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Stock: AOS
Book Value Per Share: $13.05
EPS: $3.97
Diluted EPS TTM: $3.58
Dividend Per Share: 1.32
Dividend Yield: 1.96 %
Dividend Payout Ratio: 33%
Price To Sales Ratio TTM: 2.384
Price To Book Ratio: 4.888
PEG Ratio: 1.708
EV To EBITDA: 11.78
P/E Ratio: 17.82
Forward P/E Ratio: 16.89
Ex Dividend Date: 2025-04-30
Dividend Date: 2025-05-15
Current Price: $67.24
Previous Close: $68.85
52 Week Low: $58.53
52 Week High: $90.77
Earning Date (within 30 days): 2025-07-22
50 Day MA: $65.62
200 Day MA: $71.47
Link to Yahoo (Financial): AOS

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* Note: Prices are in Million (M) USD.
Description:
Smith AO Corporation (AOS) ↓
A. O. Smith Corporation is an American manufacturer of both residential and commercial water heaters and boilers and the largest manufacturer and marketer of water heaters in North America. It also supplies water treatment products in the Asian market.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $240 M
Debt : $183 M
EBITDA : $769 M

Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Diversified Industrials

Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 16.94

Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $476 M
Average Revenue: $2,618 M
Revenue Converted To Free Cash FLow(%): 18%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 12.62%

Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $3,818 M
Revenue 4 Years Ago (2020-12-31): $2,895 M
Last 5 Years Average Revenue Growth: 6%

Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $147 M
Share Count 5 Years Ago (2020-12-31): $163 M

Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $4.08
Trailing 12-Month Earnings Per Share (EPS): $3.86
Average Earnings Per Share (EPS): $3.97
Dividend Per Share (DPS): $1
Payout Ratio: 33%
Dividend Yield: 2%

Since company Payout Ratio is less than 50, 2 points assigned.

Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 18%

Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $67
52-Week Low: $59
Threshold Price (15% Above 52-Week Low): $67

Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $9,068 M

Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 32 points to above Smith AO Corporation (AOS) stock.
Last 20 Years Avg PE (Limited to last 20 years of EPS data) 32, Fair Value PE 15, Industry Based PE is 15 and Growth based PE is 10. Based on these all values average assigned is 18.00.
Value-Trades has assined P/E value 18.00. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.97.
The fair value of Smith AO Corporation (AOS) stock should be (18.00 x $3.97) = $71.46

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