A. O. Smith
Financial ratios & Valuation

Forward Multiples (2025 – 2028)

2025202620272028
Price/Earnings ratio
16.7115.6714.1812.98
Price/Sales ratio
2.802.712.562.29
Earnings per Share (EPS)
$4.38$4.67$5.17$5.65

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
24.2723.8125.1535.4716.1621.3025.6728.1837.5922.2117.7516.16
Price/Sales ratio
2.142.653.053.512.252.633.053.872.363.202.562.25
Price/Book Value ratio
3.654.675.416.384.184.724.797.495.066.705.194.18
Price/Cash Flow ratio
19.1119.5618.3832.2215.9917.2715.7521.4122.6318.4416.8515.99
Price/Free Cash Flow ratio
28.3624.8022.4445.3019.7420.1117.5224.2527.5920.6820.6219.74
Price/Earnings Growth ratio
0.980.611.49-4.440.30-1.40-5.750.66-0.740.154.910.30
Dividend Yield
1.07%1.00%1.02%0.92%1.81%1.89%1.79%1.23%2%1.48%1.89%1.81%
Profitability Indicator Ratios
Gross Profit Margin
36.47%39.81%41.67%41.33%40.95%39.45%38.27%37.04%35.41%38.53%38.17%39.45%
Operating Profit Margin
12.19%15.73%17.14%17.36%17.30%16.14%15.84%17.79%6.20%19.65%19.01%17.30%
Pretax Profit Margin
12.16%15.86%17.21%17.37%17.49%15.77%15.33%17.67%5.95%19.03%18.81%17.49%
Net Profit Margin
8.82%11.15%12.15%9.89%13.93%12.36%11.91%13.76%6.27%14.44%14.41%13.93%
Effective Tax Rate
27.52%29.71%29.40%43.06%20.36%21.62%22.30%22.13%-5.36%24.11%23.41%20.36%
Return on Assets
8.26%10.68%11.29%9.27%14.46%12.09%10.91%14.01%7.07%17.31%17.79%14.46%
Return On Equity
15.04%19.61%21.54%17.98%25.87%22.19%18.66%26.58%13.48%30.17%29.71%25.87%
Return on Capital Employed
15.03%20.02%21.66%21.60%24.13%21.08%20.17%26.74%9.72%33.38%32.05%24.13%
Liquidity Ratios
Current Ratio
2.172.222.042.242.081.951.82N/AN/AN/A1.671.95
Quick Ratio
1.831.881.711.871.691.561.481.161.191.061.011.56
Cash ratio
0.520.490.430.430.330.480.640.390.410.350.250.48
Days of Sales Outstanding
73.6572.1570.4872.8874.1171.8973.7465.4356.5156.4652.3271.89
Days of Inventory outstanding
50.7953.2958.5060.4559.0861.0361.2973.3477.7476.6684.1359.08
Operating Cycle
124.44125.44128.99133.34133.19132.93135.04138.77134.25133.13136.45133.19
Days of Payables Outstanding
96.03101.58123.15111.07105.44102.65121.56122.1994.2192.5484.28102.65
Cash Conversion Cycle
28.4123.855.8322.2627.7530.2813.4716.5740.0440.5852.1727.75
Debt Ratios
Debt Ratio
0.080.090.110.120.070.090.030.060.110.040.030.09
Debt Equity Ratio
0.160.170.210.240.120.170.060.110.200.080.060.17
Long-term Debt to Capitalization
0.130.140.170.190.110.140.050.100.160.070.050.14
Total Debt to Capitalization
0.130.140.170.190.110.140.050.100.170.070.050.14
Interest Coverage Ratio
50.3853.9363.0651.5365.6742.2861.35N/AN/AN/A137.1265.67
Cash Flow to Debt Ratio
1.171.381.380.792.021.604.962.921.064.314.932.02
Company Equity Multiplier
1.821.831.901.931.781.831.711.891.901.741.641.83
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.110.130.160.100.140.150.190.180.100.170.150.14
Free Cash Flow / Operating Cash Flow Ratio
0.670.780.810.710.810.850.890.880.820.890.810.81
Cash Flow Coverage Ratio
1.171.381.380.792.021.604.962.921.064.314.932.02
Short Term Coverage Ratio
19.2626.6962.0243.52N/A67.0882.6694.2739.1467.0359.1267.08
Dividend Payout Ratio
26.17%23.96%25.78%32.68%29.28%40.32%46.01%34.92%75.18%32.96%33.62%29.28%