SMITH (A.O.) CORP (AOS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AOS - US8318652091 - Common Stock
68.19 USD
-0.63 (-0.92%)
We assign a fundamental rating of 7 out of 10 to AOS. AOS was compared to 41 industry peers in the Building Products industry. AOS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AOS has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally AOS also has an excellent dividend rating. These ratings could make AOS a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year AOS was profitable.
AOS had a positive operating cash flow in the past year.
AOS had positive earnings in each of the past 5 years.
Each year in the past 5 years AOS had a positive operating cash flow.
1.2 Ratios
AOS has a better Return On Assets (16.73%) than 97.56% of its industry peers.
Looking at the Return On Equity, with a value of 28.76%, AOS belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
AOS has a Return On Invested Capital of 23.96%. This is amongst the best in the industry. AOS outperforms 95.12% of its industry peers.
AOS had an Average Return On Invested Capital over the past 3 years of 18.84%. This is significantly above the industry average of 12.52%.
The last Return On Invested Capital (23.96%) for AOS is above the 3 year average (18.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.73% | ||
| ROE | 28.76% | ||
| ROIC | 23.96% |
ROA(3y)13.62%
ROA(5y)13.16%
ROE(3y)24%
ROE(5y)23.45%
ROIC(3y)18.84%
ROIC(5y)18.44%
1.3 Margins
AOS has a better Profit Margin (13.85%) than 68.29% of its industry peers.
In the last couple of years the Profit Margin of AOS has grown nicely.
With a decent Operating Margin value of 19.08%, AOS is doing good in the industry, outperforming 75.61% of the companies in the same industry.
AOS's Operating Margin has improved in the last couple of years.
AOS has a Gross Margin of 38.51%. This is in the better half of the industry: AOS outperforms 70.73% of its industry peers.
In the last couple of years the Gross Margin of AOS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.08% | ||
| PM (TTM) | 13.85% | ||
| GM | 38.51% |
OM growth 3Y2.19%
OM growth 5Y3.31%
PM growth 3Y0.51%
PM growth 5Y2.48%
GM growth 3Y0.98%
GM growth 5Y-0.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AOS is creating value.
Compared to 1 year ago, AOS has less shares outstanding
Compared to 5 years ago, AOS has less shares outstanding
The debt/assets ratio for AOS is higher compared to a year ago.
2.2 Solvency
AOS has an Altman-Z score of 8.19. This indicates that AOS is financially healthy and has little risk of bankruptcy at the moment.
AOS has a Altman-Z score of 8.19. This is amongst the best in the industry. AOS outperforms 90.24% of its industry peers.
AOS has a debt to FCF ratio of 0.32. This is a very positive value and a sign of high solvency as it would only need 0.32 years to pay back of all of its debts.
AOS has a better Debt to FCF ratio (0.32) than 92.68% of its industry peers.
AOS has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AOS (0.09) is better than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.32 | ||
| Altman-Z | 8.19 |
ROIC/WACC2.49
WACC9.64%
2.3 Liquidity
A Current Ratio of 1.54 indicates that AOS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.54, AOS is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
A Quick Ratio of 0.95 indicates that AOS may have some problems paying its short term obligations.
The Quick ratio of AOS (0.95) is worse than 70.73% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
AOS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.04%.
AOS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.84% yearly.
The Revenue has decreased by -1.64% in the past year.
Measured over the past years, AOS shows a small growth in Revenue. The Revenue has been growing by 4.99% on average per year.
EPS 1Y (TTM)-1.04%
EPS 3Y7.65%
EPS 5Y10.84%
EPS Q2Q%14.63%
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y2.56%
Revenue growth 5Y4.99%
Sales Q2Q%4.42%
3.2 Future
AOS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.49% yearly.
AOS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y2.86%
EPS Next 2Y5.89%
EPS Next 3Y6.35%
EPS Next 5Y7.49%
Revenue Next Year-0.31%
Revenue Next 2Y1.6%
Revenue Next 3Y2.29%
Revenue Next 5Y2.99%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.90, AOS is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as AOS.
Compared to an average S&P500 Price/Earnings ratio of 26.55, AOS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.30, AOS is valued correctly.
60.98% of the companies in the same industry are more expensive than AOS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AOS to the average of the S&P500 Index (23.78), we can say AOS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AOS.
AOS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AOS is cheaper than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.61 | ||
| EV/EBITDA | 11.78 |
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)6.25
PEG (5Y)1.65
EPS Next 2Y5.89%
EPS Next 3Y6.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, AOS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.72, AOS pays a better dividend. On top of this AOS pays more dividend than 95.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, AOS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
On average, the dividend of AOS grows each year by 7.65%, which is quite nice.
AOS has paid a dividend for at least 10 years, which is 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.
Dividend Growth(5Y)7.65%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
AOS pays out 36.68% of its income as dividend. This is a sustainable payout ratio.
