 Welcome to the channel. This is ReliableRooty. Today we're going to go through the Everything Money community. Here we are on the video request tab for this YouTube channel and we're going to pick out one of these stocks that was requested and we're going to do a blind analysis on them right through the ReliableRooty process. If you didn't see the video I posted earlier today on Caravana that was a viewer request. I'm open to doing more videos like that and if you have a particular company ticker that you want me to look at just put that in the comments and I will make sure I make a video on that. So before I get into the video I'll say I'm not a licensed financial advisor. Everything in this video contains only my opinion and it's for entertainment purposes only. So we're going to scroll through this until we find one that you know maybe got a few upvotes. Please do a video on Eagle Material. I don't know I've never heard of Eagle Material. Let's try and find something that multiple people have heard of. CRM. We could do CRM. Fox. I see T-Row. I see Meta. Let's keep scrolling and AOS. We have a couple of AOS. AOSmith. Okay so let's do it on AOSmith. Let's go return to the software. Let's type in AOS. AOS. I can see the $60 stock. Okay so starting with some of the metrics I can see it is profitable. Profit margins of 13.6%. Current PE 18. 5 year average of 24. Net income 500 million. Price margins 36%. Price of sales. For every $2.50 you invest they can make $1. I can see their 5 year average free cash flow is 420 million roughly and their year to date free cash flow is up so that's good. And now we do have a dividend company here. They pay a 2.2% dividend. Now when looking at a dividend company you have to look at the dividends paid and match that to their free cash flow because there's multiple things you can do with free cash flow and free cash flow is the bottom line profit that the company made. Now to pay the dividend that dividend is coming out of the free cash flow. So right here I can see their dividends paid. Their free cash flow. 5 year average even easily covers that dividend so that is very good to see. Now I can see return on asset, return on equity. They invest their money very good. Year to date 20%. Return on invest capital on 5 year average of 17%. So okay we have a potential company that we could look at buying. We can see that the all-time high price is around $85 and it got to lows of $52. So going into the 8 pillars we can see. Yeah. When I see companies like this this is kind of in that Apple scenario. When I said that when these two marks right here are X's it's a matter of valuation. But now I can see that their actual current PE 18 is under that 22.5 so we are getting closer to getting full green check marks. Now I can see that long-term liabilities divided by their 5 year average free cash flow less than 5. They can easily cover off their debts and about 1.5 years going off their 5 year average free cash flow that's really good and they're buying back shares at a 9.4% rate over the last 5 years. So really good to see that right there. I think just off this first look right here this is going to take two parts of the video. So going into the income statement we're going to look at this revenue. Now I want to see consistency on this revenue. I don't want to see any large spikes in revenue. I can see the current year that we're in right here. Now remember that this is taking the last four quarters. So this is part of that 2021 year where it was kind of a fluke. So I'm actually going to go into a quarterly and see. Okay so nothing too out of the ordinary. I can see these last two quarters really solid increases. But pretty consistent for the most part and then also looking at the cost of goods sold. You know it is higher but looking at the gross profit right in line. So I'm not seeing anything out of the ordinary. Now down to the net income. Pretty consistent. They've been bringing in a lot of net income year in quarter in and quarter out. And nothing too strange. Now what I'd want to be worried about is if one quarter they were way up and then the next quarter they're way down and way down and then back up and then back down. But right here it's pretty consistent throughout the entire entirety. Now I'm going to switch this to the last four quarters again. I'm going to see okay so this was a actually a pretty solid spike in their net income. Is this going to be sustainable is what you're going to have to ask yourself. But for the most part pretty profitable company. Now to the shares outstanding you know these last four quarters they bought back a good amount of shares and they've been consistently buying back shares. The next thing I can see is the dividend growth. So their dividend is actually growing. So I'm going to tie that off into inflation. So inflation is a pretty big problem that we have in the United States at the moment. And there's been two ways that people are able to fight inflation. One of those ways is having a long-term fixed mortgage rate that is very low. A low long-term fixed mortgage rate because that fixed rate is never going to change. So if inflation is higher than your fixed rate inflation depreciates the value of the dollar but your fixed rate stays the same. I may make a video on that later going more in the depths on that but I hope you get that idea. The other way is dividend growth. So I can see last year they paid a $1 dividend and this year they're paying $1.08 dividend. So that year over year growth is 8%. So if that dividend growth is higher than inflation that is another way to counteract inflation. So I like everything that I see with this company so far. Yeah, we're going to go touch base on the long-term debts. We could go and see if they've made a bunch of acquisitions. Okay, so this is good. So that would be one thing that's alarming. I got a company that I like. I want to make sure I go look at their acquisitions. If they're making a bunch of acquisitions then that could be offsetting how you actually look at the financials of the company. They can use acquisitions to make their numbers, their financials look better than they actually are. But in this case scenario you can see they haven't made an acquisition since 2014 and this was actually a sell-off of a department or of a division. And here was an acquisition that they made in 2013 but they haven't made any acquisitions. This actually doesn't look half bad right here. I can see here's their repurchase of capital stock. They have been repurchasing shares consistently and their debt is not...we're going to go look at the debt right now and the balance sheet actually. So I want to see the current ratio. So here's their total assets of 3.43 billion. I want to see their total liabilities less than this. So scroll down. Oh yeah, they have a current ratio of over two. So that's damn impressive. That's very good. I'm not worried about this company going under by any means. Yeah, pretty impressive. So I can see why a couple people were requesting that in the chat. Yeah, I'm actually going to cut this video off right here. The next video that I'm going to make is actually going to be a part two of this video where I go into macro trends and determined projections for this company. We're going to run a discounted cash fill model and then after we get that valuation for the company, we're going to take that valuation over to the chart and see what the chart looks like and see if we can match up where we want to buy this company. I hope you guys enjoyed this video right here and I will see you on the next one.