ScoreWhy is A. O. Smith Corp. ?
1
High Management Efficiency with a high ROE of 24.62%
2
Company has a low Debt to Equity ratio (avg) at times
3
Flat results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 4,917.39
- CASH AND EQV(HY) Lowest at USD 378.1 MM
- DEBT-EQUITY RATIO (HY) Highest at 8.33 %
4
With ROE of 28.76%, it has a fair valuation with a 6.42 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -5.90%, its profits have fallen by -8%
5
Below par performance in long term as well as near term
- Along with generating -5.90% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to A. O. Smith Corp. should be less than 10%
- Overall Portfolio exposure to Building Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is A. O. Smith Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
A. O. Smith Corp.
-10.45%
-0.64
24.65%
S&P 500
22.24%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.76%
EBIT Growth (5y)
10.24%
EBIT to Interest (avg)
88.05
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0.04
Sales to Capital Employed (avg)
1.87
Tax Ratio
24.19%
Dividend Payout Ratio
35.86%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
40.58%
ROE (avg)
24.62%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
6.60
EV to EBIT
16.84
EV to EBITDA
15.07
EV to Capital Employed
6.68
EV to Sales
3.19
PEG Ratio
4.05
Dividend Yield
1.53%
ROCE (Latest)
39.68%
ROE (Latest)
29.40%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 707.5 MM
DIVIDEND PER SHARE(HY)
Highest at USD 5.98
DIVIDEND PAYOUT RATIO(Y)
Highest at 42.46%
RAW MATERIAL COST(Y)
Fallen by 0.95% (YoY
-19What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 2,644.29
CASH AND EQV(HY)
Lowest at USD 397.1 MM
DEBT-EQUITY RATIO
(HY)
Highest at 24.1 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.98 times
INTEREST(Q)
Highest at USD 7 MM
OPERATING PROFIT(Q)
Lowest at USD 185.1 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 19.57 %
PRE-TAX PROFIT(Q)
Lowest at USD 154.7 MM
NET PROFIT(Q)
Lowest at USD 118 MM
EPS(Q)
Lowest at USD 0.85
Here's what is working for A. O. Smith Corp.
Dividend per share
Highest at USD 5.98 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 707.5 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend Payout Ratio
Highest at 42.46%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 0.95% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 23.9 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for A. O. Smith Corp.
Interest
At USD 7 MM has Grown at 191.67%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 2,644.29
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 7 MM
in the last five periods and Increased by 191.67% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit
Lowest at USD 185.1 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 19.57 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 154.7 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 118 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.85
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Cash and Eqv
Lowest at USD 397.1 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 24.1 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 5.98 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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