AOS
A. O. Smith·NYSE
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8.73 / 10
Outperform
AOS boasts exceptional fundamentals, highlighted by a high PB-ROE factor (2.29) and robust net income-to-revenue (0.16). These metrics place the company in the top quartile for profitability and growth, contributing to a strong fundamental score of 8.7/10. However, the Asset-MV factor is negative (-0.51), indicating potential overvaluation relative to assets, which tempers the overall bullish stance. Historical back-tests show that the positive factors have delivered attractive monthly returns (e.g., 3.98% for PB-ROE), while the negative factors have shown losses (e.g., -5.19% for Asset-MV). This duality underscores the need for balanced optimism when assessing the company's long-term prospects.
Analysis Checks(5/10)
Revenue-MV
Value-0.12
Score1/3
Weight0.44%
1M Return0.13%
Value-0.12
Score1/3
Weight0.44%
1M Return0.13%
Profit-MV
Value0.74
Score0/3
Weight-12.74%
1M Return-4.63%
Value0.74
Score0/3
Weight-12.74%
1M Return-4.63%
PB-ROE
Value2.29
Score2/3
Weight15.55%
1M Return3.98%
Value2.29
Score2/3
Weight15.55%
1M Return3.98%
Net cash flow from operating activities / Total liabilities (%)
Value0.48
Score2/3
Weight17.39%
1M Return4.26%
Value0.48
Score2/3
Weight17.39%
1M Return4.26%
Asset-MV
Value-0.51
Score0/3
Weight-13.37%
1M Return-5.19%
Value-0.51
Score0/3
Weight-13.37%
1M Return-5.19%
Net cash flow from operating activities / Operating revenue (%)
Value16.10
Score1/3
Weight13.90%
1M Return3.52%
Value16.10
Score1/3
Weight13.90%
1M Return3.52%
Net income-Revenue
Value0.16
Score3/3
Weight41.20%
1M Return8.44%
Value0.16
Score3/3
Weight41.20%
1M Return8.44%
Cash-UP
Value0.40
Score3/3
Weight17.34%
1M Return4.41%
Value0.40
Score3/3
Weight17.34%
1M Return4.41%
Annualized return on total assets (%)
Value22.83
Score3/3
Weight24.90%
1M Return5.79%
Value22.83
Score3/3
Weight24.90%
1M Return5.79%
Cash-MV
Value0.08
Score1/3
Weight-4.62%
1M Return-1.58%
Value0.08
Score1/3
Weight-4.62%
1M Return-1.58%
Revenue-MV
Value-0.12
Score1/3
Weight0.44%
1M Return0.13%
Value-0.12
Score1/3
Weight0.44%
1M Return0.13%
Net cash flow from operating activities / Operating revenue (%)
Value16.10
Score1/3
Weight13.90%
1M Return3.52%
Value16.10
Score1/3
Weight13.90%
1M Return3.52%
Profit-MV
Value0.74
Score0/3
Weight-12.74%
1M Return-4.63%
Value0.74
Score0/3
Weight-12.74%
1M Return-4.63%
Net income-Revenue
Value0.16
Score3/3
Weight41.20%
1M Return8.44%
Value0.16
Score3/3
Weight41.20%
1M Return8.44%
PB-ROE
Value2.29
Score2/3
Weight15.55%
1M Return3.98%
Value2.29
Score2/3
Weight15.55%
1M Return3.98%
Cash-UP
Value0.40
Score3/3
Weight17.34%
1M Return4.41%
Value0.40
Score3/3
Weight17.34%
1M Return4.41%
Net cash flow from operating activities / Total liabilities (%)
Value0.48
Score2/3
Weight17.39%
1M Return4.26%
Value0.48
Score2/3
Weight17.39%
1M Return4.26%
Annualized return on total assets (%)
Value22.83
Score3/3
Weight24.90%
1M Return5.79%
Value22.83
Score3/3
Weight24.90%
1M Return5.79%
Asset-MV
Value-0.51
Score0/3
Weight-13.37%
1M Return-5.19%
Value-0.51
Score0/3
Weight-13.37%
1M Return-5.19%
Cash-MV
Value0.08
Score1/3
Weight-4.62%
1M Return-1.58%
Value0.08
Score1/3
Weight-4.62%
1M Return-1.58%
Is AOS fundamentally strong?
- AOS scores 8.73/10 on fundamentals and holds a Discounted valuation at present. Backed by its 29.20% ROE, 14.26% net margin, 20.13 P/E ratio, 5.92 P/B ratio, and 40.20% earnings growth, these metrics solidify its Outperform investment rating.
