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

NYSE:AOS • US8318652091

Current stock price

64.95 USD
+0.57 (+0.89%)
Last:

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

  • 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.
  • In the past 5 years AOS always reported a positive cash flow from operatings.
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

  • AOS has a Return On Assets of 17.38%. This is amongst the best in the industry. AOS outperforms 95.12% of its industry peers.
  • With an excellent Return On Equity value of 29.40%, AOS belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
  • AOS has a Return On Invested Capital of 24.36%. 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 24.55%. This is significantly above the industry average of 11.84%.
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 has a Profit Margin of 14.26%. This is in the better half of the industry: AOS outperforms 75.61% of its industry peers.
  • AOS's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 19.02%, AOS belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
  • 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 73.17% of its industry peers.
  • AOS's Gross Margin has been stable in the last couple of years.
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

  • AOS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • AOS has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for AOS has been reduced compared to 5 years ago.
  • 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.
  • With an excellent Altman-Z score value of 8.06, AOS belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 0.28, AOS belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
  • A Debt/Equity ratio of 0.06 indicates that AOS is not too dependend on debt financing.
  • With an excellent Debt to Equity ratio value of 0.06, AOS belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.28
Altman-Z 8.06
ROIC/WACC2.32
WACC10.49%
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: 75.61% of the companies in the same industry are doing better.
  • AOS has a Quick Ratio of 1.50. This is a bad value and indicates that AOS is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.94, AOS is doing worse than 75.61% of the companies in the same industry.
  • 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. AOS Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.49% over the past year.
  • The Earnings Per Share has been growing by 12.21% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 0.32% in the past year.
  • Measured over the past years, AOS shows a small growth in Revenue. The Revenue has been growing by 5.76% on average per year.
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 6.73% yearly.
  • Based on estimates for the next years, AOS will show a small growth in Revenue. The Revenue will grow by 3.68% on average per year.
EPS Next Y4.83%
EPS Next 2Y6.75%
EPS Next 3Y7.42%
EPS Next 5Y6.73%
Revenue Next Year3.04%
Revenue Next 2Y3.42%
Revenue Next 3Y3.72%
Revenue Next 5Y3.68%

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.
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

  • A Price/Earnings ratio of 16.83 indicates a correct valuation of AOS.
  • 65.85% of the companies in the same industry are more expensive than AOS, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, AOS is valued a bit cheaper.
  • Based on the Price/Forward Earnings ratio of 16.05, the valuation of AOS can be described as correct.
  • Based on the Price/Forward Earnings ratio, AOS is valued a bit cheaper than 68.29% of the companies in the same industry.
  • AOS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.29, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.83
Fwd PE 16.05
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

  • AOS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AOS is cheaper than 65.85% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AOS indicates a somewhat cheap valuation: AOS is cheaper than 68.29% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16.44
EV/EBITDA 10.87
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.
  • The excellent profitability rating of AOS may justify a higher PE ratio.
PEG (NY)3.49
PEG (5Y)1.38
EPS Next 2Y6.75%
EPS Next 3Y7.42%

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7

5. AOS Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.21%, AOS has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.71, AOS pays a better dividend. On top of this AOS pays more dividend than 92.68% of the companies listed in the same industry.
  • AOS's Dividend Yield is a higher than the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 2.21%

5.2 History

  • On average, the dividend of AOS grows each year by 7.16%, 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)7.16%
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

  • AOS pays out 35.83% 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.
DP35.83%
EPS Next 2Y6.75%
EPS Next 3Y7.42%
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 (4/27/2026, 3:10:09 PM)

64.95

+0.57 (+0.89%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)01-29
Earnings (Next)04-30
Inst Owners94.37%
Inst Owner Change-1.79%
Ins Owners0.42%
Ins Owner Change4.64%
Market Cap8.98B
Revenue(TTM)3.83B
Net Income(TTM)546.20M
Analysts72.22
Price Target82.36 (26.81%)
Short Float %5.9%
Short Ratio4.68
Dividend
Industry RankSector Rank
Dividend Yield 2.21%
Yearly Dividend1.38
Dividend Growth(5Y)7.16%
DP35.83%
Div Incr Years27
Div Non Decr Years27
Ex-Date04-30
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)1.12%
PT rev (3m)3.17%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-5.45%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-3.36%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.04%
Valuation
Industry RankSector Rank
PE 16.83
Fwd PE 16.05
P/S 2.34
P/FCF 16.44
P/OCF 14.56
P/B 4.83
P/tB 11.44
EV/EBITDA 10.87
EPS(TTM)3.86
EY5.94%
EPS(NY)4.05
Fwd EY6.23%
FCF(TTM)3.95
FCFY6.08%
OCF(TTM)4.46
OCFY6.87%
SpS27.71
BVpS13.44
TBVpS5.68
PEG (NY)3.49
PEG (5Y)1.38
Graham Number34.1657 (-47.4%)
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
WACC10.49%
ROIC/WACC2.32
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 Y4.83%
EPS Next 2Y6.75%
EPS Next 3Y7.42%
EPS Next 5Y6.73%
Revenue 1Y (TTM)0.32%
Revenue growth 3Y0.67%
Revenue growth 5Y5.76%
Sales Q2Q%0.01%
Revenue Next Year3.04%
Revenue Next 2Y3.42%
Revenue Next 3Y3.72%
Revenue Next 5Y3.68%
EBIT growth 1Y0.45%
EBIT growth 3Y46.21%
EBIT growth 5Y9.69%
EBIT Next Year16.83%
EBIT Next 3Y8.47%
EBIT Next 5Y7.66%
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 4.83% 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%.