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

NYSE:AOS • US8318652091

Current stock price

64.35 USD
-0.73 (-1.12%)
At close:
64.35 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

  • AOS had positive earnings in the past year.
  • In the past year AOS had a positive cash flow from operations.
  • In the past 5 years AOS has always been profitable.
  • AOS had a positive operating cash flow in each of the past 5 years.
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

  • With an excellent Return On Assets value of 17.38%, AOS belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
  • AOS has a better Return On Equity (29.40%) than 85.71% of its industry peers.
  • AOS has a better Return On Invested Capital (24.36%) than 95.24% of its industry peers.
  • AOS had an Average Return On Invested Capital over the past 3 years of 24.55%. This is significantly above the industry average of 11.89%.
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.
  • AOS's Profit Margin has improved in the last couple of years.
  • AOS has a better Operating Margin (19.02%) than 80.95% of its industry peers.
  • AOS's Operating Margin has improved in the last couple of years.
  • AOS's Gross Margin of 38.83% is fine compared to the rest of the industry. AOS outperforms 73.81% 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 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

  • 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
  • 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 8.06 indicates that AOS is not in any danger for bankruptcy at the moment.
  • AOS's Altman-Z score of 8.06 is amongst the best of the industry. AOS outperforms 97.62% of its industry peers.
  • The Debt to FCF ratio of AOS is 0.28, which is an excellent value as it means it would take AOS, only 0.28 years of fcf income to pay off all of its debts.
  • AOS's Debt to FCF ratio of 0.28 is amongst the best of the industry. AOS outperforms 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.
  • The Debt to Equity ratio of AOS (0.06) is better than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.28
Altman-Z 8.06
ROIC/WACC2.37
WACC10.29%
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.
  • With a Current ratio value of 1.50, AOS is not doing good in the industry: 73.81% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.94 indicates that AOS may have some problems paying its short term obligations.
  • The Quick ratio of AOS (0.94) is worse than 73.81% 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 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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3

3. AOS Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.49% over the past year.
  • Measured over the past years, AOS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.21% on average per year.
  • AOS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.32%.
  • AOS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.76% yearly.
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.
  • Based on estimates for the next years, AOS will show a small growth in Revenue. The Revenue will grow by 3.95% on average per year.
EPS Next Y4.98%
EPS Next 2Y6.8%
EPS Next 3Y7.11%
EPS Next 5Y7.06%
Revenue Next Year3.14%
Revenue Next 2Y3.47%
Revenue Next 3Y3.78%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • AOS is valuated correctly with a Price/Earnings ratio of 16.67.
  • Compared to the rest of the industry, the Price/Earnings ratio of AOS indicates a somewhat cheap valuation: AOS is cheaper than 64.29% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.17, AOS is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 15.88 indicates a correct valuation of AOS.
  • The rest of the industry has a similar Price/Forward Earnings ratio as AOS.
  • When comparing the Price/Forward Earnings ratio of AOS to the average of the S&P500 Index (23.05), we can say AOS is valued slightly cheaper.
Industry RankSector Rank
PE 16.67
Fwd PE 15.88
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

  • Based on the Enterprise Value to EBITDA ratio, AOS is valued a bit cheaper than 61.90% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, AOS is valued a bit cheaper than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.29
EV/EBITDA 10.86
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)3.35
PEG (5Y)1.37
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 2.24%.
  • Compared to an average industry Dividend Yield of 0.77, AOS pays a better dividend. On top of this AOS pays more dividend than 92.86% of the companies listed in the same industry.
  • AOS's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.24%

5.2 History

  • The dividend of AOS is nicely growing with an annual growth rate of 7.16%!
  • 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)7.16%
Div Incr Years27
Div Non Decr Years27
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 (4/2/2026, 8:08:06 PM)

After market: 64.35 0 (0%)

64.35

-0.73 (-1.12%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)01-29
Earnings (Next)04-30
Inst Owners107.61%
Inst Owner Change0%
Ins Owners0.42%
Ins Owner Change3.72%
Market Cap8.90B
Revenue(TTM)3.83B
Net Income(TTM)546.20M
Analysts72.22
Price Target81.83 (27.16%)
Short Float %5.55%
Short Ratio4.22
Dividend
Industry RankSector Rank
Dividend Yield 2.24%
Yearly Dividend1.38
Dividend Growth(5Y)7.16%
DP35.83%
Div Incr Years27
Div Non Decr Years27
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)0.47%
PT rev (3m)2.24%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-5.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.13%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.42%
Valuation
Industry RankSector Rank
PE 16.67
Fwd PE 15.88
P/S 2.32
P/FCF 16.29
P/OCF 14.42
P/B 4.79
P/tB 11.33
EV/EBITDA 10.86
EPS(TTM)3.86
EY6%
EPS(NY)4.05
Fwd EY6.3%
FCF(TTM)3.95
FCFY6.14%
OCF(TTM)4.46
OCFY6.93%
SpS27.71
BVpS13.44
TBVpS5.68
PEG (NY)3.35
PEG (5Y)1.37
Graham Number34.17
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 8.06
F-Score8
WACC10.29%
ROIC/WACC2.37
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 Year3.14%
Revenue Next 2Y3.47%
Revenue Next 3Y3.78%
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.


What is the profitability of AOS stock?

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


What is the expected EPS growth for SMITH (A.O.) CORP (AOS) stock?

The Earnings per Share (EPS) of SMITH (A.O.) CORP (AOS) is expected to grow by 4.98% in the next year.


How sustainable is the dividend of SMITH (A.O.) CORP (AOS) stock?

The dividend rating of SMITH (A.O.) CORP (AOS) is 7 / 10 and the dividend payout ratio is 35.83%.