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AOS

A. O. SmithNYSE:AOS Stock Report

Market Cap

US$10.6b

7D

1.6%

1Y

21.5%

Updated

23 Oct, 2021

Data

Company Financials +
AOS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends5/6

AOS Overview

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.

A. O. Smith Competitors

Price History & Performance

Summary of all time highs, changes and price drops for A. O. Smith
Historical stock prices
Current Share PriceUS$66.76
52 Week HighUS$51.04
52 Week LowUS$73.81
Beta1.11
1 Month Change3.63%
3 Month Change-4.12%
1 Year Change21.54%
3 Year Change52.63%
5 Year Change48.39%
Change since IPO1,200.52%

Recent News & Updates

Oct 12
When Should You Buy A. O. Smith Corporation (NYSE:AOS)?

When Should You Buy A. O. Smith Corporation (NYSE:AOS)?

Today we're going to take a look at the well-established A. O. Smith Corporation ( NYSE:AOS ). The company's stock saw...

Sep 29
A Look At The Intrinsic Value Of A. O. Smith Corporation (NYSE:AOS)

A Look At The Intrinsic Value Of A. O. Smith Corporation (NYSE:AOS)

Does the September share price for A. O. Smith Corporation ( NYSE:AOS ) reflect what it's really worth? Today, we will...

Sep 16
Does A. O. Smith (NYSE:AOS) Have A Healthy Balance Sheet?

Does A. O. Smith (NYSE:AOS) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Sep 08

A. O. Smith Has Some Attractive Growth Angles, But The Valuation Isn't A Clear Bargain

A.O. Smith may have more leverage to ESG themes than commonly appreciated, as water heaters could be another area where governments target energy efficiency gains. Water treatment is a growing, sizable, but fragmented, market opportunity in North America, and one that A.O. Smith will likely address through more M&A. Price hikes and production challenges could open a window of opportunity for a new rival in the U.S. water heater space. A.O. Smith shares look, at best, modestly undervalued on mid-to-high single-digit revenue and FCF growth prospects.

Shareholder Returns

AOSUS BuildingUS Market
7D1.6%2.3%1.7%
1Y21.5%43.0%30.3%

Return vs Industry: AOS underperformed the US Building industry which returned 43% over the past year.

Return vs Market: AOS underperformed the US Market which returned 30.3% over the past year.

Price Volatility

Is AOS's price volatile compared to industry and market?
AOS volatility
AOS Beta1.11
Industry Beta1.37
Market Beta1

Stable Share Price: AOS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AOS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187413,900Kevin Wheelerhttps://www.aosmith.com

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.

A. O. Smith Fundamentals Summary

How do A. O. Smith's earnings and revenue compare to its market cap?
AOS fundamental statistics
Market CapUS$10.63b
Earnings (TTM)US$441.30m
Revenue (TTM)US$3.22b

24.1x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AOS income statement (TTM)
RevenueUS$3.22b
Cost of RevenueUS$1.99b
Gross ProfitUS$1.23b
ExpensesUS$789.90m
EarningsUS$441.30m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 28, 2021

Earnings per share (EPS)2.77
Gross Margin38.20%
Net Profit Margin13.69%
Debt/Equity Ratio5.9%

How did AOS perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

37%

Payout Ratio

Does AOS pay a reliable dividends?

See AOS dividend history and benchmarks
When do you need to buy AOS by to receive an upcoming dividend?
A. O. Smith dividend dates
Ex Dividend DateOct 28 2021
Dividend Pay DateNov 15 2021
Days until Ex dividend3 days
Days until Dividend pay date21 days

Does AOS pay a reliable dividends?

See AOS dividend history and benchmarks

Valuation

Is A. O. Smith undervalued compared to its fair value and its price relative to the market?

4.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AOS ($66.76) is trading below our estimate of fair value ($69.63)

Significantly Below Fair Value: AOS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AOS's PE Ratio (24.1x) is in line with the US Building industry average.

PE vs Market: AOS is poor value based on its PE Ratio (24.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: AOS is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: AOS is overvalued based on its PB Ratio (5.9x) compared to the US Building industry average (2.9x).


Future Growth

How is A. O. Smith forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AOS's forecast earnings growth (8.2% per year) is above the savings rate (2%).

Earnings vs Market: AOS's earnings (8.2% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: AOS's earnings are forecast to grow, but not significantly.

Revenue vs Market: AOS's revenue (5.4% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: AOS's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AOS's Return on Equity is forecast to be high in 3 years time (27.1%)


Past Performance

How has A. O. Smith performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AOS has high quality earnings.

Growing Profit Margin: AOS's current net profit margins (13.7%) are higher than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: AOS's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: AOS's earnings growth over the past year (48%) exceeds its 5-year average (3.4% per year).

Earnings vs Industry: AOS earnings growth over the past year (48%) underperformed the Building industry 53.6%.


Return on Equity

High ROE: AOS's Return on Equity (24.3%) is considered high.


Financial Health

How is A. O. Smith's financial position?


Financial Position Analysis

Short Term Liabilities: AOS's short term assets ($1.6B) exceed its short term liabilities ($907.0M).

Long Term Liabilities: AOS's short term assets ($1.6B) exceed its long term liabilities ($416.9M).


Debt to Equity History and Analysis

Debt Level: AOS's debt to equity ratio (5.9%) is considered satisfactory.

Reducing Debt: AOS's debt to equity ratio has reduced from 19.1% to 5.9% over the past 5 years.

Debt Coverage: AOS's debt is well covered by operating cash flow (544%).

Interest Coverage: AOS's interest payments on its debt are well covered by EBIT (123.6x coverage).


Balance Sheet


Dividend

What is A. O. Smith current dividend yield, its reliability and sustainability?

1.68%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 24 2021Ex Dividend DateOct 28 2021Dividend Pay DateNov 15 202118 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AOS's dividend (1.68%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: AOS's dividend (1.68%) is low compared to the top 25% of dividend payers in the US market (3.47%).


Stability and Growth of Payments

Stable Dividend: AOS's dividends per share have been stable in the past 10 years.

Growing Dividend: AOS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.3%), AOS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AOS's dividends in 3 years are forecast to be well covered by earnings (31.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Kevin Wheeler (61 yo)

3.08yrs

Tenure

US$5,174,751

Compensation

Mr. Kevin J. Wheeler has been Chief Executive Officer of A. O. Smith Corporation since September 1, 2018. Mr. Wheeler has been President of A. O. Smith Corporation since May 18, 2017 and served its Senior...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD5.17M) is below average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AOS's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: AOS's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

A. O. Smith Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: A. O. Smith Corporation
  • Ticker: AOS
  • Exchange: NYSE
  • Founded: 1874
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$10.627b
  • Shares outstanding: 159.18m
  • Website: https://www.aosmith.com

Number of Employees


Location

  • A. O. Smith Corporation
  • 11270 West Park Place
  • Suite 170
  • Milwaukee
  • Wisconsin
  • 53224-9508
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 22:07
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.