A. O. Smith
Market Cap
US$7.2b
Last Updated
2020/02/17 00:54 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.
Rewards
PE ratio (19.8x) is below the Building industry average (22.2x)
Risk Analysis
No risks detected for AOS from our risk checks.
Snowflake Analysis
Excellent 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.2%
AOS
4.0%
US Building
1.8%
US Market
1 Year Return
-14.9%
AOS
24.9%
US Building
20.1%
US Market
Return vs Industry: AOS underperformed the US Building industry which returned 24.9% over the past year.
Return vs Market: AOS underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| AOS | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.2% | 4.0% | 1.8% |
| 30 Day | -6.4% | 2.2% | 1.4% |
| 90 Day | -9.0% | 5.3% | 8.8% |
| 1 Year | -13.3%-14.9% | 26.8%24.9% | 22.7%20.1% |
| 3 Year | -7.3%-11.4% | 28.0%22.1% | 50.1%40.4% |
| 5 Year | 48.0%38.3% | 50.6%31.0% | 72.9%53.9% |
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
Should A. O. Smith (NYSE:AOS) Be Disappointed With Their 34% Profit?2 weeks ago | Simply Wall St
A. O. Smith Corporation Just Released Its Yearly Results And Analysts Are Updating Their Estimates3 weeks ago | Simply Wall St
A. O. Smith Corporation (NYSE:AOS)'s Could Be A Buy For Its Upcoming DividendValuation
Is A. O. Smith undervalued compared to its fair value and its price relative to the market?
19.79x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AOS ($43.93) is trading above our estimate of fair value ($43.3)
Significantly Below Fair Value: AOS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AOS is good value based on its PE Ratio (19.8x) compared to the Building industry average (22.2x).
PE vs Market: AOS is poor value based on its PE Ratio (19.8x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: AOS is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: AOS is overvalued based on its PB Ratio (4.3x) compared to the US Building industry average (2.4x).
Next Steps
Future Growth
How is A. O. Smith forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
8.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AOS's forecast earnings growth (8.3% per year) is above the savings rate (1.7%).
Earnings vs Market: AOS's earnings (8.3% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: AOS's earnings are forecast to grow, but not significantly.
Revenue vs Market: AOS's revenue (3.1% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: AOS's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if AOS's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has A. O. Smith performed over the past 5 years?
11.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AOS has high quality earnings.
Growing Profit Margin: AOS's current net profit margins (12.4%) are lower than last year (13.9%).
Past Earnings Growth Analysis
Earnings Trend: AOS's earnings have grown by 11.5% 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 (-16.7%) over the past year, making it difficult to compare to the Building industry average (-4.2%).
Return on Equity
High ROE: AOS's Return on Equity (22.2%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is A. O. Smith's financial position?
Financial Position Analysis
Short Term Liabilities: AOS's short term assets ($1.5B) exceed its short term liabilities ($766.5M).
Long Term Liabilities: AOS's short term assets ($1.5B) exceed its long term liabilities ($624.7M).
Debt to Equity History and Analysis
Debt Level: AOS's debt to equity ratio (16.3%) is considered satisfactory.
Reducing Debt: AOS's debt to equity ratio has increased from 16.3% to 16.3% over the past 5 years.
Debt Coverage: AOS's debt is well covered by operating cash flow (167.8%).
Interest Coverage: AOS's interest payments on its debt are well covered by EBIT (42.3x coverage).
Balance Sheet
Inventory Level: AOS has a high level of physical assets or inventory.
Debt Coverage by Assets: AOS's debt is covered by short term assets (assets are 5.5x debt).
Next Steps
Dividend
What is A. O. Smith's current dividend yield, its reliability and sustainability?
2.19%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AOS's dividend (2.19%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: AOS's dividend (2.19%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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 (40.6%), 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 (38.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.5yrs
Average management tenure
CEO
Kevin Wheeler (59yo)
1.4yrs
Tenure
US$3,452,974
Compensation
Mr. Kevin J. Wheeler is Chief Executive Officer of A. O. Smith Corporation since September 1, 2018. He has been President of A. O. Smith Corporation since May 18, 2017 and served its Senior Vice President ...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD3.45M) is below average for companies of similar size in the US market ($USD6.26M).
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 5.8yrs | US$6.79m | 0.21% $15.4m | |
| President | 1.4yrs | US$3.45m | 0.019% $1.4m | |
| Executive VP | 12.7yrs | US$1.90m | 0.096% $6.9m | |
| Senior Vice President of Human Resources & Public Affairs | 14.1yrs | US$1.41m | 0.053% $3.8m | |
| Senior Vice President | 0yrs | US$1.90m | 0.0053% $379.1k | |
| Executive VP & CFO | 0.8yrs | no data | 0.015% $1.1m | |
| Senior Vice President of Global Operations | 1.1yrs | no data | 0.0032% $229.3k | |
| Senior VP & CTO | 9.2yrs | no data | 0.0067% $483.7k | |
| Senior VP & Chief Information Officer | 3.8yrs | no data | 0.0032% $229.3k | |
| Senior VP of Investor Relations | 11.4yrs | no data | 0.0014% $103.2k |
6.5yrs
Average Tenure
56yo
Average Age
Experienced Management: AOS's management team is seasoned and experienced (6.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 5.8yrs | US$6.79m | 0.21% $15.4m | |
| President | 1.4yrs | US$3.45m | 0.019% $1.4m | |
| Independent Director | 15.2yrs | US$216.06k | 0.11% $8.0m | |
| Lead Director | 1.8yrs | US$247.31k | 0.069% $4.9m | |
| Independent Director | 19.1yrs | US$225.56k | 0.022% $1.6m | |
| Independent Director | 25.1yrs | US$243.56k | 0.15% $10.4m | |
| Independent Director | 15.1yrs | US$216.06k | 0.033% $2.4m | |
| Independent Director | 19.1yrs | US$216.06k | 0.24% $16.9m | |
| Independent Director | 14.1yrs | US$225.56k | no data | |
| Independent Director | 3.2yrs | US$216.06k | 0.0047% $334.6k |
14.6yrs
Average Tenure
66.5yo
Average Age
Experienced Board: AOS's board of directors are seasoned and experienced ( 14.6 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 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$7.166b
- Shares outstanding: 163.11m
- Website: https://www.aosmith.com
Number of Employees
Location
- A. O. Smith Corporation
- 11270 West Park Place
- Suite 170
- Milwaukee
- Wisconsin
- 53224
- 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 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. It also provides food and beverage filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and heat pumps, combi-boilers, solar tank units, and air purification products. The company offers its products primarily under the A. O. Smith and State brands. It distributes its products through independent wholesale plumbing distributors, as well as through retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce, as well as other online retailers. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:54 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| 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.