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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 1.98
AOS's Cash to Debt is ranked higher than
75% of the 1974 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.88 vs. AOS: 1.98 )
AOS' s 10-Year Cash to Debt Range
Min: 0.01   Max: 2.53
Current: 1.98

0.01
2.53
Equity to Asset 0.56
AOS's Equity to Asset is ranked higher than
69% of the 1967 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.51 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
67% of the 1264 Companies
in the Global Diversified Industrials industry.

( Industry Median: 29.39 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: 7
Z-Score: 6.10
M-Score: -2.60
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 : 5/10

vs
industry
vs
history
Operating margin (%) 12.19
AOS's Operating margin (%) is ranked higher than
87% of the 1981 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.44 vs. AOS: 12.19 )
AOS' s 10-Year Operating margin (%) Range
Min: 3.5   Max: 11.57
Current: 12.19

3.5
11.57
Net-margin (%) 8.59
AOS's Net-margin (%) is ranked higher than
85% of the 1981 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.66 vs. AOS: 8.59 )
AOS' s 10-Year Net-margin (%) Range
Min: 1.26   Max: 22.68
Current: 8.59

1.26
22.68
ROE (%) 14.73
AOS's ROE (%) is ranked higher than
89% of the 1968 Companies
in the Global Diversified Industrials industry.

( Industry Median: 7.43 vs. AOS: 14.73 )
AOS' s 10-Year ROE (%) Range
Min: 3.22   Max: 37.32
Current: 14.73

3.22
37.32
ROA (%) 8.13
AOS's ROA (%) is ranked higher than
89% of the 1986 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.59 vs. AOS: 8.13 )
AOS' s 10-Year ROA (%) Range
Min: 1.23   Max: 19.38
Current: 8.13

1.23
19.38
ROC (Joel Greenblatt) (%) 48.27
AOS's ROC (Joel Greenblatt) (%) is ranked higher than
95% of the 1984 Companies
in the Global Diversified Industrials industry.

( Industry Median: 12.92 vs. AOS: 48.27 )
AOS' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 7.47   Max: 47.76
Current: 48.27

7.47
47.76
Revenue Growth (%) 12.90
AOS's Revenue Growth (%) is ranked higher than
89% of the 1758 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.70 vs. AOS: 12.90 )
AOS' s 10-Year Revenue Growth (%) Range
Min: -13.5   Max: 29.9
Current: 12.9

-13.5
29.9
EBITDA Growth (%) 35.00
AOS's EBITDA Growth (%) is ranked higher than
94% of the 1532 Companies
in the Global Diversified Industrials industry.

( Industry Median: 3.60 vs. AOS: 35.00 )
AOS' s 10-Year EBITDA Growth (%) Range
Min: -14.2   Max: 35
Current: 35

-14.2
35
EPS Growth (%) 43.40
AOS's EPS Growth (%) is ranked higher than
93% of the 1366 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.50 vs. AOS: 43.40 )
AOS' s 10-Year EPS Growth (%) Range
Min: -29.1   Max: 43.4
Current: 43.4

-29.1
43.4
» AOS's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2013

AOS Guru Trades in Q3 2013

Mario Gabelli 45,000 sh (unchged)
Chuck Royce 995,788 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
Q1 2014

AOS Guru Trades in Q1 2014

Paul Tudor Jones 23,534 sh (New)
Steven Cohen 555,464 sh (+3346.23%)
Joel Greenblatt 101,619 sh (+1591.68%)
Jim Simons 1,113,632 sh (+150.03%)
John Burbank 6,279 sh (+58.88%)
John Keeley 1,153,404 sh (+1.4%)
Mario Gabelli 45,000 sh (unchged)
Chuck Royce 465,188 sh (-33.33%)
» More
Q2 2014

AOS Guru Trades in Q2 2014

Chuck Royce 465,188 sh (unchged)
Paul Tudor Jones Sold Out
John Burbank Sold Out
Mario Gabelli 44,800 sh (-0.44%)
Jim Simons 1,039,200 sh (-6.68%)
John Keeley 1,046,034 sh (-9.31%)
Joel Greenblatt 54,712 sh (-46.16%)
» More
» Details

