A.O. Smith (AOS) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

A.O. Smith

NYSE•Industrials•Specialty Industrial Machinery

$63.84-1.58(-0.02%)After hours

Market Cap

$8.86B

P/E

17.9x

P/S

2.3x

P/B

4.9x

A. 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.

How this company scores

GoodMetricSide Score: 64/100

Strongest: Profitability (19/25); weakest: Growth (10/25).

Profitability19/25

Growth10/25

Balance Sheet & Red Flags17/25

Cash & Earnings Quality18/25

Strengths

Strong marginsHigh ROELow leverageInterest easily covered

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 17.9x5y range 15.2x – 42.2x

Currently near its 20-quarter median.

P/S · 2.3x5y range 2.0x – 3.8x

Currently near its 20-quarter median.

P/B · 4.9x5y range 4.3x – 7.4x

Currently near its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Leverage Risk

Watch

Debt-to-equity has risen 283.4% recently — increasing financial risk even if the current ratio is manageable.

Price & Volume

Market Cap $8.86B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $3.80B
Q. Revenue: $940.50M
TTM EBITDA: $760.10M
TTM Op. Income: $665.30M
Q. Op. Income: $174.40M
TTM Net Income: $494.60M
Q. Net Income: $126.30M
EPS: $0.93
Shares Out.: $135.36M

$3.80B in TTM revenue declined 0.7% YoY, reaching $940.50M last quarter. TTM EBITDA of $760.10M and TTM operating income of $665.30M show growth is flowing through to the bottom line. TTM net income of $494.60M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has fallen for 3 consecutive quarters — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 38.8%
EBITDA Margin: 21.1%
Op. Margin: 18.5%
Net Margin: 13.4%

Op. margin of 18.5% is down 0.1% YoY — costs are rising relative to revenue. Net margin at 13.4% and gross margin of 38.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 0% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 17.9x
P/S Ratio: 2.3x
P/B Ratio: 4.9x

At 17.9x P/E, the stock trades within typical market levels. P/S of 2.3x and P/B of 4.9x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 2 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $3.65B
Cash: $234.50M
Long-Term Debt: $632.10M
Book Value: $1.82B
D/E Ratio: 0.3
Debt/EBITDA: 3.2

With $3.65B in assets and $632.10M in long-term debt, D/E is 0.3and book value is $1.82B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has risen for 3 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $175.60M
TTM Free Cash Flow: $612.50M
FCF Margin: 16.1%
FCF / Net Income: 1.2

TTM FCF of $612.50M on $175.60M in operating cash flow. The FCF / Net Income ratio of 1.2x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.