August 28, 2025 a 06:00 pm
AOS: Fundamental Ratio Analysis - A. O. Smith Corporation
A. O. Smith Corporation is a well-established player in the industrial machinery sector, known for its diversified product range in water heating and treatment solutions. With global operations, particularly strong in North America and emerging markets, the company shows stable financial metrics and consistent market performance.
Fundamentals Rating
A. O. Smith Corporation has a solid fundamentals rating thanks to strong Return on Equity (ROE) and Return on Assets (ROA). However, its Price-to-Book ratio is relatively low, indicating undervaluation compared to industry peers.
| Category | Score | Visual |
|---|---|---|
| Discounted Cash Flow | 4 | |
| Return on Equity | 5 | |
| Return on Assets | 5 | |
| Debt to Equity | 4 | |
| Price to Earnings | 3 | |
| Price to Book | 1 |
Historical Rating
Comparison of A. O. Smith's current and past performance shows consistent scoring, reflecting a stable business model and financial health over time.
| Date | Overall | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-08-27 | 4 | 4 | 5 | 5 | 4 | 3 | 1 |
| Previous Date | 4 | 4 | 5 | 5 | 4 | 3 | 1 |
Analyst Price Targets
Analysts forecast a moderate potential for A. O. Smith's stock price, with a consensus suggesting a hold strategy. The price target range indicates variability with economic conditions.
| High | Low | Median | Consensus |
|---|---|---|---|
| $98 | $74 | $88 | $85.86 |
Analyst Sentiment
The dominant recommendation is to hold, reflecting market caution amid moderate growth prospects.
| Recommendation | Count | Visual |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 10 | |
| Hold | 18 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
A. O. Smith Corporation is a reliable firm with strong fundamentals and consistent historical performance. While the Price-to-Book ratio suggests potential undervaluation, the broader analyst sentiment urges caution. As the macroeconomic landscape shifts, investors should weigh the growth opportunities against possible risks, especially in emerging markets where the company's expansion efforts are focused.