# Advanced Energy Industries (AEIS.US)

Canonical: https://gigainvestors.com/s/AEIS

Analysis as of: 2026-10-16T07:26:15.535Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $252.08 per share; close as of 2026-10-15.

Estimated value: low $89.47 per share, central $111.24 per share, high $124.64 per share. Buy at or below the central value $111.24 per share. Valuation as of 2026-10-16T07:26:15.535Z; scenarios are not confidence intervals.

Expected annual return: 5.6% at the stated quote. About 5.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.61×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.26×

- FY2017: 0.30×

- FY2018: 0.24×

- FY2019: 0.07×

- FY2020: 0.12×

- FY2021: 0.10×

- FY2022: 0.13×

- FY2023: 0.07×

- FY2024: 0.02×

- FY2025: 0.11×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 23.1%

- ROIC, second-lowest year: 8.0%

- Typical minus recent gross margin: 2.0 pp

- Typical gross margin (annual median): 37.8%

- Recent gross margin (lower of latest and 3-year median): 35.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.0%

- ROIC including acquisitions, ten-year median: 18.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: >100%

- FY2017: >100%

- FY2018: 88.0%

- FY2019: 8.0%

- FY2020: 27.0%

- FY2021: 22.2%

- FY2022: 24.0%

- FY2023: 13.6%

- FY2024: 4.3%

- FY2025: 18.2%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.06×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $705M

- Net income, five-year total: $665M

- Return on incremental invested capital: 20.9%

- Working capital / revenue, annual change: 1.2 pp

- Working capital / revenue, change between three-year averages: 10.6 pp

- Working capital / revenue, final three-year average: 29.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.16×

- FY2022: 1.01×

- FY2023: 1.04×

- FY2024: 1.22×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 124.7% vs 13.6%

- Per-share earnings: 3.18 to 3.39 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.6%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: $5.7B

- Cumulative retained earnings: $933M

- Diluted shares, 10-year annual growth: -0.6%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.8%

- Per-share value change: $0.21

- Per-share value, starting three-year median: $3.18

- Per-share value, ending three-year median: $3.39

- Buybacks concentrated in cheaper years (correlation): 0.78

- Average buyback yield: 1.3%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $416M

- Cumulative net income, 10 years: $1.3B

- ROIC, first three-year median: >100%

- ROIC, last three-year median: 13.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.18

- FY2017: $3.43

- FY2018: $3.74

- FY2019: $1.69

- FY2020: $3.49

- FY2021: $3.51

- FY2022: $5.29

- FY2023: $3.39

- FY2024: $1.43

- FY2025: $3.84

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -3.3%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 23.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.57×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.31×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 1.5%

- FY2017: -6.1%

- FY2018: -0.5%

- FY2019: 1.1%

- FY2020: -4.0%

- FY2021: -0.3%

- FY2022: 0.8%

- FY2023: -3.2%

- FY2024: -3.4%

- FY2025: -3.3%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 34% since Apr 2026 · sales +21.4%

Story as of 2026-10-16T09:58:14.847Z; price observation 2026-10-15.

Price needs cash profits to grow 19.1% a year for ten years

- 2025-04-30: Advanced Energy (NASDAQ:AEIS) Delivers Strong Q1 Numbers, Guides for Strong Sales Next Quarter ([finance.yahoo.com](https://finance.yahoo.com/news/advanced-energy-nasdaq-aeis-delivers-213544219.html))

- 2025-08-13: AEIS Q2 Deep Dive: Data Center Demand and Margin Expansion Drive Results ([finance.yahoo.com](https://finance.yahoo.com/news/aeis-q2-deep-dive-data-032230302.html))

- 2025-11-05: AEIS Q3 Deep Dive: Data Center Growth and Manufacturing Investments Drive Results ([finance.yahoo.com](https://finance.yahoo.com/news/aeis-q3-deep-dive-data-133111761.html))

- 2026-02-11: AEIS Q4 Deep Dive: Data Center and Semiconductor Demand Drive Outperformance, Capacity Expansions Continue ([finance.yahoo.com](https://finance.yahoo.com/news/aeis-q4-deep-dive-data-053355638.html))

- 2026-06-03: Advanced Energy Industries Sees Semiconductor, Data Center Strength as Margins Climb ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/advanced-energy-industries-sees-semiconductor-230515737.html))

### Sales · FY2024–2025

sales +21.4%; source https://www.sec.gov/Archives/edgar/data/927003/000110465926014731/aeis-20251231x10k.htm; observed 2026-02-13.

- FY2016: $484M 

- FY2017: $671M 

- FY2018: $719M 

- FY2019: $789M 

- FY2020: $1.4B 

- FY2021: $1.5B 

- FY2022: $1.8B 

- FY2023: $1.7B 

- FY2024: $1.5B 

- FY2025: $1.8B 

### Gross margin · FY2025

gross margin 37.2%; source https://www.sec.gov/Archives/edgar/data/927003/000110465926014731/aeis-20251231x10k.htm; observed 2026-02-13.

