A.O. Smith reported a mixed set of results in the second quarter, as adjusted EPS was reported at $1.03 per share, down 4% compared with the previous year. The North American segment held up well due to pricing action and boiler growth, but the international segment remains under severe pressure.
Secular demand for energy-efficient products and a dynamic regulatory environment are likely to increase demand for more-efficient water heaters and boilers. A.O. Smith is in a good position to capitalize on this trend.
A.O. Smith has turned to international markets and new product categories for more growth, but this strategy could dilute its profit margins and economic moat. Its recent performance in China has been very disappointing.
|
Metric
|
AOS
|
TT
|
LII
|
|---|---|---|---|
Price/Earnings (Normalized) | 16.26 | 32.74 | 17.36 |
Price/Book Value | 4.55 | 11.48 | 10.40 |
Price/Sales | 2.22 | 4.51 | 2.58 |
Price/Cash Flow | 12.73 | 27.47 | 13.81 |
|
Metric
|
AOS
|
TT
|
LII
|
|---|---|---|---|
Quick Ratio | 0.98 | 0.66 | 0.67 |
Current Ratio | 1.59 | 1.07 | 1.57 |
Interest Coverage | 31.43 | 17.91 | 16.93 |
|
Metric
|
AOS
|
TT
|
LII
|
|---|---|---|---|
Return on Assets (Normalized) | 15.17% | 13.82% | 21.03% |
Return on Equity (Normalized) | 27.60% | 36.40% | 74.87% |
Return on Invested Capital (Normalized) | 23.27% | 24.72% | 31.11% |
|
1-Day Chart
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Morningstar Rating for Stocks
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United States