A Business at a Glance
0 of 1 daily views used (1 remaining). Sign up free for +5 more daily views (6 total), or try AAPL for a full preview.
SMITH A O CORP
AOS
$8.6B
Mkt Cap
$60.78
+2.17%
SMITH A O CORP (AOS) has a current P/E ratio of 15.6, compared to its historical median P/E of 21.7. The stock is currently considered Fair based on its historical valuation range.
SMITH A O CORP (AOS) has a 5-year average return on invested capital (ROIC) of 31.9%. This indicates strong capital allocation and a potential competitive advantage.
SMITH A O CORP (AOS) has a market capitalization of $8.5B. It is classified as a mid-cap stock.
Yes, SMITH A O CORP (AOS) pays a dividend with a trailing twelve-month yield of 2.33%. The company also returns capital through share buybacks, with a buyback yield of 3.92%.
Based on historical P/E analysis, SMITH A O CORP (AOS) appears fair. The current P/E of 15.6 is 28% below its historical median of 21.7. The estimated fair value CAGR (P/E method) is 7.9%.
SMITH A O CORP (AOS) operates in the Household Appliances industry, within the Industrials sector.
SMITH A O CORP (AOS) reported annual revenue of $3.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
A. O. Smith manufactures and markets residential and commercial water heaters, boilers, heat pumps, tanks, and water treatment products across two geographic segments: North America (78% of 2025 sales) and Rest of World (22%, primarily China, India, and Europe). In North America, the company operates through a wholesale distribution channel of approximately 800 independent plumbing distributors, retail partnerships including an exclusive relationship with Lowe's, and a water quality dealer network; it holds leading market positions in both residential and commercial water heating and is a major player in boilers through its Lochinvar brand. The Rest of World segment, anchored by 30 years of operations in China where the company operates approximately 8,700 points of sale, manufactures water heaters and water treatment products (particularly reverse osmosis technology) for residential and commercial markets, and includes India operations expanded through the 2024 acquisition of Pureit. The company's business model is characterized by short-cycle manufacturing with no significant backlogs, a mix of replacement demand (particularly in North America where replacement is a significant portion of sales) and new construction exposure, and exposure to raw material cost volatility, particularly steel and tariffs. Competitive advantages include brand recognition, comprehensive product lines spanning efficiency tiers, distribution scale, and innovation in energy-efficient offerings such as condensing water heaters and heat pumps aligned with regulatory trends.
【China market stabilization uncertain】 Management expects persistent headwinds in China throughout 2026 due to continued low consumer demand, severely limited government stimulus, and ongoing competitive pressures, with sales projected to decline low double digits in local currency; the company is conducting a strategic assessment of its China business including potential partnerships and alternatives, with greater clarity expected within the coming months. In North America, the company anticipates flat to down residential industry volumes in 2026 as new construction remains pressured, though commercial boiler sales are expected to grow 6%-8% driven by pricing benefits and the transition to energy-efficient products, while water treatment sales growth has been revised downward to 5%-6% due to cautious consumer behavior in consumer-facing channels. The company expects to realize pricing benefits beginning in the third quarter of 2026 from announced price increases, with margin expansion anticipated in the back half of the year as cost pressures from elevated steel prices (projected up approximately 15% year-over-year) and freight are offset by pricing actions. Leonard Valve, acquired in early 2026, is expected to contribute approximately $70 million in sales and achieve double-digit growth, with integration efforts on track and synergy realization expected to continue.
No forward guidance provided.
