SMITH (A.O.) CORP (AOS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AOS - US8318652091 - Common Stock
68.65 USD
+0.14 (+0.2%)
68.65 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to AOS. AOS was compared to 42 industry peers in the Building Products industry. AOS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AOS has a valuation in line with the averages, but it does not seem to be growing. 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.
In the past year AOS had a positive cash flow from operations.
AOS had positive earnings in each of the past 5 years.
Each year in the past 5 years AOS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AOS (16.73%) is better than 97.62% of its industry peers.
With an excellent Return On Equity value of 28.76%, AOS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of AOS (23.96%) is better than 95.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AOS is significantly above the industry average of 12.61%.
The 3 year average ROIC (18.84%) for AOS is below the current ROIC(23.96%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 13.85%, AOS is doing good in the industry, outperforming 69.05% of the companies in the same industry.
AOS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.08%, AOS is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
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 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AOS 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 a worse debt to assets ratio.
2.2 Solvency
AOS has an Altman-Z score of 8.17. This indicates that AOS is financially healthy and has little risk of bankruptcy at the moment.
AOS has a Altman-Z score of 8.17. This is amongst the best in the industry. AOS outperforms 88.10% of its industry peers.
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.
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.
A Debt/Equity ratio of 0.09 indicates that AOS is not too dependend on debt financing.
The Debt to Equity ratio of AOS (0.09) is better than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.32 | ||
| Altman-Z | 8.17 |
ROIC/WACC2.38
WACC10.06%
2.3 Liquidity
AOS has a Current Ratio of 1.54. This is a normal value and indicates that AOS is financially healthy and should not expect problems in meeting its short term obligations.
AOS has a Current ratio of 1.54. This is in the lower half of the industry: AOS underperforms 73.81% of its industry peers.
A Quick Ratio of 0.95 indicates that AOS may have some problems paying its short term obligations.
With a Quick ratio value of 0.95, AOS is not doing good in the industry: 73.81% of the companies in the same industry are doing better.
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
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.
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
The Earnings Per Share is expected to grow by 7.49% on average over the next years.
AOS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y2.84%
EPS Next 2Y5.9%
EPS Next 3Y6.36%
EPS Next 5Y7.49%
Revenue Next Year-0.31%
Revenue Next 2Y1.6%
Revenue Next 3Y2.29%
Revenue Next 5Y2.99%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.02 indicates a rather expensive valuation of AOS.
AOS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.17, AOS is valued a bit cheaper.
AOS is valuated correctly with a Price/Forward Earnings ratio of 16.41.
AOS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AOS is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, AOS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 16.41 |
4.2 Price Multiples
AOS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, AOS is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.72 | ||
| EV/EBITDA | 11.73 |
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)6.34
PEG (5Y)1.66
EPS Next 2Y5.9%
EPS Next 3Y6.36%
5. Dividend
5.1 Amount
AOS has a Yearly Dividend Yield of 2.15%.
AOS's Dividend Yield is rather good when compared to the industry average which is at 0.73. AOS pays more dividend than 95.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, AOS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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
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 2Y5.9%
EPS Next 3Y6.36%
68.65
+0.14 (+0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.65%
Inst Owner Change0%
Ins Owners0.37%
Ins Owner Change-1.87%
Market Cap9.56B
Revenue(TTM)3.83B
Net Income(TTM)530.50M
Analysts72.22
Price Target80.03 (16.58%)
Short Float %4.37%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Yearly Dividend1.3
Dividend Growth(5Y)7.65%
DP36.68%
Div Incr Years26
Div Non Decr Years26
Ex-DateN/A
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)-1.82%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-7.41%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 16.41 | ||
| P/S | 2.5 | ||
| P/FCF | 16.72 | ||
| P/OCF | 14.58 | ||
| P/B | 5.18 | ||
| P/tB | 12.44 | ||
| EV/EBITDA | 11.73 |
EPS(TTM)3.81
EY5.55%
EPS(NY)4.18
Fwd EY6.09%
FCF(TTM)4.11
FCFY5.98%
OCF(TTM)4.71
OCFY6.86%
SpS27.51
BVpS13.25
TBVpS5.52
PEG (NY)6.34
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 | 8.17 |
F-Score5
WACC10.06%
ROIC/WACC2.38
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 5Y7.49%
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 Year8.93%
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.
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 18.02 and the Price/Book (PB) ratio is 5.18.
Can you provide the financial health for AOS stock?
The financial health rating of SMITH (A.O.) CORP (AOS) is 8 / 10.