AOS

A. O. Smith Corporation

Fundamental data last updated:June 11, 2026

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company profile

SECTOR

Industrials

industry

Industrial - Machinery

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/23/2026

Business Summary

A. O. Smith Corporation manufactures and markets residential and commercial gas, heat pump and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; commercial boilers for hospitals, schools, hotels, and other large commercial buildings, as well as residential boilers for homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, on-the-go filtration bottles, point-of-use carbon, and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides food and beverage filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and heat pumps, electric wall-hung, gas tankless, combi-boiler, heat pump and solar water heaters. The company offers its products primarily under the A. O. Smith, State, Lochinvar, and water softener brands. It distributes its products through independent wholesale plumbing distributors, as well as through retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce, as well as other online retailers. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.

 


VALUATION

P/E

15.00

Market Cap ($M USD)

$7.95B

Forward P/E

11.87

PEG

0.45

PRICE TO SALES

2.08

PRICE TO BOOK

4.22

EV / EBITDA

10.59

5-Year Average P/E

Free Cash Flow Yield

8.15%

DCF Value

$83.67

Graham Number

$33.93

Price to FCF

12.27

EV to FCF

13.00

Earnings Yield

6.67%

FCF Yield

8.15%

DIVIDEND

Yield

2.50%

Annual Payout

$1.42

Payout Ratio

37.28%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.79

Next Year EPS Growth Estimate

$4.79

Next Year Revenue Growth Estimate

$444.34B

Return on Equity (ROE)

28.42%

FREE CASH FLOW

Operating Margin

18.55%

Debt-to-Equity

0.10

Piotroski F-Score

5

Altman Z-Score

6.14

Return on Invested Capital (ROIC)

25.50%

Current Ratio

1.56

Quick Ratio

1.00

Net Debt to EBITDA

0.59

Interest Coverage

39.94

Gross Profit margin

38.77%

FCF PER SHARE

$4.65

REVENUE PER SHARE

$27.39

Gainseekers Quantitative Analysis

Summary

A.O. Smith Corporation’s valuation paints a compelling picture of potential mispricing. With a DCF value significantly higher than its recent trading price, the market seems to be undervaluing its intrinsic worth. The Forward P/E of 12.23 suggests a bargain relative to its earnings potential, while the robust Altman Z-score of 6.16 indicates financial stability. The earnings yield of 6.47% further underscores its attractiveness as a value play. Overall, the metrics suggest a company with strong growth prospects and a solid financial foundation.

AI Exposure / Tech Reliance

Operating within the Industrials sector, A.O. Smith is well-positioned to leverage AI and modern technological advancements. As a player in the Industrial Machinery industry, the company can integrate smart technologies into its product lines, enhancing efficiency and customer value. This adaptability is crucial for maintaining a competitive edge in an evolving market landscape.

The Bull Case

For the value-driven investor, A.O. Smith offers an enticing proposition. The impressive ROIC of 25.5% highlights exceptional capital efficiency, while a healthy FCF yield of 7.91% indicates strong cash generation. With a Piotroski F-Score of 5, the company demonstrates solid financial health, and its operating margin of 18.55% reflects robust pricing power. These metrics collectively suggest a business capable of delivering sustainable returns.

The Bear Case

Despite its strengths, A.O. Smith faces challenges that cannot be ignored. The Price/Book ratio of 4.34 and Price/Sales ratio of 2.15 suggest a premium valuation that may not be justified by its current growth trajectory. Additionally, the stock's proximity to its 52-week high raises concerns about potential overextension. Investors should be wary of these valuation pressures, which could limit upside potential.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$72.67

Institutional Ownership %

1-Year Beta

1.22

Insider Buying % (6 Mo)

Distance to 52-Week High

43.93%

Distance to 52-Week Low

4.78%

EARNINGS SURPRISE %

-9.57%

50-DAY SMA

$62.32

200-DAY SMA

$68.62

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.