SMITH (A.O.) CORP (AOS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AOS - US8318652091 - Common Stock
70.56 USD
-1.92 (-2.65%)
70.56 USD
0 (0%)
Taking everything into account, AOS scores 7 out of 10 in our fundamental rating. AOS was compared to 42 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. AOS also has an excellent dividend rating. These ratings would make AOS suitable for dividend investing!
1. Profitability
1.1 Basic Checks
- AOS had positive earnings in the past year.
- AOS had a positive operating cash flow in the past year.
- AOS had positive earnings in each of the past 5 years.
- In the past 5 years AOS always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of AOS (16.73%) is better than 97.62% of its industry peers.
- AOS's Return On Equity of 28.76% is amongst the best of the industry. AOS outperforms 85.71% 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 95.24% 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 12.68%.
- 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 69.05% of its industry peers.
- AOS's Profit Margin has improved in the last couple of years.
- AOS has a better Operating Margin (19.08%) than 76.19% of its industry peers.
- In the last couple of years the Operating Margin of AOS has grown nicely.
- AOS has a Gross Margin of 38.51%. This is in the better half of the industry: AOS outperforms 71.43% 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
- AOS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, AOS has less shares outstanding
- AOS has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for AOS is higher compared to a year ago.
2.2 Solvency
- AOS has an Altman-Z score of 8.42. This indicates that AOS is financially healthy and has little risk of bankruptcy at the moment.
- AOS has a Altman-Z score of 8.42. This is amongst the best in the industry. AOS outperforms 88.10% of its industry peers.
- The Debt to FCF ratio of AOS is 0.32, which is an excellent value as it means it would take AOS, only 0.32 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.32, AOS belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- AOS has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
- With an excellent Debt to Equity ratio value of 0.09, AOS belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.32 | ||
| Altman-Z | 8.42 |
ROIC/WACC2.64
WACC9.09%
2.3 Liquidity
- A Current Ratio of 1.54 indicates that AOS should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.54, AOS is doing worse than 73.81% of the companies in the same industry.
- 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 worse Quick ratio (0.95) than 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 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%.
- Measured over the past years, AOS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.84% on average per year.
- The Revenue has decreased by -1.64% in the past year.
- The Revenue has been growing slightly by 4.99% on average over the past years.
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
- Based on estimates for the next years, AOS will show a small growth in Earnings Per Share. The EPS will grow by 7.61% on average per year.
- Based on estimates for the next years, AOS will show a small growth in Revenue. The Revenue will grow by 2.98% on average per year.
EPS Next Y2.84%
EPS Next 2Y5.9%
EPS Next 3Y6.36%
EPS Next 5Y7.61%
Revenue Next Year-0.36%
Revenue Next 2Y1.81%
Revenue Next 3Y2.49%
Revenue Next 5Y2.98%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 18.52, AOS is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as AOS.
- When comparing the Price/Earnings ratio of AOS to the average of the S&P500 Index (26.94), we can say AOS is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 16.87, the valuation of AOS can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AOS indicates a somewhat cheap valuation: AOS is cheaper than 71.43% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. AOS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AOS is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, AOS is valued a bit cheaper than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.18 | ||
| EV/EBITDA | 12.41 |
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.
- AOS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.51
PEG (5Y)1.71
EPS Next 2Y5.9%
EPS Next 3Y6.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.00%, 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 0.67. AOS pays more dividend than 95.24% of the companies in the same industry.
- AOS's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
5.2 History
- On average, the dividend of AOS grows each year by 7.65%, which is quite nice.
- 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)7.65%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
- 36.68% 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.
DP36.68%
EPS Next 2Y5.9%
EPS Next 3Y6.36%
70.56
-1.92 (-2.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)01-29 2026-01-29/amc
Inst Owners99.65%
Inst Owner Change0.26%
Ins Owners0.37%
Ins Owner Change-1.92%
Market Cap9.82B
Revenue(TTM)3.83B
Net Income(TTM)530.50M
Analysts72.22
Price Target79.83 (13.14%)
Short Float %4.46%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend1.3
Dividend Growth(5Y)7.65%
DP36.68%
Div Incr Years26
Div Non Decr Years26
Ex-Date01-30 2026-01-30 (0.36)
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)-0.26%
PT rev (3m)-2.08%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-7.75%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-4.31%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 16.87 | ||
| P/S | 2.57 | ||
| P/FCF | 17.18 | ||
| P/OCF | 14.99 | ||
| P/B | 5.33 | ||
| P/tB | 12.79 | ||
| EV/EBITDA | 12.41 |
EPS(TTM)3.81
EY5.4%
EPS(NY)4.18
Fwd EY5.93%
FCF(TTM)4.11
FCFY5.82%
OCF(TTM)4.71
OCFY6.67%
SpS27.51
BVpS13.25
TBVpS5.52
PEG (NY)6.51
PEG (5Y)1.71
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 | 8.42 |
F-Score5
WACC9.09%
ROIC/WACC2.64
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 Y2.84%
EPS Next 2Y5.9%
EPS Next 3Y6.36%
EPS Next 5Y7.61%
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y2.56%
Revenue growth 5Y4.99%
Sales Q2Q%4.42%
Revenue Next Year-0.36%
Revenue Next 2Y1.81%
Revenue Next 3Y2.49%
Revenue Next 5Y2.98%
EBIT growth 1Y-1.44%
EBIT growth 3Y4.81%
EBIT growth 5Y8.47%
EBIT Next Year8.93%
EBIT Next 3Y6.36%
EBIT Next 5Y5.86%
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.
Can you provide the valuation status for SMITH (A.O.) CORP?
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 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 18.52 and the Price/Book (PB) ratio is 5.33.
Can you provide the financial health for AOS stock?
The financial health rating of SMITH (A.O.) CORP (AOS) is 8 / 10.