Advanced Energy (AEIS)
NASDAQ:AEIS
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Advanced Energy
(NASDAQ:AEIS)
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Rating:74Outperform
Price Target:
$420.00
▲(12.01% Upside)
Action:ReiteratedDate:02/12/26
AEIS scores well on improving fundamentals and a strong, established uptrend, reinforced by upbeat guidance and data-center momentum from the latest earnings call. The overall score is held back primarily by expensive valuation (high P/E, low yield) and secondarily by softer free-cash-flow trends and working-capital/inventory considerations.
Positive Factors
Data center revenue momentum
A sustained, multi-quarter surge in data center revenue driven by AI/OCI demand and design wins creates a durable new growth pillar. Large, repeatable programs and management guidance (>30% data-center growth for 2026) reduce dependence on cyclical end markets and support multi-year revenue runway.
Negative Factors
Supply-chain constraints for processors and memory
Ongoing allocation constraints for critical components can structurally cap the company’s ability to convert demand into revenue despite strong orders. Persistent supply tightness forces conservative guidance, strategic inventory builds, and could elongate ramps for high-volume data-center programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Data center revenue momentum
A sustained, multi-quarter surge in data center revenue driven by AI/OCI demand and design wins creates a durable new growth pillar. Large, repeatable programs and management guidance (>30% data-center growth for 2026) reduce dependence on cyclical end markets and support multi-year revenue runway.
Read all positive factors
Advanced Energy (AEIS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.16B
Dividend Yield0.18%
Average Volume (3M)617.23K
Price to Earnings (P/E)53.0
Beta (1Y)1.78
Revenue Growth17.18%
EPS Growth235.76%
CountryUS
Employees10,000
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)1.94
Shares Outstanding37,750,990
10 Day Avg. Volume495,434
30 Day Avg. Volume617,229
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 Cap1.00
Enterprise Value/Revenue7.91
Enterprise Value/Gross Profit20.70
Enterprise Value/Ebitda62.01
Forecast
1Y Price Target
$343.33Price Target Upside-8.44% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)8.68
Revenue Forecast (FY)$2.16B
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 alterna...
How the Company Makes Money
AEIS makes money primarily by selling precision power products and related solutions to equipment manufacturers and industrial customers. Revenue is generated from (1) product sales of power conversion systems (e.g., high-voltage/low-voltage power...
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 Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company reported strong top-line growth (21% revenue growth for 2025), exceptional data center momentum, meaningful margin expansion, record operating cash flow, and material capacity investments with clear product and design-win momentum. Notable challenges include a full-year decline in industrial & medical, ongoing tariff headwinds, and supply-chain constraints (processors and memory) that could limit near-term upside and create conservatism in guidance. Management provided constructive 2026 targets (high-teens revenue growth, data center >30%, gross margin approaching/above 40%) while acknowledging risks and planned strategic inventory and capacity investments to mitigate supply constraints.Positive Updates
Strong Q4 Revenue and Beat vs Guidance
Q4 revenue of $489M (reported as nearly $490M) was at the high end of guidance, up 6% sequentially and 18% year-over-year.
Negative Updates
Industrial & Medical Full-Year Decline
Industrial and medical revenue decreased 11% for full-year 2025 despite sequential recovery during the year; although Q4 I&M was $78M (+10% sequential, +2% YoY), the segment experienced a prolonged inventory correction.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 Revenue and Beat vs Guidance
Q4 revenue of $489M (reported as nearly $490M) was at the high end of guidance, up 6% sequentially and 18% year-over-year.
Read all positive updates
Company Guidance
Management guided Q1 revenue of approximately $500 million ± $20 million, gross margin around 39.5%–40%, Q1 non‑GAAP EPS about $1.94 ± $0.25 (based on 39.7 million shares due to the convertible note), a normalized tax rate of ~16%–17%, other income near $1 million, and flattish operating expenses with CapEx expected to remain around Q4 run‑rate levels; for full‑year 2026 they model high‑teens revenue growth with data‑center revenue growth revised to >30%, expect to move gross margin above 40% in 2026 (long‑term target 43%), and plan 2026 CapEx to support >$2.5 billion of revenue‑generating capacity (Thailand ultimately adding >$1 billion). Management also reiterated recent 2025 and Q4 metrics underpinning the outlook: FY2025 revenue $1.8 billion (+21% YoY) and record operating cash flow $235 million (Q4 CFFO $80M); Q4 revenue $489M (+6% sequential, +18% YoY), Q4 gross margin 39.7% (+60 bps QoQ), Q4 operating margin 17.8%, Q4 adjusted EBITDA $97M, FY adjusted EBITDA $324M, FY non‑GAAP EPS $6.41 (+73%), cash $791M (net cash $224M), inventory days 125 (turns 2.9), DSO 60, DPO 68, net working capital 117 days, 2025 CapEx $107M (6% of revenue), Q4 CapEx $38M, Q4 dividends $4M and $6.7M of buybacks (33k shares at $205.38).Advanced Energy Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.80B | 1.48B | 1.66B | 1.85B | 1.46B |
| Gross Profit | 670.00M | 529.34M | 592.40M | 675.51M | 532.32M |
| EBITDA | 257.20M | 145.94M | 205.56M | 309.36M | 205.18M |
| Net Income | 148.40M | 54.21M | 128.28M | 199.66M | 134.74M |
Balance Sheet | |||||
| Total Assets | 2.55B | 2.26B | 2.56B | 1.99B | 1.82B |
| Cash, Cash Equivalents and Short-Term Investments | 791.20M | 722.09M | 1.04B | 458.82M | 544.37M |
| Total Debt | 679.00M | 671.70M | 1.02B | 484.49M | 503.76M |
| Total Liabilities | 1.18B | 1.06B | 1.41B | 925.90M | 945.84M |
| Stockholders Equity | 1.36B | 1.20B | 1.14B | 1.07B | 870.85M |
Cash Flow | |||||
| Free Cash Flow | 125.90M | 73.96M | 147.93M | 124.70M | 108.37M |
| Operating Cash Flow | 233.30M | 130.75M | 208.94M | 183.59M | 140.25M |
| Investing Cash Flow | -109.80M | -73.54M | -64.75M | -208.27M | -47.30M |
| Financing Cash Flow | -56.10M | -377.09M | 445.68M | -61.87M | -25.37M |
Advanced Energy Technical Analysis
Positive
374.98
Price Trends
312.62
Positive
267.13
Positive
215.30
Positive
Market Momentum
11.94
Negative
67.06
Neutral
86.02
Negative
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 374.98 is above the 20-day moving average (MA) of 327.44, above the 50-day MA of 312.62, and above the 200-day MA of 215.30, indicating a bullish trend. The MACD of 11.94 indicates Negative momentum. The RSI at 67.06 is Neutral, neither overbought nor oversold. The STOCH value of 86.02 is Negative, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $8.41B | 23.32 | 30.64% | 0.32% | 9.08% | 19.86% | |
78 Outperform | $6.99B | 15.10 | 16.61% | 0.67% | 6.17% | 20.86% | |
77 Outperform | $20.80B | 34.65 | 19.60% | 0.84% | 5.31% | 5.76% | |
77 Outperform | $110.05B | 46.40 | 40.26% | 0.11% | 28.76% | 76.31% | |
74 Outperform | $14.16B | 53.05 | 11.51% | 0.18% | 17.18% | 235.76% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | $1.21B | -10.09 | -0.23% | ― | 45.98% | 44.14% |
* Industrials Sector Average
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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.