Overall Fundamental outlook

Business Operations:

Sector: Industrials
Industry: Specialty Industrial Machinery

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, homes, apartments, and condominiums, and other large commercial buildings; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides commercial water treatment and filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, Impact, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms, as well as offers Aquasana branded products directly to consumers through e-commerce channels; and A. O. Smith branded water treatment products through dealer network and Amazon. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.

Revenue projections:

Revenue projections for AOS
Revenue projections for AOS

Revenues for A. O. Smith Corporation are expected to drop compared to the previous year, which could be a cause for concern for investors. A decline in earnings may negatively impact the company's profitability, leading cautious investors to reconsider their positions, as it often signals challenges in overall financial health.

Financial Ratios:

currentRatio 1.49700
forwardPE 14.89568
debtToEquity 10.97400
earningsGrowth 0.19100
revenueGrowth 0.00000
grossMargins 0.38833
operatingMargins 0.17951
trailingEps 3.85000
forwardEps 4.33280

AOS's current ratio, being 1.497, means the company is well-positioned to meet its short-term debt obligations. This reflects AOS's strong liquidity, as its cash reserves and current assets provide more than enough coverage for its immediate liabilities.
AOS's Forward PE is in an attractive range, meaning its stock price aligns well with earnings and isn't inflated. This creates room for growth, making it a solid investment opportunity for those looking to benefit from potential price appreciation.
AOS's low Debt-to-Equity ratio shows the company avoids heavy reliance on debt. This balanced approach reduces financial risk, as it maintains a healthy equity position without excessive leverage, providing greater financial stability and flexibility.
AOS's forward EPS surpasses its trailing EPS, indicating that the company is expected to be more profitable in the current financial year. This reflects growing confidence in AOS's earnings potential, suggesting stronger financial performance compared to the previous year.

Price projections:

Price projections for AOS
Price projections for AOS

AOS's price projections have gradually decreased, indicating a more conservative outlook from analysts. The repeated downward revisions suggest waning confidence in the company's ability to achieve its previous targets.

Insider Transactions:

Insider Transactions for AOS
Insider Transactions for AOS


A. O. Smith Corporation stock was sold in 6 transactions, with market price at 72.14000066121419.The period under consideration did not see any sell transactions.The recent trend of more purchases than sales at AOS's current price could signal investor optimism. This pattern may point to a positive outlook for the stock, as it indicates growing confidence in its potential to perform well in the future.

Recommendation changes over time:

Recommendations trend for AOS
Recommendations trend for AOS


Analysts have shown a buy bias for AOS, signaling it as a strong investment choice. This positive outlook could motivate investors to allocate funds to AOS, seeing it as a reliable and potentially profitable option, especially in an environment where the stock market is highly scrutinized.