A.O. Smith demonstrates strong business quality through its market position, history of dividend increases, and strategic acquisitions. However, challenges such as weak performance in China and margin pressures highlight vulnerabilities. Future prospects are bolstered by restructuring efforts and innovation, although growth expectations remain cautious amidst economic uncertainties.
Analysis Date: January 30, 2025 Last Updated: May 29, 2025
+79%
+6.0% per year
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
CountryUS
ExchangeNYSE
IndustryIndustrial - Machinery
SectorIndustrials
Market Cap$10.07B
CEOMr. Kevin J. Wheeler
A. O. Smith Corporation is a company that makes and sells water heaters and boilers for homes and businesses. They provide products that help people heat water for showers, cooking, and cleaning. Their water treatment products make sure that the water is safe and clean to use. Founded in 1874 and based in Milwaukee, Wisconsin, A. O. Smith sells its products in North America, China, Europe, and India.
Core Products
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BoilersHeating systems
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Heat PumpsEnergy-efficient heating
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Expansion TanksPressure regulation tanks
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Commercial Water HeatersHeaters for businesses
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Water Treatment ProductsWater filtration systems
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Residential Water HeatersHeaters for homes
Business Type
Business to Business
Competitive Advantages
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Graham Value Metrics
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Income Statement Flow
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Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
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AOS Stock Analysis: A. O. Smith Corporation Investment Guide
AOS (A. O. Smith Corporation) is a Industrials company listed on New York Stock Exchange. The stock has generated 6.0% annual returns with an overall investment score of None/100.
A.O. Smith demonstrates strong business quality through its market position, history of dividend increases, and strategic acquisitions. However, challenges such as weak performance in China and margin pressures highlight vulnerabilities. Future prospects are bolstered by restructuring efforts and innovation, although growth expectations remain cautious amidst economic uncertainties.
AOS Key Financial Metrics
AOS financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. The company has a valuation score of 8.271831517616546/100 and profitability score of 5.0/100 with financial health rated 7.6/100.
About A. O. Smith Corporation
A. O. Smith Corporation is a company that makes and sells water heaters and boilers for homes and businesses. They provide products that help people heat water for showers, cooking, and cleaning. Their water treatment products make sure that the water is safe and clean to use. Founded in 1874 and based in Milwaukee, Wisconsin, A. O. Smith sells its products in North America, China, Europe, and India.
AOS Investment Recommendation
Based on our comprehensive analysis of AOS, investors should consider the company's positive performance track record, earnings consistency (7/10 quarters beat expectations), and current valuation metrics when making investment decisions.
Industrials Sector Analysis
AOS operates in the Industrial - Machinery industry within the Industrials sector. This analysis compares A. O. Smith Corporation performance against industry and sector benchmarks to provide context for investment decisions.
Frequently Asked Questions about AOS Stock
Is AOS a good investment?
AOS (A. O. Smith Corporation) has generated 6.0% annual returns with an overall score of None/100. A.O. Smith demonstrates strong business quality through its market position, history of dividend increases, and strategic acquisitions. However, challenges such as weak performance in China and margin pressures highlight vulnerabilities. … Investors should consider their risk tolerance and investment goals when evaluating AOS.
What is AOS P/E ratio and valuation?
AOS valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Industrial - Machinery industry and Industrials sector benchmarks. The company currently has a valuation score of 8.271831517616546/100.
Should I buy AOS stock now?
The decision to buy AOS stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides profitability score of 5.0/100, financial health score of 7.6/100, and detailed performance metrics to help inform your investment decision.
What are AOS financial health indicators?
AOS financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 7.6/100 based on comprehensive analysis of balance sheet strength and operational efficiency.
How does AOS compare to competitors?
AOS performance is benchmarked against Industrial - Machinery industry peers and Industrials sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for A. O. Smith Corporation's market position.
What are AOS historical returns?
AOS has generated 6.0% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.
AOS Key Investment Metrics Summary
Annual Return: 6.0%
Valuation Score: 8.271831517616546/100
Profitability Score: 5.0/100
Financial Health Score: 7.6/100
Growth Score: -0.7768611598407313/100
Earnings Beat Rate: 7/10 quarters
Sector: Industrials
Industry: Industrial - Machinery
Exchange: New York Stock Exchange
Market Cap: 10069230278
AOS Investment Thesis
A. O. Smith Corporation (AOS) represents a moderate investment opportunity in the Industrials sector. With an overall score of None/100, the company demonstrates areas for financial improvement.
Investment Strengths
Reasonable P/E Ratio
Attractive Price-to-Sales Ratio
Strong Return on Equity
Healthy Operating and Gross Profit Margins
Low Debt Levels
Strong Liquidity Ratios
Strong Market Position
Long History of Dividend Increases
Acquisition Strategy
Restructuring and Efficiency Gains
Growth in North American Boiler Market
Innovation and Product Development
Investment Risks
High Price-to-Free Cash Flow Ratio
Elevated EV/EBITDA
Net Profit Margin Below Industry Average
Low Cash Ratio
Weak Performance in China
Lower Margin Expectations
Muted Growth Expectations
Uncertainty in Consumer Demand
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