Full Analysis of A.O. Smith Corporation(AOS) stock

The first thing we looked at was the margin, or how much money they managed to keep. We used 4 distinct margin indicators, namely Ebita margins, gross margins, operating margins, and profit margins, and this is what we found.

AOS’s EBITDA margins are 18.77% which is higher than the industrials sector median of 18.69%.

AOS’s gross margins are 35.18% which is higher lower than the industrials sector median of 32.83%.

AOS’s operating margin margins are 16.77% which is higher than the industrials sector median of 14.68%.

AOS’s profit margins are 12.99% which is higher than the industrials sector median of 11.07%.

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The capital efficiancy, or how efficiently capital is allocated to produce return, was the second thing we looked at. We discovered this by using three distinct margin indicators: return on assets, return on equity, and debt to equity ratio.

AOS’s return on assets was 12.24%, which was lower than the industrial sector average of 7.33%.

AOS’s return on equity was 27.19%, which was lower than the industrial sector average of 22.36%.

AOS’s debt to equity ratio was 18.35, lower than the industrial sector average of 93.21.

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