Uncovering Dividend Opportunities with SMITH (A.O.) CORP (NYSE:AOS).

Our stock screener has spotted SMITH (A.O.) CORP (NYSE:AOS) as a good dividend stock with solid fundamentals. AOS shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Examination for AOS

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. AOS has received a 7 out of 10:

• AOS's Dividend Yield is rather good when compared to the industry average which is at 1.21. AOS pays more dividend than 95.12% of the companies in the same industry.
• The dividend of AOS is nicely growing with an annual growth rate of 7.65%!
• AOS has been paying a dividend for at least 10 years, so it has a reliable track record.
• AOS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• 36.80% of the earnings are spent on dividend by AOS. This is a low number and sustainable payout ratio.

Deciphering AOS's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. AOS scores a 5 out of 10:

• AOS has a debt to FCF ratio of 0.66. This is a very positive value and a sign of high solvency as it would only need 0.66 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.66, AOS belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
• AOS has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
• With a decent Debt to Equity ratio value of 0.14, AOS is doing good in the industry, outperforming 75.61% of the companies in the same industry.

Profitability Examination for AOS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, AOS has achieved a 9:

• With an excellent Return On Assets value of 15.99%, AOS belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
• AOS's Return On Equity of 28.17% is amongst the best of the industry. AOS outperforms 80.49% of its industry peers.
• With an excellent Return On Invested Capital value of 22.80%, AOS belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for AOS is significantly above the industry average of 13.07%.
• The 3 year average ROIC (18.84%) for AOS is below the current ROIC(22.80%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 13.74%, AOS is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
• AOS's Profit Margin has improved in the last couple of years.
• The Operating Margin of AOS (18.82%) is better than 75.61% of its industry peers.
• AOS's Operating Margin has improved in the last couple of years.
• AOS's Gross Margin of 38.04% is fine compared to the rest of the industry. AOS outperforms 68.29% of its industry peers.

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Check the latest full fundamental report of AOS for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.