Smith A O Corp (AOS)
Industrials · Building Products · US stock · S&P 500 component
$62.47
▲ +2.82 (4.73%)
Fair valueFair
$64 +2.4% to fair value
$32fair band $54–$78$96
Day's range
$59.24 – $62.61
52-week range
$54.16 – $81.87
About Smith A O Corp
A. O. Smith makes water heaters and water treatment products for homes and businesses, selling in North America, China, India and other regions. Its products reach customers through plumbing wholesalers, retailers, contractors and online channels. Revenue comes from product sales, with a large share from replacement of existing heaters, and results depend on housing activity, material costs and energy efficiency rules.
Revenue at Smith A O Corp was $3.8 billion across the last twelve months. Across three years, sales expanded by 0.7% a year. Operating profit was 17.5% of revenue. It earned a return on invested capital of 22%. Debt after cash comes to 0.6 times EBITDA. Shareholders receive a dividend yielding 2.3%. On the site's X-Ray Score, it rates 65 out of 100.
Price chart
52-wk range $54.16 – $81.87Volume 1,900,873Daily, split-adjusted
Vitals
Market cap$8.6B
52-week range$54.16 – $81.87
Volume (last day)1,900,873
P/E (TTM)17.5
EBIT / EV yield7.3%
Free-cash-flow yield7.4%
Dividend yield2.3%
Revenue (TTM)$3.8B
Net income (TTM)$500M
Operating margin17.5%
Return on capital22.5%
Debt incl. leases$638M
Cash & securities$181M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$64middle half of models $63 – $68
Fair
+2.4% to fair value
Average of the 15 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $62
Undervalued < $54Fair $54 – $78Overvalued > $78
P/E multiple
$64
P/B multiple
$69
P/S multiple
$68
EV/EBITDA multiple
$68
EV/EBIT multiple
$68
EV/revenue multiple
$66
10-year DCF, EBITDA exit
$67
5-year DCF, EBITDA exit
$66
10-year DCF, revenue exit
$67
5-year DCF, revenue exit
$66
10-year DCF, growth exit
$61
5-year DCF, growth exit
$58
Dividend discount, stable
$42
Dividend discount, multi-stage
$49
Earnings power value
$79
Growth the price implies
7.2%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
80/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield7.3%
Free-cash-flow yield7.4%
Fair value vs price1.0×
Growth
Weak
42/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)0.7%
EPS growth (3y)36.6%
Growth consistency40%
Profitability
Fair
60/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital22.5%
Operating margin17.5%
Gross profitability40.3%
Financial health
Strong
79/100
Balance sheet looks strong: debt is well covered.
See the numbers →
Piotroski F-Score8 / 9
Net debt / EBITDA0.6×
Interest cover31.4×
Dividends
Fair
60/100
Dividend is typical for its sector.
See the numbers →
Dividend yield2.3%
Dividends vs free cash flow31%
Dividend growth3.4%
Quarterly results: last 6 quarters
-1.5%
Mar '25
-1.3%
Jun '25
+4.4%
Sep '25
+0.0%
Dec '25
-1.9%
Mar '26
-0.7%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.0B, diluted EPS $0.91.
Compare with peers
LII Lennox International I...59 ALLE Allegion plc59 TT Trane Technologies plc56 MAS Masco Corp53Other Building Products companies by X-Ray Score.
SWOT analysis: Smith A O Corp
Strengthsinside the company
- Return on invested capital is 22.5%, against a median of 21.6% for industry peers.
- Earnings per share have compounded at 36.6% a year over three years.
- Free cash flow equals 7.4% of the market value, which funds dividends, buybacks or debt paydown.
- Operating profit covers interest 31x, so debt costs are a small drag.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Dividends use only 31% of free cash flow, which leaves room to raise them.
- Trades at 17.2x earnings, 28% below the 24.0x median of industry peers.
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare AOS with peers and sector
Medians of 6 Building Products peers and of 80 Industrials stocks in our universe.
Largest peers (X-Ray Score): TT 56, JCI 31, CARR 27, MAS 53, ALLE 59, LII 59.
