Investment Thesis
AEIS demonstrates exceptional earnings growth with net income surging 173.7% YoY while maintaining healthy revenue growth of 21.4%, indicating strong operational leverage and market demand. The company maintains solid financial health with strong liquidity (1.59x current ratio), moderate leverage (0.42x debt/equity), and robust interest coverage (10.1x), with substantial free cash flow generation of $125.9M supporting capital deployment and financial flexibility.
AEIS Strengths
- Exceptional net income growth of 173.7% YoY with EPS up 168.5%, demonstrating significant operational leverage
- Strong liquidity position with $791.2M in cash and 1.59x current ratio, providing financial flexibility
- Solid free cash flow generation of $125.9M (7.0% FCF margin) with operating cash flow of $233.3M supporting reinvestment
- Conservative leverage at 0.42x debt/equity with strong interest coverage of 10.1x, indicating low financial distress risk
- Revenue growth of 21.4% YoY combined with gross margin of 37.7% showing pricing power and operational efficiency
AEIS Risks
- Operating margin of 9.3% and net margin of 8.2% are relatively modest for a technology-focused company, suggesting competitive pressures
- Capital expenditure of $107.4M represents 46% of operating cash flow, which may limit future dividend or debt reduction capacity
- ROA of 5.8% and ROE of 10.9% are below optimal levels for growth companies, potentially indicating capital efficiency challenges
- No visibility into guidance or forward-looking commentary; earnings growth trajectory sustainability unclear without forward guidance
Key Metrics to Watch
- Operating margin expansion trend as revenue scales
- Free cash flow sustainability and conversion ratio
- Capital allocation decisions and return on invested capital improvements
AEIS Financial Metrics
AEIS Profitability Ratios
AEIS Balance Sheet & Liquidity
AEIS 5-Year Financial Trend
5-Year Trend Summary: ADVANCED ENERGY INDUSTRIES INC's revenue has grown significantly by 24% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.40 reflects profitable operations.
AEIS Growth Metrics (YoY)
AEIS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $374.2M | N/A | $0.14 |
| Q2 2025 | $364.9M | $14.8M | $0.39 |
| Q1 2025 | $327.5M | $5.4M | $0.14 |
| Q3 2024 | $374.2M | $5.3M | $0.14 |
| Q2 2024 | $364.9M | $15.0M | $0.40 |
| Q1 2024 | $327.5M | N/A | $0.14 |
| Q3 2023 | $410.0M | $32.7M | $0.86 |
| Q2 2023 | $415.5M | $27.1M | $0.72 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AEIS Capital Allocation
AEIS SEC Filings
Access official SEC EDGAR filings for ADVANCED ENERGY INDUSTRIES INC (CIK: 0000927003)