NYSE
AOS
Last Price
US $62.72
KEY FIGURES
MKT CAP
$8.6B
EPS
TTM
$3.79
PEG
TTM
3.69x
P/E
TTM
16.41x
P/S
TTM
2.25x
YIELD
2.30%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
28.42%
Return on equity
ROIC: 19.25%
Valuation History
16.4X
Price to Earnings
EV/EBITDA: 11.4X
Cash flow
Profit margin
5.76%
(FY vs FY)
EBITDA Y/Y
8.32%
(FY vs FY)
Cash flow Y/Y
1.56%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $62.72
-22.94%
Default assumptions
EBITDA Multiple
Fair Value
Market $62.72
-37.50%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
A. O. Smith Corporation cash flow to debt ratio of 321.08% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
A. O. Smith Corporation's free cash flow has increased 15.24% from $473.80M last year to $546.00M, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
A. O. Smith Corporation's debt to equity ratio is 0.35, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial risk - Healthy debt to equity ratio development.
A. O. Smith Corporation's debt has increased relative to shareholder equity from 0.12 last year to 0.35 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
A. O. Smith Corporation has a net debt to EBITDA ratio of 0.02x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
A. O. Smith Corporation's interest coverage ratio of 39.94 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
A. O. Smith Corporation's profit margin has decreased (-0.96%) in the last year from 13.98% to 13.84%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
A. O. Smith Corporation's short-term assets of $1.29G exceed its short-term liabilities of $862.50M
Increasing performance - ROA.
A. O. Smith Corporation's return on assets of 14.45% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
A. O. Smith Corporation's return on equity of 28.42%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
A. O. Smith Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
A. O. Smith Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
A. O. Smith Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
A. O. Smith Corporation has a free cash flow yield of 6.33%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
A. O. Smith Corporation's yearly earnings has increased 2.36% since last year from $533.60M to $546.20M, signaling increasing performance
Increasing performance - Healthy revenue growth.
A. O. Smith Corporation's yearly revenue has increased 0.32% since last year from $3.82G to $3.83G, signaling increasing performance
Increasing performance - ROIC.
ROIC 19.25% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
A. O. Smith Corporation's 3-year revenue CAGR of 0.67% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
A. O. Smith Corporation had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
A. O. Smith Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
A. O. Smith Corporation is overvalued relative to its fair value price of 48.33 based on Discounted Cash Flow model
Undervalued - Earnings yield.
A. O. Smith Corporation has an earnings yield of 6.14%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
A. O. Smith Corporation is overvalued relative to its fair value price of 39.20 based on EBITDA multiple model
Undervalued - EV/EBITDA.
A. O. Smith Corporation has an EV/EBITDA ratio of 11.44x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
A. O. Smith Corporation has a PEG-ratio over 1 which is considered overvalued
Undervalued - P/B ratio.
A. O. Smith Corporation has a price-to-book ratio of 4.57x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
A. O. Smith Corporation has a price-to-sales ratio of 2.26x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue