SMITH (A.O.) CORP (AOS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AOS - US8318652091 - Common Stock
68.72 USD
+0.14 (+0.2%)
68.72 USD
0 (0%)
Overall AOS gets a fundamental rating of 7 out of 10. We evaluated AOS against 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 has a valuation in line with the averages, but it does not seem to be growing. Finally AOS also has an excellent dividend rating. With these ratings, AOS could be worth investigating further 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.
Each year in the past 5 years AOS has been profitable.
AOS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AOS has a better Return On Assets (16.73%) than 97.56% of its industry peers.
With an excellent Return On Equity value of 28.76%, AOS belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
AOS has a better Return On Invested Capital (23.96%) than 95.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AOS 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 Profit Margin of 13.85%. This is in the better half of the industry: AOS outperforms 68.29% of its industry peers.
In the last couple of years the Profit Margin of AOS has grown nicely.
Looking at the Operating Margin, with a value of 19.08%, AOS is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
AOS's Operating Margin has improved in the last couple of years.
The Gross Margin of AOS (38.51%) is better than 70.73% of its industry peers.
AOS's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, AOS has less shares outstanding
AOS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AOS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.18 indicates that AOS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.18, AOS belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
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.
The Debt to FCF ratio of AOS (0.32) is better than 92.68% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that AOS is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.09, AOS belongs to the best 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 | 8.18 |
ROIC/WACC2.48
WACC9.65%
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.
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.
The Earnings Per Share has been growing by 10.84% on average over the past years. This is quite good.
Looking at the last year, AOS shows a decrease in Revenue. The Revenue has decreased by -1.64% in the last 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
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.
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
The Price/Earnings ratio is 18.04, which indicates a rather expensive current valuation of AOS.
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 (26.56), we can say AOS is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.43 indicates a correct valuation of AOS.
Based on the Price/Forward Earnings ratio, AOS is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
AOS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 16.43 |
4.2 Price Multiples
AOS's Enterprise Value to EBITDA is on the same level as the industry average.
AOS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AOS is cheaper than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.73 | ||
| EV/EBITDA | 11.76 |
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)6.3
PEG (5Y)1.66
EPS Next 2Y5.89%
EPS Next 3Y6.35%
5. Dividend
5.1 Amount
AOS has a Yearly Dividend Yield of 2.10%. Purely for dividend investing, there may be better candidates out there.
AOS's Dividend Yield is rather good when compared to the industry average which is at 0.72. 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
The dividend of AOS is nicely growing with an annual growth rate of 7.65%!
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
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 2Y5.89%
EPS Next 3Y6.35%
68.72
+0.14 (+0.2%)
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 Cap9.57B
Revenue(TTM)3.83B
Net Income(TTM)530.50M
Analysts72.22
Price Target80.03 (16.46%)
Short Float %3.33%
Short Ratio3.09
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 | 18.04 | ||
| Fwd PE | 16.43 | ||
| P/S | 2.5 | ||
| P/FCF | 16.73 | ||
| P/OCF | 14.6 | ||
| P/B | 5.19 | ||
| P/tB | 12.45 | ||
| EV/EBITDA | 11.76 |
EPS(TTM)3.81
EY5.54%
EPS(NY)4.18
Fwd EY6.09%
FCF(TTM)4.11
FCFY5.98%
OCF(TTM)4.71
OCFY6.85%
SpS27.51
BVpS13.25
TBVpS5.52
PEG (NY)6.3
PEG (5Y)1.66
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 | 8.18 |
F-Score5
WACC9.65%
ROIC/WACC2.48
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%.