Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 9/10

vs
industry
vs
history
Cash to Debt 2.53
AOS's Cash to Debt is ranked higher than
70% of the 1902 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.35 vs. AOS: 2.53 )
AOS' s 10-Year Cash to Debt Range
Min: 0.03   Max: 2.53
Current: 2.53

0.03
2.53
Equity to Asset 0.56
AOS's Equity to Asset is ranked higher than
65% of the 1914 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.53 vs. AOS: 0.56 )
AOS' s 10-Year Equity to Asset Range
Min: 0.34   Max: 0.56
Current: 0.56

0.34
0.56
Interest Coverage 43.74
AOS's Interest Coverage is ranked higher than
69% of the 1274 Companies
in the Global Diversified Industrials industry.

( Industry Median: 24.60 vs. AOS: 43.74 )
AOS' s 10-Year Interest Coverage Range
Min: 2.45   Max: 43.74
Current: 43.74

2.45
43.74
F-Score: 8
Z-Score: 5.79
M-Score: -2.68
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 11.57
AOS's Operating margin (%) is ranked higher than
85% of the 1909 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.93 vs. AOS: 11.57 )
AOS' s 10-Year Operating margin (%) Range
Min: 3.5   Max: 11.57
Current: 11.57

3.5
11.57
Net-margin (%) 7.88
AOS's Net-margin (%) is ranked higher than
82% of the 1909 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.16 vs. AOS: 7.88 )
AOS' s 10-Year Net-margin (%) Range
Min: 1.26   Max: 22.68
Current: 7.88

1.26
22.68
ROE (%) 12.77
AOS's ROE (%) is ranked higher than
87% of the 1896 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.48 vs. AOS: 12.77 )
AOS' s 10-Year ROE (%) Range
Min: 3.21   Max: 38.49
Current: 12.77

3.21
38.49
ROA (%) 7.10
AOS's ROA (%) is ranked higher than
87% of the 1912 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.38 vs. AOS: 7.10 )
AOS' s 10-Year ROA (%) Range
Min: 1.12   Max: 21.47
Current: 7.1

1.12
21.47
ROC (Joel Greenblatt) (%) 46.67
AOS's ROC (Joel Greenblatt) (%) is ranked higher than
95% of the 1908 Companies
in the Global Diversified Industrials industry.

( Industry Median: 12.69 vs. AOS: 46.67 )
AOS' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 7.03   Max: 46.67
Current: 46.67

7.03
46.67
Revenue Growth (%) 12.90
AOS's Revenue Growth (%) is ranked higher than
85% of the 1516 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.40 vs. AOS: 12.90 )
AOS' s 10-Year Revenue Growth (%) Range
Min: -13.5   Max: 40.9
Current: 12.9

-13.5
40.9
EBITDA Growth (%) 35.00
AOS's EBITDA Growth (%) is ranked higher than
92% of the 1256 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.10 vs. AOS: 35.00 )
AOS' s 10-Year EBITDA Growth (%) Range
Min: -14.2   Max: 39.2
Current: 35

-14.2
39.2
EPS Growth (%) 43.40
AOS's EPS Growth (%) is ranked higher than
92% of the 1135 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.20 vs. AOS: 43.40 )
AOS' s 10-Year EPS Growth (%) Range
Min: -31   Max: 57.3
Current: 43.4

-31
57.3
» AOS's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

AOS Guru Trades in Q1 2013

Jim Simons 56,700 sh (New)
Mario Gabelli 22,700 sh (unchged)
John Burbank 5,300 sh (unchged)
Chuck Royce 497,894 sh (unchged)
Manning & Napier Advisors, Inc 37,980 sh (-1.58%)
John Keeley 747,955 sh (-5.72%)
» More
Q2 2013

AOS Guru Trades in Q2 2013

Joel Greenblatt 30,781 sh (New)
Steven Cohen 218,798 sh (New)
Jim Simons 527,800 sh (+365.43%)
Chuck Royce 995,788 sh (unchged)
John Burbank 10,600 sh (unchged)
Manning & Napier Advisors, Inc Sold Out
Mario Gabelli 45,000 sh (-0.88%)
John Keeley 1,448,000 sh (-3.2%)
» More
Q3 2013

AOS Guru Trades in Q3 2013

Chuck Royce 995,788 sh (unchged)
Mario Gabelli 45,000 sh (unchged)
John Keeley 1,218,365 sh (-15.86%)
Jim Simons 427,500 sh (-19%)
John Burbank 7,984 sh (-24.68%)
Joel Greenblatt 8,221 sh (-73.29%)
Steven Cohen 14,938 sh (-93.17%)
» More
Q4 2013

