Advanced Energy (AEIS) AI Stock Analysis

• Market Cap: $5.25B
• Dividend Yield: 0.29%
• Average Volume (3M): 325.53K
• Price to Earnings (P/E): 73.8
• Beta (1Y): 1.84
• Revenue Growth: 0.06%
• EPS Growth: -28.32%
• Country: US
• Employees: 10,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.23
• Shares Outstanding: 37,655,384
• 10 Day Avg. Volume: 307,583
• 30 Day Avg. Volume: 325,529
• PEG Ratio: 1.97
• Price to Book (P/B): 4.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 53.35
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 9.27
• Enterprise Value/Ebitda: 10.62
• 1Y Price Target: $135.00
• Price Target Upside: -5.42% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $147.00 ▲(2.99%Upside)

Advanced Energy's overall stock score reflects solid financial performance with strong revenue growth and cash flow. Technical indicators show positive momentum, although the stock is nearing overbought levels. The high P/E ratio suggests valuation concerns, balanced by positive guidance and strategic financial flexibility from recent corporate events.

Positive Factors

AI Data Center Growth

Record Data Center revenue was reported, with sales expected to grow as 2025 progresses.

Earnings Performance

Advanced Energy's non-GAAP net income of $1.23 per diluted share was within guidance but $0.17 above investor expectations.

Negative Factors

Gross Margin Challenges

A slower than anticipated recovery in volume could impact AEIS's goal of achieving a 40%+ gross margin.

Industrial and Medical Sales

Industrial and Medical 1Q25 sales of $64.3 million were down 22.9% y/y and 16.3% sequentially, with tariffs potentially impacting the pace of recovery.

Advanced Energy Business Overview & Revenue Model

Company Description

Advanced Energy Industries, Inc. (AEIS) is a global leader specializing in the design and manufacturing of highly engineered, precision power conversion, measurement, and control solutions. The company serves a diverse range of industries, including semiconductor manufacturing, industrial, medical, and telecommunications. Advanced Energy's core products include high and low voltage power supplies, thermal instrumentation, and power control platforms that enable innovation and efficiency across complex production processes.

How the Company Makes Money

Advanced Energy Industries generates revenue primarily through the sale of its advanced power conversion and control products. The company's key revenue streams include the semiconductor and industrial sectors, where it provides mission-critical solutions that enhance the performance and reliability of manufacturing processes. AEIS also derives income from servicing and maintaining its products, offering extended warranties, and providing technical support. Significant partnerships with leading semiconductor manufacturers and industrial companies further bolster its earnings, as these relationships ensure a steady demand for its precision-engineered solutions.

Advanced Energy Financial Statement Overview

Summary

Advanced Energy demonstrates solid financial health with positive revenue growth and a strong cash flow position. The company maintains a low leverage ratio, enhancing financial stability. While profitability margins show some pressure, the overall performance indicates a well-managed financial structure with strong cash generation capabilities.

Income Statement

Advanced Energy's TTM revenue shows a moderate increase, indicating positive growth with a 5.2% increase over the previous annual period. The gross profit margin is healthy at 35.9%, and the net profit margin is stable at 4.7%. However, both EBIT and EBITDA margins show some compression, suggesting increased operational costs impacting profitability.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.094, indicating low leverage. The equity ratio stands at 53.4%, showing a solid equity position. However, the return on equity (ROE) is relatively low at 6.0%, suggesting limited returns on shareholder's equity.

Cash Flow

The cash flow statement is robust with a notable increase in free cash flow by 33.3%. The operating cash flow to net income ratio is 2.07, highlighting strong cash generation relative to net income. The free cash flow to net income ratio is also impressive at 1.34, indicating efficient cash management and good liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.48B	1.66B	1.85B	1.46B	1.42B
Gross Profit	529.34M	592.40M	675.51M	532.32M	541.87M
EBITDA	138.22M	205.56M	305.52M	210.15M	236.96M
Net Income	54.21M	128.28M	199.66M	134.74M	134.68M
Balance Sheet
Total Assets	2.26B	2.56B	1.99B	1.82B	1.65B
Cash, Cash Equivalents and Short-Term Investments	722.09M	1.04B	458.82M	546.67M	483.02M
Total Debt	671.70M	1.02B	390.03M	408.58M	338.64M
Total Liabilities	1.06B	1.41B	925.90M	945.84M	833.30M
Stockholders Equity	1.20B	1.14B	1.07B	870.85M	814.74M
Cash Flow
Free Cash Flow	73.96M	147.93M	124.70M	108.37M	164.75M
Operating Cash Flow	130.75M	208.94M	183.59M	140.25M	201.24M
Investing Cash Flow	-73.54M	-64.75M	-208.27M	-47.30M	-42.84M
Financing Cash Flow	-377.09M	445.68M	-61.87M	-25.37M	-29.61M

Advanced Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 142.73
• 50DMA: Positive
• 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 Positive. The current price of 142.73 is above the 20-day moving average (MA) of 136.93, above the 50-day MA of 126.27, and above the 200-day MA of 113.86, indicating a bullish trend. The MACD of 4.98 indicates Positive momentum. The RSI at 69.69 is Neutral, neither overbought nor oversold. The STOCH value of 72.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$3.35B	9.95	19.82%	1.07%	1.00%	38.51%
POWL	77 Outperform	$2.55B	14.84	37.08%	0.45%	27.43%	67.93%
AEIS	76 Outperform	$5.25B	73.75	6.36%	0.29%	0.06%	-28.32%
ATKR	74 Outperform	$2.50B	14.30	12.73%	1.76%	-12.02%	-67.69%
BE	70 Neutral	$5.73B	―	0.86%	―	20.95%	―
Sector *	67 Neutral	$2.60B	13.37	9.94%	4.04%	-2.21%	31.02%
ENR	66 Neutral	$1.58B	31.65	33.46%	5.17%	0.39%	-37.01%

Advanced Energy Corporate Events

Advanced Energy Enters New Credit Agreement with Lenders

On May 8, 2025, Advanced Energy terminated its prior credit agreement from 2019, which provided a $600 million senior unsecured revolving facility, and entered into a new credit agreement with several lenders, including HSBC and Citibank. The new agreement also offers $600 million in financing with the option to increase by $250 million, featuring a five-year term and interest rates based on the Term SOFR or a Base Rate. This move is expected to enhance Advanced Energy’s financial flexibility and support its strategic initiatives, with implications for its leverage management and potential material acquisitions.