A. O. Smith
Market Cap
US$9.3b
Last Updated
2021/01/24 00:24 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 +/- 4% a week.
Volatility Over Time: AOS's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
1.6%
AOS
1.9%
US Building
2.3%
US Market
1 Year Return
27.1%
AOS
25.9%
US Building
23.8%
US Market
Return vs Industry: AOS exceeded the US Building industry which returned 25.9% over the past year.
Return vs Market: AOS exceeded the US Market which returned 23.8% over the past year.
Shareholder returns
| AOS | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.6% | 1.9% | 2.3% |
| 30 Day | 4.1% | 7.6% | 4.8% |
| 90 Day | 5.2% | 16.8% | 14.5% |
| 1 Year | 29.8%27.1% | 34.1%25.9% | 26.6%23.8% |
| 3 Year | -10.2%-14.9% | 46.8%34.8% | 45.0%35.4% |
| 5 Year | 78.3%65.4% | 147.3%112.6% | 126.2%101.0% |
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
1 day ago | Simply Wall St
A. O. Smith Corporation (NYSE:AOS) Looks Interesting, And It's About To Pay A Dividend1 week ago | Simply Wall St
Should You Be Impressed By A. O. Smith's (NYSE:AOS) Returns on Capital?Valuation
Is A. O. Smith undervalued compared to its fair value and its price relative to the market?
0.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AOS ($57.76) is trading below our estimate of fair value ($57.98)
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 (29.6x) compared to the US Building industry average (24.4x).
PE vs Market: AOS is poor value based on its PE Ratio (29.6x) compared to the US market (21.3x).
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 (5.3x) compared to the US Building industry average (3.3x).
Next Steps
Future Growth
How is A. O. Smith forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
12.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AOS's forecast earnings growth (12.8% per year) is above the savings rate (2%).
Earnings vs Market: AOS's earnings (12.8% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: AOS's earnings are forecast to grow, but not significantly.
Revenue vs Market: AOS's revenue (5.6% per year) is forecast to grow slower than the US market (10.6% per year).
High Growth Revenue: AOS's revenue (5.6% 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 (22.7%)
Next Steps
Past Performance
How has A. O. Smith performed over the past 5 years?
4.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AOS has high quality earnings.
Growing Profit Margin: AOS's current net profit margins (11.2%) are lower than last year (13.3%).
Past Earnings Growth Analysis
Earnings Trend: AOS's earnings have grown by 4.6% 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 (-21.9%) over the past year, making it difficult to compare to the Building industry average (17.1%).
Return on Equity
High ROE: AOS's Return on Equity (18.1%) is considered low.
Next Steps
Financial Health
How is A. O. Smith's financial position?
Financial Position Analysis
Short Term Liabilities: AOS's short term assets ($1.4B) exceed its short term liabilities ($805.9M).
Long Term Liabilities: AOS's short term assets ($1.4B) exceed its long term liabilities ($418.1M).
Debt to Equity History and Analysis
Debt Level: AOS's debt to equity ratio (6.5%) is considered satisfactory.
Reducing Debt: AOS's debt to equity ratio has reduced from 18.3% to 6.5% over the past 5 years.
Debt Coverage: AOS's debt is well covered by operating cash flow (444.8%).
Interest Coverage: AOS's interest payments on its debt are well covered by EBIT (45.9x coverage).
Balance Sheet
Next Steps
Dividend
What is A. O. Smith current dividend yield, its reliability and sustainability?
1.80%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AOS's dividend (1.8%) is higher than the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: AOS's dividend (1.8%) is low compared to the top 25% of dividend payers in the US market (3.86%).
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 (49.1%), 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 (35.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
Kevin Wheeler (60 yo)
2.33yrs
Tenure
US$3,808,438
Compensation
Mr. Kevin J. Wheeler has been Chief Executive Officer of A. O. Smith Corporation since September 1, 2018. He has been President of A. O. Smith Corporation since May 18, 2017 and served its Senior Vice Pres...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD3.81M) is below average for companies of similar size in the US market ($USD6.22M).
Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.33yrs | US$3.81m | 0.021% $ 1.9m | |
| Executive VP & CFO | 1.67yrs | US$1.42m | 0.016% $ 1.5m | |
| Executive VP | 13.58yrs | US$2.13m | 0.096% $ 8.9m | |
| Senior Vice President of Human Resources & Public Affairs | 15yrs | US$1.87m | 0.055% $ 5.1m | |
| Senior Vice President of Global Operations | 2yrs | no data | 0.0031% $ 286.3k | |
| Senior VP & CTO | 10.08yrs | no data | 0.0054% $ 503.6k | |
| Senior VP & Chief Information Officer | 0.42yr | no data | no data | |
| Senior VP of Investor Relations | 12.33yrs | no data | 0.0018% $ 166.0k | |
| Senior Vice President of Corporate Development & Strategy | 1.67yrs | no data | 0.0043% $ 403.8k | |
| Senior Vice President | 3yrs | no data | 0.010% $ 929.8k | |
| Senior VP and President & GM of North American Water Heating | 3.5yrs | no data | 0.0031% $ 284.5k | |
| Senior VP & President of North America Water Treatment | 2.33yrs | no data | no data |
2.7yrs
Average Tenure
57yo
Average Age
Experienced Management: AOS's management team is considered experienced (2.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.33yrs | US$3.81m | 0.021% $ 1.9m | |
| Independent Director | 16.08yrs | US$223.54k | 0.094% $ 8.7m | |
| Independent Director | 18yrs | US$247.29k | 0.072% $ 6.7m | |
| Independent Lead Director | 0.75yr | US$235.54k | 0.022% $ 2.1m | |
| Director | 9.08yrs | US$6.15m | 0.23% $ 21.0m | |
| Independent Director | 26yrs | US$248.54k | 0.15% $ 13.6m | |
| Independent Director | 16yrs | US$223.54k | 0.036% $ 3.3m | |
| Independent Director | 20yrs | US$223.54k | 0.22% $ 20.8m | |
| Independent Presiding Director | 9.75yrs | US$254.29k | no data | |
| Independent Director | 4.08yrs | US$223.54k | 0.0067% $ 627.7k |
12.9yrs
Average Tenure
67.5yo
Average Age
Experienced Board: AOS's board of directors are seasoned and experienced ( 12.9 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$9.326b
- Shares outstanding: 161.47m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AOS | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 2009 |
| 3SM | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 2009 |
| 0L7A | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Apr 2009 |
| AOS * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Apr 2009 |
| A1OS34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
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 | 2021/01/24 00:24 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.