A. O. Smith Corporation
Rank #131ValueAOS · NYSE · Industrials
A. O. Smith Corporation (AOS) — Rank #131 by gross profitability (GP/assets 0.41) · ROE 29.7% · Piotroski F-Score 8 / 9.
As-of 2026-09-15 · CIK 0000091142 · all metrics point-in-time as of the filing date.
About
A.
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O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, homes, apartments, and condominiums, and other large commercial buildings; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides commercial water treatment and filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, Impact, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms, as well as offers Aquasana branded products directly to consumers through e-commerce channels; and A. O. Smith branded water treatment products through dealer network and Amazon. A. O.
Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.
- Industry
- Specialty Industrial Machinery
- Sector
- Industrials
- State
- DE
- Filer Category
- Large accelerated filer
- Fiscal Year End
- December 31
- Website
- aosmith.com
Price History
Company Snapshot
P/E and dividend yield are the primary valuation lenses for mature businesses.
Market Cap
$7.76B
P/E (annual)
14.8
P/S (annual)
2.0
P/B
4.2
P/OCF (annual)
12.6
Shareholder Yield
6.0%
Employees
11,500
Industry
Specialty Industrial Machinery
Exchange
NYSE
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
2/3 passGrowth
2/2 passTerry Smith quality gate
Passes 3/5 Terry Smith thresholdsWhat Growth Is Priced In
Implied revenue growth (10Y)
3.6%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Buyback tailwind: -3.5% — per-share value needs a total required return of 0.1% once share-count change is priced in.
vs. own 6-year median revenue growth: 1.5%
priced above its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
-0.4%
r = 10% (base)
3.6%
r = 12%
7.2%
Net debt / market cap: 5.6%
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).
Profitability
Gross profitability (GP / assets)
0.41
Primary signal (Novy-Marx).
83rd pctl of 43 SIC 36 peers
Return on equity
29.7%
Gross margin
38.8%
29th pctl of 43 SIC 36 peers
Revenue growth (YoY)
0.3%
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
0.7%
Revenue CAGR (5Y)
5.8%
Earnings CAGR (3Y)
32.3%
FCF CAGR (3Y)
19.4%
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.98
28th pctl of 41 SIC 36 peers (best = lowest)
Current ratio
1.59×
10th pctl of 43 SIC 36 peers
Quick ratio
0.98×
Net cash
-$456.20M
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$546.00M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
-0.00
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
0.4%
Stock-based comp intensity.
Dividend safety
Composite score
4.2 / 5
Piotroski F-Score
F-Score
8 / 9
Fundamental-strength score (0-9).