A. O. Smith Corporation manufactures and markets a range of water heaters, boilers, and other products for residential and commercial end markets in the United States, China, Canada, Europe, and India. The company is based in Milwaukee, Wisconsin.
AOS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AOS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Smith A O Corp ranked in the 47th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Smith A O Corp, consider:
The company's balance sheet shows it gets 98% of its capital from equity, and 2% of its capital from debt. Notably, its equity weight is greater than 94.5% of US equities in the Industrials sector yielding a positive free cash flow.
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately merely 8.54% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
AOS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 50.35% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NSC, PH, ODFL, HII, and SOTK can be thought of as valuation peers to AOS, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
A. O. Smith (AOS) declares $0.26/share quarterly dividend, in line with previous.Forward yield 1.83%Payable Feb. 16; for shareholders of record Jan. 29; ex-div Jan. 28.See AOS Dividend Scorecard, Yield Chart, & Dividend Growth....
MILWAUKEE, Jan. 6, 2021 /PRNewswire/ -- A. O. Smith Corporation (NYSE: AOS) today announced the release of its 2020 Corporate Responsibility & Sustainability Report, which documents the company's environmental, social and governance activities and performance over the past two years. The…