AOS
A. O. Smith
$64.00
▲ 1.6%Updated Aug 7, 11:30 AM ET
AOS at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 59/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 7.7% over the last 12 months
Market Cap
$8.64B
P/E
16.79x
Forward P/E (est.)
16.01x
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)
2.5%
Rating Score
59/100
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 $8.64B.
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.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
38.5% average over the last 3 years
±1.8 pts around 38.9% across 10 years
grew in 6 of the last 9 year-over-year periods
positive in 10 of 10 years
28.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
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 $64.00, around its 50-day average ($59.36) and 200-day average ($67.01). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
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 66 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 $1.79 (~2.8% 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 $56.41 (support) and sellers near $63.05 (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 0.9× 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.
4Y CAGR
2.0%
Revenue moved from $2.69B in 2016 to $3.83B in 2025, a 4.0% 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.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
2.4%
Per share (latest FY)
$1.38
Total paid (latest FY)
$195.70M
History on record
10 years
dividend uses 36% of free cash flow
36% of net income paid out
total dividends increased 9 years in a row
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
16.79x
P/S
2.18x
P/B
5.32x
EV / EBITDA
—
AOS trades at 16.8x trailing earnings (about 16.0x on estimated forward earnings), 2.2x sales, and 5.3x book value. Reverse-engineering today's price implies the market expects roughly 2.5% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$99.90
Current price
$64.00
Starting FCF (latest 10-K)
$546.00M
Growth, years 1–5
0.2%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where AOS sits versus its Industrials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 144 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. 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 (273 S&P 500 companies), AOS ranks #33 of 273 by our overall rating. It trades at a discount versus the sector on earnings (16.8x P/E vs. 32x median) with a higher return on equity (28.4% vs. 18.1%) and slower revenue growth (0.2% vs. 6.0%).
P/E vs sector
16.8x
median 32x
ROE vs sector
28.4%
median 18.1%
Growth vs sector
0.2%
median 6.0%
Sector rank
#33
of 273 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 273 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)
$0.00 – $0.00
vs. $64.00 today · expected CAGR -6% – 4%
| 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 | $4.09 | $4.21 | $4.34 | $4.47 | $4.60 |
| Share price (low) | $40.89 | $42.12 | $43.38 | $44.68 | $46.02 |
| Share price (high) | $69.51 | $71.60 | $73.75 | $75.96 | $78.24 |
| CAGR (low–high) | -36% / 9% | -19% / 6% | -12% / 5% | -9% / 4% | -6% / 4% |
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 16.8x earnings, which our model scores Favorable (59/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 18 Wall Street analysts covering AOS recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
AOS's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
AOS — frequently asked questions
Is AOS a good stock to buy?
We don't give buy or sell advice. Our model rates A. O. Smith Favorable (59/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is AOS's rating on The Stocks School?
A. O. Smith currently scores 59/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does AOS's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from A. O. Smith's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for AOS calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this AOS analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell AOS. Always do your own research and consider a licensed professional.
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.