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.
0.8%
-0.64
24.65%
S&P 500
13.68%
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
23
Industry P/E
Price to Book Value
6.80
EV to EBIT
17.36
EV to EBITDA
15.54
EV to Capital Employed
6.89
EV to Sales
3.29
PEG Ratio
4.18
Dividend Yield
1.48%
ROCE (Latest)
39.68%
ROE (Latest)
29.40%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 6.82
INTEREST COVERAGE RATIO(Q)
Highest at 7,712.5
RAW MATERIAL COST(Y)
Fallen by -3.53% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 6.82 times
-7What is not working for the Company
INTEREST(HY)
At USD 6 MM has Grown at 53.85%
CASH AND EQV(HY)
Lowest at USD 366 MM
PRE-TAX PROFIT(Q)
Lowest at USD 160.6 MM
Here's what is working for A. O. Smith Corp.
Interest Coverage Ratio
Highest at 7,712.5
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 6.82 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Debtors Turnover Ratio
Highest at 6.82 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -3.53% (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 22.3 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 6 MM has Grown at 53.85%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
Lowest at USD 160.6 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Cash and Eqv
Lowest at USD 366 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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