Insider Trades

Latest Guru Trades with AOS

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-06-30 Reduce -46.16%0.03%$44.68 - $51.07 $ 48.571%54712
John Burbank 2014-06-30 Sold Out 0.01%$44.68 - $51.07 $ 48.571%0
Joel Greenblatt 2014-03-31 Add 1591.68%0.07%$44.86 - $54.08 $ 48.57-1%101619
John Burbank 2014-03-31 Add 58.88%$44.86 - $54.08 $ 48.57-1%6279
John Burbank 2013-12-31 Reduce -50.5%0.01%$43.35 - $54.88 $ 48.57-5%3952
Joel Greenblatt 2013-12-31 Reduce -26.93%$43.35 - $54.88 $ 48.57-5%6007
John Keeley 2013-09-30 Reduce -15.86%0.16%$36.96 - $45.41 $ 48.5716%1218365
Joel Greenblatt 2013-09-30 Reduce -73.29%0.04%$36.96 - $45.41 $ 48.5716%8221
John Burbank 2013-09-30 Reduce -24.68%$36.96 - $45.41 $ 48.5716%7984
Joel Greenblatt 2013-06-30 New Buy0.05%$33.51 - $39.95 $ 48.5730%30781
John Burbank 2012-06-30 Add 241.18%0.01%$21.44 - $24.31 $ 48.57111%5800
John Burbank 2012-03-31 New Buy$20.52 - $23.39 $ 48.57137%1700
John Keeley 2011-12-31 Add 14.74%0.11%$15.22 - $20.46 $ 48.57164%1018175
George Soros 2011-12-31 Sold Out 0.03%$15.22 - $20.46 $ 48.57164%0
John Keeley 2011-09-30 Add 55.19%0.23%$16.92 - $22.33 $ 48.57151%887395
George Soros 2011-09-30 New Buy0.03%$16.92 - $22.33 $ 48.57151%55000
John Keeley 2011-06-30 Add 43.8%0.12%$19.52 - $22.18 $ 48.57135%571795
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 23.10
AOS's P/E(ttm) is ranked higher than
62% of the 1618 Companies
in the Global Diversified Industrials industry.

( Industry Median: 20.50 vs. AOS: 23.10 )
AOS' s 10-Year P/E(ttm) Range
Min: 4.88   Max: 35.87
Current: 23.1

4.88
35.87
P/B 5.10
AOS's P/B is ranked lower than
60% of the 1940 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.71 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 higher than
51% of the 1962 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.00 vs. AOS: 2.00 )
AOS' s 10-Year P/S Range
Min: 0.14   Max: 2.4
Current: 2

0.14
2.4
PFCF 28.90
AOS's PFCF is ranked higher than
58% of the 1021 Companies
in the Global Diversified Industrials industry.

( Industry Median: 19.31 vs. AOS: 28.90 )
AOS' s 10-Year PFCF Range
Min: 5.51   Max: 332.86
Current: 28.9

5.51
332.86
EV-to-EBIT 24.45
AOS's EV-to-EBIT is ranked higher than
53% of the 1638 Companies
in the Global Diversified Industrials industry.

( Industry Median: 14.55 vs. AOS: 24.45 )
AOS' s 10-Year EV-to-EBIT Range
Min: 6   Max: 36.2
Current: 24.45

6
36.2
PEG 1.13
AOS's PEG is ranked higher than
72% of the 825 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.40 vs. AOS: 1.13 )
AOS' s 10-Year PEG Range
Min: 0.37   Max: 171.14
Current: 1.13

0.37
171.14
Shiller P/E 26.40
AOS's Shiller P/E is ranked higher than
68% of the 1067 Companies
in the Global Diversified Industrials industry.

( Industry Median: 23.92 vs. AOS: 26.40 )
AOS' s 10-Year Shiller P/E Range
Min: 10.33   Max: 38.14
Current: 26.4

10.33
38.14
Current Ratio 2.24
AOS's Current Ratio is ranked higher than
75% of the 1976 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.81 vs. AOS: 2.24 )
AOS' s 10-Year Current Ratio Range
Min: 0.7   Max: 2.86
Current: 2.24

0.7
2.86
Quick Ratio 1.87
AOS's Quick Ratio is ranked higher than
80% of the 1976 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.29 vs. AOS: 1.87 )
AOS' s 10-Year Quick Ratio Range
Min: 0.52   Max: 2.24
Current: 1.87

0.52
2.24

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.20
AOS's Dividend Yield is ranked lower than
62% of the 1527 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.52 vs. AOS: 1.20 )
AOS' s 10-Year Dividend Yield Range
Min: 0.81   Max: 3.39
Current: 1.2

0.81
3.39
Dividend Payout 0.26
AOS's Dividend Payout is ranked higher than
65% of the 1259 Companies
in the Global Diversified Industrials industry.

