(AOS) Smith AO - Ratings and Ratios

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

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

Stock: Building Products
Age 41.4y

MCap 10,088m
Avg Vol 1.06M (73.9M USD)

Beta 0.576
Volatility 26.14%

EPS (Earnings per Share)

EPS CAGR: 2.09%
EPS Trend: 54.4%

Last SUE: 0.62
Qual. Beats: 0

Revenue

Rev. CAGR: -1.45%
Rev. Trend: 2.1%

Last SUE: -0.24
Qual. Beats: 0

Dividends

Dividend Yield	2.04%
Yield on Cost 5y	3.36%
Yield CAGR 5y	6.82%
Payout Consistency	95.3%
Payout Ratio	36.2%

Risk via 5d forecast
Volatility	26.1%
Value at Risk 5%th	41.6%
Relative Tail Risk	-3.37%

Reward TTM
Sharpe Ratio	0.02
Alpha	-8.31
CAGR/Max DD	0.24

Character TTM
Hurst Exponent	0.428
Beta	0.576
Beta Downside	0.374

Drawdowns 3y
Max DD	34.30%
Mean DD	12.88%
Median DD	10.12%

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) 9.0

Net Income: 530.5m TTM > 0 and > 6% of Revenue
FCF/TA: 0.18 > 0.02 and ΔFCF/TA 2.69 > 1.0
NWC/Revenue: 12.10% < 20% (prev 14.59%; Δ -2.49% < -1%)
CFO/TA 0.21 > 3% & CFO 655.6m > Net Income 530.5m
Net Debt (68.7m) to EBITDA (786.1m): 0.09 < 3
Current Ratio: 1.54 > 1.5 & < 3
Outstanding Shares: last quarter (140.4m) vs 12m ago -4.28% < -2%
Gross Margin: 38.51% > 18% (prev 0.38%; Δ 3813 % > 0.5%)
Asset Turnover: 121.1% > 50% (prev 123.4%; Δ -2.34% > 0%)
Interest Coverage Ratio: 52.15 > 6 (EBITDA TTM 786.1m / Interest Expense TTM 13.5m)

Altman Z'' (< 1.1 .. > 2.6) 9.66

A: 0.15 (Total Current Assets 1.32b - Total Current Liabilities 852.5m) / Total Assets 3.17b
B: 1.22 (Retained Earnings 3.88b / Total Assets 3.17b)
C: 0.22 (EBIT TTM 704.0m / Avg Total Assets 3.16b)
D: 3.07 (Book Value of Equity 4.07b / Total Liabilities 1.33b)
Total Rating: 9.66= AAA

ValueRay F-Score (Strict, 0-100) 83.29

1. Piotroski: 9.0pt
2. FCF Yield: 5.63%
3. FCF Margin: 14.93%
4. Debt/Equity: 0.12
5. Debt/Ebitda: 0.09
6. ROIC - WACC: 17.92%
7. RoE: 28.56%
8. Revenue Trend: 2.07%
9. EPS Trend: 54.44%

What is the price of AOS shares?

As of January 22, 2026, the stock is trading at USD 72.24 with a total of 636,635 shares traded.
Over the past week, the price has changed by +1.49%, over one month by +6.06%, over three months by +2.30% and over the past year by +1.43%.

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.

Strong Buy: 4
Buy: 1
Hold: 9
Sell: 1
Strong Sell: 0

What are the forecasts/targets for the AOS price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	78.3	8.3%
Analysts Target Price	78.3	8.3%
ValueRay Target Price	76.5	6%

AOS Fundamental Data Overview January 17, 2026

P/E Trailing = 19.4043
P/E Forward = 17.0358
P/S = 2.6339
P/B = 5.3732
P/EG = 1.7049
Revenue TTM = 3.83b USD
EBIT TTM = 704.0m USD
EBITDA TTM = 786.1m USD
Long Term Debt = 166.8m USD (from longTermDebt, last quarter)
Short Term Debt = 19.0m USD (from shortTermDebt, last quarter)
Debt = 221.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 68.7m USD (from netDebt column, last quarter)
Enterprise Value = 10.16b USD (10.09b + Debt 221.4m - CCE 152.7m)
Interest Coverage Ratio = 52.15 (Ebit TTM 704.0m / Interest Expense TTM 13.5m)
EV/FCF = 17.76x (Enterprise Value 10.16b / FCF TTM 571.8m)
FCF Yield = 5.63% (FCF TTM 571.8m / Enterprise Value 10.16b)
FCF Margin = 14.93% (FCF TTM 571.8m / Revenue TTM 3.83b)
Net Margin = 13.85% (Net Income TTM 530.5m / Revenue TTM 3.83b)
Gross Margin = 38.51% ((Revenue TTM 3.83b - Cost of Revenue TTM 2.35b) / Revenue TTM)
Gross Margin QoQ = 38.67% (prev 39.27%)
Tobins Q-Ratio = 3.20 (Enterprise Value 10.16b / Total Assets 3.17b)
Interest Expense / Debt = 1.63% (Interest Expense 3.60m / Debt 221.4m)
Taxrate = 23.17% (39.8m / 171.8m)
NOPAT = 540.9m (EBIT 704.0m * (1 - 23.17%))
Current Ratio = 1.54 (Total Current Assets 1.32b / Total Current Liabilities 852.5m)
Debt / Equity = 0.12 (Debt 221.4m / totalStockholderEquity, last quarter 1.84b)
Debt / EBITDA = 0.09 (Net Debt 68.7m / EBITDA 786.1m)
Debt / FCF = 0.12 (Net Debt 68.7m / FCF TTM 571.8m)
Total Stockholder Equity = 1.86b (last 4 quarters mean from totalStockholderEquity)
RoA = 16.77% (Net Income 530.5m / Total Assets 3.17b)
RoE = 28.56% (Net Income TTM 530.5m / Total Stockholder Equity 1.86b)
RoCE = 34.78% (EBIT 704.0m / Capital Employed (Equity 1.86b + L.T.Debt 166.8m))
RoIC = 25.82% (NOPAT 540.9m / Invested Capital 2.10b)
WACC = 7.89% (E(10.09b)/V(10.31b) * Re(8.04%) + D(221.4m)/V(10.31b) * Rd(1.63%) * (1-Tc(0.23)))
Discount Rate = 8.04% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -3.06%
[DCF Debug] Terminal Value 78.12% ; FCFF base≈536.6m ; Y1≈523.4m ; Y5≈527.3m
Fair Price DCF = 83.29 (EV 9.51b - Net Debt 68.7m = Equity 9.44b / Shares 113.4m; r=7.89% [WACC]; 5y FCF grow -3.50% → 2.90% )
EPS Correlation: 54.44 | EPS CAGR: 2.09% | SUE: 0.62 | # QB: 0
Revenue Correlation: 2.07 | Revenue CAGR: -1.45% | SUE: -0.24 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.96 | Chg30d=-0.034 | Revisions Net=-3 | Analysts=4
EPS next Year (2026-12-31): EPS=4.03 | Chg30d=-0.092 | Revisions Net=+0 | Growth EPS=+6.3% | Growth Revenue=+4.2%

Additional Sources for AOS Stock

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