| Metric | AOS | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 65 | 55 | 50 |
| Valuation | 80 | 44 | 44 |
| Growth | 42 | 50 | 51 |
| Profitability | 60 | 60 | 50 |
| Financial health | 79 | 47 | 49 |
| Dividends | 60 | 51 | 53 |
Sector leaders: highest X-Ray Score in Industrials
AOS ranks #7 of 81 in Industrials and #1 of 7 in Building Products by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for AOS
Each factor is rated by where AOS stands among the 81 Industrials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 10 Good · 11 Average · 2 Bad of 23
Growth: 1 · 0 · 2
Profitability: 1 · 4 · 0
Financial strength: 3 · 1 · 0
Valuation: 3 · 2 · 0
Cash flow: 1 · 3 · 0
Efficiency: 1 · 1 · 0
| Factor | AOS | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +0.7% | Bad beats 24% | +5.6% | – | – |
| Revenue growth, last year | +0.3% | Bad beats 18% | +4.5% | +2.6% | ▼ Worse |
| EPS growth, 3 years a year | +36.6% | Good beats 91% | +5.7% | – | – |
| Profitability | |||||
| Gross margin | 38.6% | Average beats 54% | 38.0% | 38.1% | ≈ In line |
| Operating margin | 17.5% | Average beats 50% | 17.5% | 19.0% | ≈ In line |
| Net margin | 13.1% | Average beats 52% | 12.8% | 14.0% | ≈ In line |
| Return on invested capital | 22.5% | Good beats 69% | 14.9% | – | – |
| Return on equity | 27.2% | Average beats 58% | 23.7% | 28.3% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 0.6x | Good beats 89% | 1.8x | -0.3x | ▼ Worse |
| Interest cover | 31.4x | Average beats 54% | 21.4x | 50.0x | ▼ Worse |
| Current ratio | 1.59 | Good beats 71% | 1.25 | 1.57 | ≈ In line |
| Piotroski F-score | 8 / 9 | Good beats 86% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 17.2x | Good beats 88% | 28.9x | 22.4x | ▲ Better |
| Price / book | 4.7x | Average beats 64% | 6.2x | 5.3x | ▲ Better |
| Price / sales | 2.3x | Average beats 66% | 3.5x | 2.6x | ▲ Better |
| EV / EBITDA | 12.0x | Good beats 87% | 18.5x | 14.8x | ▲ Better |
| Free cash flow yield | 7.4% | Good beats 94% | 3.8% | 4.7% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 16.8% | Average beats 65% | 13.8% | 14.3% | ▲ Better |
| Cash from operations / net income | 1.38 | Average beats 49% | 1.39 | 1.20 | ▲ Better |
| Free cash flow growth, 3 years a year | +19.4% | Average beats 63% | +14.5% | – | – |
| Accruals (lower is better) | −5.3% | Good beats 74% | −3.2% | – | – |
| Efficiency | |||||
| Inventory turnover | 4.8x | Good beats 70% | 4.0x | 4.8x | ≈ In line |
| Days sales outstanding | 64 days | Average beats 36% | 57 days | 56 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 10 Good · ● 4 Average · ● 2 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldGood
Risk models
Altman Z''Good
Piotroski F-ScoreGood
Growth
EPS growth (3y)Good
Free-cash-flow growth (3y)Average
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioGood
Net debt / EBITDAGood
Interest coverAverage
Valuation
Fair value vs priceAverage
EBIT / EV yieldGood
Profitability
Return on invested capitalGood
Operating marginAverage
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 69/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $3.5B | $3.8B | $3.9B | $3.8B | $3.8B |
| Operating income | $682M | $362M | $746M | $708M | $729M |
| Net income | $487M | $236M | $557M | $534M | $546M |
| Operating cash flow | $641M | $391M | $670M | $582M | $617M |
| Operating margin | 19.3% | 9.6% | 19.3% | 18.5% | 19.0% |
| Free cash flow | $566M | $321M | $598M | $474M | $546M |
| Diluted EPS | $3.02 | $1.51 | $3.69 | $3.63 | $3.85 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
11 bullish · 1 neutral · 4 bearish
Weekly
Neutral
5 bullish · 1 neutral · 6 bearish
Monthly
Strongly bearish
1 bullish · 1 neutral · 6 bearish
Moving averages (daily)
| SMA 10 | 58.77 | Bullish |
| EMA 10 | 59.24 | Bullish |
| SMA 20 | 57.92 | Bullish |
| EMA 20 | 58.55 | Bullish |
| SMA 50 | 58.98 | Bullish |
| EMA 50 | 58.79 | Bullish |
| SMA 100 | 59.49 | Bullish |
| EMA 100 | 59.81 | Bullish |
| SMA 200 | 63.21 | Bearish |
| EMA 200 | 61.81 | Bullish |
Oscillators (daily)
| RSI (14) | 69.84 | Neutral |
| MACD (12, 26) | 0.51 | Bullish |
| Momentum (12) | 9.79 | Bullish |
| Stochastic %K (14) | 98.26 | Bearish |
| Williams %R (14) | -1.74 | Bearish |
| CCI (20) | 200.0 | Bearish |
Pivot points (classic, last session)
S3 56.89 | S2 58.06 | S1 60.27 | Pivot 61.44 | R1 63.64 | R2 64.81 | R3 67.02 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
1.44 USD
Yield on today's price
2.31%
Frequency
Quarterly
Next ex-dividend date
30 Oct 2026
| Ex-dividend date | Amount per share |
|---|---|
| (upcoming) | 0.3800 |
| 0.3600 | |
| 0.3600 | |
| 0.3600 | |
| 0.3600 | |
| 0.3400 | |
| 0.3400 | |
| 0.3400 | |
| 0.3400 | |
| 0.3200 | |
| 0.3200 | |
| 0.3200 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold AOS
| ETF | Share of the fund |
|---|---|
| PHO Invesco Water Resources | 2.34% |
| KNG FT Cboe Vest S&P 500 Dividend Aristocr... | 1.39% |
| NOBL ProShares S&P 500 Dividend Aristocrats | 1.28% |
| RSPN Invesco S&P 500 Equal Weight Industria... | 1.24% |
| SDVY First Trust SMID Cap Rising Dividend A... | 0.76% |
| CALF Pacer US Small Cap Cash Cows 100 | 0.64% |
| WTV WisdomTree U.S. Quality Shareholder Yi... | 0.55% |
| SDY SPDR S&P Dividend | 0.34% |
The eight funds with the largest weight in AOS among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
AOS stock splits
AOS has split its stock 5 times since 1993. The latest was a 2-for-1 split on 6 Oct 2016.
Full AOS stock split history →AOS SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results; Other events
DEF 14ASEC EDGAR
Proxy statement
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.