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.8B | 3.8B | 3.8B | 3.9B | 3.8B | 3.5B |
| Net Income | 528M | 546M | 534M | 557M | 236M | 487M |
| EPS | $3.72 | $3.85 | $3.63 | $3.69 | $1.51 | $3.02 |
| Free Cash Flow | 648M | 546M | 474M | 598M | 321M | 566M |
| ROIC | 23.6% | 30.3% | 31.3% | 34.7% | 23.8% | 39.3% |
| Gross Margin | 38.8% | 38.8% | 38.1% | 38.5% | 35.4% | 37.0% |
| Debt/Equity | 0.33 | 0.11 | 0.12 | 0.09 | 0.22 | 0.13 |
| Dividends/Share | $1.41 | $1.38 | $1.30 | $1.22 | $1.14 | $1.06 |
| Operating Income | 706M | 729M | 708M | 746M | 362M | 682M |
| Operating Margin | 18.5% | 19.0% | 18.5% | 19.3% | 9.6% | 19.3% |
| ROE | 28.1% | 29.2% | 28.6% | 31.0% | 13.2% | 26.5% |
| Shares Outstanding | 139M | 142M | 147M | 151M | 156M | 161M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.4B | 2.5B | 2.7B | 3.0B | 3.2B | 3.0B | 2.9B | 3.5B | 3.8B | 3.9B | 3.8B | 3.8B | 3.8B |
| Gross Margin | 36.5% | 39.8% | 41.5% | 41.1% | 41.0% | 39.5% | 38.3% | 37.0% | 35.4% | 38.5% | 38.1% | 38.8% | 38.8% |
| R&D | 68M | 74M | 80M | 86M | 94M | 88M | 81M | 94M | 89M | 98M | 102M | 95M | 95M |
| SG&A | 572M | 611M | 663M | 723M | 754M | 716M | 660M | 701M | 671M | 727M | 739M | 759M | 771M |
| EBIT | 345M | 453M | 515M | 578M | 613M | 529M | 503M | 682M | 362M | 746M | 708M | 729M | 706M |
| Op. Margin | 14.7% | 17.9% | 19.2% | 19.3% | 19.2% | 17.7% | 17.4% | 19.3% | 9.6% | 19.3% | 18.5% | 19.0% | 18.5% |
| Net Income | 208M | 283M | 327M | 297M | 444M | 370M | 345M | 487M | 236M | 557M | 534M | 546M | 528M |
| Net Margin | 8.8% | 11.2% | 12.2% | 9.9% | 13.9% | 12.4% | 11.9% | 13.8% | 6.3% | 14.4% | 14.0% | 14.3% | 13.8% |
| Non-Recurring | 0 | 0 | 0 | 0 | 6.7M | 0 | 7.7M | 0 | 0 | 19M | 18M | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 23.2% | 30.1% | 24.0% | 24.6% | 38.6% | 30.2% | 28.8% | 39.3% | 23.8% | 34.7% | 31.3% | 30.3% | 23.6% |
| ROE | 15.0% | 19.6% | 22.1% | 18.8% | 26.4% | 21.9% | 19.6% | 26.5% | 13.2% | 31.0% | 28.6% | 29.2% | 28.1% |
| ROA | 8.3% | 10.8% | 11.8% | 9.7% | 14.2% | 12.1% | 11.1% | 14.7% | 6.9% | 17.0% | 16.5% | 17.1% | 14.5% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 264M | 352M | 447M | 326M | 449M | 456M | 562M | 641M | 391M | 670M | 582M | 617M | 708M |
| Free Cash Flow | 178M | 279M | 366M | 232M | 364M | 392M | 505M | 566M | 321M | 598M | 474M | 546M | 648M |
| Owner Earnings | 193M | 280M | 372M | 246M | 367M | 365M | 469M | 551M | 303M | 581M | 488M | 518M | 605M |
| CapEx | 86M | 73M | 81M | 94M | 85M | 64M | 57M | 75M | 70M | 73M | 108M | 71M | 60M |
| Maint. CapEx | 60M | 63M | 65M | 70M | 72M | 78M | 80M | 78M | 77M | 78M | 79M | 85M | 88M |
| Growth CapEx | 26M | 9.7M | 16M | 24M | 13M | 0 | 0 | 0 | 0 | 0 | 29M | 0 | 0 |
| D&A | 60M | 63M | 65M | 70M | 72M | 78M | 80M | 78M | 77M | 78M | 79M | 85M | 88M |
| CapEx/OCF | 32.6% | 20.7% | 18.1% | 28.9% | 19.0% | 14.1% | 10.1% | 11.7% | 18.0% | 10.8% | 18.6% | 11.5% | 8.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 54M | 68M | 84M | 97M | 130M | 149M | 159M | 170M | 177M | 184M | 190M | 196M | 197M |
| Dividend Yield | 1.5% | 1.3% | 1.3% | 1.2% | 1.5% | 2.1% | 2.3% | 1.7% | 2.0% | 1.8% | 1.6% | 2.1% | 2.3% |
