Stock Analysis
A.O. Smith CorporationAOS
P/E 16.09×· 5Y range 14.57–79.53×· bottom 6% of history
Sector: Technology · Industry: Household Appliances
AnalystsHold18 analystsP/E 16.1× sits at the 6th percentile of its 5.089664613278576-year history.
Cash covers 171% of debt · FY 2025.
PMP Verdict
Strong business, attractive price
Strengths
- Quality97
- Profitability90
Risks
- Growth24
High-quality business at an attractive price.
Bull Case
- ✓Piotroski F-Score 7/9 — high earnings quality
- ✓Altman Z 7.7 — safe-zone balance sheet
- ✓ROE 26.9% — efficient capital deployment
- ✓Interest coverage 23.2× — debt well covered
- ✓P/E 16.1× at bottom 6% of 5-year history
What's happening with AOS
Profile
Strong earnings quality, profitability, financial health, valuation and moat; growth lags behind.
How is each axis scored?
- Valuation85/100 · Strong
- P/E vs own history (6th pct)25/25
- FCF yield (7.9%)20/25
- P/S (2.1x)20/25
- EV/EBIT (11.6x)20/25
- Growth24/100 · Weak
- Revenue CAGR (2.0%)6/25
- Net income CAGR (2.9%)6/25
- EPS CAGR 5Y (n/a)0/25
- Fwd implied growth (10.4%)12/25
- Profitability90/100 · Strong
- ROIC (30.4%)25/25
- ROE (26.9%)25/25
- Net margin (13.1%)20/25
- Operating margin (18.0%)20/25
- Financial Health87/100 · Strong
- Altman Z (7.65)25/25
- Current ratio (1.50)12/25
- Interest coverage (23.2x)25/25
- Net cash / debt (Net cash)25/25
- Quality97/100 · Strong
- Piotroski F (7/9)22/25
- Beneish M (-2.53)25/25
- FCF conversion (128%)25/25
- Margin stability (σ 2.5%)25/25
- Moat81/100 · Strong
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (38.7%)13/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 6.3%)18/25
About A.O. Smith Corporation
A. Show more
O. Smith manufactures a broad lineup of water heaters, boilers, and water treatment products. The company has two reporting segments: North America (80% of sales) and rest of world (20% of sales). A.O. Smith is the leading manufacturer of water heaters in North America for the residential and commercial markets, with approximately 36% and 52% market share, respectively. Residential water heaters account for most of North American sales and are distributed equally through wholesale and retail channels. Most of A.O. Smith's international revenue is from China, a market the company entered in the mid-1990s.
Headquarters: MILWAUKEE, WI · Employees: 11,500 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
85AP/E (TTM)16.1xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 14.6x–79.5x · 6th pct
P/FCF10.9xA
Grade A: CheapPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield7.9%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 2.4%–8.5% · 96th pct
P/S (TTM)2.12xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 2.0x–5.8x · 5th pct
EV/EBIT11.6xA
Grade A: CheapEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 11.1x–76.4x · lowest in history
EV/Sales2.2xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E14.6xA
Grade A: CheapPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio4.33xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio396.30D
Grade D: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield2.46%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio39.6%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
90A+ROIC30.4%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE26.9%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA14.7%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin13.1%A
Grade A: HighNet Income / Revenue
Operating Margin18.0%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin38.6%C
Grade C: AverageGross Profit / Revenue
FCF Margin16.8%A
Grade A: HighFCF / Revenue
True FCF Margin16.4%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
24ERevenue CAGR2.0%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR2.9%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)—
Compound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth10.4%B
Grade B: LowAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-16.3%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income2.9%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.4%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
87AAltman Z-Score7.65A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.50xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.04xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage23.2xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.06xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt1.71xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
97A+Piotroski F-Score7/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.53A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion127.8%A
Grade A: StrongFCF / Net Income
Margin Stability2.5%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue1.4%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover1.12xA
Grade A: HighRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 records| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Anderson Carrie L Filed | Anderson Carrie L | Grant / award | +32.1K | |
Saak Aaron W Filed | Saak Aaron W | Grant / award | +2.3K | |
Saak Aaron W Filed | Saak Aaron W | Grant / award | +2.3K | |
Fister Todd W Filed | Fister Todd W | Grant / award | +2.3K | |
Kadri Ilham Filed | Kadri Ilham | Grant / award | +2.3K |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Larsen Michael M Filed | Larsen Michael M | Grant / award | +2.3K | |
MARTIN LOIS M Filed | MARTIN LOIS M | Grant / award | +2.3K | |
SMITH MARK D Filed | SMITH MARK D | Grant / award | +2.3K |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
81AROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)38.7%C
Grade C: ModerateMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor6.3%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$3.68
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$1.31
Cash & short-term investments per share (Finnhub)
Book Value / Share$13.29
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$112.70M
Total debt obligations (short + long term)
Cash & Equiv.$193.20M
Cash and short-term investments
Net Debt$-80.50MA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$1.86B
Shareholders' equity (book value)
Asset / Liability2.45xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$8.05B
Current Market Capitalization
Beta1.06B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: A.O. Smith Corporation (AOS)
A.O. Smith Corporation meets 7 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 7.65 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.53 suggests a low likelihood of earnings manipulation. A.O. Smith Corporation converts about 17% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
- At a valuation score of 85/100, AOS trades near the cheapest end of its own historical range (P/E 16.1).
- Return on equity of 26.9% is well above the market average.
- The stock currently yields 2.5% in dividends.
See how AOS ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all AOS moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 15 | After-hours | 59.47 | +2.84% | 2.01 |
| Oct 7 | Regular | 55.43 | -2.59% | -2.35 |
| Oct 7 | After-hours | 55.34 | -2.74% | -2.49 |
Frequently Asked Questions about AOS
What is the current A.O. Smith Corporation (AOS) stock price?
AOS is trading at $59.22 at the last market close, down 0.42% on the session. PreMarketPrice tracks AOS pre-market, intraday and after-hours prices.
Is AOS stock a buy right now?
PreMarketPrice's quantitative model rates A.O. Smith Corporation's financial health at 87/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is AOS stock overvalued?
A.O. Smith Corporation trades at a trailing P/E of 16.1 and our valuation score rates it 85/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does A.O. Smith Corporation report earnings?
No confirmed earnings date is currently scheduled for AOS. The Earnings section lists recent reports and updates as dates are announced.
What sector does A.O. Smith Corporation operate in?
A.O. Smith Corporation operates in the Technology sector, within the Household Appliances industry. The Related Stocks section lists sector peers for comparison.
What does A.O. Smith Corporation do?
A.
About A.O. Smith Corporation (AOS) Stock
A.O. Smith Corporation (AOS) is a US-listed stock operating in the Technology sector, specifically the Household Appliances industry. As of the latest update, A.O. Smith Corporation is trading at $59.22, down 0.42% on the day with a market capitalization of $8.1 billion. The financial health score for AOS is 87/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for AOS stock.
AOS Stock Analysis & Key Metrics
On PreMarketPrice, you can track A.O. Smith Corporation (AOS) across multiple dimensions:
- Pre-market price & movement: Real-time AOS stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for AOS with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for A.O. Smith Corporation across multiple reporting periods.
- Financial health score: A composite score of 87/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for AOS.
- Sector peers: Compare AOS against 5 other technology stocks on key financial metrics.
Is AOS a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate A.O. Smith Corporation (AOS) as an investment. The financial health score of 87/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.A.O. Smith Corporation (AOS) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.