AOS Guru Trades in Q4 2013

Steven Cohen 16,118 sh (+7.9%)
Jim Simons 445,400 sh (+4.19%)
Mario Gabelli 45,000 sh (unchged)
John Keeley 1,137,497 sh (-6.64%)
Joel Greenblatt 6,007 sh (-26.93%)
Chuck Royce 697,788 sh (-29.93%)
John Burbank 3,952 sh (-50.5%)
» More
» Details

Insider Trades

Latest Guru Trades with AOS

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Burbank 2013-12-31 Reduce -50.5%0.01%$43.35 - $54.88 $ 46.53-9%3952
Joel Greenblatt 2013-12-31 Reduce -26.93%$43.35 - $54.88 $ 46.53-9%6007
John Keeley 2013-09-30 Reduce -15.86%0.16%$36.96 - $45.41 $ 46.5311%1218365
Joel Greenblatt 2013-09-30 Reduce -73.29%0.04%$36.96 - $45.41 $ 46.5311%8221
John Burbank 2013-09-30 Reduce -24.68%$36.96 - $45.41 $ 46.5311%7984
Joel Greenblatt 2013-06-30 New Buy0.05%$33.51 - $39.95 $ 46.5324%30781
John Burbank 2012-06-30 Add 241.18%0.01%$21.44 - $24.31 $ 46.53103%5800
John Burbank 2012-03-31 New Buy$20.52 - $23.39 $ 46.53127%1700
John Keeley 2011-12-31 Add 14.74%0.11%$15.22 - $20.46 $ 46.53153%1018175
George Soros 2011-12-31 Sold Out 0.03%$15.22 - $20.46 $ 46.53153%0
John Keeley 2011-09-30 Add 55.19%0.23%$16.92 - $22.33 $ 46.53140%887395
George Soros 2011-09-30 New Buy0.03%$16.92 - $22.33 $ 46.53140%55000
John Keeley 2011-06-30 Add 43.8%0.12%$19.52 - $22.18 $ 46.53125%571795
John Keeley 2011-03-31 Add 182.61%0.17%$19.01 - $21.91 $ 46.53124%397635
Mario Gabelli 2011-03-31 Reduce -61.25%0.02%$19.01 - $21.91 $ 46.53124%26000
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Top Ranked Articles about A.O. Smith Corporation

My Four Favorite Stocks With Recent Dividend Growth
For all dividend seekers out there: I am publishing each week a list of stocks and funds that have raised their dividend payments within the recent week. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 25.30
AOS's P/E(ttm) is ranked higher than
53% of the 1563 Companies
in the Global Diversified Industrials industry.

( Industry Median: 20.10 vs. AOS: 25.30 )
AOS' s 10-Year P/E(ttm) Range
Min: 4.88   Max: 35.87
Current: 25.3

4.88
35.87
P/B 5.10
AOS's P/B is ranked lower than
73% of the 1848 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.55 vs. AOS: 5.10 )
AOS' s 10-Year P/B Range
Min: 1.17   Max: 6.48
Current: 5.1

1.17
6.48
P/S 2.00
AOS's P/S is ranked lower than
68% of the 1923 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.91 vs. AOS: 2.00 )
AOS' s 10-Year P/S Range
Min: 0.3   Max: 2.4
Current: 2

0.3
2.4
PFCF 23.50
AOS's PFCF is ranked higher than
52% of the 1025 Companies
in the Global Diversified Industrials industry.

( Industry Median: 18.90 vs. AOS: 23.50 )
AOS' s 10-Year PFCF Range
Min: 5.37   Max: 332.86
Current: 23.5

5.37
332.86
EV-to-EBIT 25.00
AOS's EV-to-EBIT is ranked lower than
61% of the 1637 Companies
in the Global Diversified Industrials industry.

( Industry Median: 14.80 vs. AOS: 25.00 )
AOS' s 10-Year EV-to-EBIT Range
Min: 9.7   Max: 35.9
Current: 25

9.7
35.9
PEG 1.10
AOS's PEG is ranked higher than
72% of the 823 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.90 vs. AOS: 1.10 )
AOS' s 10-Year PEG Range
Min: 0.36   Max: 280.29
Current: 1.1

0.36
280.29
Shiller P/E 27.10
AOS's Shiller P/E is ranked higher than
57% of the 813 Companies
in the Global Diversified Industrials industry.

