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Advanced Energy
(NASDAQ:AEIS)
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Rating:63Neutral
Price Target:
$316.00
▲(3.95% Upside)
Action:Reiterated
Date:08/04/26
AEIS scores as moderately attractive: improving financial results and a very upbeat earnings call with raised guidance are the biggest positives, but higher leverage and weaker recent cash conversion meaningfully offset them. Technicals are neutral-to-soft (below key moving averages with negative MACD), and the high P/E with minimal yield further caps the score.
Positive Factors
Revenue and margin expansion
Company delivered record revenue and materially raised 2026 guidance, showing durable demand across core end markets. Strong top-line growth coupled with expanding gross and operating margins indicates sustainable operating leverage that should benefit results over the next several quarters.
Negative Factors
Increased leverage
The step‑up in leverage reduces financial flexibility if cyclical end markets soften. Higher debt loads constrain capital allocation, increase refinancing or dilution risk, and make the company more sensitive to cash‑flow volatility over the coming quarters despite equity growth and improved returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin expansion
Company delivered record revenue and materially raised 2026 guidance, showing durable demand across core end markets. Strong top-line growth coupled with expanding gross and operating margins indicates sustainable operating leverage that should benefit results over the next several quarters.
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
$11.01B
Dividend Yield0.14%
Average Volume (3M)887.17K
Price to Earnings (P/E)57.2
Beta (1Y)1.63
Revenue Growth22.19%
EPS Growth157.87%
CountryUS
Employees13,000
SectorIndustrials
Sector Strength72
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)5.78
Shares Outstanding38,030,660
10 Day Avg. Volume565,936
30 Day Avg. Volume887,167
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$430.82Price Target Upside41.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)9.42
Revenue Forecast (FY)$2.25B
Advanced Energy Business Overview & Revenue Model
Company Description
Advanced Energy Industries, Inc. (AEIS) designs and manufactures precision power conversion, measurement, and control solutions used in industrial and high-technology applications. The company’s products are used by original equipment manufacturer...
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:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company reported record revenue, record operating income and EPS that materially beat guidance, with strong YoY growth across semiconductor and data center, substantial margin expansion, record operating cash flow, an upgraded 2026 revenue outlook (low-to-mid-30% growth) and clear capacity and product roadmaps (Thailand ramp, 800V roadmap). Offsets include a strategic but cash-intensive inventory build that raised working capital and lowered turns, modest sequential softness in a couple of end markets, some one-time benefits (tariff refunds) boosting results slightly, input-cost pressures necessitating pricing actions, and continued concentration on a few hyperscalers that requires disciplined resource allocation. On balance, the positives and the degree of guidance and margin improvement materially outweigh the listed challenges.Positive Updates
Record Revenue and EPS; Guidance Upside
Q2 revenue of $574M, up 30% year-over-year and 12% sequentially, exceeded the high end of guidance; Q2 non-GAAP EPS of $2.74, up ~83% year-over-year. Management raised full-year 2026 revenue growth outlook to the low-to-mid-30% range (up from low-to-mid-20%). Q3 revenue guide ~ $640M +/- $20M and Q3 non-GAAP EPS guide $3.00 +/- $0.25.
Negative Updates
Inventory Build, Working Capital Pressure and Lower Turns
Net working capital increased to 123 days (up 2 days); inventory days increased 10 days to 145 days and inventory turns fell to ~2.5x as management intentionally leaned into piece-part inventory to support ramps, which increases working capital usage and near-term balance-sheet intensity.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and EPS; Guidance Upside
Q2 revenue of $574M, up 30% year-over-year and 12% sequentially, exceeded the high end of guidance; Q2 non-GAAP EPS of $2.74, up ~83% year-over-year. Management raised full-year 2026 revenue growth outlook to the low-to-mid-30% range (up from low-to-mid-20%). Q3 revenue guide ~ $640M +/- $20M and Q3 non-GAAP EPS guide $3.00 +/- $0.25.
