AOS Intrinsic Value Calculator – A. O. SMITH Reports Fourth Quarter FY2022 Earnings Results on January 31, 2023.

Earnings Overview

A. O. SMITH ($NYSE:AOS) announced their earnings results for the fourth quarter of FY2022 ending December 31, 2022 on January 31, 2023. The total revenue for the quarter amounted to USD -120.1 million, a decrease of 186.0% compared to the same period in the previous year. Net income for the quarter was USD 936.1 million, representing a drop of 6.0% year-on-year.

Transcripts Simplified

Rest of the World segment sales of $966 million decreased 7% year-over-year and 2% in constant currency basis, driven by lower consumer demand in China due to COVID-19 related restrictions. Earnings in the fourth quarter were $0.86 per share, compared to adjusted earnings of $0.85 per share in the fourth quarter of 2021. North America segment adjusted earnings decreased slightly compared with 2021, while Rest of the World segment earnings were slightly higher than Q4 2021 segment earnings. In China, lower incentives and selling expenses offset lower volumes and currency translation headwinds and resulted in segment operating margin of 12.7%.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for AOS. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for AOS. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for AOS. More…

Key Ratios Snapshot

Some of the financial key ratios for AOS are shown below. More…

Price History

The stock opened at $64.0 and closed at $67.7, soaring by 13.7% from last closing price of 59.6. The company has seen a strong increase in performance for the quarter, with shares rising steadily throughout the day. A. O. SMITH highlighted strong sales in their consumer and commercial businesses, with growth driven by efficient operations and cost controls. The company credits their growth to the success of their strategic initiatives and focus on providing value to customers through innovative products and services. They also emphasized their goal of creating long-term shareholder value through disciplined capital allocation and strategic investments in research and development.

Overall, A. O. SMITH reported strong financial results for the fourth quarter of fiscal year 2022, demonstrating the company’s commitment to delivering strong results and meeting the needs of their customers and shareholders. Investors seem to be pleased with the results, as shares rose sharply after the announcement of the earnings report. Live Quote…

Analysis – AOS Intrinsic Value Calculator

At GoodWhale, we recently carried out an analysis of A.O. SMITH’s financials to determine its intrinsic value. Using our proprietary Valuation Line, we have determined that the intrinsic value of A.O. SMITH’s share is around $66.2. Currently, A.O. SMITH’s stock is traded at $67.7, which is a fair price, but slightly overvalued by 2.3%. More…

Peers

Some of its competitors include Kyung Dong Navien Co Ltd, Watts Water Technologies Inc, Guangzhou Goaland Energy Conservation Tech Co Ltd.

– Kyung Dong Navien Co Ltd ($KOSE:009450)

Kyung Dong Navien Co Ltd is a South Korean company that manufactures and sells combi boilers, heat pumps, and other heating and hot water products. The company has a market cap of 489.23B as of 2022 and a ROE of 32.93%. Kyung Dong Navien is a leading manufacturer of combi boilers in South Korea and is one of the world’s largest manufacturers of heat pumps. The company’s products are used in residential, commercial, and industrial applications.

– Watts Water Technologies Inc ($NYSE:WTS)

Watts Water Technologies, Inc. is a world leader in the design and manufacture of innovative products that improve the quality and comfort of people’s lives through the delivery of safe water. With more than 16,000 employees across 100 locations in 26 countries, Watts Water Technologies is an exciting and dynamic place to work.

Watts Water Technologies has a market cap of $4.2 billion as of 2022 and a return on equity of 15.67%. The company is a world leader in the design and manufacture of innovative products that improve the quality and comfort of people’s lives through the delivery of safe water. With more than 16,000 employees across 100 locations in 26 countries, Watts Water Technologies is an exciting and dynamic place to work.

– Guangzhou Goaland Energy Conservation Tech Co Ltd ($SZSE:300499)

Guangzhou Goaland Energy Conservation Tech Co Ltd is a publicly traded company with a market cap of 3.3 billion as of 2022. The company has a return on equity of 8.08%. The company is engaged in the business of providing energy conservation solutions and services. The company has a strong presence in the Chinese market and is expanding its operations globally. The company is committed to providing innovative and efficient energy conservation solutions to its clients.

Summary

A. O. SMITH reported their earnings results for the fourth quarter of FY2022 with total revenue of USD -120.1 million and net income of USD 936.1 million. This marked a decrease of 186.0% and 6.0% respectively compared to the same period last year. The stock price moved up the same day, indicating investors remain confident in the company’s long-term prospects despite the short-term losses.

Analysts are encouraged by the strong growth in cash flow and the potential for cost savings and operational improvements. Investors should consider the current financial situation and risk potential before deciding to invest in A. O. SMITH.