AOS
A. O. Smith
$58.69
▲ 0.8%Updated Today 7:15 PM ET
▼ Down 7.7% over the last 12 months
Market Cap
$8.02B
P/E
15.28x
Forward P/E (est.)
14.57x
ROE
28.4%
Revenue Growth
0.2%
EPS Growth
4.9%
Profit Margin
13.8%
FCF Yield
4.1%
Debt / Equity
0.08x
ROIC
28.0%
Interest Coverage
53.97x
Current Ratio
1.56x
Dividend Yield
2.4%
Implied Growth (rev. DCF)
2.1%
Rating Score
59/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AOS's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AOS trades near $58.69, below its 50-day average ($60.35) and 200-day average ($67.61). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 51 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. AOS's is $1.53 (~2.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month AOS found buyers near $54.16 (support) and sellers near $61.23 (resistance); its 52-week range is $54.16–$81.87. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
A. O. Smith (AOS) is a mid-cap company in the Building Products industry, part of the Industrials sector of the S&P 500, with a market value around $8.02B.
In its latest reported year it generated about $3.83B in revenue and $546.20M in net profit.
Our model rates AOS Favorable (59/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
2.0%
Revenue moved from $3.54B in 2021 to $3.83B in 2025, a 2.0% compound annual growth rate. The most recent year was roughly flat (0.2%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
38.8%
Operating Margin
19.0%
Net Margin
14.3%
ROE
28.4%
A. O. Smith keeps about 13.8% of each sales dollar as net profit, with a 38.8% gross margin and 19.0% operating margin. Return on equity is 28.4% and return on invested capital about 28.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$155.00M
Net Debt
-$30.20M
Net cash position
Net Debt / EBITDA
-0.04x
Debt / Equity
0.08x
Leverage: debt-to-equity is 0.1x, and operating profit covers interest about 54.0x, with a current ratio of 1.6x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $155.00M of total debt against $185.20M of cash.
Operating CF
$616.80M
Free Cash Flow
$546.00M
FCF Margin
14.3%
In the latest year A. O. Smith produced about $616.80M of operating cash flow and $546.00M of free cash flow after capital spending. That is a free-cash-flow yield of about 4.1% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
15.28x
P/S
2.18x
P/B
4.84x
EV / EBITDA
10.17x
AOS trades at 15.3x trailing earnings (about 14.6x on estimated forward earnings), 2.2x sales, and 4.8x book value. Reverse-engineering today's price implies the market expects roughly 2.1% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How AOS stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (80 S&P 500 companies), AOS ranks #20 of 80 by our overall rating. It trades at a discount versus the sector on earnings (15.3x P/E vs. 30x median) with a higher return on equity (28.4% vs. 24.7%) and slower revenue growth (0.2% vs. 5.0%).
P/E vs sector
15.3x
median 30x
ROE vs sector
28.4%
median 24.7%
Growth vs sector
0.2%
median 5.0%
Sector rank
#20
of 80 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 80 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$73.88 – $123.13
vs. $58.69 today · expected CAGR 5% – 16%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $3.95B | $4.06B | $4.19B | $4.31B | $4.44B |
| Net income | $552.31M | $568.88M | $585.95M | $603.53M | $621.64M |
| EPS | $7.29 | $7.51 | $7.74 | $7.97 | $8.21 |
| Share price (low) | $65.64 | $67.61 | $69.63 | $71.72 | $73.88 |
| Share price (high) | $109.39 | $112.68 | $116.06 | $119.54 | $123.13 |
| CAGR (low–high) | 12% / 86% | 7% / 39% | 6% / 26% | 5% / 19% | 5% / 16% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for AOS:
- Strong return on equity (28.4%) shows capital is put to work well.
- Healthy free-cash-flow yield (~4.1%) funds buybacks and dividends.
- A conservative balance sheet (debt/equity 0.1x) lowers risk.
- Pays a 2.4% dividend on top of any price gains.
- Our model's overall read is Favorable (59/100).
The case against AOS:
- Revenue growth is slow (0.2%), limiting the upside engine.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Growth risk — sluggish revenue (0.2%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: A. O. Smith is a mid-cap industrials business growing at a mature pace, with solid profitability, and a sound balance sheet. It trades at 15.3x earnings, which our model scores Favorable (59/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.