1.73%
6.52%
-6.06%
-10.89%
-18.64%
2.56%
69.50%
AI Spotlight on AOS
Company Description
A.O.Smith Corporation manufactures and markets residential and commercial gas, heat pump and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India.
It operates through two segments, North America and Rest of World.The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; commercial boilers for hospitals, schools, hotels, and other large commercial buildings, as well as residential boilers for homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, on-the-go filtration bottles, point-of-use carbon, and reverse osmosis products for residences, restaurants, hotels, and offices.It also provides food and beverage filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and heat pumps, electric wall-hung, gas tankless, combi-boiler, heat pump and solar water heaters.
The company offers its products primarily under the A.O.Smith, State, Lochinvar, and water softener brands.
It distributes its products through independent wholesale plumbing distributors, as well as through retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce, as well as other online retailers.A.O.
Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.
Market Data
| Last Price | 69.41 |
| Change Percentage | 1.73% |
| Open | 68.02 |
| Previous Close | 68.23 |
| Market Cap ( Millions) | 9962 |
| Volume | 1389324 |
| Year High | 92.45 |
| Year Low | 64.55 |
| M A 50 | 67.94 |
| M A 200 | 77.27 |
Financial Ratios
| FCF Yield | 4.76% |
| Dividend Yield | 1.90% |
| ROE | 27.20% |
| Debt / Equity | 10.14% |
| Net Debt / EBIDTA | -2.91% |
| Price To Book | 4.74 |
| Price Earnings Ratio | 18.96 |
| Price To FCF | 21.03 |
| Price To sales | 2.61 |
| EV / EBITDA | 12.64 |
News
- Mar -05 - The Dividend Aristocrats Ranked By Quality Scores: March 2025
- Feb -24 - New Strong Sell Stocks for February 24th
- Feb -20 - AOS Stock Exhibits Strong Prospects Despite Persisting Headwinds
- Feb -09 - 3 Dividend Stocks for February 2025
- Feb -06 - New Strong Sell Stocks for February 6th
- Jan -30 - A. O. Smith Corporation (AOS) Q4 2024 Earnings Call Transcript
- Jan -30 - A.O. Smith Misses Earnings, Revenue Down
- Jan -30 - A. O. Smith Q4 Earnings Miss Estimates, Sales Decline Y/Y
- Jan -30 - Here's What Key Metrics Tell Us About A.O. Smith (AOS) Q4 Earnings
- Jan -30 - A.O. Smith (AOS) Lags Q4 Earnings and Revenue Estimates
- Jan -30 - A. O. Smith Reports 2024 Results and Introduces 2025 Guidance
- Jan -28 - Industrial Stocks Reporting Q4 Earnings This Week: CAT, GWW & More
- Jan -24 - A. O. Smith Gears Up to Report Q4 Earnings: Is a Beat in Store?
- Jan -22 - If I Were 65, I'd Buy These Dividend Aristocrats In A Heartbeat
- Jan -16 - A. O. Smith Reports Quarterly Dividend
- Jan -10 - 9 Dividend Aristocrat Bargains To Buy With The Market Near Record Highs
- Jan -09 - Is A.O. Smith Stock a Buy?
- Jan -06 - A. O. Smith Exhibits Strong Prospects Despite Persisting Headwinds
- Jan -03 - A. O. Smith to Hold Fourth Quarter Conference Call on January 30, 2025
- Dec -23 - A. O. Smith: It's Worth Looking Past The Bad News
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Water Heaters and Related Parts
Expected Growth : 5.5 %
What the company do ?
A. O. Smith Corporation's Water Heaters and Related Parts offer a range of energy-efficient solutions for residential and commercial use, including tankless, heat pump, and solar water heaters.
Why we expect these perspectives ?
A. O. Smith Corporation's Water Heaters and Related Parts segment growth of 5.5% is driven by increasing demand for energy-efficient products, rising replacement rates, and growing construction activities. Additionally, the company's focus on innovation, expanding distribution channels, and strategic acquisitions contribute to its growth momentum.
Segment n°2 -> Water Heater and Water Treatment Products
Expected Growth : 5.8 %
What the company do ?
A. O. Smith Corporation offers a range of water heater and water treatment products, including tankless, hybrid, and high-efficiency water heaters, as well as water softeners and filtration systems.
Why we expect these perspectives ?
A. O. Smith's Water Heater and Water Treatment Products segment growth of 5.8% is driven by increasing demand for energy-efficient and eco-friendly products, rising replacement rates, and growing adoption in emerging markets. Additionally, the company's focus on innovation, strategic acquisitions, and expanding distribution channels contribute to its growth momentum.