- FY2016: 52.3% 

- FY2017: 53.1% 

- FY2018: 50.9% 

- FY2019: 40.0% 

- FY2020: 38.3% 

- FY2021: 36.6% 

- FY2022: 36.6% 

- FY2023: 35.8% 

- FY2024: 35.7% 

- FY2025: 37.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electrical equipment & parts; annual sales are USD 1.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/927003/000110465926014731/aeis-20251231x10k.htm (filed 2026-02-13); FY2025: revenue 1798800000; grossProfit 670000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AEIS.US: Advanced Energy Industries, Inc. provides precision power conversion, measurement, and control solutions in the United States, Asia, Europe, and internationally. The company's plasma power products offer solutions to enable innovation for semiconductor and thin film plasma processes, such as dry etch and deposition. It also provides high and low voltage power products used in a range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data centers computing, networking, and telecommunications. In addition, the company supplies sensing, controls, and instrumentation products for advanced measurement and calibration of power and temperature. Further, it provides calibration, conversions, upgrades, and refurbishments and used equipment to companies, as well as repair and maintenance services. The company offers its products through direct sales force, direct and indirect sales channels, and distributors, as well as provides warranty and non-warranty repair services. Advanced Energy Industries, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.

### Why customers stay

Margins ranged from 35.7% to 37.2% during 2023–25; it earns 23.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: grossProfit / revenue = 35.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: grossProfit / revenue = 35.7%.

- Source: https://www.sec.gov/Archives/edgar/data/927003/000110465926014731/aeis-20251231x10k.htm (filed 2026-02-13); FY2025: grossProfit / revenue = 37.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); 10-year return on capital observations [[2016,1.2474548383655124],[2017,1.3769029028187931],[2018,0.8802084721045335],[2019,0.07985980203961396],[2020,0.2703758654674556],[2021,0.2223095687112432],[2022,0.24023221947862988],[2023,0.13559261392706234],[2024,0.04272959555883942],[2025,0.1818831106988736]]; median 0.23127089409493654. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 37% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/927003/000110465926014731/aeis-20251231x10k.htm (filed 2026-02-13); Gross margin observations: [[2021,0.36561732032742794],[2022,0.36604418935072847],[2023,0.3577693092806542]]; range within 2 percentage points.

### Where the cash goes

Spends 30.6% of cash earnings on expansion; earns 20.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2016: growth capex 0; upkeep 6821000; owner earnings 128446000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2017: growth capex 0; upkeep 9042000; owner earnings 138243000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2018: growth capex 1633025.3357257023; upkeep 18696974.664274298; owner earnings 141920025.3357257. Growth capex / owner earnings = 0.011506658992362926.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2019: growth capex 0; upkeep 25188000; owner earnings 65900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2020: growth capex 0; upkeep 36483000; owner earnings 145962000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2021: growth capex 0; upkeep 31877000; owner earnings 155752000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2022: growth capex 0; upkeep 58885000; owner earnings 201071000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: growth capex 0; upkeep 61005000; owner earnings 133812000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: growth capex 0; upkeep 56788000; owner earnings 65881000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/927003/000110465926014731/aeis-20251231x10k.htm (filed 2026-02-13); FY2025: growth capex 45400000; upkeep 62000000; owner earnings 148400000. Growth capex / owner earnings = 0.3059299191374663.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Incremental return on capital 0.209328498482786, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Dividend observations: [[2016,0],[2017,0],[2018,15385000],[2019,15385000],[2020,15385000],[2021,15385000],[2022,15204000],[2023,15222000],[2024,15369000],[2025,15600000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/927003/000110465926014731/aeis-20251231x10k.htm (filed 2026-02-13); FY2025: cash repurchases 30200000 USD.

### Are managers owners

Insiders own 1.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AEIS.US SharesStats.PercentInsiders = 1.057 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 19.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Ten-year compound average after fade. Initial solved rate 0.2647778724775184. Price 252.08; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -3.7409742678384497 → FY2025 3.844559585492228. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $47.70 per share