Read all positive updates
Company Guidance
The company guided to record Q3 and Q4 results, forecasting Q3 revenue of approximately $640 million ± $20 million, Q3 gross margin of 41.0%–41.5% (excluding one‑time tariff refunds), Q3 operating expense of $120–124 million, other income of about $5 million, a tax rate around 16%, and Q3 non‑GAAP EPS of $3.00 ± $0.25 on ~41 million shares; for full‑year 2026 they raised revenue growth to the low‑ to mid‑30% range (up from low‑ to mid‑20%), expect semiconductor second‑half revenue ~50% year‑over‑year, data center revenue growth of at least 50% for the year, sequential Industrial & Medical growth, Q4 gross margin in the ~42% range with line of sight to >43% longer term, full‑year OpEx ~ $470 million, CapEx of $180–195 million, and they still expect 2026 free cash flow to be at or above 2025 despite higher inventory and strategic investments.Advanced Energy Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.04B | 1.80B | 1.48B | 1.66B | 1.85B | 1.46B |
| Gross Profit | 809.90M | 670.00M | 529.34M | 592.40M | 675.51M | 532.32M |
| EBITDA | 272.60M | 247.40M | 145.94M | 205.56M | 309.36M | 205.18M |
| Net Income | 218.90M | 148.40M | 54.21M | 128.28M | 199.66M | 134.74M |
Balance Sheet | ||||||
| Total Assets | 3.43B | 2.55B | 2.26B | 2.56B | 1.99B | 1.82B |
| Cash, Cash Equivalents and Short-Term Investments | 1.40B | 791.20M | 722.09M | 1.04B | 458.82M | 544.37M |
| Total Debt | 1.28B | 679.00M | 671.70M | 1.02B | 484.49M | 503.76M |
| Total Liabilities | 1.95B | 1.18B | 1.06B | 1.41B | 925.90M | 945.84M |
| Stockholders Equity | 1.46B | 1.36B | 1.20B | 1.14B | 1.07B | 870.85M |
Cash Flow | ||||||
| Free Cash Flow | 87.70M | 125.90M | 73.96M | 147.93M | 124.70M | 108.37M |
| Operating Cash Flow | 239.20M | 233.30M | 130.75M | 208.94M | 183.59M | 140.25M |
| Investing Cash Flow | -153.70M | -109.80M | -73.54M | -64.75M | -208.27M | -47.30M |
| Financing Cash Flow | 603.50M | -56.10M | -377.09M | 445.68M | -61.87M | -25.37M |
Advanced Energy Technical Analysis
Positive
303.99
Price Trends
319.50
Positive
333.39
Positive
288.00
Positive
Market Momentum
-6.95
Negative
58.94
Neutral
70.37
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 303.99 is above the 20-day moving average (MA) of 296.34, below the 50-day MA of 319.50, and above the 200-day MA of 288.00, indicating a bullish trend. The MACD of -6.95 indicates Negative momentum. The RSI at 58.94 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $7.60B | 40.49 | 29.21% | 0.15% | 4.50% | 7.18% | |
73 Outperform | $6.78B | 23.73 | 15.60% | 0.55% | 3.70% | -14.17% | |
72 Outperform | $24.88B | 41.69 | 13.36% | 0.55% | 46.19% | 3.13% | |
70 Outperform | $93.00B | 53.44 | 42.11% | 0.08% | 26.23% | 111.00% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $11.01B | 57.22 | 15.89% | 0.13% | 22.19% | 157.87% | |
49 Neutral | $892.25M | -4.99 | -67.92% | ― | 49.88% | 27.54% |
* Industrials Sector Average
AEIS
Advanced Energy
341.39
202.06
145.02%
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193.70
102.94
113.41%
POWL
Powell Industries
211.38
132.85
169.16%
NVT
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162.24
73.11
82.02%
VRT
Vertiv Holdings
269.93
131.32
94.74%
ENVX
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4.40
-6.87
-60.96%
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.