Segment n°3 -> Boilers and Related Parts
Expected Growth : 5.2 %
What the company do ?
A. O. Smith Corporation's Boilers and Related Parts segment offers a range of boilers, water heaters, and related components for residential, commercial, and industrial applications.
Why we expect these perspectives ?
A. O. Smith Corporation's Boilers and Related Parts segment growth of 5.2% is driven by increasing demand for energy-efficient solutions, rising replacement rates in the residential sector, and growing commercial construction activities. Additionally, the company's focus on innovation, strategic acquisitions, and expanding distribution channels contribute to its growth momentum.
Segment n°4 -> Water Treatment Products
Expected Growth : 5.6 %
What the company do ?
A. O. Smith Corporation's Water Treatment Products offer a range of solutions for clean water, including water softeners, filters, and purifiers for residential and commercial use.
Why we expect these perspectives ?
A. O. Smith Corporation's Water Treatment Products segment growth of 5.6% is driven by increasing demand for clean water, stringent government regulations, and rising adoption of water conservation measures. Additionally, growing concerns over water-borne diseases and aging infrastructure are fueling demand for efficient water treatment solutions.
Segment n°5 -> Inter-segment Sales
Expected Growth : 4.8 %
What the company do ?
Inter-segment Sales from A. O. Smith Corporation refers to the elimination of sales between its two reportable segments: Water Heating and Water Treatment.
Why we expect these perspectives ?
A. O. Smith Corporation's 4.8% inter-segment sales growth is driven by increasing demand for water heaters and boilers in the residential and commercial markets, coupled with the company's strategic expansion into emerging markets, particularly in Asia. Additionally, the company's focus on innovation, product diversification, and operational efficiency have contributed to the growth.
A. O. Smith Corporation Products
| Product Range | What is it ? |
|---|---|
| Residential Water Heaters | A. O. Smith Corporation offers a wide range of residential water heaters, including gas, electric, and heat pump models, designed to provide hot water for households. |
| Commercial Water Heaters | The company provides commercial water heaters for hotels, hospitals, schools, and other institutions, offering high-efficiency and reliable hot water solutions. |
| Boilers | A. O. Smith Corporation manufactures a variety of boilers, including gas, oil, and electric models, for residential and commercial applications. |
| Water Treatment Solutions | The company offers a range of water treatment solutions, including water softeners, filters, and purifiers, to improve water quality and taste. |
| Tankless Water Heaters | A. O. Smith Corporation provides tankless water heaters, which heat water only as needed, offering energy efficiency and space-saving design. |
| Heat Pump Water Heaters | The company offers heat pump water heaters, which use heat from the air to heat water, providing high efficiency and energy savings. |
A. O. Smith Corporation's Porter Forces
Threat Of Substitutes
A. O. Smith Corporation faces moderate threat from substitutes, as customers have limited alternatives for its water heaters and boilers. However, the company's strong brand reputation and quality products help mitigate this threat.
Bargaining Power Of Customers
A. O. Smith Corporation's customers have limited bargaining power due to the company's strong market position and diverse customer base. This reduces the risk of customers negotiating lower prices or demanding better services.
Bargaining Power Of Suppliers
A. O. Smith Corporation's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for raw materials. However, the company's long-term relationships with suppliers help mitigate this risk.
Threat Of New Entrants
A. O. Smith Corporation faces a low threat from new entrants due to the high barriers to entry in the water heater and boiler industry. The company's established brand reputation, extensive distribution network, and significant capital requirements for new entrants make it difficult for new companies to enter the market.
Intensity Of Rivalry
A. O. Smith Corporation operates in a highly competitive industry, with several established players competing for market share. The company's strong brand reputation, quality products, and extensive distribution network help it maintain its market position despite intense rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 7.76% |
| Debt Cost | 10.19% |
| Equity Weight | 92.24% |
| Equity Cost | 10.25% |
| WACC | 10.24% |
| Leverage | 8.41% |
A. O. Smith Corporation : Quality Control
A. O. Smith Corporation passed 8 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| ITT | ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets worldwide. The company operates through three segments: Motion Technologies, Industrial Process, … |
| NDSN | Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through two segments, Industrial Precision … |
| CSWI | CSW Industrials, Inc. operates as a diversified industrial company in the United States and internationally. It operates through three segments: Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. The … |
| DCI | Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. The company operates through two segments, Engine Products and Industrial Products. Its Engine Products segment provides replacement filters … |
| WTS | Watts Water Technologies, Inc. designs, manufactures, and sells products, solution, and systems that manage and conserve the flow of fluids and energy into, through and out of buildings in the … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Donaldson
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A O Smith
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CSW Industrials
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ITT
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Watts Water Technologies
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