SMITH (A.O.) CORP (AOS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AOS - US8318652091 - Common Stock
65.1 USD
+1.85 (+2.92%)
65.1 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. Both the health and profitability get an excellent rating, making AOS a very profitable company, without any liquidiy or solvency issues. AOS is valued correctly, but it does not seem to be growing. Finally AOS also has an excellent dividend rating. These ratings could make AOS a good candidate 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.
In the past 5 years AOS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 16.73%, AOS belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
AOS has a Return On Equity of 28.76%. This is amongst the best in the industry. AOS outperforms 85.37% of its industry peers.
With an excellent Return On Invested Capital value of 23.96%, AOS belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AOS is significantly above the industry average of 12.50%.
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
The Profit Margin of AOS (13.85%) is better than 68.29% of its industry peers.
In the last couple of years the Profit Margin of AOS has grown nicely.
With a decent Operating Margin value of 19.08%, AOS is doing good in the industry, outperforming 75.61% of the companies in the same industry.
AOS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 38.51%, AOS is doing good in the industry, outperforming 70.73% of the companies in the same industry.
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
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
Compared to 5 years ago, AOS has less shares outstanding
Compared to 1 year ago, AOS has a worse debt to assets ratio.
2.2 Solvency
AOS has an Altman-Z score of 7.87. This indicates that AOS is financially healthy and has little risk of bankruptcy at the moment.
AOS's Altman-Z score of 7.87 is amongst the best of the industry. AOS outperforms 90.24% 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.
With an excellent Debt to FCF ratio value of 0.32, AOS belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that AOS is not too dependend on debt financing.
AOS has a Debt to Equity ratio of 0.09. This is amongst the best in the industry. AOS outperforms 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.32 | ||
| Altman-Z | 7.87 |
ROIC/WACC2.7
WACC8.88%
2.3 Liquidity
A Current Ratio of 1.54 indicates that AOS should not have too much problems paying its short term obligations.
The Current ratio of AOS (1.54) is worse than 70.73% of its industry peers.
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.
The Quick ratio of AOS (0.95) is worse than 70.73% 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%.
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.
Measured over the past years, AOS shows a small growth in Revenue. The Revenue has been growing by 4.99% on average per year.
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 7.49% on average per year.
Based on estimates for the next years, AOS will show a small growth in Revenue. The Revenue will grow by 2.99% on average per year.
EPS Next Y3.19%
EPS Next 2Y6.07%
EPS Next 3Y6.4%
EPS Next 5Y7.49%
Revenue Next Year-0.08%
Revenue Next 2Y1.74%
Revenue Next 3Y2.45%
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.
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 17.09, AOS is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as AOS.
AOS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.45.
A Price/Forward Earnings ratio of 15.51 indicates a correct valuation of AOS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AOS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of AOS to the average of the S&P500 Index (34.46), we can say AOS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 15.51 |
4.2 Price Multiples
AOS's Enterprise Value to EBITDA ratio is in line with 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 | 15.95 | ||
| EV/EBITDA | 10.9 |
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)5.36
PEG (5Y)1.58
EPS Next 2Y6.07%
EPS Next 3Y6.4%
5. Dividend
5.1 Amount
AOS has a Yearly Dividend Yield of 2.18%.
AOS's Dividend Yield is rather good when compared to the industry average which is at 1.35. AOS pays more dividend than 92.68% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, AOS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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 2Y6.07%
EPS Next 3Y6.4%
65.1
+1.85 (+2.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.8%
Inst Owner Change-2.15%
Ins Owners0.37%
Ins Owner Change-2.67%
Market Cap9.12B
Revenue(TTM)3.83B
Net Income(TTM)530.50M
Analysts71
Price Target81.52 (25.22%)
Short Float %3.62%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-7.24%
EPS NQ rev (3m)-7.24%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)-3.87%
Revenue NQ rev (3m)-3.86%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 15.51 | ||
| P/S | 2.38 | ||
| P/FCF | 15.95 | ||
| P/OCF | 13.91 | ||
| P/B | 4.95 | ||
| P/tB | 11.87 | ||
| EV/EBITDA | 10.9 |
EPS(TTM)3.81
EY5.85%
EPS(NY)4.2
Fwd EY6.45%
FCF(TTM)4.08
FCFY6.27%
OCF(TTM)4.68
OCFY7.19%
SpS27.33
BVpS13.16
TBVpS5.48
PEG (NY)5.36
PEG (5Y)1.58
Graham Number33.59
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 | 7.87 |
F-Score5
WACC8.88%
ROIC/WACC2.7
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 Y3.19%
EPS Next 2Y6.07%
EPS Next 3Y6.4%
EPS Next 5Y7.49%
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y2.56%
Revenue growth 5Y4.99%
Sales Q2Q%4.42%
Revenue Next Year-0.08%
Revenue Next 2Y1.74%
Revenue Next 3Y2.45%
Revenue Next 5Y2.99%
EBIT growth 1Y-1.44%
EBIT growth 3Y4.81%
EBIT growth 5Y8.47%
EBIT Next Year10.36%
EBIT Next 3Y6.9%
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 3.19% 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%.