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

$56.93+0.04(<0.01%)After hours

Market Cap

$7.81B

P/E

15.6x

P/S

2.1x

P/B

4.2x

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: 70/100

Strongest: Cash & Earnings Quality (25/25); weakest: Growth (12/25).

Profitability16/25

Growth12/25

Balance Sheet & Red Flags17/25

Cash & Earnings Quality25/25

Strengths

Rising free cash flowStrong marginsHigh ROELow leverage

Valuation vs. 5-year range

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

P/E · 15.6x5y range 15.2x – 42.2x

Currently near its 20-quarter median.

P/S · 2.1x5y range 2.0x – 3.8x

Currently near its 20-quarter median.

P/B · 4.2x5y range 4.2x – 7.4x

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 110.9% recently — increasing financial risk even if the current ratio is manageable.

Revenue Decline

Watch

Revenue has softened, declining in 5 quarters. Watch for further erosion.

Price & Volume

Market Cap $7.81B

Metrics at a Glance

as of June 2026

Revenue & Profit

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

TTM Revenue: $3.80B
Q. Revenue: $1.00B
TTM EBITDA: $758.70M
TTM Op. Income: $666.30M
Q. Op. Income: $166.10M
TTM Net Income: $500.30M
Q. Net Income: $124.90M
EPS: $0.91
Shares Out.: $137.15M

$3.80B in TTM revenue grew 0.4% YoY, reaching $1.00B last quarter. TTM EBITDA of $758.70M and TTM operating income of $666.30M show growth is flowing through to the bottom line. TTM net income of $500.30M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has fallen for 2 consecutive quarters — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 38.6%
EBITDA Margin: 19.0%
Op. Margin: 16.5%
Net Margin: 12.4%

Op. margin of 16.5% is down 3.9% YoY — costs are rising relative to revenue. Net margin at 12.4% and gross margin of 38.6% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 4 consecutive quarters — a weakening trend.

Price Ratios

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

P/E Ratio: 15.6x
P/S Ratio: 2.1x
P/B Ratio: 4.2x

At 15.6x P/E, the stock trades within typical market levels. P/S of 2.1x and P/B of 4.2x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 3 consecutive quarters — an improving trend.

Assets & Liabilities

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

Total Assets: $3.64B
Cash: $181.30M
Long-Term Debt: $598.00M
Book Value: $1.84B
D/E Ratio: 0.3
Debt/EBITDA: 3.1

With $3.64B in assets and $598.00M in long-term debt, D/E is 0.3and book value is $1.84B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has risen for 2 consecutive quarters — a weakening trend.

Cash Flow

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

Op. Cash Flow: $124.40M
TTM Free Cash Flow: $692.30M
FCF Margin: 18.2%
FCF / Net Income: 1.4

TTM FCF of $692.30M on $124.40M in operating cash flow. The FCF / Net Income ratio of 1.4x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 16% — a weakening trend.