A. O. Smith (AOS)
Industrials · $7.8B market cap · SEC CIK 0000091142
$58.16
▲+2.11% on the day
close of Sep 22, 2026
56
Mixed
fundamentals score out of 100
fundamentals score out of 100
Next reports on Oct 22, 2026, with analysts expecting $0.91 in earnings per share.
The case for AOS
- Earns 27% back on shareholder equity.
- Holds more cash ($175M) than long-term debt ($113M).
- Reasonably priced at 15.6× earnings.
- Pays a modest 1.7% dividend.
- Free-cash-flow yield of 7.0% is higher than 92% of Industrials companies.
The case against
- Down 22.1% over the past year.
- Revenue was flat on the year (+0.4%).
- Near the bottom of its 52-week range, 29% below the high. Falling prices usually have a reason; find it first.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 78 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 33 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 67 |
| Momentumhow the price has behaved lately | 27 |
| Stabilityhow violently it moves, what it owes and what it pays you | 77 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 15.6× |
|---|---|
| Price / book | 4.69× |
| Price / sales | 2.1× |
| Revenue growth (YoY) | +0.4% |
| EPS growth (YoY) | 0.0% |
| Gross margin | 39% |
| Operating margin | 17% |
| Net margin | 13% |
| Return on equity | 27% |
| Debt / equity | 0.35× |
| Current ratio | 1.59 |
| Dividend yield | 1.68% |
| Beta | 1.04 |
| 52-week range | $54.16 – $81.87 |
| Position in that range | 14% of the way up |
| 3-month return | -2.2% |
| 1-year return | -22.1% |
Five years of financials, as filed
Pulled from A. O. Smith's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $3.8B | $3.8B | $3.9B | $3.8B | $3.5B |
| Gross profit | $1.5B | $1.5B | $1.5B | $1.3B | $1.3B |
| Operating income | $729M | $708M | $746M | $362M | $682M |
| Net income | $546M | $534M | $557M | $236M | $487M |
| Operating cash flow | $617M | $582M | $670M | $391M | $641M |
| Capital expenditure | $70.8M | $108M | $72.6M | $70.3M | $75.1M |
| Total assets | $3.1B | $3.2B | $3.2B | $3.3B | $3.5B |
| Total liabilities | $1.3B | $1.4B | $1.4B | $1.6B | $1.6B |
| Shareholder equity | $1.9B | $1.9B | $1.8B | $1.7B | $1.8B |
| Cash | $175M | $240M | $340M | $391M | $443M |
| Long-term debt | $113M | $183M | $117M | $335M | $190M |
| Free cash flow | $546M | $474M | $598M | $321M | $566M |
| Gross margin | 38.8% | 38.1% | 38.5% | 35.4% | 37.0% |
| Operating margin | 19.0% | 18.5% | 19.3% | 9.6% | 19.3% |
| Net margin | 14.3% | 14.0% | 14.4% | 6.3% | 13.8% |
| Diluted shares | 142M | 147M | 151M | 156M | 161M |
Share count is down 12.0% over 4 years. Buybacks have been shrinking the pie.
Risk factors AOS lists in its 10-K
- Goodwill and Indefinite-lived Intangible Assets
- Adjusted Earnings and Adjusted Earnings Per Share
- Adjusted Earnings Per Share (non-GAAP)
- Cash provided by operating activities (GAAP)
- Enterprise Risk Management-Integrated Framework
- Report of Independent Registered Public Accounting Firm
- Opinion on the Financial Statements
- How We Addressed the Matter in our Audit
- Total Liabilities and Stockholders’ Equity
- Net Earnings Per Share of Common Stock
- Diluted Net Earnings Per Share of Common Stock
- Cash Provided by Operating Activities
- Cash and Cash Equivalents-End of Year
- Accumulated Other Comprehensive Loss