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AOS

A. O. SmithNYSE:AOS Stock Report

Last Price

US$76.82

Market Cap

US$12.2b

7D

-4.7%

1Y

33.0%

Updated

23 Jan, 2022

Data

Company Financials +
AOS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance6/6
Financial Health6/6
Dividends5/6

AOS Stock 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

Zurn Water Solutions

NYSE:ZWS

US$3.8b

Midea Group

SZSE:000333

CN¥531.5b

Hindustan Unilever

BSE:500696

₹5.5t

Xiaomi

SEHK:1810

HK$470.1b

Price History & Performance

Summary of all time highs, changes and price drops for A. O. Smith
Historical stock prices
Current Share PriceUS$76.82
52 Week HighUS$86.74
52 Week LowUS$52.08
Beta1.14
1 Month Change-7.19%
3 Month Change14.97%
1 Year Change33.00%
3 Year Change61.39%
5 Year Change58.13%
Change since IPO1,396.49%

Recent News & Updates

Jan 14
What Does A. O. Smith Corporation's (NYSE:AOS) Share Price Indicate?

What Does A. O. Smith Corporation's (NYSE:AOS) Share Price Indicate?

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

Jan 02
Calculating The Intrinsic Value Of A. O. Smith Corporation (NYSE:AOS)

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

Today we will run through one way of estimating the intrinsic value of A. O. Smith Corporation ( NYSE:AOS ) by taking...

Dec 21
Is A. O. Smith (NYSE:AOS) Using Too Much Debt?

Is A. O. Smith (NYSE:AOS) Using Too Much Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Nov 27
Returns On Capital At A. O. Smith (NYSE:AOS) Have Stalled

Returns On Capital At A. O. Smith (NYSE:AOS) Have Stalled

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want...

Shareholder Returns

AOSUS BuildingUS Market
7D-4.7%-6.5%-6.1%
1Y33.0%15.0%4.2%

Return vs Industry: AOS exceeded the US Building industry which returned 15% over the past year.

Return vs Market: AOS exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is AOS's price volatile compared to industry and market?
AOS volatility
AOS Average Weekly Movement4.5%
Building Industry Average Movement5.3%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: AOS is not significantly more volatile than the rest 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.

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$12.23b
Earnings (TTM)US$467.50m
Revenue (TTM)US$3.38b

26.2x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AOS income statement (TTM)
RevenueUS$3.38b
Cost of RevenueUS$2.10b
Gross ProfitUS$1.27b
ExpensesUS$806.90m
EarningsUS$467.50m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)2.94
Gross Margin37.73%
Net Profit Margin13.84%
Debt/Equity Ratio5.6%

How did AOS perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

36%

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 DateJan 28 2022
Dividend Pay DateFeb 15 2022
Days until Ex dividend4 days
Days until Dividend pay date22 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?

26.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AOS ($76.82) is trading above our estimate of fair value ($74.77)

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 (26.2x) compared to the US Building industry average (20.2x).

PE vs Market: AOS is poor value based on its PE Ratio (26.2x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: AOS is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: AOS is overvalued based on its PB Ratio (6.4x) compared to the US Building industry average (2.6x).


Future Growth

How is A. O. Smith forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AOS's forecast earnings growth (11.3% per year) is above the savings rate (2%).

Earnings vs Market: AOS's earnings (11.3% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: AOS's revenue (7.2% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: AOS's revenue (7.2% 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 (28.9%)


Past Performance

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

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AOS has high quality earnings.

Growing Profit Margin: AOS's current net profit margins (13.8%) are higher than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: AOS's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: AOS's earnings growth over the past year (47.8%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: AOS earnings growth over the past year (47.8%) exceeded the Building industry 45%.


Return on Equity

High ROE: AOS's Return on Equity (24.7%) is considered high.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: AOS's short term assets ($1.7B) exceed its short term liabilities ($982.6M).

Long Term Liabilities: AOS's short term assets ($1.7B) exceed its long term liabilities ($420.9M).


Debt to Equity History and Analysis

Debt Level: AOS has more cash than its total debt.

Reducing Debt: AOS's debt to equity ratio has reduced from 22% to 5.6% over the past 5 years.

Debt Coverage: AOS's debt is well covered by operating cash flow (571.9%).

Interest Coverage: AOS's interest payments on its debt are well covered by EBIT (149.3x coverage).


Balance Sheet


Dividend

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

1.46%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 24 2022Ex Dividend DateJan 28 2022Dividend Pay DateFeb 15 202218 days from Ex DividendBuy in the next 4 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AOS's dividend (1.46%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: AOS's dividend (1.46%) 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 (35.7%), 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 (28.5% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Kevin Wheeler (61 yo)

4.67yrs

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 ($USD5.17M) is below average for companies of similar size in the US market ($USD11.47M).

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 (3.9 years average tenure).


Board Members

Experienced Board: AOS's board of directors are seasoned and experienced ( 13.5 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 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
  • Implied Market Cap: US$12.227b
  • Shares outstanding: 159.16m
  • 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 Analysis2022/01/23 23:02
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
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.