SMITH (A.O.) CORP (AOS) Fundamental Analysis & Valuation

NYSE:AOS • US8318652091

Current stock price

64.09 USD
-0.45 (-0.7%)
At close:
64.09 USD
0 (0%)
After Hours:

This AOS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. AOS Profitability Analysis

1.1 Basic Checks

  • In the past year AOS was profitable.
  • AOS had a positive operating cash flow in the past year.
  • Each year in the past 5 years AOS has been profitable.
  • Each year in the past 5 years AOS had a positive operating cash flow.
AOS Yearly Net Income VS EBIT VS OCF VS FCFAOS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

1.2 Ratios

  • AOS has a Return On Assets of 17.38%. This is amongst the best in the industry. AOS outperforms 97.62% of its industry peers.
  • AOS has a better Return On Equity (29.40%) than 85.71% of its industry peers.
  • AOS has a Return On Invested Capital of 24.36%. This is amongst the best in the industry. AOS outperforms 95.24% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AOS is significantly above the industry average of 11.92%.
Industry RankSector Rank
ROA 17.38%
ROE 29.4%
ROIC 24.36%
ROA(3y)17.06%
ROA(5y)14.45%
ROE(3y)29.3%
ROE(5y)25.6%
ROIC(3y)24.55%
ROIC(5y)20.29%
AOS Yearly ROA, ROE, ROICAOS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • AOS's Profit Margin of 14.26% is fine compared to the rest of the industry. AOS outperforms 78.57% of its industry peers.
  • In the last couple of years the Profit Margin of AOS has grown nicely.
  • AOS's Operating Margin of 19.02% is amongst the best of the industry. AOS outperforms 80.95% of its industry peers.
  • In the last couple of years the Operating Margin of AOS has grown nicely.
  • AOS has a better Gross Margin (38.83%) than 73.81% of its industry peers.
  • AOS's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 19.02%
PM (TTM) 14.26%
GM 38.83%
OM growth 3Y45.23%
OM growth 5Y3.72%
PM growth 3Y31.45%
PM growth 5Y3.66%
GM growth 3Y3.12%
GM growth 5Y0.29%
AOS Yearly Profit, Operating, Gross MarginsAOS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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8

2. AOS Health Analysis

2.1 Basic Checks

  • AOS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • The number of shares outstanding for AOS has been reduced compared to 1 year ago.
  • The number of shares outstanding for AOS has been reduced compared to 5 years ago.
  • Compared to 1 year ago, AOS has an improved debt to assets ratio.
AOS Yearly Shares OutstandingAOS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
AOS Yearly Total Debt VS Total AssetsAOS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 8.08 indicates that AOS is not in any danger for bankruptcy at the moment.
  • AOS has a better Altman-Z score (8.08) than 97.62% of its industry peers.
  • AOS has a debt to FCF ratio of 0.28. This is a very positive value and a sign of high solvency as it would only need 0.28 years to pay back of all of its debts.
  • The Debt to FCF ratio of AOS (0.28) is better than 92.86% of its industry peers.
  • AOS has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
  • With an excellent Debt to Equity ratio value of 0.06, AOS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.28
Altman-Z 8.08
ROIC/WACC2.45
WACC9.96%
AOS Yearly LT Debt VS Equity VS FCFAOS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.3 Liquidity

  • AOS has a Current Ratio of 1.50. This is a normal value and indicates that AOS is financially healthy and should not expect problems in meeting its short term obligations.
  • AOS has a Current ratio of 1.50. This is in the lower half of the industry: AOS underperforms 73.81% of its industry peers.
  • AOS has a Quick Ratio of 1.50. This is a bad value and indicates that AOS is not financially healthy enough and could expect problems in meeting its short term obligations.
  • AOS has a Quick ratio of 0.94. This is in the lower half of the industry: AOS underperforms 73.81% of its industry peers.
  • The current and quick ratio evaluation for AOS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.5
Quick Ratio 0.94
AOS Yearly Current Assets VS Current LiabilitesAOS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. AOS Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.49% over the past year.
  • The Earnings Per Share has been growing by 12.21% on average over the past years. This is quite good.
  • AOS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.32%.
  • The Revenue has been growing slightly by 5.76% on average over the past years.
EPS 1Y (TTM)3.49%
EPS 3Y7.12%
EPS 5Y12.21%
EPS Q2Q%5.88%
Revenue 1Y (TTM)0.32%
Revenue growth 3Y0.67%
Revenue growth 5Y5.76%
Sales Q2Q%0.01%

