A. O. Smith
Market Cap
US$10.9b
Last Updated
2021/04/12 22:04 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has A. O. Smith's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AOS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: AOS's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
0.6%
AOS
2.3%
US Building
2.1%
US Market
1 Year Return
72.6%
AOS
102.6%
US Building
56.3%
US Market
Return vs Industry: AOS underperformed the US Building industry which returned 102.6% over the past year.
Return vs Market: AOS exceeded the US Market which returned 56.3% over the past year.
Shareholder returns
| AOS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.6% | 2.3% | 2.1% |
| 30 Day | 6.3% | 4.4% | 2.4% |
| 90 Day | 16.4% | 13.7% | 6.8% |
| 1 Year | 76.1%72.6% | 105.3%102.6% | 59.1%56.3% |
| 3 Year | 11.7%5.7% | 90.2%75.1% | 65.7%55.1% |
| 5 Year | 85.4%71.8% | 139.4%107.7% | 122.3%97.7% |
Long-Term Price Volatility Vs. Market
How volatile is A. O. Smith's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
There Could Be A Chance A. O. Smith Corporation's (NYSE:AOS) CEO Will Have Their Compensation Increased1 week ago | Simply Wall St
Have Insiders Sold A. O. Smith Corporation (NYSE:AOS) Shares Recently?2 weeks ago | Simply Wall St
Is A. O. Smith Corporation (NYSE:AOS) Worth US$65.6 Based On Its Intrinsic Value?Valuation
Is A. O. Smith undervalued compared to its fair value and its price relative to the market?
32.04x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AOS ($67.27) is trading above our estimate of fair value ($52.06)
Significantly Below Fair Value: AOS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AOS is poor value based on its PE Ratio (31.5x) compared to the US Building industry average (25.3x).
PE vs Market: AOS is poor value based on its PE Ratio (31.5x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: AOS is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: AOS is overvalued based on its PB Ratio (5.9x) compared to the US Building industry average (3.2x).
Future Growth
How is A. O. Smith forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
9.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AOS's forecast earnings growth (9.6% per year) is above the savings rate (2%).
Earnings vs Market: AOS's earnings (9.6% per year) are forecast to grow slower than the US market (18.6% per year).
High Growth Earnings: AOS's earnings are forecast to grow, but not significantly.
Revenue vs Market: AOS's revenue (5.2% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: AOS's revenue (5.2% 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 (25.2%)
Past Performance
How has A. O. Smith performed over the past 5 years?
3.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AOS has high quality earnings.
Growing Profit Margin: AOS's current net profit margins (11.9%) are lower than last year (12.4%).
Past Earnings Growth Analysis
Earnings Trend: AOS's earnings have grown by 3.3% per year over the past 5 years.
Accelerating Growth: AOS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AOS had negative earnings growth (-6.7%) over the past year, making it difficult to compare to the Building industry average (21.2%).
Return on Equity
High ROE: AOS's Return on Equity (18.7%) is considered low.
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 ($886.3M).
Long Term Liabilities: AOS's short term assets ($1.6B) exceed its long term liabilities ($426.1M).
Debt to Equity History and Analysis
Debt Level: AOS's debt to equity ratio (6.1%) is considered satisfactory.
Reducing Debt: AOS's debt to equity ratio has reduced from 17.3% to 6.1% over the past 5 years.
Debt Coverage: AOS's debt is well covered by operating cash flow (496.6%).
Interest Coverage: AOS's interest payments on its debt are well covered by EBIT (60.5x coverage).
Balance Sheet
Dividend
What is A. O. Smith current dividend yield, its reliability and sustainability?
1.52%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AOS's dividend (1.55%) is higher than the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: AOS's dividend (1.55%) is low compared to the top 25% of dividend payers in the US market (3.5%).
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 (45.9%), 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 (38.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Kevin Wheeler (60 yo)
2.58yrs
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 ($USD10.98M).
Compensation vs Earnings: Kevin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: AOS's management team is considered experienced (2.9 years average tenure).
Board Members
Experienced Board: AOS's board of directors are seasoned and experienced ( 15.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AOS insiders have only sold shares 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 company bio, 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$10.869b
- Shares outstanding: 161.57m
- 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
Biography
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 opera...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/12 22:04 |
| End of Day Share Price | 2021/04/12 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.