AOS - A. O. Smith: A Decent Boiler Play
2024-07-18 10:22:01 ET
Summary
- A. O. Smith Corporation is a player in various water products, predominantly boilers.
- The company has shown solid long-term value creation, growing sales and margins significantly over the past decade.
- Despite a strong balance sheet, a recent bolt-on deal, and solid outlook, the current valuation at 22 times earnings looks full.
Shares of A. O. Smith Corporation ( AOS ) deserve an update after a bolt-on acquisition of Pureit from Unilever (UL) as of late, and growing exposure to emerging markets, in this case India. The deal looks quite reasonable, as A. O. Smith operates with a strong net cash position....
A. O. Smith: A Decent Boiler Play