Want to see AEIS full AI Analyst Report?
Top Page
Advanced Energy
(NASDAQ:AEIS)
Select Model
Select Model
Rating:66Neutral
Price Target:
$368.00
▼(-2.02% Downside)
Action:Reiterated
Date:06/13/26
AEIS scores strongest on earnings momentum and upgraded guidance, supported by improving profitability and a de-risking balance sheet. The score is held back by weakened free-cash-flow conversion and a high P/E valuation, while technicals are mixed with solid long-term trend but softer near-term momentum.
Positive Factors
Margin Recovery & Expansion
Advanced Energy has meaningfully improved profitability, with gross margins above 38% and Q1 exceeding 40%. Higher-margin new products, manufacturing efficiency and targets above 43% suggest margin expansion can be sustained as volumes and product mix shift toward data center and premium offerings.
Negative Factors
Weak Free Cash Flow & Cash Conversion
Free cash flow has weakened materially, driven by working-capital builds and inventory growth. Lower cash conversion versus net income reduces internal funding for capex and acquisitions and increases reliance on external financing, making long-term investment plans and leverage targets more sensitive to operational execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Recovery & Expansion
Advanced Energy has meaningfully improved profitability, with gross margins above 38% and Q1 exceeding 40%. Higher-margin new products, manufacturing efficiency and targets above 43% suggest margin expansion can be sustained as volumes and product mix shift toward data center and premium offerings.
Read all positive factors
Advanced Energy Key Performance Indicators (KPIs)
Any
Revenue by Category
Breaks down revenue by product or service categories, revealing which areas are driving growth and which may need strategic adjustments to enhance performance.
Breaks down revenue by product or service categories, revealing which areas are driving growth and which may need strategic adjustments to enhance performance.
Data provided by:
The Fly
The FlyAdvanced Energy (AEIS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.84B
Dividend Yield0.18%
Average Volume (3M)987.92K
Price to Earnings (P/E)61.5
Beta (1Y)1.63
Revenue Growth22.19%
EPS Growth157.87%
CountryUS
Employees10,000
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)5.06
Shares Outstanding38,030,660
10 Day Avg. Volume864,100
30 Day Avg. Volume987,921
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)5.78
Price to Sales (P/S)4.38
P/FCF Ratio62.53
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue7.04
Enterprise Value/Gross Profit18.20
Enterprise Value/Ebitda47.68
Forecast
1Y Price Target
$424.00Price Target Upside12.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)9.35
Revenue Forecast (FY)$2.24B
Advanced Energy Business Overview & Revenue Model
Company Description
Advanced Energy Industries, Inc. (AEIS) is a global leader in the design, production, sale, and support of sophisticated power conversion, measurement, and control systems. The company specializes in plasma power technologies, providing a range of...
How the Company Makes Money
Advanced Energy primarily makes money by selling precision power conversion products and systems to OEM customers that incorporate AEIS components into their equipment, and to end users that deploy these products in production environments. Revenu...
Advanced Energy Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call delivered multiple material positives: revenue grew 26% YoY to $511M, record data center revenue (+102% YoY), gross margin exceeded 40% (40.1%) and operating income and EPS were records, leading management to raise full-year growth targets (low- to mid-20% overall, mid-30% for data center). The company is making sizable capacity investments (Thailand plus other expansions), sees strong design-win momentum and expects continued margin expansion toward a >43% target. Near-term risks include Q2 moderation in data center driven by downstream customer constraints, an 8% sequential decline in Industrial & Medical due to factory prioritization, rising input/tariff/cost pressures, and a working capital build that produced a small Q1 cash outflow. Overall, the positive operational and financial momentum and upgraded guidance outweigh the near-term timing, supply and working-capital headwinds.Positive Updates
Revenue Growth and Beat
Total revenue of $511 million, up 26% year-over-year, and above the midpoint of guidance; Q2 revenue guidance ~ $540 million ± $20 million; full-year revenue growth target raised to low- to mid-20%.
Negative Updates
Industrial & Medical Sequential Decline
Industrial & Medical revenue was $72 million, down 8% sequentially despite being up 12% YoY; decline attributed to factory production priorities shifting to other markets, limiting output in Q1.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth and Beat
Total revenue of $511 million, up 26% year-over-year, and above the midpoint of guidance; Q2 revenue guidance ~ $540 million ± $20 million; full-year revenue growth target raised to low- to mid-20%.