( Industry Median: 22.75 vs. AOS: 27.10 )
AOS' s 10-Year Shiller P/E Range
Min: 10.33   Max: 38.14
Current: 27.1

10.33
38.14

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.10
AOS's Dividend Yield is ranked lower than
66% of the 1411 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.63 vs. AOS: 1.10 )
AOS' s 10-Year Dividend Yield Range
Min: 0.81   Max: 3.39
Current: 1.1

0.81
3.39
Dividend Payout 0.25
AOS's Dividend Payout is ranked higher than
69% of the 1176 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.31 vs. AOS: 0.25 )
AOS' s 10-Year Dividend Payout Range
Min: 0.08   Max: 0.85
Current: 0.25

0.08
0.85
Dividend growth (3y) 19.40
AOS's Dividend growth (3y) is ranked higher than
86% of the 732 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.20 vs. AOS: 19.40 )
AOS' s 10-Year Dividend growth (3y) Range
Min: 2.9   Max: 19.4
Current: 19.4

2.9
19.4
Yield on cost (5-Year) 2.27
AOS's Yield on cost (5-Year) is ranked higher than
64% of the 1451 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.80 vs. AOS: 2.27 )
AOS' s 10-Year Yield on cost (5-Year) Range
Min: 1.67   Max: 7
Current: 2.27

1.67
7
Share Buyback Rate -0.20
AOS's Share Buyback Rate is ranked higher than
78% of the 1183 Companies
in the Global Diversified Industrials industry.

( Industry Median: -0.70 vs. AOS: -0.20 )
AOS' s 10-Year Share Buyback Rate Range
Min: 20.9   Max: -9
Current: -0.2

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 11.60
AOS's Price/Tangible Book is ranked lower than
82% of the 1731 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.80 vs. AOS: 11.60 )
AOS' s 10-Year Price/Tangible Book Range
Min: 1.75   Max: 32.8
Current: 11.6

1.75
32.8
Price/DCF (Projected) 2.10
AOS's Price/DCF (Projected) is ranked lower than
57% of the 818 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.30 vs. AOS: 2.10 )
AOS' s 10-Year Price/DCF (Projected) Range
Min: 0.5   Max: 2.48
Current: 2.1

0.5
2.48
Price/Median PS Value 3.00
AOS's Price/Median PS Value is ranked lower than
82% of the 1806 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.10 vs. AOS: 3.00 )
AOS' s 10-Year Price/Median PS Value Range
Min: 0.39   Max: 3.69
Current: 3

0.39
3.69
Price/Peter Lynch Fair Value 1.20
AOS's Price/Peter Lynch Fair Value is ranked higher than
73% of the 396 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.30 vs. AOS: 1.20 )
AOS' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.49   Max: 2.65
Current: 1.2

0.49
2.65
Price/Graham Number 4.50
AOS's Price/Graham Number is ranked lower than
78% of the 1450 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.30 vs. AOS: 4.50 )
AOS' s 10-Year Price/Graham Number Range
Min: 0.91   Max: 5.72
Current: 4.5

0.91
5.72
Earnings Yield (Greenblatt) 4.00
AOS's Earnings Yield (Greenblatt) is ranked lower than
53% of the 1742 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.70 vs. AOS: 4.00 )
AOS' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.8   Max: 10.3
Current: 4

2.8
10.3
Forward Rate of Return (Yacktman) 23.43
AOS's Forward Rate of Return (Yacktman) is ranked higher than
91% of the 1135 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.73 vs. AOS: 23.43 )
AOS' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -6.6   Max: 38.8
Current: 23.43

-6.6
38.8

Business Description

Industry: Industrial Products » Diversified Industrials
Compare:UTX, MMM, ARG, AP, EMR » details
Traded in other countries:3SM.Germany
A.O. Smith Corporation is a manufacturer of water heaters and boilers, serving a diverse mix of residential and commercial end markets mainly in the United States with growing international presence. The Company is comprised of two reporting segments: North America and Rest of World. Both segments manufacture and market comprehensive lines of residential gas, gas tank less, oil and electric water heaters and commercial water heating equipment. Both segments mainly serve their respective regions of the world. The North America segment also manufactures and markets specialty commercial water heating equipment, condensing and non-condensing boilers and water systems tanks. The Rest of World segment also manufactures and markets water treatment products, mainly for Asia. The Company serves residential and commercial end markets in North America with a broad range of products including: Gas, gas tankless, oil and electric water heaters; Boilers; and other. Its residential and commercial water heaters come in sizes ranging from 2.5 gallon (point-of-use) models to 594 gallon appliances with varying efficiency ranges. It offers electric, natural gas, oil and liquid propane models as well as solar tanks and gas tankless units for today's energy efficient homes. Its residential and commercial boilers range in size from 45,000 British Thermal Units (BTUs) to 3.5 million BTUs. Its commercial boilers are used mainly in space heating applications including buildings, hospitals, schools, hotels and other large commercial buildings. Its North America segment also manufactures copper-tube boilers and expansion tanks, commercial solar systems, swimming pool and spa heaters, and related products and parts. Sales in Its Rest of World segment increased 23.5 percent, or $86.7 million compared with the prior year. Raw materials for its manufacturing operations, mainly consisting of steel, are generally available from several sources in adequate quantities. Its water heating and boiler competitors in the U.S. include Rheem, Bradford-White, Aerco, Weil-McLain, and HTP. The Companys competitor in China is Haier Appliances, a Chinese company.

Personalized Checklist








Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Add Notes, Comments or Ask Questions

User Comments

No comment yet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide