October 16, 2025 a 01:00 pm
AOS: Fundamental Ratio Analysis - A. O. Smith Corporation
A. O. Smith Corporation's stock is a significant player in the industrial machinery sector, particularly due to its strong presence in water heating and treatment products worldwide. While its fundamentals show robust performance in return on equity and assets, debt management and valuation metrics suggest areas for improvement. Overall, the stock offers a stable yet cautious investment profile due to its diverse regional operations and product range.
Fundamental Rating
The fundamental scores reflect a mix of strength in asset returns and challenges in debt management and valuation.
| Category | Score | Visual |
|---|---|---|
| Discounted Cash Flow | 4 | |
| Return on Equity | 5 | |
| Return on Assets | 5 | |
| Debt to Equity | 2 | |
| Price to Earnings | 3 | |
| Price to Book | 2 |
Historical Rating
The historical scores show consistency over time, providing trust in the company's stability.
| Date | Overall | DCF | ROE | ROA | Debt/Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-10-15 | 4 | 4 | 5 | 5 | 2 | 3 | 2 |
Analyst Price Targets
The price targets indicate potential for moderate growth but align with a consensus of 'Hold'.
| High | Low | Median | Consensus |
|---|---|---|---|
| 98 | 74 | 88 | 85.86 |
Analyst Sentiment
The sentiment reflects a balanced view with a leaning towards 'Hold' recommendations.
| Rating | Number | Visual |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 10 | |
| Hold | 18 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
A. O. Smith Corporation presents a balanced investment profile with strengths in return metrics, though its valuation and debt indicators suggest cautious optimism. The consistent fundamentals and the diversified product range across multiple regions present stability. However, the 'Hold' analyst consensus with moderate price target potential points to relatively limited upside. Investors might find value in the company's strong operational foundation, amidst modest growth projections. The stock's risk-reward profile appears neutral, aligning with its industry status and competitive positioning.