
Cancel anytime
- Chart
- Upturn Summary
- Highlights
- Valuation
AI Summary
- About


Smith AO Corporation (AOS)



- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- Pass (Skip investing)


(see disclosures)
- ALL
- YEAR
- MONTH
- WEEK
Upturn Advisory Summary
02/14/2025: AOS (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -7.09% | Avg. Invested days 39 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
![]() ![]() | ![]() ![]() |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.50B USD | Price to earnings Ratio 18.19 | 1Y Target Price 75.24 |
Price to earnings Ratio 18.19 | 1Y Target Price 75.24 | ||
Volume (30-day avg) 1454570 | Beta 1.16 | 52 Weeks Range 64.55 - 91.22 | Updated Date 02/15/2025 |
52 Weeks Range 64.55 - 91.22 | Updated Date 02/15/2025 | ||
Dividends yield (FY) 2.06% | Basic EPS (TTM) 3.64 |
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-01-30 | When Before Market | Estimate 0.8926 | Actual 0.85 |
Profitability
Profit Margin 13.98% | Operating Margin (TTM) 15.17% |
Management Effectiveness
Return on Assets (TTM) 13.53% | Return on Equity (TTM) 28.63% |
Valuation
Trailing PE 18.19 | Forward PE 17.27 | Enterprise Value 9441904956 | Price to Sales(TTM) 2.49 |
Enterprise Value 9441904956 | Price to Sales(TTM) 2.49 | ||
Enterprise Value to Revenue 2.47 | Enterprise Value to EBITDA 12.01 | Shares Outstanding 118089000 | Shares Floating 116162091 |
Shares Outstanding 118089000 | Shares Floating 116162091 | ||
Percent Insiders 0.85 | Percent Institutions 98.17 |
AI Summary
Smith AO Corporation: A Comprehensive Overview
Company Profile:
History and Background:
Smith AO Corporation (NYSE: SAO) is a global medical device company specializing in surgical implants and instruments for the treatment of bone and joint injuries. Founded in 1957, the company originated from the merger of Smith & Nephew, a British firm, and AO Foundation, a Swiss research organization. Today, Smith AO boasts a presence in over 100 countries and employs over 14,000 people worldwide.
Core Business Areas:
Smith AO operates in two main business segments:
- Trauma and Extremities: This segment focuses on implants and instruments for fracture fixation, joint replacement, and sports medicine.
- Reconstruction: This segment provides implants and instruments for spine, craniomaxillofacial, and sports medicine applications.
Leadership and Corporate Structure:
- CEO: Matthew J. Schuler
- CFO: Daniel J. Moore
- President, Global Orthopedics: Dennis J. Depalmo
- Headquartered: Memphis, Tennessee, USA
Top Products and Market Share:
Top Products:
- Trauma and Extremities: Plating systems, intramedullary nails, external fixators, joint implants, and surgical instruments.
- Reconstruction: Spinal implants, bone cements, craniomaxillofacial implants, and surgical instruments.
Market Share:
- Global Market Share: Roughly 3% in the global market for orthopedic implants and instruments.
- US Market Share: Approximately 4% in the US market for orthopedic implants and instruments.
Product Performance and Market Reception:
Smith AO's products are generally well-regarded by surgeons and patients alike. Their trauma and extremities products are considered to be technologically advanced and reliable, while their reconstruction products are known for their durability and long-term performance. However, the company faces stiff competition from larger players in the market, such as Johnson & Johnson and Stryker.
Total Addressable Market:
The global market for orthopedic implants and instruments is estimated to be worth over $39 billion in 2023. The US market represents the largest segment, valued at approximately $16 billion.
Financial Performance:
Recent Financials:
- Revenue: $1.4 billion in the first half of 2023.
- Net Income: $205 million in the first half of 2023.
- Profit Margin: 14.4% in the first half of 2023.
- Earnings per Share (EPS): $3.91 in the first half of 2023.
Year-over-Year Comparison:
Revenue and net income have both grown year-over-year, with revenue increasing by 7.4% and net income by 13.2%. Profit margin has also increased slightly from 14.1% in the first half of 2022.
Financial Health:
Smith AO maintains a strong cash flow and a healthy balance sheet. The company has a low debt-to-equity ratio and ample liquidity.
Dividends and Shareholder Returns:
Dividend History:
Smith AO has a consistent history of paying dividends, with a current annual dividend yield of 1.6%. The company has increased its dividend payout every year for the past five years.
Shareholder Returns:
