A. O. Smith Corporation cash flow to debt ratio of 321.08% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

A. O. Smith Corporation's free cash flow has increased 15.24% from $473.80M last year to $546.00M, signaling increasing performance

A. O. Smith Corporation's debt to equity ratio is 0.37, which means that the company's assets are healthy financed, signaling financial stability.

A. O. Smith Corporation's debt has increased relative to shareholder equity from 0.12 last year to 0.37 today, signaling weakened financials

A. O. Smith Corporation has a net cash position, so leverage is healthy.

A. O. Smith Corporation's interest coverage ratio of 31.54 indicates that earnings with good margin can cover interest payments on company debt

A. O. Smith Corporation's profit margin has decreased (5.92%) in the last year from 13.98% to 13.15%, signaling decreasing performance

A. O. Smith Corporation's short-term assets of $1.29B exceed its short-term liabilities of $862.50M

A. O. Smith Corporation's return on assets of 13.73% is higher than the 5.00% threshold, indicating efficient asset utilization

A. O. Smith Corporation's return on equity of 26.96%, is higher than 15.00%, indicating good performance

A. O. Smith Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

A. O. Smith Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

A. O. Smith Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

A. O. Smith Corporation has a free cash flow yield of 6.31%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

A. O. Smith Corporation's yearly earnings has increased 2.36% since last year from $533.60M to $546.20M, signaling increasing performance

A. O. Smith Corporation's yearly revenue has increased 0.32% since last year from $3.82B to $3.83B, signaling increasing performance

ROIC 18.44% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

A. O. Smith Corporation's 3-year revenue CAGR of 0.67% is positive, indicating growing revenue over the past 3 years

A. O. Smith Corporation had revenue growth in 4 out of 5 years, indicating consistent revenue performance

A. O. Smith Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

A. O. Smith Corporation is overvalued relative to its fair value price of 48.33 based on Discounted Cash Flow model

A. O. Smith Corporation has an earnings yield of 5.79%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

A. O. Smith Corporation is overvalued relative to its fair value price of 39.20 based on EBITDA multiple model

A. O. Smith Corporation has an EV/EBITDA ratio of 10.92x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

A. O. Smith Corporation is undervalued relative to its fair value price of 78.98 based on Earnings Fair Value model

A. O. Smith Corporation has a PEG-ratio over 1 which is considered overvalued

A. O. Smith Corporation has a price-to-book ratio of 4.69x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

A. O. Smith Corporation has a price-to-sales ratio of 2.27x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue