AOS:NYE-A. O. Smith Corporation (USD)

COMMON STOCK | Specialty Industrial Machinery | NYE

Last Closing Price

USD 58.04

Change

+0.20 (+0.35)%

Market Cap

USD 9.34B

Volume

0.74M

Average Target Price

USD 59.17 (+1.94%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; residential and commercial boilers for space heating applications in hospitals, schools, hotels, and other commercial buildings; and water treatment products, including on-the-go filtration bottles, point-of-use carbon and reverse osmosis products, point-of-entry water softeners, and whole-home water filtration products for residences, restaurants, hotels, and offices. It also provides food and beverage filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and heat pumps, combi-boilers, solar tank units, and air purification products. The company offers its products primarily under the A. O. Smith, State, Lochinvar, and water softener brands. It distributes its products through independent wholesale plumbing distributors, as well as through retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce, as well as other online retailers. The company was founded in 1874 and is headquartered in Milwaukee, Wisconsin.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-01-21 )

Largest Industry Peers for Specialty Industrial Machinery

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
HON Honeywell International Inc

-2.85 (-1.37%)

USD146.01B 29.82 20.77
GE General Electric Company

-0.32 (-2.81%)

USD99.77B 32.36 6.02
MMM 3M Company

+0.45 (+0.26%)

USD98.19B 19.96 12.95
ITW Illinois Tool Works Inc

-1.16 (-0.57%)

USD64.88B 31.08 20.97
EMR Emerson Electric Co

-0.13 (-0.15%)

USD50.59B 26.05 16.20
ETN Eaton Corporation plc

-0.85 (-0.67%)

USD50.22B 37.02 20.78
ROP Roper Technologies, Inc

+0.89 (+0.21%)

USD44.10B 28.36 19.33
PH Parker-Hannifin Corporation

-7.67 (-2.67%)

USD36.95B 31.32 18.48
CMI Cummins Inc

+11.50 (+4.86%)

USD35.01B 22.29 13.01
ROK Rockwell Automation, Inc

+3.73 (+1.41%)

USD30.67B 30.10 22.20

ETFs Containing AOS

Symbol Name Weight Mer Price(Change) Market Cap
FIW First Trust Water ETF 0.00 % 0.55 %

-0.50 (-0.66%)

USD0.69B
PHO Invesco Water Resources E.. 0.00 % 0.60 %

-0.29 (-0.59%)

USD1.31B
DXZ:CA Dynamic Active U.S. Mid-C.. 0.00 % 0.75 %

+0.03 (+0.30%)

USD6.22M

Market Performance

  Market Performance vs.
Industry/Classification (Specialty Industrial Machinery)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 5.87% 69% D+ 68% D+
Dividend Return N/A N/A N/A N/A N/A
Total Return 5.87% 69% D+ 68% D+
Trailing 12 Months  
Capital Gain 24.26% 72% C- 79% C+
Dividend Return 2.10% 75% C 42% F
Total Return 26.35% 74% C 80% B-
Trailing 5 Years  
Capital Gain 76.95% 38% F 68% D+
Dividend Return 11.22% 44% F 31% F
Total Return 88.17% 36% F 67% D+
Average Annual (5 Year Horizon)  
Capital Gain 5.28% 44% F 68% D+
Dividend Return 1.48% 48% F 39% F
Total Return 6.76% 44% F 64% D
Risk Return Profile  
Volatility (Standard Deviation) 22.39% 50% F 36% F
Risk Adjusted Return 30.20% 44% F 49% F
Market Capitalization 9.34B 65% D 82% B-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Specialty Industrial Machinery)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 29.80 74% C 27% F
Price/Book Ratio 5.07 31% F 19% F
Price / Cash Flow Ratio 20.47 37% F 18% F
EV/EBITDA 17.08 60% D- 38% F
Management Effectiveness  
Return on Equity 18.58% 73% C 87% B+
Return on Invested Capital 17.49% 83% B 89% B+
Return on Assets 8.37% 83% B 93% A
Debt to Equity Ratio 15.42% 92% A- 83% B
Technical Ratios  
Short Ratio 3.19 41% F 32% F
Short Percent 2.82% 28% F 60% D-
Beta 1.05 81% B- 51% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.