Industrials · Building Products · US stock · price as of 22 Oct 2026
Key indicators
Price
$62.47
52-week range
$54.16 – $81.87
Market cap
$8.6B
P/E (trailing)
17.5×
EV / EBITDA
12.0×
Free-cash-flow yield
7.4%
Dividend yield
2.3%
Revenue (last 12 months)
$3.8B
Revenue growth (3y a year)
0.7%
Operating margin
17.5%
Return on invested capital
22.5%
Net debt / EBITDA
0.6×
Fair value
Fair value (average of valid models)$63.94 middle half of models $63 – $68
Versus priceFair+2% to fair value
P/E multiple
$64.20
P/B multiple
$68.64
P/S multiple
$68.32
EV/EBITDA multiple
$68.32
EV/EBIT multiple
$67.92
EV/revenue multiple
$66.19
10-year DCF, EBITDA exit
$66.95
5-year DCF, EBITDA exit
$65.96
10-year DCF, revenue exit
$67.13
5-year DCF, revenue exit
$66.08
10-year DCF, growth exit
$60.89
5-year DCF, growth exit
$58.35
Dividend discount, stable
$42.39
Dividend discount, multi-stage
$48.96
Earnings power value
$78.74
Model uncertainty
Medium
X-Ray Score
65/ 100 · High confidence · ahead of 91% of sector peers
Valuation80
Growth42
Profitability60
Financial health79
Dividends60
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
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%.
StocksXray gives Smith A O Corp an X-Ray Score of 65 out of 100 (high confidence), ahead of 91% of the S&P 500 stocks in its sector. Its strongest lens is valuation (80) and its weakest is growth (42).
Our fair value (the average of the valid models) is $63.94 (range $62.55 to $68.12). At $62.47 the stock trades 2% below that value, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Smith A O Corp (AOS)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$78.47
$53.30
$78.18
$65.73
$65.78
$62.47
Market cap
$12.7B
$8.3B
$11.8B
$9.7B
$9.3B
$8.6B
P/E
26.0×
35.3×
21.2×
18.1×
17.1×
17.5×
EV / revenue
3.5×
2.2×
3.0×
2.5×
2.4×
2.4×
EV / EBITDA
16.1×
18.6×
14.0×
12.2×
11.4×
12.0×
Price / free cash flow
22.4×
25.9×
19.8×
20.4×
17.1×
13.5×
Free-cash-flow yield
4.5%
3.9%
5.1%
4.9%
5.8%
7.4%
Price / book
6.9×
4.8×
6.4×
5.1×
5.0×
4.7×
Dividend yield
1.35%
2.14%
1.56%
1.98%
2.10%
2.31%
Fundamentals checklist ● 10 Good · ● 4 Average · ● 2 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−5.3%Good
Free-cash-flow yield7.4%Good
Risk models
Altman Z score6.9×Good
Piotroski F-Score8 of 9Good
Growth
EPS growth (3y)36.6%Good
Free-cash-flow growth (3y)19.4%Average
Revenue growth (3y)0.7%Bad
Growth consistency40%Bad
Balance sheet
Current ratio1.6×Good
Net debt / EBITDA0.6×Good
Interest cover31.4×Average
Valuation
Fair value vs price1.0×Average
EBIT / EV yield7.3%Good
Profitability
Return on invested capital22.5%Good
Operating margin17.5%Average
Gross profitability40.3%Good
XStocksXray
Smith A O Corp (AOS)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
3,539
3,754
3,853
3,818
3,830
3,805
Gross profit
1,311
1,330
1,485
1,456
1,487
1,468
Operating income
682
362
746
708
729
666
Net income
487
236
557
534
546
500
Diluted EPS ($)
3.02
1.51
3.69
3.63
3.85
3.57
Free cash flow
566
321
598
474
546
639
Gross margin
37.0%
35.4%
38.5%
38.1%
38.8%
38.6%
Operating margin
19.3%
9.6%
19.3%
18.5%
19.0%
17.5%
Net margin
13.8%
6.3%
14.4%
14.0%
14.3%
13.1%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
3,474
3,332
3,214
3,240
3,143
3,645
Cash
443
391
340
240
175
181
Total debt
197
345
127
193
155
638
Equity
1,832
1,748
1,844
1,884
1,858
1,842
Dividend per share ($)
1.06
1.14
1.22
1.30
1.38
1.42
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value is the average of up to 15 valuation models, most of them anchored to the company's own multiples, so it stays near the price and should be read as a range, not a point. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.
