AOS Stock Fair Value – A. O. Smith: Positive Outlook Despite High Price Point
December 16, 2023
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A. O. Smith ($NYSE:AOS) is a global leader in water and energy products, and its stock has been performing well in spite of the high price tag. Despite the current high market value, the company has an optimistic outlook for the future. A. O. Smith has been integral in providing safe and efficient solutions for many years, and its products have earned the trust of customers worldwide. The company has remained profitable and continues to be a leader in water and energy products, and offers a wide range of services to both residential and commercial customers.
Although A. O. Smith’s stock may be expensive, its products are reliable and the company has been able to maintain a positive outlook. With a strong focus on customer service, quality product lines, and technological advances, A. O. Smith is poised to remain a leader in the industry for years to come.
Market Price
A. O. Smith had a positive outlook on Thursday, with its stock opening at $79.8 and closing at $80.6, representing a 1.3% increase from its previous closing price of 79.5. Despite the higher price point, A. O. Smith managed to close the day higher than it opened, indicating investor confidence in the company’s future performance. This positive outlook on A. O. Smith is further reinforced by the positive market sentiment towards the stock. 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 Stock Fair Value
At GoodWhale, we have conducted an analysis of A. O. SMITH’s financials, and our proprietary Valuation Line has estimated the intrinsic value of each share to be around $73.5. Currently, A. O. SMITH’s stock is traded at $80.6, which is a fair price, but is overvalued by about 9.7%. Our analysis suggests that investors should be cautious when considering buying A. O. SMITH stock. More…
Peers
Some of its competitors include Kyung Dong Navien Co Ltd, Watts Water Technologies Inc, Guangzhou Goaland Energy Conservation Tech Co Ltd.
– Kyung Dong Navien Co Ltd ($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 is a diversified industrial company and a leading manufacturer of residential and commercial water heaters and boilers.
However, its stock price is relatively expensive compared to its peers. The company continues to benefit from the U.S. housing market, which is expected to remain healthy in the near future. Despite slightly weaker-than-expected growth in China, the company is expected to continue gaining market share in the global water heater and boiler markets. Investors should consider A. O. Smith’s potential for long-term growth before investing in its stock.