( Industry Median: 0.31 vs. AOS: 0.26 )
AOS' s 10-Year Dividend Payout Range
Min: 0.03   Max: 6.14
Current: 0.26

0.03
6.14
Dividend growth (3y) 19.40
AOS's Dividend growth (3y) is ranked higher than
88% of the 1016 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.50 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) 2.48
AOS's Yield on cost (5-Year) is ranked higher than
63% of the 1558 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.78 vs. AOS: 2.48 )
AOS' s 10-Year Yield on cost (5-Year) Range
Min: 1.67   Max: 7
Current: 2.48

1.67
7
Share Buyback Rate -0.20
AOS's Share Buyback Rate is ranked higher than
75% of the 1270 Companies
in the Global Diversified Industrials industry.

( Industry Median: -0.40 vs. AOS: -0.20 )
AOS' s 10-Year Share Buyback Rate Range
Min: 9.5   Max: -10.5
Current: -0.2

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 11.47
AOS's Price/Tangible Book is ranked lower than
65% of the 1787 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.89 vs. AOS: 11.47 )
AOS' s 10-Year Price/Tangible Book Range
Min: 1.17   Max: 32.8
Current: 11.47

1.17
32.8
Price/DCF (Projected) 2.11
AOS's Price/DCF (Projected) is ranked higher than
56% of the 1148 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.23 vs. AOS: 2.11 )
AOS' s 10-Year Price/DCF (Projected) Range
Min: 0.16   Max: 2.48
Current: 2.11

0.16
2.48
Price/Median PS Value 3.07
AOS's Price/Median PS Value is ranked lower than
60% of the 2051 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.19 vs. AOS: 3.07 )
AOS' s 10-Year Price/Median PS Value Range
Min: 0.25   Max: 5.7
Current: 3.07

0.25
5.7
Price/Peter Lynch Fair Value 1.03
AOS's Price/Peter Lynch Fair Value is ranked higher than
93% of the 2051 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9999.00 vs. AOS: 1.03 )
AOS' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.42   Max: 4.59
Current: 1.03

0.42
4.59
Price/Graham Number 4.30
AOS's Price/Graham Number is ranked lower than
59% of the 1499 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.44 vs. AOS: 4.30 )
AOS' s 10-Year Price/Graham Number Range
Min: 0.59   Max: 5.75
Current: 4.3

0.59
5.75
Earnings Yield (Greenblatt) 4.10
AOS's Earnings Yield (Greenblatt) is ranked higher than
55% of the 1860 Companies
in the Global Diversified Industrials industry.

( Industry Median: 6.70 vs. AOS: 4.10 )
AOS' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.8   Max: 16.6
Current: 4.1

2.8
16.6
Forward Rate of Return (Yacktman) 24.33
AOS's Forward Rate of Return (Yacktman) is ranked higher than
89% of the 1504 Companies
in the Global Diversified Industrials industry.

( Industry Median: 5.17 vs. AOS: 24.33 )
AOS' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -6.6   Max: 38.8
Current: 24.33

-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.
» More Articles for AOS

Headlines

Articles On GuruFocus.com
My 4 Favorite Dividend Contenders with Highest Dividend Growth Potential May 24 2013 
A.O. Smith Corporation - Value Alert May 18 2013 
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Pure Dividend Growth Stocks I Wish I Owned Mar 06 2013 
The Best Yielding Ex-Dividend Stocks On Jan. 29, 2013 Jan 28 2013 
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Dividend Roundup: CMI, AOS, MCHP, KLAC, WWW Jul 12 2011 
Companies Creating Real Wealth with Higher Cash Dividends Jul 11 2011 
Companies Creating Real Wealth With Higher Cash Dividends: OZRK, SUNS, NNN, AOS Jul 08 2011 
Companies Creating Real Wealth With Higher Cash Dividends Jul 08 2011 


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