A.O. Smith Corporation manufactures and markets comprehensive lines of residential and commercial gas, gas tankless, and electric water heaters. Supplementary products include water heating equipment, condensing and noncondensing boilers, and water system tanks. The company's two operating segments are by geographic region: North America (majority of total revenue) and the Rest of the World. A material portion of sales in North America derive from replacing existing products, and the company utilizes a wholesale distribution channel and multiple selling locations. The Rest of the World segment sells majorly in Asian countries and operates sales offices to expand distribution and market its product portfolio.

Financial Strength

9/10

Name	Current	Vs Industry
Cash-To-Debt	2.08
Equity-to-Asset	0.59
Debt-to-Equity	0.08
Debt-to-EBITDA	0.17
Interest Coverage	84.78
Piotroski F-Score	8/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	9.31	Distress Grey Safe
Beneish M-Score	-2.57	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

8/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	12.7
	3-Year EBITDA Growth Rate	18.6
	3-Year EPS without NRI Growth Rate	20.8
	3-Year FCF Growth Rate	8.4
	3-Year Book Growth Rate	3
	Future 3-5Y EPS without NRI Growth Rate	10
	Future 3-5Y Total Revenue Growth Rate	4.14

Momentum Rank

10/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	30.9
	9-Day RSI	34.64
	14-Day RSI	38.51
	6-1 Month Momentum %	25.8
	12-1 Month Momentum %	27

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	1.65
	Quick Ratio	1.06
	Cash Ratio	0.34
	Days Inventory	78.58
	Days Sales Outstanding	55.6
	Days Payable	86.73

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	Dividend Yield %	1.52
	Dividend Payout Ratio	0.32
	3-Year Dividend Growth Rate	7.6
	Forward Dividend Yield %	1.55
	5-Year Yield-on-Cost %	2.38
	3-Year Average Share Buyback Ratio	3
	Shareholder Yield %	5.61

Profitability Rank

9/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	38.69
	Operating Margin %	19.74
	Net Margin %	14.94
	FCF Margin %	14.83
	ROE %	31.08
	ROA %	17.84
	ROIC %	28.74
	ROC (Joel Greenblatt) %	86.07
	ROCE %	32.64
	Years of Profitability over Past 10-Year	10

GF Value Rank

5/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	21.45
	Forward PE Ratio	20.36
	PE Ratio without NRI	21.34
	Shiller PE Ratio	32.25
	Price-to-Owner-Earnings	20.6
	PEG Ratio	11.23
	PS Ratio	3.21
	PB Ratio	6.49
	Price-to-Tangible-Book	13.62
	Price-to-Free-Cash-Flow	21.7
	Price-to-Operating-Cash-Flow	18.92
	EV-to-EBIT	15.69
	EV-to-Forward-EBIT	15.09
	EV-to-EBITDA	14.22
	EV-to-Forward-EBITDA	13.7
	EV-to-Revenue	3.1
	EV-to-Forward-Revenue	3.01
	EV-to-FCF	20.91
	Price-to-Projected-FCF	1.94
	Price-to-DCF (Earnings Based)	1.16
	Price-to-DCF (FCF Based)	1.09
	Price-to-Median-PS-Value	1.12
	Price-to-Graham-Number	3.59
	Price-to-Net-Current-Asset-Value	75.95
	Earnings Yield (Greenblatt) %	6.37
	FCF Yield %	4.72
	Forward Rate of Return (Yacktman) %	4.93

GF Value: $77.11

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