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

Investors are expected to be cautious with A. O. Smith Corporation, as its revenues are projected to fall compared to last year. A decline in revenue often results in a negative impact on profitability, prompting concerns about the company's financial stability and making investors more conservative in their approach.

Financial Ratios:

currentRatio 1.558000
forwardPE 13.401477
debtToEquity 34.981000
earningsGrowth -0.105000
revenueGrowth -0.019000
grossMargins 0.387650
operatingMargins 0.171110
trailingEps 3.750000
forwardEps 4.179390

With a current ratio 1.558, A. O. Smith Corporation demonstrates the ability to service its short-term debt without difficulty. The company's strong cash reserves and current assets ensure that it can meet its liabilities, reflecting financial stability and healthy liquidity.
AOS's Forward PE is positioned well, reflecting a favorable balance between stock price and earnings. The stock isn't overpriced, offering room for growth and making it a potentially rewarding investment as its value has room to rise further.
A. O. Smith Corporation's low growth in both earnings and revenue signals a potential profit decline. This could be a sign of financial trouble, suggesting that the company's profitability might shrink in the near future.
AOS's negative gross and operating margins point to losses in both production and operations. This suggests the company is facing financial challenges and may need to address cost management or improve revenue generation.
AOS's forward EPS exceeding its trailing EPS means the company is expected to be more profitable this year than last. This suggests an upward trend in earnings, with forecasts indicating that AOS's financial performance will improve in the current financial year.

Price projections:

Price projections for AOS
Price projections for AOS

The gradual downward revision of AOS's price projections signals decreasing confidence in the company's future performance. Analysts are adjusting their expectations, reflecting uncertainty about AOS's growth potential.

Insider Transactions:

Insider Transactions for AOS
Insider Transactions for AOS


A. O. Smith Corporation saw 5 transactions in which shares were sold with market price at 73.38000030517578.There were no sell transactions throughout the period under consideration.The recent trend of increased buying at AOS's current price levels may indicate a favorable market sentiment. This could point to a positive outlook for the stock, as investors show growing confidence through higher buy activity.

Recommendation changes over time:

Recommendations trend for AOS
Recommendations trend for AOS


The analysts' recent buy bias for A. O. Smith Corporation indicates strong confidence in the stock's future performance. This could encourage more investors to view A. O. Smith Corporation as a worthwhile investment, positioning the company as a top choice for those seeking financial security and long-term growth opportunities.