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

In the last three months, 7 analysts have published ratings on A.O. Smith AOS, offering a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for A.O. Smith, presenting an average target of $81.57, a high estimate of $90.00, and a low estimate of $73.00. A decline of 4.41% from the prior average price target is evident in the current average.

Interpreting Analyst Ratings: A Closer Look

A clear picture of A.O. Smith's perception among financial experts is painted with a thorough analysis 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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of A.O. Smith compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of A.O. Smith's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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

Delving into A.O. Smith's Background

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.

Breaking Down A.O. Smith's Financial Performance

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

Revenue Challenges: A.O. Smith's revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -3.72%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: A.O. Smith's net margin is impressive, surpassing industry averages. With a net margin of 13.31%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): A.O. Smith's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 6.27%, the company may face hurdles in achieving optimal financial returns.

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: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.07.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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