| Share Buybacks | 104M | 128M | 135M | 139M | 203M | 288M | 57M | 367M | 404M | 307M | 306M | 401M | 332M |
| Buyback Yield | 2.4% | 2.2% | 1.9% | 1.5% | 3.2% | 4.1% | 0.7% | 2.9% | 4.8% | 2.6% | 3.1% | 4.2% | 3.9% |
| Stock-Based Comp | 11M | 8.8M | 9.4M | 9.9M | 10M | 13M | 13M | 12M | 11M | 12M | 15M | 14M | 14M |
| Debt Repayment | 48M | 34M | 42M | 87M | 189M | 63M | 171M | 84M | 151M | 906M | 1.0B | 1.1B | 1.1B |
| Balance Sheet | |||||||||||||
| Net Debt | -304M | -383M | 69M | -410M | -424M | -217M | -531M | -401M | -105M | -197M | -48M | 9.7M | 412M |
| Cash & Equiv. | 319M | 324M | 330M | 347M | 260M | 374M | 573M | 443M | 391M | 340M | 240M | 175M | 204M |
| Long-Term Debt | 210M | 236M | 316M | 403M | 221M | 277M | 106M | 190M | 335M | 117M | 183M | 113M | 574M |
| Debt/Equity | 0.17 | 0.18 | 0.54 | 0.25 | 0.13 | 0.20 | 0.09 | 0.13 | 0.22 | 0.09 | 0.12 | 0.11 | 0.33 |
| Interest Coverage | 60.6 | 61.2 | 70.5 | 57.2 | 73.0 | 48.1 | 68.9 | 158.6 | 38.5 | 62.1 | 105.6 | 54.0 | 39.9 |
| Equity | 1.4B | 1.4B | 1.5B | 1.6B | 1.7B | 1.7B | 1.8B | 1.8B | 1.7B | 1.8B | 1.9B | 1.9B | 1.9B |
| Total Assets | 2.5B | 2.6B | 2.9B | 3.2B | 3.1B | 3.1B | 3.2B | 3.5B | 3.3B | 3.2B | 3.2B | 3.1B | 3.7B |
| Total Liabilities | 1.1B | 1.2B | 1.4B | 1.6B | 1.4B | 1.4B | 1.3B | 1.6B | 1.6B | 1.4B | 1.4B | 1.3B | 1.8B |
| Intangibles | 309M | 291M | 308M | 309M | 293M | 338M | 324M | 365M | 348M | 337M | 321M | 362M | 599M |
| Retained Earnings | 1.1B | 1.4B | 1.6B | 1.8B | 2.1B | 2.3B | 2.5B | 2.8B | 2.9B | 3.3B | 3.6B | 4.0B | 4.0B |
| Working Capital | 714M | 750M | 796M | 973M | 853M | 734M | 732M | 634M | 700M | 555M | 496M | 429M | 490M |
| Current Assets | 1.3B | 1.4B | 1.6B | 1.8B | 1.6B | 1.5B | 1.6B | 1.8B | 1.6B | 1.5B | 1.4B | 1.3B | 1.4B |
| Current Liabilities | 605M | 653M | 766M | 794M | 785M | 767M | 886M | 1.1B | 934M | 945M | 897M | 863M | 878M |
| Per Share Data | |||||||||||||
| EPS | 1.14 | 1.58 | 1.85 | 1.70 | 2.58 | 2.22 | 2.12 | 3.02 | 1.51 | 3.69 | 3.63 | 3.85 | 3.72 |
| Owner EPS | 1.06 | 1.56 | 2.11 | 1.41 | 2.13 | 2.19 | 2.89 | 3.42 | 1.94 | 3.85 | 3.32 | 3.65 | 4.35 |
| Book Value | 7.58 | 8.06 | 8.56 | 9.43 | 9.97 | 10.00 | 11.36 | 11.36 | 11.20 | 12.23 | 12.81 | 13.10 | 13.49 |
| Cash Flow/Share | 1.45 | 1.96 | 2.53 | 1.87 | 2.61 | 2.74 | 3.46 | 3.97 | 2.51 | 4.44 | 3.96 | 4.35 | 4.43 |
| Dividends/Share | 0.30 | 0.38 | 0.48 | 0.56 | 0.76 | 0.90 | 0.98 | 1.06 | 1.14 | 1.22 | 1.30 | 1.38 | 1.41 |
| Shares Out. | 182.3M | 179.1M | 176.5M | 174.4M | 172.2M | 166.7M | 162.7M | 161.3M | 156.1M | 150.8M | 147.0M | 141.9M | 139.2M |
| Valuation | |||||||||||||
| P/E Ratio | 20.7 | 20.9 | 22.0 | 31.3 | 14.5 | 19.2 | 23.9 | 26.2 | 35.4 | 21.4 | 18.4 | 17.5 | 16.3 |
| P/FCF | 24.2 | 21.2 | 19.6 | 39.9 | 17.7 | 18.1 | 16.3 | 22.5 | 26.0 | 19.9 | 20.7 | 17.5 | 13.1 |
| EV/EBIT | 11.6 | 12.2 | 13.1 | 15.3 | 9.8 | 13.0 | 15.3 | 18.1 | 22.8 | 15.7 | 13.8 | 13.2 | 12.6 |
| Price/Book | 3.1 | 4.1 | 4.7 | 5.6 | 3.7 | 4.3 | 4.5 | 7.0 | 4.8 | 6.5 | 5.2 | 5.1 | 4.5 |
| Price/Sales | 1.6 | 2.0 | 2.4 | 2.7 | 2.7 | 2.4 | 2.4 | 2.9 | 2.4 | 2.6 | 3.0 | 2.5 | 2.2 |
