A.O. Smith Heats Up Your Portfolio Returns But At A Hefty Price
- Q2 earning release shows great results, revenue up 8% compared to last year, adjusted earnings are up by 25%.
- Especially the rest of world segment is increasing sales at a great pace. Target demographics in China and India are estimated to increase 26% and 9% CAGR until 2020.
- Management increased dividends at a greater pace in the last years which reflects their confidence in future business operations.
- Strong balance sheet and cash flow to support future growth and share repurchase.
- However, the stock seems overvalued and yields only 1.2% at current prices.