SMITH (A.O.) CORP (AOS) Stock Fundamental Analysis
USA - NYSE:AOS - US8318652091 - Common Stock
66.09 USD
-0.28 (-0.42%)
66.09 USD
0 (0%)
Taking everything into account, AOS scores 7 out of 10 in our fundamental rating. AOS was compared to 41 industry peers in the Building Products industry. AOS gets an excellent profitability rating and is at the same time showing great financial health properties. AOS is valued correctly, but it does not seem to be growing. 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
AOS had positive earnings in the past year.
In the past year AOS had a positive cash flow from operations.
Each year in the past 5 years AOS has been profitable.
In the past 5 years AOS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.73%, AOS belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
AOS has a better Return On Equity (28.76%) than 85.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.96%, AOS belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AOS is significantly above the industry average of 12.54%.
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.
AOS's Profit Margin has improved in the last couple of years.
The Operating Margin of AOS (19.08%) is better than 75.61% of its industry peers.
In the last couple of years the Operating Margin of AOS has grown nicely.
AOS's Gross Margin of 38.51% is fine compared to the rest 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AOS is creating value.
AOS has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 8.06 indicates that AOS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.06, AOS belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
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's Debt to FCF ratio of 0.32 is amongst the best of the industry. AOS outperforms 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.
Looking at the Debt to Equity ratio, with a value of 0.09, AOS belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.32 | ||
| Altman-Z | 8.06 |
ROIC/WACC2.49
WACC9.61%
2.3 Liquidity
A Current Ratio of 1.54 indicates that AOS should not have too much problems paying its short term obligations.
AOS's Current ratio of 1.54 is on the low side compared to the rest of the industry. AOS is outperformed by 70.73% of its industry peers.
AOS has a Quick Ratio of 1.54. 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 0.95. This is in the lower half of the industry: AOS underperforms 73.17% of its industry peers.
AOS does not score too well on the current and quick ratio evaluation. However, as it has 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
The earnings per share for AOS have decreased by -1.04% in the last year.
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.
AOS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.99% yearly.
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.
Based on estimates for the next years, AOS will show a small growth in Revenue. The Revenue will grow by 2.99% on average per year.
EPS Next Y3.19%
EPS Next 2Y6.07%
EPS Next 3Y6.4%
EPS Next 5Y7.49%
Revenue Next Year-0.08%
Revenue Next 2Y1.74%
Revenue Next 3Y2.45%
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
The Price/Earnings ratio is 17.35, which indicates a rather expensive current valuation of AOS.
AOS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.91. AOS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.75, the valuation of AOS can be described as correct.
AOS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of AOS to the average of the S&P500 Index (34.57), we can say AOS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.35 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
AOS's Enterprise Value to EBITDA ratio is in line with the industry average.
AOS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AOS is cheaper than 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.2 | ||
| EV/EBITDA | 11.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AOS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of AOS may justify a higher PE ratio.
PEG (NY)5.44
PEG (5Y)1.6
EPS Next 2Y6.07%
EPS Next 3Y6.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.20%, AOS has a reasonable but not impressive dividend return.
AOS's Dividend Yield is rather good when compared to the industry average which is at 1.33. AOS pays more dividend than 92.68% of the companies in the same industry.
AOS's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of AOS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.68%
EPS Next 2Y6.07%
EPS Next 3Y6.4%
66.09
-0.28 (-0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.8%
Inst Owner Change0.07%
Ins Owners0.37%
Ins Owner Change-1.75%
Market Cap9.26B
Revenue(TTM)3.83B
Net Income(TTM)530.50M
Analysts71
Price Target81.52 (23.35%)
Short Float %2.17%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-7.24%
EPS NQ rev (3m)-7.24%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)-3.87%
Revenue NQ rev (3m)-3.86%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.35 | ||
| Fwd PE | 15.75 | ||
| P/S | 2.42 | ||
| P/FCF | 16.2 | ||
| P/OCF | 14.13 | ||
| P/B | 5.02 | ||
| P/tB | 12.05 | ||
| EV/EBITDA | 11.43 |
EPS(TTM)3.81
EY5.76%
EPS(NY)4.2
Fwd EY6.35%
FCF(TTM)4.08
FCFY6.17%
OCF(TTM)4.68
OCFY7.08%
SpS27.33
BVpS13.16
TBVpS5.48
PEG (NY)5.44
PEG (5Y)1.6
Graham Number33.59
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 | 8.06 |
F-Score5
WACC9.61%
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 Y3.19%
EPS Next 2Y6.07%
EPS Next 3Y6.4%
EPS Next 5Y7.49%
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y2.56%
Revenue growth 5Y4.99%
Sales Q2Q%4.42%
Revenue Next Year-0.08%
Revenue Next 2Y1.74%
Revenue Next 3Y2.45%
Revenue Next 5Y2.99%
EBIT growth 1Y-1.44%
EBIT growth 3Y4.81%
EBIT growth 5Y8.47%
EBIT Next Year10.36%
EBIT Next 3Y6.9%
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 3.19% 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%.