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.
No risks detected for AOS from our risk checks.
A. O. Smith Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$68.46|
|52 Week High||US$51.04|
|52 Week Low||US$73.81|
|1 Month Change||-3.52%|
|3 Month Change||3.65%|
|1 Year Change||28.73%|
|3 Year Change||13.19%|
|5 Year Change||41.30%|
|Change since IPO||1,233.64%|
Recent News & Updates
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...
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.
Slowing Rates Of Return At A. O. Smith (NYSE:AOS) Leave Little Room For Excitement
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...
|AOS||US Building||US Market|
Return vs Industry: AOS underperformed the US Building industry which returned 52.9% over the past year.
Return vs Market: AOS underperformed the US Market which returned 30.7% over the past year.
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
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
|AOS fundamental statistics|
Is AOS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AOS income statement (TTM)|
|Cost of Revenue||US$1.99b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||2.74|
|Net Profit Margin||13.69%|
How did AOS perform over the long term?See historical performance and comparison
1.5%Current Dividend Yield
Is A. O. Smith undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AOS ($68.46) is trading below our estimate of fair value ($72.5)
Significantly Below Fair Value: AOS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AOS is poor value based on its PE Ratio (24.7x) compared to the US Building industry average (18.9x).
PE vs Market: AOS is poor value based on its PE Ratio (24.7x) compared to the US market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: AOS is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: AOS is overvalued based on its PB Ratio (6x) compared to the US Building industry average (2.8x).
How is A. O. Smith forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AOS's forecast earnings growth (9.3% per year) is above the savings rate (2%).
Earnings vs Market: AOS's earnings (9.3% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: AOS's earnings are forecast to grow, but not significantly.
Revenue vs Market: AOS's revenue (5.8% per year) is forecast to grow slower than the US market (9.5% per year).
High Growth Revenue: AOS's revenue (5.8% 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%)
How has A. O. Smith performed over the past 5 years?
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 66.4%.
Return on Equity
High ROE: AOS's Return on Equity (24.3%) is considered high.
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 ($416.9M).
Debt to Equity History and Analysis
Debt Level: AOS's debt to equity ratio (5.9%) is considered satisfactory.
Reducing Debt: AOS's debt to equity ratio has reduced from 19.1% to 5.9% over the past 5 years.
Debt Coverage: AOS's debt is well covered by operating cash flow (544%).
Interest Coverage: AOS's interest payments on its debt are well covered by EBIT (123.6x coverage).
What is A. O. Smith current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AOS's dividend (1.52%) is higher than the bottom 25% of dividend payers in the US market (1.36%).
High Dividend: AOS's dividend (1.52%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: AOS's dividends per share have been stable in the past 10 years.
Growing Dividend: AOS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (37.3%), AOS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AOS's dividends in 3 years are forecast to be well covered by earnings (30.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kevin Wheeler (61 yo)
Mr. Kevin J. Wheeler has been Chief Executive Officer of A. O. Smith Corporation since September 1, 2018. Mr. Wheeler has been President of A. O. Smith Corporation since May 18, 2017 and served its Senior...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD5.17M) is below average for companies of similar size in the US market ($USD11.26M).
Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.
Experienced Management: AOS's management team is considered experienced (3.3 years average tenure).
Experienced Board: AOS's board of directors are considered experienced (7.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
A. O. Smith Corporation's employee growth, exchange listings and data sources
- Name: A. O. Smith Corporation
- Ticker: AOS
- Exchange: NYSE
- Founded: 1874
- Industry: Building Products
- Sector: Capital Goods
- Market Cap: US$10.897b
- Shares outstanding: 159.18m
- Website: https://www.aosmith.com
Number of Employees
- A. O. Smith Corporation
- 11270 West Park Place
- Suite 170
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/16 04:28|
|End of Day Share Price||2021/09/15 00:00|
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.