(AOS) Smith AO - Overview

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US8318652091

Stock: Water Heaters, Boilers, Heat Pumps, Water Treatment, Filtration

Total Rating 65

Risk 90

Buy Signal -0.17

Specialty Industrial Machinery » Building Products
Age: 41.4y

Market Cap: 10,298m
Avg Trading Vol: 95.3M USD

ATR: 2.33%
Peers RS (IBD): 70.00

EPS (Earnings per Share)

EPS CAGR: 4.25%
EPS Trend: 50.9%

Last SUE: 1.71
Qual. Beats: 1

Revenue

Rev. CAGR: -1.82%
Rev. Trend: 0.9%

Last SUE: -0.74
Qual. Beats: 0

Dividends

Dividend Yield	2.02%
Yield on Cost 5y	2.51%
Yield CAGR 5y	6.82%
Payout Consistency	95.3%
Payout Ratio	29.7%

Risk 5d forecast
Volatility	25.3%
Relative Tail Risk	-3.41%

Reward TTM
Sharpe Ratio	0.79
Alpha	11.97

Character TTM
Beta	0.581
Beta Downside	0.422

Drawdowns 3y
Max DD	34.30%
CAGR/Max DD	0.24

Description: AOS Smith AO January 03, 2026

A. O. Smith Corp. (NYSE:AOS) designs, manufactures, and sells a broad portfolio of residential and commercial water-heating and treatment solutions-including gas/electric water heaters, boilers, heat pumps, solar heaters, expansion tanks, and filtration systems-across North America, China, Europe, and India. Its brands (A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, Water Tec, and Aquasana) reach end-users through wholesale plumbing distributors, hardware/home-center chains, manufacturer reps, and direct-to-consumer e-commerce channels.

Key operating metrics from FY 2023 show revenue of roughly $3.5 billion, an adjusted EBITDA margin of 14 %, and a free-cash-flow conversion of 70 % of EBITDA, underscoring strong cash generation. The segment’s growth is closely tied to housing-starts and renovation spending, which have risen 6 % YoY in the U.S., while tightening energy-efficiency standards (e.g., DOE’s 2025 heat-pump water-heater rule) are accelerating demand for high-efficiency heat-pump and tankless units. Internationally, China’s commercial-boiler market is expanding at a 9 % annual rate, providing a secular tailwind for the company’s Lochinvar brand.

For a deeper quantitative look at AOS’s valuation metrics, you might explore the analyst tools on ValueRay.

Piotroski VR‑10 (Strict, 0-10) 9.5

Net Income: 546.2m TTM > 0 and > 6% of Revenue
FCF/TA: 0.17 > 0.02 and ΔFCF/TA 2.75 > 1.0
NWC/Revenue: 11.20% < 20% (prev 12.98%; Δ -1.78% < -1%)
CFO/TA 0.20 > 3% & CFO 616.8m > Net Income 546.2m
Net Debt (17.6m) to EBITDA (792.2m): 0.02 < 3
Current Ratio: 1.50 > 1.5 & < 3
Outstanding Shares: last quarter (139.9m) vs 12m ago -4.00% < -2%
Gross Margin: 38.83% > 18% (prev 0.38%; Δ 3845 % > 0.5%)
Asset Turnover: 120.0% > 50% (prev 117.8%; Δ 2.17% > 0%)
Interest Coverage Ratio: 41.90 > 6 (EBITDA TTM 792.2m / Interest Expense TTM 13.5m)

Altman Z'' 8.32

A: 0.14 (Total Current Assets 1.29b - Total Current Liabilities 862.5m) / Total Assets 3.14b
B: 1.23 (Retained Earnings 3.88b / Total Assets 3.14b)
C: 0.18 (EBIT TTM 565.6m / Avg Total Assets 3.19b)
D: 2.10 (Book Value of Equity 2.13b / Total Liabilities 1.01b)
Altman-Z'' Score: 8.32 = AAA

Beneish M -2.99

DSRI: 1.07 (Receivables 582.3m/541.4m, Revenue 3.83b/3.82b)
GMI: 0.98 (GM 38.83% / 38.10%)
AQI: 1.02 (AQ_t 0.37 / AQ_t-1 0.37)
SGI: 1.00 (Revenue 3.83b / 3.82b)
TATA: -0.02 (NI 546.2m - CFO 616.8m) / TA 3.14b)
Beneish M-Score: -2.99 (Cap -4..+1) = A

What is the price of AOS shares?