| FCF Yield | 4.1% | 4.7% | 5.1% | 2.5% | 5.7% | 5.5% | 6.1% | 4.4% | 3.8% | 5.0% | 4.8% | 5.7% | 7.7% |
| Market Cap | 4.3B | 5.9B | 7.2B | 9.3B | 6.4B | 7.1B | 8.2B | 12.8B | 8.3B | 11.9B | 9.8B | 9.6B | 8.5B |
| Avg. Price | 20.47 | 28.64 | 36.15 | 47.23 | 50.43 | 42.66 | 43.10 | 63.04 | 57.73 | 66.04 | 78.84 | 67.05 | 60.78 |
| Year-End Price | 23.61 | 33.04 | 40.62 | 53.14 | 37.34 | 42.59 | 50.57 | 79.11 | 53.49 | 78.91 | 66.72 | 67.43 | 60.78 |
SMITH A O CORP passes 7 of 9 quality checks, indicating strong fundamentals.
SMITH A O CORP trades at 15.6x trailing earnings, compared to its 15-year median P/E of 21.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 15.4x vs a median of 19.8x. The company's 5-year average ROIC is 31.9% with a gross margin of 37.6%. Total shareholder yield (dividends + buybacks) is 6.2%. At current prices, the estimated annualized return to fair value is +7.4%.
SMITH A O CORP (AOS) has a net profit margin of 14.3%. This is a healthy margin.
SMITH A O CORP (AOS) generated $546 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
SMITH A O CORP (AOS) has a debt-to-equity ratio of 0.11. This indicates a conservatively financed balance sheet.
SMITH A O CORP (AOS) reported earnings per share (EPS) of $3.85 in its most recent fiscal year.
SMITH A O CORP (AOS) has a return on equity (ROE) of 29.2%. This indicates the company generates strong returns for shareholders.
SMITH A O CORP (AOS) has a 5-year average gross margin of 37.6%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for SMITH A O CORP (AOS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
SMITH A O CORP (AOS) has a book value per share of $13.10, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects persistent headwinds in China throughout 2026 due to continued low consumer demand, severely limited government stimulus, and ongoing competitive pressures, with sales projected to decline low double digits in local currency; the company is conducting a strategic assessment of its China business including potential partnerships and alternatives, with greater clarity expected within the coming months. In North America, the company anticipates flat to down residential industry volumes in 2026 as new construction remains pressured, though commercial boiler sales are expected to grow 6%-8% driven by pricing benefits and the transition to energy-efficient products, while water treatment sales growth has been revised downward to 5%-6% due to cautious consumer behavior in consumer-facing channels. The company expects to realize pricing benefits beginning in the third quarter of 2026 from announced price increases, with margin expansion anticipated in the back half of the year as cost pressures from elevated steel prices (projected up approximately 15% year-over-year) and freight are offset by pricing actions. Leonard Valve, acquired in early 2026, is expected to contribute approximately $70 million in sales and achieve double-digit growth, with integration efforts on track and synergy realization expected to continue.
No recent press releases.