9. Aaon ( AAON) manufactures and sells air-conditioning and heating equipment. Its third-quarter net income decreased 32% to $5.2 million, or 31 cents a share, though revenue advanced 11% to $65 million. The gross profit margin dropped from 30% to 19%. Aaon has $16 million of cash and equivalents and no debt. Its stock sells for a forward earnings multiple of 16 and a cash flow multiple of 10, 44% and 22% discounts to building products peer averages. However, its book value multiple of 3.8 and sales multiple of 1.9 represent premiums to peer averages.

Expected Return: The model values Aaon at $31.18, suggesting a 12-month return of 23%.

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