Explain this page
Arphra AIPlain-English read on A. O. Smith Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | — | — | — | — | — | — |
| Enterprise value | — | — | — | — | — | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | — | — | — | — | — | — |
| Free cash flow yield | — | — | — | — | — | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +37.04% | +35.42% | +38.54% | +38.14% | +38.83% | +38.05% | +38.89% | +38.28% | +38.72% |
| Operating margin | +17.22% | +17.55% | +19.66% | +18.77% | +19.01% | +19.21% | +18.92% | +19.38% | +19.50% |
| EBITDA margin | +20.00% | +8.26% | +21.38% | +20.60% | +20.68% | +20.37% | +20.86% | +20.85% | +20.41% |
| EBIT margin | +17.80% | +6.21% | +19.35% | +18.54% | +19.04% | +18.70% | +18.88% | +19.08% | +19.03% |
| Pre-tax margin | +17.68% | +5.96% | +19.04% | +18.36% | +18.67% | +19.19% | +19.04% | +19.19% | +19.01% |
| Net margin | +13.76% | +6.28% | +14.45% | +13.98% | +14.26% | +14.04% | +13.82% | +14.60% | +14.33% |
| Cost structure | |||||||||
| Cost of revenue / sales | +62.96% | +64.58% | +61.46% | +61.86% | +61.17% | +60.83% | +63.30% | +61.34% | +60.37% |
| R&D intensity | +2.66% | +2.37% | +2.53% | +2.66% | 0.00% | +1.69% | +1.74% | +1.75% | +1.71% |
| SG&A intensity | +19.82% | +17.87% | +18.88% | +19.84% | +19.83% | +19.34% | +20.08% | +20.01% | +19.57% |
| Effective tax rate | +22.14% | -5.36% | +24.12% | +23.88% | +23.62% | +23.50% | +22.74% | +23.14% | +23.12% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +26.59% | +13.49% | +30.18% | +28.33% | +29.40% | +28.31% | +28.43% | +30.55% | +29.84% |
| Return on assets (ROA) | +14.02% | +7.07% | +17.32% | +16.47% | +17.38% | +16.58% | +16.11% | +17.31% | +16.88% |
| Return on capital (ROC) | +29.71% | +31.15% | +37.88% | +34.13% | +35.51% | +35.21% | +35.29% | +36.77% | +36.94% |
| Return on invested capital (ROIC) | +23.75% | +11.15% | +27.84% | +25.41% | +26.64% | +25.74% | +25.79% | +27.71% | +27.14% |
| Asset turnover | +101.86% | +112.65% | +119.88% | +117.84% | +121.87% | +118.06% | +116.51% | +118.56% | +117.85% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +13.76% | +6.28% | +14.45% | +13.98% | +14.26% | +14.04% | +13.82% | +14.60% | +14.33% |
| Asset turnover (× revenue / assets) | +101.86% | +112.65% | +119.88% | +117.84% | +121.87% | +118.06% | +116.51% | +118.56% | +117.85% |
| Equity multiplier (× assets / equity) | +189.63% | +190.67% | +174.25% | +172.02% | +169.15% | +170.77% | +176.52% | +176.50% | +176.72% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 1.02 | 1.13 | 1.20 | 1.18 | 1.22 | 1.18 | 1.17 | 1.19 | 1.18 |
| Fixed-asset turnover | 5.54 | 6.05 | 6.07 | 5.77 | 5.62 | — | — | — | — |
| Inventory turnover | 4.98 | 4.69 | 4.76 | 4.44 | 4.89 | — | — | — | — |
| Receivables turnover | 5.58 | 6.46 | 6.46 | 7.05 | 6.58 | — | — | — | — |
| Payables turnover | 2.99 | 3.87 | 3.94 | 4.01 | 4.65 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 65.43 | 56.51 | 56.46 | 51.76 | 55.49 | — | — | — | — |
| Days inventory outstanding (DIO) | 73.34 | 77.75 | 76.67 | 82.23 | 74.67 | — | — | — | — |
| Days payables outstanding (DPO) | 122.20 | 94.22 | 92.54 | 90.97 | 78.54 | — | — | — | — |
| Cash conversion cycle | 16.58 | 40.04 | 40.59 | 43.01 | 51.63 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.32 | 1.66 | 1.20 | 1.09 | 1.13 | 1.18 | 1.18 | 1.12 | 1.16 |
| FCF / Net income | 1.16 | 1.36 | 1.07 | 0.89 | 1.00 | 0.97 | 1.04 | 0.95 | 0.98 |
| FCF margin | +15.99% | +8.55% | +15.51% | +12.41% | +14.26% | +13.65% | +14.36% | +13.90% | +14.11% |
| OCF margin | +18.12% | +10.43% | +17.40% | +15.24% | +16.10% | +16.61% | +16.31% | +16.38% | +16.64% |
