A. O. Smith (AOS) Stock Price, News & Analysis

Company Overview

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides commercial water treatment and filtration product; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce channels. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.

Key Stats

• Today's Range: $68.07 to $69.41
• 50-Day Range: $68.44 to $82.62
• 52-Week Range: $68.07 to $92.44
• Volume: 2.86 million shs
• Average Volume: 977,653 shs
• Market Capitalization: $9.96 billion
• P/E Ratio: 18.08
• Dividend Yield: 1.98%
• Price Target: $83.17
• Consensus Rating: Hold

A. O. Smith Stock Analysis - MarketRank™

A. O. Smith scored higher than 92% of companies evaluated by MarketBeat, and ranked 22nd out of 178 stocks in the industrial products sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.1 / 5
• Analyst Rating: Hold

Consensus Rating

A. O. Smith has received a consensus rating of Hold. The company's average rating score is 2.14, and is based on 1 buy rating, 6 hold ratings, and no sell ratings.

Amount of Analyst Coverage

A. O. Smith has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 6.90%

Earnings Growth

Earnings for A. O. Smith are expected to grow by 6.90% in the coming year, from $3.77 to $4.03 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of A. O. Smith is 18.08, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 113.36.

Price to Earnings Ratio vs. Sector

The P/E ratio of A. O. Smith is 18.08, which means that it is trading at a less expensive P/E ratio than the Industrial Products sector average P/E ratio of about 21.08.

Price to Earnings Growth Ratio

A. O. Smith has a PEG Ratio of 1.92. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

A. O. Smith has a P/B Ratio of 5.50. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.75% of the float of A. O. Smith has been sold short.

Short Interest Ratio / Days to Cover

A. O. Smith has a short interest ratio ("days to cover") of 3.1, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in A. O. Smith has recently increased by 10.20%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 4.2 / 5
• Dividend Strength: Strong

Dividend Yield

A. O. Smith pays a meaningful dividend of 1.97%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

A. O. Smith has been increasing its dividend for 31 years.

Dividend Coverage

The dividend payout ratio of A. O. Smith is 35.79%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, A. O. Smith will have a dividend payout ratio of 33.75% next year. This indicates that A. O. Smith will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 2.0 / 5
• Environmental Score: -2.49

Percentage of Shares Shorted

2.75% of the float of A. O. Smith has been sold short.

Short Interest Ratio / Days to Cover

A. O. Smith has a short interest ratio ("days to cover") of 3.1, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in A. O. Smith has recently increased by 10.20%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.3 / 5
• News Sentiment: 0.18

News Sentiment

A. O. Smith has a news sentiment score of 0.18. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.71 average news sentiment score of Industrial Products companies.

News Coverage This Week

MarketBeat has tracked 11 news articles for A. O. Smith this week, compared to 9 articles on an average week.

Search Interest

6 people have searched for AOS on MarketBeat in the last 30 days. This is an increase of 20% compared to the previous 30 days.

MarketBeat Follows

Only 3 people have added A. O. Smith to their MarketBeat watchlist in the last 30 days. This is a decrease of 0% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, A. O. Smith insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 2.70% of the stock of A. O. Smith is held by insiders.

Percentage Held by Institutions

76.10% of the stock of A. O. Smith is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

AOS Stock Analysis - Frequently Asked Questions

How have AOS shares performed this year?

A. O. Smith's stock was trading at $82.44 at the beginning of the year. Since then, AOS stock has decreased by 16.6% and is now trading at $68.72.
View the best growth stocks for 2024 here.

How were A. O. Smith's earnings last quarter?

A. O. Smith Co. (NYSE:AOS) posted its earnings results on Tuesday, October, 22nd. The industrial products company reported $0.82 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.82. The industrial products company had revenue of $957.80 million for the quarter, compared to analyst estimates of $960.36 million. A. O. Smith had a trailing twelve-month return on equity of 30.09% and a net margin of 14.41%.
Read the conference call transcript.

When did A. O. Smith's stock split?

Shares of A. O. Smith split on the morning of Thursday, October 6th 2016. The 2-1 split was announced on Wednesday, September 7th 2016. The newly created shares were issued to shareholders after the market closes on Wednesday, October 5th 2016. An investor that had 100 shares of stock prior to the split would have 200 shares after the split.

Does A. O. Smith have any subsidiaries?

A. O. Smith subsidiaries include these companies: Giant Factories, Master Water Conditioning, Water-Right, Water-Right Inc, Hague, Hague Quality Water, Aquasana Inc., and others.

Who are A. O. Smith's major shareholders?

Top institutional investors of A. O. Smith include State Street Corp (5.33%), Geode Capital Management LLC (2.47%), Impax Asset Management Group plc (2.16%) and Fisher Asset Management LLC (1.59%). Insiders that own company stock include James F Stern, Mark D Smith, Kevin J Wheeler, Ajita G Rajendra, Idelle K Wolf, Michael M Larsen, Robert J Heideman, Daniel L Kempken, Samuel M Carver and Benjamin A Otchere.
View institutional ownership trends.

How do I buy shares of A. O. Smith?

Shares of AOS stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of A. O. Smith own?

Based on aggregate information from My MarketBeat watchlists, some other companies that A. O. Smith investors own include NVIDIA (NVDA), Meta Platforms (META), Chevron (CVX), Advanced Micro Devices (AMD), Exxon Mobil (XOM), JPMorgan Chase & Co. (JPM) and Home Depot (HD).

Company Calendar

• Last Earnings: 10/22/2024
• Ex-Dividend for 11/15 Dividend: 10/31/2024
• Dividend Payable: 11/15/2024
• Today: 12/22/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Industrial Products
• Industry: Household appliances
• Sub-Industry: Building Products
• Current Symbol: NYSE:AOS
• CUSIP: 83186520
• CIK: 91142
• Web: www.aosmith.com
• Phone: (414) 359-4000
• Fax: 414-359-4115
• Employees: 12,000
• Year Founded: 1874

Price Target and Rating

• Average Stock Price Target: $83.17
• High Stock Price Target: $90.00
• Low Stock Price Target: $78.00
• Potential Upside/Downside: +21.0%
• Consensus Rating: Hold
• Rating Score (0-4): 2.14
• Research Coverage: 7 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $3.80
• Trailing P/E Ratio: 18.08
• Forward P/E Ratio: 18.23
• P/E Growth: 1.92
• Net Income: $556.60 million
• Net Margins: 14.41%
• Pretax Margin: 18.82%
• Return on Equity: 30.09%
• Return on Assets: 17.83%

Debt

• Debt-to-Equity Ratio: 0.06
• Current Ratio: 1.67
• Quick Ratio: 1.02

Sales & Book Value

• Annual Sales: $3.89 billion
• Price / Sales: 2.56
• Cash Flow: $4.20 per share
• Price / Cash Flow: 16.37
• Book Value: $12.50 per share
• Price / Book: 5.50

Miscellaneous

• Outstanding Shares: 144,995,000
• Free Float: 141,080,000
• Market Cap: $9.96 billion
• Optionable: Optionable
• Beta: 1.16