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

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$60.27 $0.21 (0.35%) AOS stock closing price Jun 22, 2018 (Closing)

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 2018 Q1 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?

  • The TTM operating margin was good at 17.37 for A O Smith.
  • Net margins stood at a healthy 10.1% (average) for A O Smith in the Trailing Twelve Months.
  • With its debt/equity ratio of 0.17, A O Smith has a lower debt burden when compared to the -sectordesc- average.
  • A O Smith's return on invested capital of 19.5 is good.
  • The LTM ROE of 18.7 for A O Smith is attractive.
  • The company has a healthy free cash flow margin of 3.3.

Should you sell AOS stock?

  • The company has an operating cash flow which is 0.4372 times the net income. This is not a healthy sign.
  • The company is trading at a price to sales multiple of 3.4, which is higher in comparison to the Industrial Products sector average of 1.4, 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.