3.2 Future

  • AOS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.06% yearly.
  • The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y4.98%
EPS Next 2Y6.8%
EPS Next 3Y7.11%
EPS Next 5Y7.06%
Revenue Next Year3.19%
Revenue Next 2Y3.53%
Revenue Next 3Y3.69%
Revenue Next 5Y3.95%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
AOS Yearly Revenue VS EstimatesAOS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B
AOS Yearly EPS VS EstimatesAOS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4 5

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5

4. AOS Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 16.60, which indicates a correct valuation of AOS.
  • Based on the Price/Earnings ratio, AOS is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.23. AOS is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 15.82, AOS is valued correctly.
  • Based on the Price/Forward Earnings ratio, AOS is valued a bit cheaper than 61.90% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of AOS to the average of the S&P500 Index (23.28), we can say AOS is valued slightly cheaper.
Industry RankSector Rank
PE 16.6
Fwd PE 15.82
AOS Price Earnings VS Forward Price EarningsAOS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AOS indicates a somewhat cheap valuation: AOS is cheaper than 61.90% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AOS indicates a somewhat cheap valuation: AOS is cheaper than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16.23
EV/EBITDA 10.9
AOS Per share dataAOS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • AOS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.34
PEG (5Y)1.36
EPS Next 2Y6.8%
EPS Next 3Y7.11%

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7

5. AOS Dividend Analysis

5.1 Amount

  • AOS has a Yearly Dividend Yield of 2.16%.
  • AOS's Dividend Yield is rather good when compared to the industry average which is at 0.75. AOS pays more dividend than 92.86% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, AOS has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.16%

5.2 History

  • The dividend of AOS is nicely growing with an annual growth rate of 7.16%!
  • AOS has been paying a dividend for at least 10 years, so it has a reliable track record.
  • AOS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.16%
Div Incr Years26
Div Non Decr Years26
AOS Yearly Dividends per shareAOS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 35.83% of the earnings are spent on dividend by AOS. This is a low number and sustainable payout ratio.
  • The dividend of AOS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.83%
EPS Next 2Y6.8%
EPS Next 3Y7.11%
AOS Yearly Income VS Free CF VS DividendAOS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
AOS Dividend Payout.AOS Dividend Payout, showing the Payout Ratio.AOS Dividend Payout.PayoutRetained Earnings

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AOS Fundamentals: All Metrics, Ratios and Statistics

SMITH (A.O.) CORP

NYSE:AOS (3/20/2026, 8:04:00 PM)

After market: 64.09 0 (0%)

