Latest news with #AdvancedEnergyIndustries
Business Wire
2 days ago
- Business
- Business Wire
Advanced Energy's New Power Controller Increases Stability of Semiconductor and Industrial Processes
DENVER--(BUSINESS WIRE)--Advanced Energy Industries, Inc. (Nasdaq: AEIS), a global leader in highly engineered, precision power conversion, measurement and control solutions, announced a new silicon-controlled rectifier (SCR) power controller for precision control of lamp-based heating applications. Delivering unprecedented speed and accuracy, the new Thyro-XD™ supports next-generation semiconductor manufacturing and industrial processes that demand precision temperature control, especially during extreme and dynamic ramps. 'Demand for smaller, faster, and more efficient computer chips is driving the need for innovative controls in wafer processing equipment for semiconductor production,' said Dhaval Dhayatkar, Advanced Energy's vice president, Critical Sensing and Control Products, System Power. 'The new Thyro-XD offers unmatched speed and precision for temperature control, significantly enhancing stability and repeatability, particularly for lamp-based heating applications, in the smallest form factor available.' The Thyro-XD provides highly accurate, rapid load resistance measurement, enabling faster detection of temperature changes and tighter process control. It has a high-power density of 188 W/in 3, is optimized for semiconductor tools, and doubles the control capacity versus other available products. With convection cooling, it eliminates the need for fans, improving simplicity and reliability. With real-time resistance measurement, the Thyro-XD SCR can prevent potential damage to resistors, reducing expensive maintenance and replacement. In addition, a five-fold increase in load voltage, load current and output power accuracy enables fastest compensation for input fluctuations while increasing efficiency. The Thyro-XD provides optional EtherCat connectivity through optional Advanced Bus Module™ (ABM) and interface cards and can integrate temperature feedback from multiple Advanced Energy Impac® measurement pyrometers for real-time temperature control. For more information on Advanced Energy's Thyro-XD SCR power controller click here and the ABM click here. About Advanced Energy Advanced Energy (Nasdaq: AEIS) is a global leader in the design and manufacturing of highly engineered, precision power conversion, measurement and control solutions for mission-critical applications and processes. AE's power solutions enable customer innovation in complex applications for a wide range of industries including semiconductor equipment, industrial, manufacturing, telecommunications, data center computing and healthcare. With engineering know-how and responsive service and support around the globe, the company builds collaborative partnerships to meet technology advances, propel growth for its customers and innovate the future of power. Advanced Energy has devoted four decades to perfecting power for its global customers and is headquartered in Denver, Colorado, USA. For more information, visit
Yahoo
16-03-2025
- Business
- Yahoo
Are Advanced Energy Industries, Inc.'s (NASDAQ:AEIS) Mixed Financials Driving The Negative Sentiment?
It is hard to get excited after looking at Advanced Energy Industries' (NASDAQ:AEIS) recent performance, when its stock has declined 15% over the past month. It seems that the market might have completely ignored the positive aspects of the company's fundamentals and decided to weigh-in more on the negative aspects. Stock prices are usually driven by a company's financial performance over the long term, and therefore we decided to pay more attention to the company's financial performance. In this article, we decided to focus on Advanced Energy Industries' ROE. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. Check out our latest analysis for Advanced Energy Industries ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Advanced Energy Industries is: 4.7% = US$56m ÷ US$1.2b (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.05. Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. As you can see, Advanced Energy Industries' ROE looks pretty weak. Even when compared to the industry average of 10%, the ROE figure is pretty disappointing. Therefore, Advanced Energy Industries' flat earnings over the past five years can possibly be explained by the low ROE amongst other factors. Next, on comparing with the industry net income growth, we found that Advanced Energy Industries' reported growth was lower than the industry growth of 14% over the last few years, which is not something we like to see. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Has the market priced in the future outlook for AEIS? You can find out in our latest intrinsic value infographic research report. Advanced Energy Industries' low three-year median payout ratio of 11%, (meaning the company retains89% of profits) should mean that the company is retaining most of its earnings and consequently, should see higher growth than it has reported. Moreover, Advanced Energy Industries has been paying dividends for four years, which is a considerable amount of time, suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 5.7% over the next three years. Accordingly, the expected drop in the payout ratio explains the expected increase in the company's ROE to 14%, over the same period. In total, we're a bit ambivalent about Advanced Energy Industries' performance. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
29-01-2025
- Business
- Yahoo
Some Investors May Be Worried About Advanced Energy Industries' (NASDAQ:AEIS) Returns On Capital
What are the early trends we should look for to identify a stock that could multiply in value over the long term? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. However, after investigating Advanced Energy Industries (NASDAQ:AEIS), we don't think it's current trends fit the mold of a multi-bagger. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Advanced Energy Industries, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.035 = US$67m ÷ (US$2.2b - US$292m) (Based on the trailing twelve months to September 2024). So, Advanced Energy Industries has an ROCE of 3.5%. Ultimately, that's a low return and it under-performs the Electronic industry average of 10%. Check out our latest analysis for Advanced Energy Industries In the above chart we have measured Advanced Energy Industries' prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Advanced Energy Industries for free. In terms of Advanced Energy Industries' historical ROCE movements, the trend isn't fantastic. To be more specific, ROCE has fallen from 5.1% over the last five years. Given the business is employing more capital while revenue has slipped, this is a bit concerning. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased. In summary, we're somewhat concerned by Advanced Energy Industries' diminishing returns on increasing amounts of capital. Yet despite these concerning fundamentals, the stock has performed strongly with a 59% return over the last five years, so investors appear very optimistic. Regardless, we don't feel too comfortable with the fundamentals so we'd be steering clear of this stock for now. One more thing, we've spotted 3 warning signs facing Advanced Energy Industries that you might find interesting. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
