Shares of A. O. Smith Corporation (NYSE:AOS) recorded -2.46% loss during trading session on October 18th, 2018. The script traded as low as $46.15 and last traded at $46.45. 1.89 million shares changed exchanged hands during trading, a drop of -21.79% from the 30-day average session volume of 1.55M shares. The firm had previously closed at $47.62. The company has $171.00M outstanding shares, a price-to-earnings ratio of 19.88, price-to-earnings-growth ratio of 2.53 and a beta of 1.38. The company has a RSI of 21.26, ATR of 1.27 and a volatility of 2.38% this week. AOS has a 52 week low price of $47.32 and a 52 week high price of $68.39.
Investors have identified the tech company A. O. Smith Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 7.94B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
A. O. Smith Corporation (AOS) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For AOS, the company has in raw cash 260 million on their books with 2.7 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 3.09 billion total, with 1.36 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
AOS were able to record 107.8 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 18.1 million. In cash movements, the company had a total of 130 million as operating cash flow.
Potential earnings growth for A. O. Smith Corporation (AOS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, A. O. Smith Corporation recorded a total of 833.3 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.13 coming in sequential stages and their sales for the third quarter increasing by 0.06.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 492.7 million trying to sell their products during the last quarter, with the result yielding a gross income of 340.6 million. This allows shareholders to hold on to 172.73 million with the revenue now reading 0.66 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.71 cents a share).
Is the stock of AOS attractive?
Having a look at the company’s valuation, the company is expected to record 2.91 total earnings per share during the next fiscal year. Taking a look at the median price to earnings ratio, this means their stock price will be in the region of 16.12 per share. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AOS sounds very interesting.
In related news, Director JONES PAUL W sold 4,591 shares of the company’s stock in a transaction that recorded on August 21st, 2018. The sale was performed at an average price of 58.92, for a total value of 270,505. As the sale deal closes, the Executive Vice President & CFO JONES PAUL W now sold 9,000 shares of the company’s stock, valued at 581,459. Also, SVP, Strategy & Corporate Dev. Lauber Charles T sold 6,212 shares of the company’s stock in a deal that was recorded on June 5th, 2018. The shares were sold at an average price of 62.75 per share, with a total market value of 23,978. Following this completion of acquisition, the Senior VP-Chief Tech. Officer now holds 3,669 shares of the company’s stock, valued at 233,942. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.
4 out of 12 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on A. O. Smith Corporation stock. 0 analysts has assigned a Sell rating on the AOS stock. The 12-month mean consensus price target for the company’s shares has been set at $65.31.