Cash Flow Growth of 23.65% in the latest TTM, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 0.65, and the Free Cash Flow to Net Income Ratio is 0.65, both reflecting healthy cash flow management. The company has improved its cash flow metrics over the years, enhancing its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.72B	1.48B	1.66B	1.85B	1.46B	1.42B
Gross Profit	648.50M	529.34M	592.40M	675.51M	532.32M	541.87M
EBITDA	227.06M	145.94M	205.56M	309.36M	205.18M	236.96M
Net Income	144.97M	54.21M	128.28M	199.66M	134.74M	134.68M
Balance Sheet
Total Assets	2.44B	2.26B	2.56B	1.99B	1.82B	1.65B
Cash, Cash Equivalents and Short-Term Investments	758.80M	722.09M	1.04B	458.82M	544.37M	483.02M
Total Debt	682.80M	671.70M	1.02B	484.49M	503.76M	434.63M
Total Liabilities	1.13B	1.06B	1.41B	925.90M	945.84M	832.32M
Stockholders Equity	1.31B	1.20B	1.14B	1.07B	870.85M	814.74M
Cash Flow
Free Cash Flow	150.94M	73.96M	147.93M	124.70M	108.37M	164.75M
Operating Cash Flow	233.59M	130.75M	208.94M	183.59M	140.25M	201.24M
Investing Cash Flow	-84.94M	-73.54M	-64.75M	-208.27M	-47.30M	-42.84M
Financing Cash Flow	-47.76M	-377.09M	445.68M	-61.87M	-25.37M	-29.61M

Advanced Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 210.99
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEIS, the sentiment is Neutral. The current price of 210.99 is below the 20-day moving average (MA) of 217.36, below the 50-day MA of 212.12, and above the 200-day MA of 155.42, indicating a neutral trend. The MACD of 2.86 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 62.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AEIS.

Advanced Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	79 Outperform	$5.80B	18.50	18.22%	0.67%	6.17%	20.86%
POWL	78 Outperform	$4.37B	24.60	32.17%	0.32%	9.08%	19.86%
VRT	77 Outperform	$61.47B	61.66	38.86%	0.11%	28.76%	76.31%
NVT	76 Outperform	$16.57B	29.03	8.57%	0.84%	5.31%	5.76%
AEIS	67 Neutral	$7.96B	57.77	11.80%	0.18%	17.18%	235.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENVX	55 Neutral	$1.71B	―	-68.95%	―	45.98%	44.14%