As of February 07, 2026, the stock is trading at USD 78.98 with a total of 1,103,290 shares traded.
Over the past week, the price has changed by +7.47%, over one month by +15.62%, over three months by +21.03% and over the past year by +23.03%.

Is AOS a buy, sell or hold?

Smith AO has received a consensus analysts rating of 3.53. Therefor, it is recommend to hold AOS.

StrongBuy: 4
Buy: 1
Hold: 9
Sell: 1
StrongSell: 0

What are the forecasts/targets for the AOS price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	78.8	-0.2%
Analysts Target Price	78.8	-0.2%
ValueRay Target Price	85	7.6%

AOS Fundamental Data Overview February 01, 2026

P/E Trailing = 19.0883
P/E Forward = 17.2414
P/S = 2.6887
P/B = 5.5073
P/EG = 1.7251
Revenue TTM = 3.83b USD
EBIT TTM = 565.6m USD
EBITDA TTM = 792.2m USD
Long Term Debt = 166.8m USD (from longTermDebt, two quarters ago)
Short Term Debt = 42.3m USD (from shortTermDebt, last quarter)
Debt = 192.1m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 17.6m USD (from netDebt column, last quarter)
Enterprise Value = 10.30b USD (10.30b + Debt 192.1m - CCE 193.2m)
Interest Coverage Ratio = 41.90 (Ebit TTM 565.6m / Interest Expense TTM 13.5m)
EV/FCF = 18.86x (Enterprise Value 10.30b / FCF TTM 546.0m)
FCF Yield = 5.30% (FCF TTM 546.0m / Enterprise Value 10.30b)
FCF Margin = 14.26% (FCF TTM 546.0m / Revenue TTM 3.83b)
Net Margin = 14.26% (Net Income TTM 546.2m / Revenue TTM 3.83b)
Gross Margin = 38.83% ((Revenue TTM 3.83b - Cost of Revenue TTM 2.34b) / Revenue TTM)
Gross Margin QoQ = 38.40% (prev 38.67%)
Tobins Q-Ratio = 3.28 (Enterprise Value 10.30b / Total Assets 3.14b)
Interest Expense / Debt = 1.25% (Interest Expense 2.40m / Debt 192.1m)
Taxrate = 21.92% (35.2m / 160.6m)
NOPAT = 441.6m (EBIT 565.6m * (1 - 21.92%))
Current Ratio = 1.50 (Total Current Assets 1.29b / Total Current Liabilities 862.5m)
Debt / Equity = 0.09 (Debt 192.1m / totalStockholderEquity, last quarter 2.13b)
Debt / EBITDA = 0.02 (Net Debt 17.6m / EBITDA 792.2m)
Debt / FCF = 0.03 (Net Debt 17.6m / FCF TTM 546.0m)
Total Stockholder Equity = 1.92b (last 4 quarters mean from totalStockholderEquity)
RoA = 17.11% (Net Income 546.2m / Total Assets 3.14b)
RoE = 28.46% (Net Income TTM 546.2m / Total Stockholder Equity 1.92b)
RoCE = 27.12% (EBIT 565.6m / Capital Employed (Equity 1.92b + L.T.Debt 166.8m))
RoIC = 21.02% (NOPAT 441.6m / Invested Capital 2.10b)
WACC = 7.93% (E(10.30b)/V(10.49b) * Re(8.06%) + D(192.1m)/V(10.49b) * Rd(1.25%) * (1-Tc(0.22)))
Discount Rate = 8.06% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -3.23%
[DCF Debug] Terminal Value 79.44% ; FCFF base≈517.1m ; Y1≈558.5m ; Y5≈689.8m
Fair Price DCF = 106.8 (EV 12.13b - Net Debt 17.6m = Equity 12.11b / Shares 113.4m; r=7.93% [WACC]; 5y FCF grow 9.05% → 2.90% )
EPS Correlation: 50.87 | EPS CAGR: 4.25% | SUE: 1.71 | # QB: 1
Revenue Correlation: 0.86 | Revenue CAGR: -1.82% | SUE: -0.74 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.97 | Chg30d=-0.020 | Revisions Net=-3 | Analysts=11
EPS current Year (2026-12-31): EPS=4.03 | Chg30d=-0.091 | Revisions Net=+2 | Growth EPS=+4.8% | Growth Revenue=+4.3%
EPS next Year (2027-12-31): EPS=4.40 | Chg30d=-0.030 | Revisions Net=+3 | Growth EPS=+9.1% | Growth Revenue=+3.8%

Additional Sources for AOS Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Fund Manager Positions: Dataroma | Stockcircle