| CapEx / Revenue | +2.12% | +1.87% | +1.88% | +2.83% | +1.85% | +2.15% | +2.12% | +2.24% | +2.21% |
| CapEx / D&A | 0.96 | 0.91 | 0.93 | 1.37 | 0.83 | — | — | — | — |
| Stock-based comp / Revenue | +0.34% | +0.30% | +0.30% | +0.39% | +0.36% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 3.02 | 1.51 | 3.69 | 3.63 | 3.86 | 3.78 | 4.16 | 4.46 | 4.79 |
| EPS · basic | 3.05 | 1.52 | 3.71 | 3.65 | 3.86 | 3.85 | 4.17 | 4.45 | 4.76 |
| Book value / share | 11.36 | 11.22 | 12.21 | 12.81 | 13.28 | 13.99 | 14.15 | 14.58 | 15.17 |
| Tangible BV / share | 5.20 | 5.01 | 5.79 | 5.44 | 5.61 | 13.99 | 14.15 | 14.58 | 15.17 |
| Sales / share | 21.94 | 24.10 | 25.51 | 25.96 | 27.37 | 28.22 | 29.09 | 30.52 | 31.59 |
| Operating CF / share | 3.97 | 2.51 | 4.44 | 3.96 | 4.41 | 4.69 | 4.75 | 5.00 | 5.26 |
| Free cash flow / share | 3.51 | 2.06 | 3.96 | 3.22 | 3.90 | 3.85 | 4.18 | 4.24 | 4.46 |
| Dividends / share | 1.05 | 1.14 | 1.22 | 1.29 | 1.40 | 1.42 | 1.47 | 1.51 | 1.59 |
| Payout ratio | +34.92% | +75.18% | +32.97% | +35.68% | +35.83% | +35.89% | +36.48% | +33.82% | +35.03% |
| Retention ratio | +65.08% | +24.82% | +67.03% | +64.32% | +64.17% | +64.11% | +63.52% | +66.18% | +64.97% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +6.08% | +2.63% | -0.90% | +0.32% | +2.27% | +4.31% | +3.67% | +4.90% | +2.89% |
| Gross profit · YoY | — | +1.43% | +11.67% | -1.93% | +2.15% | +0.20% | +6.60% | +2.05% | +6.10% | +3.46% |
| Profit | ||||||||||
| Operating income · YoY | — | +8.07% | +14.98% | -5.36% | +1.56% | +3.36% | +2.72% | +6.18% | +5.58% | +4.50% |
| EBITDA · YoY | — | -56.20% | +165.74% | -4.53% | +0.72% | +0.71% | +6.81% | +3.63% | +2.70% | +3.15% |
| Net income · YoY | — | -51.61% | +136.15% | -4.13% | +2.36% | +0.70% | +2.69% | +9.50% | +2.93% | +3.40% |
| Operating | ||||||||||
| EBIT · YoY | — | -62.99% | +219.82% | -5.07% | +3.07% | +0.41% | +5.33% | +4.76% | +4.64% | +3.75% |
| R&D · YoY | — | -5.52% | +9.55% | +4.31% | -100.00% | — | +7.33% | +4.19% | +2.47% | -2.64% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -50.00% | +144.37% | -1.63% | +6.34% | -1.96% | +9.98% | +7.22% | +7.34% | +5.94% |
| EPS · basic · YoY | — | -50.16% | +144.08% | -1.62% | +5.75% | -0.28% | +8.25% | +6.79% | +6.97% | +5.72% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $219M | $366.9M | $155.2M | $216.7M | $192.1M | $194.12M | $203.66M | $207.55M | $212.28M |
| Net debt | -$224.3M | -$24.3M | -$184.7M | -$22.9M | $17.6M | -$64.24M | -$63.1M | -$77.8M | -$86.46M |
| Net debt / EBITDA | -0.32 | -0.08 | -0.22 | -0.03 | 0.02 | -0.08 | -0.07 | -0.09 | -0.10 |
| Debt / equity | 0.12 | 0.21 | 0.08 | 0.12 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
| Debt / assets | +6.30% | +11.01% | +4.83% | +6.69% | +6.11% | +5.85% | +5.81% | +5.81% | +5.63% |
| Equity / assets | +52.73% | +52.45% | +57.39% | +58.13% | +59.12% | +58.56% | +56.65% | +56.66% | +56.59% |
| Coverage | |||||||||
| EBITDA / interest expense | 164.60 | 32.98 | 68.65 | 117.39 | 58.68 | 74.52 | 76.55 | 72.65 | 74.53 |
| Operating income / interest | 141.74 | 70.07 | 63.12 | 106.99 | 53.93 | 70.28 | 69.44 | 67.52 | 71.21 |
| Interest expense | $4.3M | $9.4M | $12M | $6.7M | $13.5M | $10.71M | $11.13M | $12.16M | $12.17M |
| Liquidity | |||||||||
| Current ratio | 1.57 | 1.75 | 1.59 | 1.55 | 1.50 | — | — | — | — |
| Quick ratio | 1.13 | 1.14 | 1.01 | 0.91 | 0.90 | — | — | — | — |
| Cash ratio | 0.40 | 0.42 | 0.36 | 0.27 | 0.20 | — | — | — | — |
| Working capital | $633.8M | $699.5M | $555M | $495.7M | $429M | — | — | — | — |
| Working capital / revenue | +17.91% | +18.63% | +14.41% | +12.98% | +11.20% | — | — | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).