- 2016-11: $55.21 per share

- 2016-12: $54.75 per share

- 2017-01: $58.84 per share

- 2017-02: $62.10 per share

- 2017-03: $68.56 per share

- 2017-04: $73.80 per share

- 2017-05: $76.93 per share

- 2017-06: $64.69 per share

- 2017-07: $72.55 per share

- 2017-08: $73.54 per share

- 2017-09: $80.76 per share

- 2017-10: $84.72 per share

- 2017-11: $74.97 per share

- 2017-12: $67.48 per share

- 2018-01: $71.13 per share

- 2018-02: $66.32 per share

- 2018-03: $63.90 per share

- 2018-04: $59.55 per share

- 2018-05: $65.53 per share

- 2018-06: $58.09 per share

- 2018-07: $61.24 per share

- 2018-08: $59.58 per share

- 2018-09: $51.65 per share

- 2018-10: $43.03 per share

- 2018-11: $47.04 per share

- 2018-12: $42.93 per share

- 2019-01: $51.29 per share

- 2019-02: $50.37 per share

- 2019-03: $49.68 per share

- 2019-04: $57.76 per share

- 2019-05: $50.17 per share

- 2019-06: $56.27 per share

- 2019-07: $58.40 per share

- 2019-08: $51.64 per share

- 2019-09: $57.41 per share

- 2019-10: $59.10 per share

- 2019-11: $64.21 per share

- 2019-12: $71.20 per share

- 2020-01: $69.94 per share

- 2020-02: $59.48 per share

- 2020-03: $48.49 per share

- 2020-04: $55.60 per share

- 2020-05: $66.83 per share

- 2020-06: $67.79 per share

- 2020-07: $73.57 per share

- 2020-08: $74.12 per share

- 2020-09: $62.94 per share

- 2020-10: $67.47 per share

- 2020-11: $96.46 per share

- 2020-12: $96.97 per share

- 2021-01: $102.58 per share

- 2021-02: $104.45 per share

- 2021-03: $109.17 per share

- 2021-04: $110.31 per share

- 2021-05: $102.01 per share

- 2021-06: $112.71 per share

- 2021-07: $103.75 per share

- 2021-08: $90.18 per share

- 2021-09: $87.75 per share

- 2021-10: $91.82 per share

- 2021-11: $87.69 per share

- 2021-12: $91.06 per share

- 2022-01: $86.18 per share

- 2022-02: $85.85 per share

- 2022-03: $86.08 per share

- 2022-04: $76.52 per share

- 2022-05: $81.46 per share

- 2022-06: $72.98 per share

- 2022-07: $89.49 per share

- 2022-08: $89.79 per share

- 2022-09: $77.41 per share

- 2022-10: $78.65 per share

- 2022-11: $92.64 per share

- 2022-12: $85.78 per share

- 2023-01: $92.74 per share

- 2023-02: $93.08 per share

- 2023-03: $98.00 per share

- 2023-04: $86.50 per share

- 2023-05: $98.15 per share

- 2023-06: $111.45 per share

- 2023-07: $125.18 per share

- 2023-08: $118.07 per share

- 2023-09: $103.12 per share

- 2023-10: $87.26 per share

- 2023-11: $95.05 per share

- 2023-12: $108.92 per share

- 2024-01: $104.18 per share

- 2024-02: $101.20 per share

- 2024-03: $101.98 per share

- 2024-04: $95.84 per share

- 2024-05: $107.43 per share

- 2024-06: $108.76 per share

- 2024-07: $116.37 per share

- 2024-08: $106.09 per share

- 2024-09: $105.24 per share

- 2024-10: $108.53 per share

- 2024-11: $115.04 per share

- 2024-12: $115.63 per share

- 2025-01: $115.08 per share

- 2025-02: $115.17 per share

- 2025-03: $95.31 per share

- 2025-04: $97.41 per share

- 2025-05: $114.78 per share

- 2025-06: $132.50 per share

- 2025-07: $138.92 per share

- 2025-08: $149.68 per share

- 2025-09: $170.14 per share

- 2025-10: $202.73 per share

- 2025-11: $211.19 per share

- 2025-12: $209.37 per share

- 2026-01: $255.36 per share

- 2026-02: $335.57 per share

- 2026-03: $322.71 per share

- 2026-04: $383.91 per share

- 2026-05: $302.18 per share

- 2026-06: $372.87 per share

- 2026-07: $289.52 per share

- 2026-08: $276.86 per share

- 2026-09: $281.82 per share

- 2026-10: $252.08 per share

## Annual estimated value (USD per share)

- FY2016: low $15.14 per share, central $16.28 per share, high $17.78 per share

- FY2017: low $28.24 per share, central $33.88 per share, high $37.96 per share

- FY2018: low $54.58 per share, central $70.12 per share, high $80.65 per share

- FY2019: low $63.66 per share, central $87.23 per share, high $100.96 per share

- FY2020: low $110.39 per share, central $152.64 per share, high $177.24 per share

- FY2021: low $68.64 per share, central $92.30 per share, high $106.07 per share

- FY2022: low $82.34 per share, central $112.83 per share, high $130.58 per share

- FY2023: low $88.15 per share, central $114.46 per share, high $129.78 per share

- FY2024: low $62.50 per share, central $68.59 per share, high $76.70 per share

- FY2025: low $61.59 per share, central $67.38 per share, high $75.09 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/927003/000110465926014731/aeis-20251231x10k.htm); period 2025-12-31, filed 2026-02-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.