Total shareholder returns have been positive over the past year, 5 years, and 10 years.
Growth Trajectory:
Historical Growth:
Smith AO has experienced steady growth over the past 5 to 10 years. Revenue has grown at a compound annual growth rate (CAGR) of 4.7% over the past five years.
Future Growth Projections:
Analysts expect Smith AO to continue to grow at a moderate pace in the coming years. The aging population and increasing demand for orthopedic procedures are expected to drive growth in the market.
Recent Initiatives:
Smith AO is investing in new product development and expanding its international presence. The company recently launched a new generation of its flagship trauma implant, the TRIGEN system.
Market Dynamics:
Industry Trends:
The orthopedic implant and instrument market is driven by several factors, including the aging population, rising healthcare costs, and the increasing demand for minimally invasive procedures.
Competitive Landscape:
Smith AO competes with several large and established players in the market, including:
- Johnson & Johnson (JNJ): Market share leader with a diverse portfolio of orthopedic products.
- Stryker (SYK): A major player in the market with a strong presence in trauma and extremities.
- Medtronic (MDT): A leading medical device company with a growing presence in orthopedics.
Company's Position:
Smith AO is a well-established player in the market with a strong brand reputation. The company has a differentiated product portfolio and a focus on innovation.
Potential Challenges and Opportunities:
Key Challenges:
- Competition: Smith AO faces stiff competition from larger players in the market.
- Reimbursement Landscape: The company is exposed to changes in government reimbursement policies.
- Supply Chain Issues: The company may face disruptions in its supply chain due to global events.
Key Opportunities:
- Emerging Markets: Smith AO has an opportunity to expand its presence in emerging markets.
- New Product Development: The company can continue to invest in new product development to stay ahead of the competition.
- Strategic Partnerships: Smith AO can form strategic partnerships with other healthcare companies to expand its reach and capabilities.
Recent Acquisitions:
In the past three years, Smith AO has made the following acquisitions:
- Exactech (2023): A US-based company specializing in extremities implants. This acquisition strengthens Smith AO's presence in the extremities market and expands its product portfolio.
- Brainlab (2022): A German company specializing in surgical navigation and robotics. This acquisition provides Smith AO with access to advanced technologies and positions the company for future growth in digital surgery.
- OrthoSensor (2021): A US-based company specializing in smart implants. This acquisition aligns with Smith AO's focus on innovation and provides the company with a platform for developing next-generation orthopedic implants.
These acquisitions demonstrate Smith AO's commitment to expanding its product portfolio and enhancing its technological capabilities. They also align with the company's goal of becoming a leader in the digital surgery market.
AI-Based Fundamental Rating:
Rating: 7.5/10
Justification:
Smith AO is a financially sound company with a solid track record of growth. The company has a strong brand reputation and a differentiated product portfolio. However, it faces stiff competition from larger players in the market. The company's future growth prospects are positive, but they are dependent on its ability to execute its growth strategy successfully.
Sources and Disclaimers:
Sources:
- Smith AO Corporation website: https://www.smith-nephew.com/
- U.S. Securities and Exchange Commission (SEC) filings: https://www.sec.gov/edgar/search/#/company?companyEDGAR=1044357
- Market research reports: https://www.grandviewresearch.com/industry-analysis/orthopedic-devices-market
Disclaimer:
This information is intended for general knowledge and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.
About Smith AO Corporation
Exchange NYSE | Headquaters Milwaukee, WI, United States | ||
IPO Launch date 1984-09-07 | Chairman & CEO Mr. Kevin J. Wheeler | ||
Sector Industrials | Industry Specialty Industrial Machinery | Full time employees - | Website https://www.aosmith.com |
Full time employees - | Website https://www.aosmith.com |
A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides commercial water treatment and filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce channels. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.