Is Smith AO Stock a Good Investment?
Smith AO Investment Advice | AOS |
- Examine Smith AO's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Smith AO's leadership team and their track record. Good management can help Smith AO navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Building Products space and any emerging trends that could impact Smith AO's business and its evolving consumer preferences.
- Compare Smith AO's performance and market position to its competitors. Analyze how Smith AO is positioned in terms of product offerings, innovation, and market share.
- Check if Smith AO pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Smith AO's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Smith AO stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Smith AO is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Smith AO Stock
Researching Smith AO's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 97.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.78. Smith AO last dividend was issued on the 31st of October 2024. The entity had 2:1 split on the 6th of October 2016.
To determine if Smith AO is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Smith AO's research are outlined below:
| Smith AO generated a negative expected return over the last 90 days | |
| Smith AO is unlikely to experience financial distress in the next 2 years | |
| Over 97.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from simplywall.st: A. O. Smith Corporations Stock Has Been Sliding But Fundamentals Look Strong Is The Market Wrong |
Smith AO uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Smith AO. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Smith AO's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 30th of January 2024 Upcoming Quarterly Report | View | |
| 25th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 30th of January 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Smith AO's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Smith AO's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2007-04-18 | 2007-03-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2006-04-18 | 2006-03-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2004-01-21 | 2003-12-31 | 0.08 | 0.07 | -0.01 | 12 | ||
2003-04-15 | 2003-03-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2002-10-14 | 2002-09-30 | 0.05 | 0.06 | 0.01 | 20 | ||
1999-10-18 | 1999-09-30 | 0.08 | 0.09 | 0.01 | 12 | ||
1999-01-19 | 1998-12-31 | 0.07 | 0.08 | 0.01 | 14 | ||
1998-10-13 | 1998-09-30 | 0.07 | 0.08 | 0.01 | 14 |
Smith AO Target Price Consensus
Smith target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Smith AO's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 14 | Buy |
Most Smith analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Smith stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Smith AO, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationSmith AO Target Price Projection
Smith AO's current and average target prices are 71.81 and 81.89, respectively. The current price of Smith AO is the price at which Smith AO is currently trading. On the other hand, Smith AO's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Smith AO Market Quote on 17th of January 2025
Target Price
Analyst Consensus On Smith AO Target Price
Smith AO Analyst Ratings
Smith AO's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Smith AO stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Smith AO's financials, market performance, and future outlook by experienced professionals. Smith AO's historical ratings below, therefore, can serve as a valuable tool for investors.Know Smith AO's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Smith AO is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Smith AO backward and forwards among themselves. Smith AO's institutional investor refers to the entity that pools money to purchase Smith AO's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Sei Investments Co | 2024-09-30 | 1.4 M | Vest Financial | 2024-09-30 | 620.2 K |
Smith AO's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 10.35 B.Market Cap |
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Smith AO's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.22 | 0.23 | |
| Return On Capital Employed | 0.30 | 0.32 | |
| Return On Assets | 0.17 | 0.16 | |
| Return On Equity | 0.27 | 0.29 |
Determining Smith AO's profitability involves analyzing its financial statements and using various financial metrics to determine if Smith AO is a good buy. For example, gross profit margin measures Smith AO's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Smith AO's profitability and make more informed investment decisions.
Smith AO's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Smith AO's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Smith AO. Check Smith AO's Beneish M Score to see the likelihood of Smith AO's management manipulating its earnings.
