Stock Updates

Is this Large Market Cap Stock target price reasonable for AO Smith Corp. (NYSE:AOS)?

The company in question is, AO Smith Corp. (NYSE:AOS) currently with a stock price of 49.2 (-0.18% today). The market cap for AO Smith Corp. is 4424.27, and is in the sector Industrial Goods, and Industrial Electrical Equipment industry. The target price for AO Smith Corp. is 50.23. Currently AO Smith Corp. is trading with a P/E of 27.89, and a forward P/E of 24.16. Average volume for AO Smith Corp. is 1095.98 and so far today it is 435542.

Performance in the last year for AO Smith Corp. has been 45.75%. For EPS growth, AO Smith Corp. has seen a growth of 38.40%, and is looking to grow in the next year to 12.09%. More long term stats show that EPS growth has been 38.50% over the last five years and could be 11.50% for the next five years. AO Smith Corp. has seen sales growth quarter over quarter at 2.10%, with EPS growth quarter over quarter at 24.30%. The 20-day simple moving average is 2.54%, with the 200-day simple moving average coming to 19.87%.

Since the IPO date for AO Smith Corp. on the 09/07/1984, AO Smith Corp. has seen performance year to date to be 29.85%. With AO Smith Corp. trading at 49.2, the dividend yield is 0.97%, and the EPS is 1.77.

So could AO Smith Corp., be undervalued? Well as said before P/E is 27.89. The PEG is 2.43, P/S is 1.72 and the P/B is at 5.83. The P/cash is 6.63, with P/free cash flow at 15.27.

AO Smith Corp. ability to deal with debt shows that the current ratio is 2.4, and the quick ratio is 2. This is with long term debt/equity at 0.19, and total debt/equity at 0.19.

In terms of margins, AO Smith Corp. has a gross margin of 41.40%, an operating margin of 17.30% and a profit margin of 12.20%.Payout ratio for AO Smith Corp. is 24.10%. Return on assets come to 11.90% with return on investment coming to 16.70%.

Insider ownership for AO Smith Corp., is at 0.80% and institutional ownership comes to 94.20%. Outstanding shares are at 89.76. While shares float is 73.4. The float short is currently 4.11%, and short ratio is 2.75.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Tony Dabbs

Leave a Comment