AOS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.68%
EPS Next 2Y5.89%
EPS Next 3Y6.35%
NYSE:AOS (12/16/2025, 11:39:31 AM)
68.19
-0.63 (-0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.48%
Inst Owner Change-1%
Ins Owners0.38%
Ins Owner Change-1.87%
Market Cap9.49B
Revenue(TTM)3.83B
Net Income(TTM)530.50M
Analysts72.22
Price Target80.03 (17.36%)
Short Float %3.79%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend1.3
Dividend Growth(5Y)7.65%
DP36.68%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.11%
Min EPS beat(2)2.6%
Max EPS beat(2)7.62%
EPS beat(4)3
Avg EPS beat(4)1.9%
Min EPS beat(4)-5.88%
Max EPS beat(4)7.62%
EPS beat(8)5
Avg EPS beat(8)0.72%
EPS beat(12)9
Avg EPS beat(12)4.64%
EPS beat(16)12
Avg EPS beat(16)4.33%
Revenue beat(2)1
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-5.3%
Max Revenue beat(4)0.53%
Revenue beat(8)3
Avg Revenue beat(8)-1.15%
Revenue beat(12)6
Avg Revenue beat(12)-0.34%
Revenue beat(16)8
Avg Revenue beat(16)-0.2%
PT rev (1m)-1.82%
PT rev (3m)-1.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.24%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-4.16%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 16.3 | ||
| P/S | 2.48 | ||
| P/FCF | 16.61 | ||
| P/OCF | 14.48 | ||
| P/B | 5.15 | ||
| P/tB | 12.36 | ||
| EV/EBITDA | 11.78 |
EPS(TTM)3.81
EY5.59%
EPS(NY)4.18
Fwd EY6.13%
FCF(TTM)4.11
FCFY6.02%
OCF(TTM)4.71
OCFY6.9%
SpS27.51
BVpS13.25
TBVpS5.52
PEG (NY)6.25
PEG (5Y)1.65
Graham Number33.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.73% | ||
| ROE | 28.76% | ||
| ROCE | 31.52% | ||
| ROIC | 23.96% | ||
| ROICexc | 25.89% | ||
| ROICexgc | 51.94% | ||
| OM | 19.08% | ||
| PM (TTM) | 13.85% | ||
| GM | 38.51% | ||
| FCFM | 14.93% |
ROA(3y)13.62%
ROA(5y)13.16%
ROE(3y)24%
ROE(5y)23.45%
ROIC(3y)18.84%
ROIC(5y)18.44%
ROICexc(3y)22.14%
ROICexc(5y)23.24%
ROICexgc(3y)45.61%
ROICexgc(5y)50.22%
ROCE(3y)24.79%
ROCE(5y)24.26%
ROICexgc growth 3Y-5.04%
ROICexgc growth 5Y5.48%
ROICexc growth 3Y-1.33%
ROICexc growth 5Y4.8%
OM growth 3Y2.19%
OM growth 5Y3.31%
PM growth 3Y0.51%
PM growth 5Y2.48%
GM growth 3Y0.98%
GM growth 5Y-0.68%
F-Score5
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.32 | ||
| Debt/EBITDA | 0.21 | ||
| Cap/Depr | 102.07% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.66% | ||
| Profit Quality | 107.79% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 8.19 |
F-Score5
WACC9.64%
ROIC/WACC2.49
Cap/Depr(3y)107.07%
Cap/Depr(5y)97.72%
Cap/Sales(3y)2.2%
Cap/Sales(5y)2.13%
Profit Quality(3y)110.8%
Profit Quality(5y)119.02%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.04%
EPS 3Y7.65%
EPS 5Y10.84%
EPS Q2Q%14.63%
EPS Next Y2.86%
EPS Next 2Y5.89%
EPS Next 3Y6.35%
EPS Next 5Y7.49%
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y2.56%
Revenue growth 5Y4.99%
Sales Q2Q%4.42%
Revenue Next Year-0.31%
Revenue Next 2Y1.6%
Revenue Next 3Y2.29%
Revenue Next 5Y2.99%
EBIT growth 1Y-1.44%
EBIT growth 3Y4.81%
EBIT growth 5Y8.47%
EBIT Next Year8.96%
EBIT Next 3Y6.36%
EBIT Next 5Y5.87%
FCF growth 1Y3.29%
FCF growth 3Y-5.75%
FCF growth 5Y3.87%
OCF growth 1Y6.48%
OCF growth 3Y-3.18%
OCF growth 5Y4.98%
SMITH (A.O.) CORP / AOS FAQ
Can you provide the ChartMill fundamental rating for SMITH (A.O.) CORP?
ChartMill assigns a fundamental rating of 7 / 10 to AOS.
What is the valuation status of SMITH (A.O.) CORP (AOS) stock?
ChartMill assigns a valuation rating of 4 / 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 9 / 10.
What is the earnings growth outlook for SMITH (A.O.) CORP?
The Earnings per Share (EPS) of SMITH (A.O.) CORP (AOS) is expected to grow by 2.86% in the next year.
Can you provide the dividend sustainability for AOS stock?
The dividend rating of SMITH (A.O.) CORP (AOS) is 7 / 10 and the dividend payout ratio is 36.68%.