A O Smith Stock Analysis, Valuation (NYSE:AOS)

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$65.65 $0.06 (0.09%) AOS stock closing price Mar 21, 2018 (Closing)
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A O Smith
Updated on : Mar 21, 2018
previous close
AOS 65.7 (0%)
S&P 500 2716.9 (0%)
Closing Price On: Mar 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
Compared to the industry
Operating Profit
Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt/Equity Ratio:
Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Dividend Yield
AOS dividend yield:
Operating Margins
Net Margins
Low Debt Burden
Cash Flow
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
Return on Equity:
Free Cash Flow Margin:
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AOS Stock Analysis

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View the A O Smith stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for AOS stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

A. O. Smith Corp Stock Rating 3.5/5

Amigobulls AOS stock analysis relies on business fundamentals such as A O Smith revenue growth, profits and return on equity measures from the latest quarter 2017 Q4 earnings. We also use relative valuation metrics like PE ratio and price to sales ratio for A O Smith valuation analysis. A O Smith stock rating is our opinion about the business fundamentals of the company.

Should you buy AOS stock?

  • A O Smith had a healthy average operating margin of 17.4% over the last 4 quarters.
  • Net margins stood at a healthy 9.9% (average) for A O Smith in the Trailing Twelve Months.
  • A O Smith has a lower debt burden than its peers in the Industrial Products sector, with a debt/equity ratio of  0.25.
  • The operating cash flow looks good at 7.8 times the net income.
  • A O Smith has an attractive ROIC (Return on Invested Capital) of 19.4%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for A O Smith at 18.5%.
  • The company has a healthy free cash flow margin of 19.3%.

Should you sell AOS stock?

  • Trading at a PE ratio of 30.4, AOS stock is overvalued in comparison to industry average multiple of 23.
  • The company is trading at a price to sales multiple of 3.8, which is higher in comparison to the Machinery-Electrical industry average of 1.6, making AOS stock expensive.

Comments on this video and A O Smith stock

Amigobulls A O Smith stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of AOS stock. Company's fundamentals remain one of the key driver of AOS stock and helps investors in making good buy and sell decision.

A O Smith revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of A O Smith stock.