A. O. Smith Corporation [NYSE:AOS]: Analyst Rating and Earnings
Expert stock traders often make certain they pay attention what leading Wall Street analysts think regarding a potential stock purchase. As it relates to A. O. Smith Corporation [AOS] currently, the latest ratings from Wall St. experts that can be seen publicly is related to the fiscal quarter that’s scheduled to end in December. On average, stock market experts give AOS an Outperform rating. Its stock price has been found in the range of 40.34 to 65.57. This is compared to its latest closing price of $48.14.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for A. O. Smith Corporation [AOS] is sitting at 2.18. This is compared to 1 month ago, when its average rating was 2.08.
For the quarter ending in Mar-19 A. O. Smith Corporation [AOS] generated $0.75 billion in sales. That’s 2.16% lower than the average estimate of $0.76 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for Wed 24 Jul (In 69 Days).
Fundamental Analysis of A. O. Smith Corporation [AOS]
Now let’s turn to look at profitability: with a current Operating Margin for A. O. Smith Corporation [AOS] sitting at +17.29 and its Gross Margin at +40.93, this company’s Net Margin is now 13.80%. These measurements indicate that A. O. Smith Corporation [AOS] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 27.57, and its Return on Invested Capital has reached 22.90%. Its Return on Equity is 26.39, and its Return on Assets is 14.17. These metrics all suggest that A. O. Smith Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, A. O. Smith Corporation [AOS] has generated a Total Debt to Total Equity ratio of 12.89. Similarly, its Total Debt to Total Capital is 11.42, while its Total Debt to Total Assets stands at 7.21. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 12.89, and its Long-Term Debt to Total Capital is 11.42. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 12.81 and its Total Debt to EBITDA Value is 0.36. The Enterprise Value to Sales for this firm is now 2.53, and its Total Debt to Enterprise Value stands at 0.03. A. O. Smith Corporation [AOS] has a Price to Book Ratio of 4.18, a Price to Cash Flow Ratio of 16.38 and P/E Ratio of 17.62. These metrics all suggest that A. O. Smith Corporation is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, A. O. Smith Corporation [AOS] earns $195,577 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.12 and its Total Asset Turnover is 1.02. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.70 and its Current Ratio is 2.09. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
A. O. Smith Corporation [AOS] has 168.70M shares outstanding, amounting to a total market cap of $8.12B. Its stock price has been found in the range of 40.34 to 65.57. At its current price, it has moved by -31.80% from its 52-week high, and it has moved 10.86% from its 52-week low.
This stock’s Beta value is currently 1.34, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 18.97. This stock, according to these metrics, is currently Oversold.
Conclusion: Is A. O. Smith Corporation [AOS] a Reliable Buy?
Shares of A. O. Smith Corporation [AOS], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.