AOS Intrinsic Value Calculator – A. O. Smith Co. Receives ‘Reduce’ Recommendation from Analysts
January 4, 2024
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A. O. SMITH ($NYSE:AOS) Co., a multinational water technology manufacturer and leader in global water heating and water treatment solutions, has recently received an average recommendation of “Reduce” from analysts. This recommendation is based on the stock’s current market performance and expected future returns. The company also designs energy-efficient systems for large-scale applications such as hospitals, hotels, and industrial facilities. Its portfolio of brands includes A. O. SMITH, American Water Heaters, Bradford White, Lochinvar, State Water Heaters, and U.S. Boiler Company.
The company has a strong worldwide presence with manufacturing facilities in North America, Europe, China, India, and the Middle East. Despite its strong performance in the past, analysts have downgraded the stock due to concerns about slowing growth in certain markets and the potential for increased competition in the industry.
Market Price
On Tuesday, analysts issued a ‘Reduce’ recommendation for A. O. Smith Co’s stock, which opened the day at $81.7 and closed at $81.4, down by 1.2% from the previous closing price of 82.4. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AOS. More…
| Total Revenues | Net Income | Net Margin |
| 3.8k | 299.2 | 8.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AOS. More…
| Operations | Investing | Financing |
| 615.7 | -81 | -611.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AOS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.2k | 1.32k | 12.66 |
Key Ratios Snapshot
Some of the financial key ratios for AOS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.6% | 22.4% | 8.6% |
| FCF Margin | ROE | ROA |
| 14.6% | 10.9% | 6.4% |
Analysis – AOS Intrinsic Value Calculator
At GoodWhale, we have been closely examining the financials of A. O. SMITH Corporation. After thoroughly analyzing their performance, we have calculated a fair value for their shares of around $73.6. At the moment, they are trading at $81.4, which is fairly overvalued by 10.6%. As such, we generally wouldn’t recommend investing in A. O. SMITH at this current market price. However, those who believe that the stock is going to see an increase in its value can consider investing in the company at this price. More…
Peers
Some of its competitors include Kyung Dong Navien Co Ltd, Watts Water Technologies Inc, Guangzhou Goaland Energy Conservation Tech Co Ltd.
– Kyung Dong Navien Co Ltd ($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
Investment analysts have given A. O. Smith Co. an average recommendation of “Reduce”, indicating that the stock is not worth buying at the current price. Analysts suggest investors consider selling their stock in the company or avoiding an initial purchase. This could be due to a variety of factors, such as the company’s overall financial health, competitive pressures, or the potential for negative future performance. Investors should research and understand the risks associated with investing in A. O. Smith before making any decisions.
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