Smith A O Corp

Consumer Discretionary
Consumer Electronics/Appliances
www.aosmith.com

Earnings Score
Moat Score
Safety Score

Market Cap $9.72B
PE 2492
Debt $269.80M
Cash $173.00M
EV $9.81B
FCF -$297.80M

Earnings

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Sales & Net Margins

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Earnings	$3.90M
EBIT	-$9.70M
ROE	0%
ROA	-0%
FCF	-$297.80M
Equity	$1.86B
Growth Stability	59%
PE	2.49K
PEG	-136.17
PB	5.24
P/FCF	-32.63
P/S	578.42
Price/Cash	0.02
Debt/Equity	0.15
Debt/FCF	-0.91
Net Margins	14%
Gross Margins	51%
Op. Margins	-58%
Earnings CAGR	-5%
Sales Growth YoY	-2%
Sales Growth QoQ	7%
Sales CAGR	-5%
FCF CAGR	8%
Equity CAGR	3%
Earnings Stability	0.03
Earnings Growth YoY	-1%
Earnings Growth QoQ	14%
Earnings CAGR 5Y	-18%

Sales CAGR 5Y	-21%
FCF CAGR 5Y	2%
Equity CAGR 5Y	2%
Earnings CAGR 3Y	-56%
Sales CAGR 3Y	-56%
FCF CAGR 3Y	12%
Equity CAGR 3Y	3%
Market Cap	$9.72B
Revenue	$16.80M
Dividend Yield	0%
Payout Ratio	169%
Assets	$3.27B
Total Debt	$269.80M
Cash	$173.00M
Shares Outstanding	143.58M
EV	9.81B
Earnings Score	6%
Moat Score	39%
Safety Score	52%
Final Score	32%
Working Capital	540M
Current Ratio	1.61
Gross Profit	$8.60M
Shares Growth 3y	-3%
Equity Growth QoQ	-3%
Equity Growth YoY	1%

Assets & ROA

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Stockholders Equity & ROE

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A.O. Smith Corporation manufactures and markets comprehensive lines of residential and commercial gas, gas tankless, and electric water heaters. Supplementary products include water heating equipment, condensing and noncondensing boilers, and water system tanks. The company's two operating segments are by geographic region: North America (majority of total revenue) and the Rest of the World. A material portion of sales in North America derive from replacing existing products, and the company utilizes a wholesale distribution channel and multiple selling locations. The Rest of the World segment sells primarily to Asian countries and operates sales offices to expand distribution and market its product portfolio.

SEC Filings

Direct access to Smith A O Corp (AOS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Smith A O Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Smith A O Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -5%

Stability 3%

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Smith A O Corp Discounted Cash Flow

Fully customizable DCF calculator online for Smith A O Corp.

Years

Calculation mode

= -$5.2B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$298M	-$321M	-$347M	-$375M	-$404M	-$436M	-$471M	-$508M	-$549M	-$592M	-$639M	-$6.4B
DCF		-$292M	-$287M	-$281M	-$276M	-$271M	-$266M	-$261M	-$256M	-$251M	-$247M	-$2.5B
Value	-$5.2B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	11%	12%	10%	14%	12%	12%	14%	6%	14%	14%
ROA	-	18%	18%	20%	17%	16%	20%	11%	25%	-0%
ROE	-	22%	18%	26%	22%	19%	27%	13%	30%	0%

Good Net Margins (14.17%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0.9	1.8	0.61	0.74	0.24	0.36	1.1	0.23	-0.91
Debt over Equity	0.18	0.22	0.25	0.13	0.17	0.06	0.11	0.2	0.07	0.15
Growth Stability	-	-	-	100%	100%	93%	100%	59%	100%	59%

Good Debt/FCF ratio (-0.91)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.15)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (59%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	6%	12%	6%	-6%	-3%	22%	6%	3%	-21%
Earnings YoY growth	-	15%	-9%	50%	-17%	-7%	41%	-52%	136%	-18%
Equity YoY growth	-	5%	9%	4%	-3%	11%	-1%	-5%	6%	2%
FCF YoY growth	-	35%	-37%	57%	8%	29%	12%	-43%	86%	2%