Evaluate Smith AO's management efficiency
Smith AO has Return on Asset of 0.1434 % which means that on every $100 spent on assets, it made $0.1434 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.2954 %, implying that it generated $0.2954 on every 100 dollars invested. Smith AO's management efficiency ratios could be used to measure how well Smith AO manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Smith AO's Return On Tangible Assets are comparatively stable compared to the past year. Return On Capital Employed is likely to gain to 0.32 in 2025, whereas Return On Assets are likely to drop 0.16 in 2025. At this time, Smith AO's Total Current Assets are comparatively stable compared to the past year. Return On Tangible Assets is likely to gain to 0.23 in 2025, whereas Total Assets are likely to drop slightly above 1.9 B in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 11.07 | 11.62 | |
| Tangible Book Value Per Share | 5.25 | 5.51 | |
| Enterprise Value Over EBITDA | 13.30 | 8.09 | |
| Price Book Value Ratio | 6.03 | 6.33 | |
| Enterprise Value Multiple | 13.30 | 8.09 | |
| Price Fair Value | 6.03 | 6.33 | |
| Enterprise Value | 11 B | 11.5 B |
The management team at Smith AO has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Basic technical analysis of Smith Stock
As of the 17th of January 2025, Smith AO has the Variance of 1.39, risk adjusted performance of (0.12), and Coefficient Of Variation of (674.04). Smith AO technical analysis provides you with a way to harness past market data to determine a pattern that measures the direction of the company's future prices. Please validate Smith AO coefficient of variation and maximum drawdown to decide if Smith AO is priced more or less accurately, providing market reflects its prevalent price of 71.81 per share. Given that Smith AO has information ratio of (0.15), we advise you to double-check Smith AO's current market performance to make sure the company can sustain itself at a future point.Smith AO's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Smith AO insiders, such as employees or executives, is commonly permitted as long as it does not rely on Smith AO's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Smith AO insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Smith AO's Outstanding Corporate Bonds
Smith AO issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Smith AO uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Smith bonds can be classified according to their maturity, which is the date when Smith AO has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Smith AO's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Smith AO's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.12) | |||
| Market Risk Adjusted Performance | (0.58) | |||
| Mean Deviation | 0.8619 | |||
| Coefficient Of Variation | (674.04) | |||
| Standard Deviation | 1.18 | |||
| Variance | 1.39 | |||
| Information Ratio | (0.15) | |||
| Jensen Alpha | (0.18) | |||
| Total Risk Alpha | (0.18) | |||
| Treynor Ratio | (0.59) | |||
| Maximum Drawdown | 5.39 | |||
| Value At Risk | (2.02) | |||
| Potential Upside | 1.89 | |||
| Skewness | 0.6538 | |||
| Kurtosis | 1.57 |
| Risk Adjusted Performance | (0.12) | |||
| Market Risk Adjusted Performance | (0.58) | |||
| Mean Deviation | 0.8619 | |||
| Coefficient Of Variation | (674.04) | |||
| Standard Deviation | 1.18 | |||
| Variance | 1.39 | |||
| Information Ratio | (0.15) | |||
| Jensen Alpha | (0.18) | |||
| Total Risk Alpha | (0.18) | |||
| Treynor Ratio | (0.59) | |||
| Maximum Drawdown | 5.39 | |||
| Value At Risk | (2.02) | |||
| Potential Upside | 1.89 | |||
| Skewness | 0.6538 | |||
| Kurtosis | 1.57 |
Consider Smith AO's intraday indicators
Smith AO intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Smith AO stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 17612.48 | |||
| Daily Balance Of Power | 0.4141 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 71.78 | |||
| Day Typical Price | 71.79 | |||
| Price Action Indicator | 0.24 | |||
| Period Momentum Indicator | 0.41 |
Smith AO Corporate Filings
F4 | 22nd of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 4th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 23rd of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
F3 | 1st of August 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Smith Stock media impact
Far too much social signal, news, headlines, and media speculation about Smith AO that are available to investors today. That information is available publicly through Smith media outlets and privately through word of mouth or via Smith internal channels. However, regardless of the origin, that massive amount of Smith data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Smith AO news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Smith AO relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Smith AO's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Smith AO alpha.
Smith AO Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Smith AO can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Smith AO Historical Investor Sentiment
Investor biases related to Smith AO's public news can be used to forecast risks associated with an investment in Smith. The trend in average sentiment can be used to explain how an investor holding Smith can time the market purely based on public headlines and social activities around Smith AO. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Smith AO's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Smith AO and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Smith AO news discussions. The higher the estimate score, the more favorable the investor's outlook on Smith AO.
Smith AO Maximum Pain Price Across April 17th 2025 Option Contracts
Smith AO's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Smith AO close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Smith AO's options.
Smith AO Corporate Directors
| Gene Wulf | Independent Director | Profile | |
| Bruce Smith | Presiding Independent Director | Profile | |
| Paul Jones | Independent Director | Profile | |
| Ronald Brown | Presiding Independent Director | Profile |
Already Invested in Smith AO?
The danger of trading Smith AO is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Smith AO is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Smith AO. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Smith AO is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Smith Stock Analysis
When running Smith AO's price analysis, check to measure Smith AO's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Smith AO is operating at the current time. Most of Smith AO's value examination focuses on studying past and present price action to predict the probability of Smith AO's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Smith AO's price. Additionally, you may evaluate how the addition of Smith AO to your portfolios can decrease your overall portfolio volatility.