What 7 Analyst Ratings Have To Say About A.O. Smith

During the last three months, 7 analysts shared their evaluations of A.O. Smith AOS, revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $81.86, a high estimate of $91.00, and a low estimate of $73.00. Highlighting a 2.35% decrease, the current average has fallen from the previous average price target of $83.83.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of A.O. Smith among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to A.O. Smith. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of A.O. Smith compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of A.O. Smith's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into A.O. Smith's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on A.O. Smith analyst ratings.

All You Need to Know About A.O. Smith

A.O. Smith Corporation manufactures a broad lineup of water heaters, boilers, and water treatment products. The company has two reporting segments, North America (75% of sales) and rest of world (25% of sales). A.O. Smith is the leading manufacturer of water heaters in North America for both residential and commercial markets, with approximately 37% and 54% market share, respectively. Residential water heaters account for Most of North American sales and are distributed equally through wholesale and retail channels. Most of A.O. Smith's international revenue is from China, a market the company entered during the mid-1990s.

Financial Insights: A.O. Smith

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, A.O. Smith faced challenges, resulting in a decline of approximately -3.72% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: A.O. Smith's net margin excels beyond industry benchmarks, reaching 13.31%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): A.O. Smith's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 6.27%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): A.O. Smith's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.78% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: A.O. Smith's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.07.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.