64.09

-0.45 (-0.7%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)01-29
Earnings (Next)04-27
Inst Owners107.61%
Inst Owner Change6.98%
Ins Owners0.42%
Ins Owner Change3.72%
Market Cap8.86B
Revenue(TTM)3.83B
Net Income(TTM)546.20M
Analysts71.58
Price Target81.45 (27.09%)
Short Float %5.54%
Short Ratio4.43
Dividend
Industry RankSector Rank
Dividend Yield 2.16%
Yearly Dividend1.38
Dividend Growth(5Y)7.16%
DP35.83%
Div Incr Years26
Div Non Decr Years26
Ex-Date01-30
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.19%
Min EPS beat(2)2.6%
Max EPS beat(2)5.78%
EPS beat(4)4
Avg EPS beat(4)4.82%
Min EPS beat(4)2.6%
Max EPS beat(4)7.62%
EPS beat(8)5
Avg EPS beat(8)1.39%
EPS beat(12)9
Avg EPS beat(12)4.46%
EPS beat(16)12
Avg EPS beat(16)3.93%
Revenue beat(2)0
Avg Revenue beat(2)-2.05%
Min Revenue beat(2)-2.68%
Max Revenue beat(2)-1.41%
Revenue beat(4)2
Avg Revenue beat(4)-0.88%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)0.53%
Revenue beat(8)3
Avg Revenue beat(8)-1.39%
Revenue beat(12)5
Avg Revenue beat(12)-0.63%
Revenue beat(16)7
Avg Revenue beat(16)-0.52%
PT rev (1m)0.69%
PT rev (3m)1.76%
EPS NQ rev (1m)-1.02%
EPS NQ rev (3m)-5.17%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-3.11%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.37%
Valuation
Industry RankSector Rank
PE 16.6
Fwd PE 15.82
P/S 2.31
P/FCF 16.23
P/OCF 14.37
P/B 4.77
P/tB 11.29
EV/EBITDA 10.9
EPS(TTM)3.86
EY6.02%
EPS(NY)4.05
Fwd EY6.32%
FCF(TTM)3.95
FCFY6.16%
OCF(TTM)4.46
OCFY6.96%
SpS27.7
BVpS13.44
TBVpS5.68
PEG (NY)3.34
PEG (5Y)1.36
Graham Number34.16
Profitability
Industry RankSector Rank
ROA 17.38%
ROE 29.4%
ROCE 31.95%
ROIC 24.36%
ROICexc 26.62%
ROICexgc 54.78%
OM 19.02%
PM (TTM) 14.26%
GM 38.83%
FCFM 14.26%
ROA(3y)17.06%
ROA(5y)14.45%
ROE(3y)29.3%
ROE(5y)25.6%
ROIC(3y)24.55%
ROIC(5y)20.29%
ROICexc(3y)27.99%
ROICexc(5y)24.22%
ROICexgc(3y)57.77%
ROICexgc(5y)51.54%
ROCE(3y)32.2%
ROCE(5y)26.61%
ROICexgc growth 3Y42.99%
ROICexgc growth 5Y2.25%
ROICexc growth 3Y42.11%
ROICexc growth 5Y3.81%
OM growth 3Y45.23%
OM growth 5Y3.72%
PM growth 3Y31.45%
PM growth 5Y3.66%
GM growth 3Y3.12%
GM growth 5Y0.29%
F-Score8
Asset Turnover1.22
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.28
Debt/EBITDA 0.14
Cap/Depr 83.2%
Cap/Sales 1.85%
Interest Coverage 53.97
Cash Conversion 75.8%
Profit Quality 99.96%
Current Ratio 1.5
Quick Ratio 0.94
Altman-Z 8.08
F-Score8
WACC9.96%
ROIC/WACC2.45
Cap/Depr(3y)104.32%
Cap/Depr(5y)100.16%
Cap/Sales(3y)2.19%
Cap/Sales(5y)2.11%
Profit Quality(3y)98.71%
Profit Quality(5y)109.71%
High Growth Momentum
Growth
EPS 1Y (TTM)3.49%
EPS 3Y7.12%
EPS 5Y12.21%
EPS Q2Q%5.88%
EPS Next Y4.98%
EPS Next 2Y6.8%
EPS Next 3Y7.11%
EPS Next 5Y7.06%
Revenue 1Y (TTM)0.32%
Revenue growth 3Y0.67%
Revenue growth 5Y5.76%
Sales Q2Q%0.01%
Revenue Next Year3.19%
Revenue Next 2Y3.53%
Revenue Next 3Y3.69%
Revenue Next 5Y3.95%
EBIT growth 1Y0.45%
EBIT growth 3Y46.21%
EBIT growth 5Y9.69%
EBIT Next Year16.91%
EBIT Next 3Y8.38%
EBIT Next 5Y8.1%
FCF growth 1Y15.24%
FCF growth 3Y19.36%
FCF growth 5Y1.56%
OCF growth 1Y6.02%
OCF growth 3Y16.37%
OCF growth 5Y1.87%

SMITH (A.O.) CORP / AOS Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for SMITH (A.O.) CORP?

ChartMill assigns a fundamental rating of 6 / 10 to AOS.


Can you provide the valuation status for SMITH (A.O.) CORP?

ChartMill assigns a valuation rating of 5 / 10 to SMITH (A.O.) CORP (AOS). This can be considered as Fairly Valued.


Can you provide the profitability details for SMITH (A.O.) CORP?

SMITH (A.O.) CORP (AOS) has a profitability rating of 8 / 10.


What is the valuation of SMITH (A.O.) CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for SMITH (A.O.) CORP (AOS) is 16.6 and the Price/Book (PB) ratio is 4.77.


Can you provide the financial health for AOS stock?

The financial health rating of SMITH (A.O.) CORP (AOS) is 8 / 10.