AOSNEUTRAL

AOS FCF Yield Analysis

5.8%

Higher than 88% of Industrials sector peers

Updated 3009h ago·SEC filings & market data

Key Takeaway

The current FCF Yield of 5.8% means that for every dollar invested in A.

Sector Performance

88th percentile

AOS

5.8%

Sector Median

1.6%

Sector Avg

-36.5%

📊

Deep Analysis

The current FCF Yield of 5.8% means that for every dollar invested in A.

O. Smith’s stock, the company generates roughly 5.8 cents of free cash flow – the cash left after operating expenses and capital investments. This yield sits well above the industrials sector median of 2.1%, placing the stock in the 93rd percentile among its peers, indicating a relatively higher cash return per share price. Because the year-over-year and quarter-over-quarter changes are both listed as N/A, there is no trend data to assess whether this yield is improving, deteriorating, or stable. The combination of a strong current yield (high level) with no directional trend suggests the stock may offer an attractive entry point based on cash generation, but the absence of trend information makes it impossible to gauge momentum in valuation. This FCF yield supports a more favorable view than the overall NEUTRAL verdict, as it signals potential undervaluation relative to the sector, yet the neutral stance likely reflects offsetting factors such as growth or risk considerations not captured by this single metric.

Frequently Asked Questions

What does the FCF Yield tell investors about AOS?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does AOS's FCF Yield compare to its sector?

AOS's FCF Yield of 5.8% compares to a Industrials sector median of 1.6%, placing it in the 88th percentile.

Who are AOS's closest peers by FCF Yield?

The closest Industrials peers by FCF Yield include: PWR (1.7%), MMM (1.5%), AXON (0.2%), BE (0.1%), LILM (0.0%).

📚

Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.