Advanced Energy (AEIS) AI Stock Analysis

• Market Cap: $9.96B
• Dividend Yield: 0.18%
• Average Volume (3M): 421.70K
• Price to Earnings (P/E): 69.4
• Beta (1Y): 1.83
• 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: 586,061
• 30 Day Avg. Volume: 421,698
• PEG Ratio: 1.20
• Price to Book (P/B): 3.60
• Price to Sales (P/S): 2.92
• P/FCF Ratio: 58.59
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 5.54
• Enterprise Value/Gross Profit: 14.75
• Enterprise Value/Ebitda: 42.12
• 1Y Price Target: $262.78
• Price Target Upside: -2.36% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $287.00 ▲(6.64% Upside)

AEIS scores well on financial strength (notably free cash flow growth and low leverage) and a favorable earnings outlook driven by record data-center demand and improving margins. Technicals also support the uptrend, though momentum is stretched (RSI/Stoch elevated). The main offset is valuation, with a very high P/E and minimal dividend yield.

Positive Factors

Robust free cash flow generation

Sustained FCF growth and strong cash conversion bolster the company's ability to fund capex, ramp new factory capacity, pay down obligations, and pursue strategic initiatives without heavy external financing. This enhances resilience across cycles and long-term optionality.

Conservative balance sheet / low leverage

Very low leverage and a solid equity base provide financial flexibility to invest in manufacturing (Thailand plant), absorb cyclical downturns, and pursue M&A or R&D. This structural strength reduces refinancing and liquidity risk over the medium term.

Structural data-center demand and capacity expansion

AI-driven, durable data-center demand is materially expanding addressable market while new Thailand capacity removes a supply constraint. Together these structural shifts support multi-year revenue scaling and margin improvement as production shifts and volumes normalize.

Negative Factors

Historical revenue volatility

Past swings in revenue growth indicate inconsistent demand across end markets, complicating forecasting and resource allocation. For planning and valuation, variable topline trends increase execution risk on margin targets and capital deployment over coming quarters.

Cyclical end-market exposure

Significant exposure to semicap and industrial/medical cycles makes earnings sensitive to capital spending and macro swings. Even with data-center tailwinds, weakness in other segments can offset gains and produce uneven profitability across reporting periods.

Rising tariff and cost pressure

Persistently higher tariffs raise structural costs and complicate supply-chain sourcing. While factory relocations may mitigate some exposure, ongoing tariff headwinds can compress margins and force pricing or further capital investment to reconfigure manufacturing over the medium term.

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

Overall financials are solid, led by strong cash generation (Free Cash Flow growth 23.65% TTM; healthy cash flow-to-net income ratios of 0.65). Profitability is steady with a 37.16% gross margin and 8.41% net margin, and revenue returned to growth (+5.45% TTM). Balance sheet risk is low with very modest leverage (Debt-to-Equity 0.09) and a stable equity ratio (53.61%), though ROE is only moderate (6.91%) and revenue growth has shown historical volatility.

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: Positive
• Last Price: 269.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 269.12 is above the 20-day moving average (MA) of 243.37, above the 50-day MA of 224.28, and above the 200-day MA of 166.70, indicating a bullish trend. The MACD of 13.42 indicates Negative momentum. The RSI at 66.58 is Neutral, neither overbought nor oversold. The STOCH value of 64.96 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	$6.68B	21.16	18.22%	0.67%	6.17%	20.86%
POWL	78 Outperform	$5.38B	29.85	32.17%	0.32%	9.08%	19.86%
VRT	77 Outperform	$74.08B	73.03	38.86%	0.11%	28.76%	76.31%
NVT	76 Outperform	$18.42B	31.45	8.57%	0.84%	5.31%	5.76%
AEIS	73 Outperform	$9.96B	69.39	11.80%	0.18%	17.18%	235.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENVX	54 Neutral	$1.55B	-8.79	-68.95%	―	45.98%	44.14%