Read all positive updates
Company Guidance
Advanced Energy guided Q2 revenue of approximately $540 million (± $20M), Q2 gross margin improvement of 20–50 basis points sequentially, Q2 operating expenses of $112–114 million, other income of about $1 million, a non‑GAAP tax rate of 16–17%, and Q2 non‑GAAP EPS of $2.18 (± $0.25) on ~40.6 million shares; for full‑year 2026 they raised revenue growth to the low‑ to mid‑20% range (up from high‑teens), expect data center revenue growth in the mid‑30% range (up from >30%), see semiconductor 2H revenues likely up >30% YoY, plan 2026 CapEx of $170–180 million, target free cash flow at or above 2025 levels, and maintain a longer‑term gross margin goal of >43% (building from current >40% levels); they also expect exiting‑year revenue‑generating capacity of over $2.5 billion with Thailand adding >$1 billion to exceed $3.5 billion when fully built out.Advanced Energy Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
72
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.91B | 1.80B | 1.48B | 1.66B | 1.85B | 1.46B |
| Gross Profit | 737.20M | 670.00M | 529.34M | 592.40M | 675.51M | 532.32M |
| EBITDA | 281.50M | 247.40M | 145.94M | 205.56M | 309.36M | 205.18M |
| Net Income | 190.50M | 148.40M | 54.21M | 128.28M | 199.66M | 134.74M |
Balance Sheet | ||||||
| Total Assets | 2.59B | 2.55B | 2.26B | 2.56B | 1.99B | 1.82B |
| Cash, Cash Equivalents and Short-Term Investments | 699.50M | 791.20M | 722.09M | 1.04B | 458.82M | 544.37M |
| Total Debt | 683.10M | 679.00M | 671.70M | 1.02B | 484.49M | 503.76M |
| Total Liabilities | 1.21B | 1.18B | 1.06B | 1.41B | 925.90M | 945.84M |
| Stockholders Equity | 1.38B | 1.36B | 1.20B | 1.14B | 1.07B | 870.85M |
Cash Flow | ||||||
| Free Cash Flow | 68.30M | 125.90M | 73.96M | 147.93M | 124.70M | 108.37M |
| Operating Cash Flow | 198.40M | 233.30M | 130.75M | 208.94M | 183.59M | 140.25M |
| Investing Cash Flow | -132.70M | -109.80M | -73.54M | -64.75M | -208.27M | -47.30M |
| Financing Cash Flow | -87.60M | -56.10M | -377.09M | 445.68M | -61.87M | -25.37M |
Advanced Energy Technical Analysis
Negative
375.60
Price Trends
344.73
Negative
337.96
Negative
274.39
Positive
Market Momentum
3.85
Positive
41.91
Neutral
36.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEIS, the sentiment is Negative. The current price of 375.6 is above the 20-day moving average (MA) of 345.41, above the 50-day MA of 344.73, and above the 200-day MA of 274.39, indicating a neutral trend. The MACD of 3.85 indicates Positive momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 36.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AEIS.
Advanced Energy Risk Analysis
Advanced Energy disclosed 38 risk factors in its most recent earnings report. Advanced Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Advanced Energy Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.55B | 26.36 | 15.60% | 0.67% | 3.70% | -14.17% | |
78 Outperform | $24.61B | 50.05 | 13.36% | 0.84% | 34.18% | -15.12% | |
75 Outperform | $115.44B | 73.66 | 42.06% | 0.11% | 28.95% | 130.56% | |
74 Outperform | $8.97B | 47.80 | 28.61% | 0.32% | 4.50% | 7.18% | |
66 Neutral | $11.84B | 61.52 | 14.35% | 0.18% | 22.19% | 157.87% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | $1.17B | -6.54 | -67.92% | ― | 49.88% | 27.54% |
* Industrials Sector Average
AEIS
Advanced Energy
311.27
173.37
125.73%
ENS
EnerSys
206.68
117.09
130.69%
POWL
Powell Industries
246.33
173.97
240.44%
NVT
nVent Electric
152.15
77.83
104.73%
VRT
Vertiv Holdings
300.53
172.83
135.34%
ENVX
Enovix
5.36
-7.67
-58.86%
Advanced Energy Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Advanced Energy Announces Redemption of Convertible Senior Notes
Positive
Jun 12, 2026
On June 12, 2026, Advanced Energy Industries, Inc. announced it had issued a notice to redeem on September 23, 2026, all $136.7 million of its remaining outstanding 2.50% Convertible Senior Notes due 2028 at par plus accrued interest. The move wil...
Business Operations and StrategyPrivate Placements and Financing
Advanced Energy Completes $1.15 Billion Convertible Notes Offering
Positive
May 18, 2026
On May 18, 2026, Advanced Energy completed a private, unregistered offering of $1.15 billion of 0% Convertible Senior Notes due 2031, generating approximately $1.13 billion in net proceeds. The notes, which carry no regular interest and mature on ...
Business Operations and StrategyPrivate Placements and Financing
Advanced Energy Announces $1 Billion Convertible Notes Offering
Positive
May 14, 2026
On May 13, 2026, Advanced Energy priced a private offering of $1 billion in 0% Convertible Senior Notes due 2031, at a conversion premium of about 50% over its then share price and with an option for initial purchasers to buy an additional $150 mi...
Private Placements and Financing
Advanced Energy Launches $1 Billion Convertible Notes Offering
Neutral
May 13, 2026
On May 13, 2026, Advanced Energy announced a private offering of $1.0 billion in Convertible Senior Notes due 2031, with an option for initial purchasers to buy an additional $150 million, targeting qualified institutional buyers under Rule 144A. ...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Advanced Energy Expands Share Authorization and Renews Governance
Positive
May 8, 2026
On May 7, 2026, Advanced Energy stockholders approved an amendment to its Amended and Restated Certificate of Incorporation, doubling the number of authorized common shares from 70 million to 140 million, a move that enhances the company’s f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.