Loading stock…

A. O. Smith Corporation (AOS) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

A. O. Smith Corporation

AOSMarket cap $7.73BPrice $56.9

Country🇺🇸United States

SectorIndustrials

IndustryBuilding Products

Manufactures water heaters and boilers, dominating North America's residential water heating market with roughly half of it. That unglamorous tank in your basement? There's a solid chance it's wearing their logo.

In Bastion Portfolios?

52W Return-17%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+1%3

Revenue Forecast

Rev CAGR (1y)+2%3

Rev CAGR (3y)+3%3

Rev CAGR (5y)+4%3

Earnings Forecast

EPS Growth Y+1-2%3

EPS Growth Y+2+7%6

EPS Growth Y+3+7%6

Quality

Margins

EBIT Margin18%7

Net Income Margin13%7

Free Cash Flow Margin17%7

Debt

Net Debt/EBITDA0.66

Efficiency

ROE27%9

ROA15%9

Earnings Stability55

GEAR+AVERAGE65

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)156

P/E Ratio (Forward 3y)136

P/BV4.24

EV Multiples

EV/EBITDA Fwd106

EV/EBIT Fwd128

Yield

Free Cash Flow Yield8.3%8

Dividend Yield2.5%6

Momentum

Short term

1 month return-6%4

3 month return-7%4

YTD return-13%3

Mid term

Price vs 52wHigh70%3

1 year return-19%3

Long term

3 year return-10%2

5 year return-3%3

Risk Shield

Price Risk

Beta0.67

Volatility27%8

Free Cash Flow

Free Cash Flow Margin17%7

Free Cash Flow Yield8.3%8

Quality

ROCE27%9

Earnings Stability55

Net Debt/EBITDA0.66

02Growth

Is it actually growing, and how fast?

AOSA. O. Smith

Revenue FY25$3.8B

GROWTH RATING↗

WEAK20 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+1%3

Revenue, next 1Y+2%3

Revenue, next 3Y, CAGR+3%3

Revenue, next 5Y, CAGR+4%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-2%3

EPS growth, FY27E+7%6

EPS growth, FY28E+7%6

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue grew 0.7%/yr over the last 3 years and is set to keep growing around 3%/yr.

Earnings are set to grow in step with sales (EPS about 7%/yr vs revenue 3%/yr). One year dips: EPS falls 2% next year.

WEAKNESSES

Growth is the weak spot here, trailing 80% of companies worldwide.

Revenue grew 0.7%/yr over the last 3 years, behind 70% of companies worldwide.3/10

Revenue is set to grow 3%/yr over the next 3 years, behind most of the market.3/10

Over five years revenue is set to grow 4%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: the 3-year revenue record is weak.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK14 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-7%4

YTD return-13%3

MID & LONG-TERM▾SCORE

% of 52-week high70%3

1-year return-19%3

3-year return-10%2

5-year return-3%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-6%) and over three months (-7%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-10% over three years and -3.3% over five), behind 70% of the market.

It's down 19% over the past year, now 30% below its 52-week high. That is lagging the market.

The stock is underperforming so far this year (-13%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on A. O. Smith. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community

Loading charts…

02Growth

Is it actually growing, and how fast?

AOSA. O. Smith

Revenue FY25$3.8B

GROWTH RATING↗

WEAK20 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+1%3

Revenue, next 1Y+2%3

Revenue, next 3Y, CAGR+3%3

Revenue, next 5Y, CAGR+4%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-2%3

EPS growth, FY27E+7%6

EPS growth, FY28E+7%6

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue grew 0.7%/yr over the last 3 years and is set to keep growing around 3%/yr.

Earnings are set to grow in step with sales (EPS about 7%/yr vs revenue 3%/yr). One year dips: EPS falls 2% next year.

WEAKNESSES

Growth is the weak spot here, trailing 80% of companies worldwide.

Revenue grew 0.7%/yr over the last 3 years, behind 70% of companies worldwide.3/10

Revenue is set to grow 3%/yr over the next 3 years, behind most of the market.3/10

Over five years revenue is set to grow 4%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: the 3-year revenue record is weak.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK14 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return-7%4

YTD return-13%3

MID & LONG-TERM▾SCORE

% of 52-week high70%3

1-year return-19%3

3-year return-10%2

5-year return-3%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-6%) and over three months (-7%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-10% over three years and -3.3% over five), behind 70% of the market.

It's down 19% over the past year, now 30% below its 52-week high. That is lagging the market.

The stock is underperforming so far this year (-13%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on A. O. Smith. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community