Overview Dividends

(AOS) Smith AO - Ratings and Ratios

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

Water Heaters,Boilers,Water Treatment,Heat Pumps,Tanks

AOS EPS (Earnings per Share)

EPS Growth (3Y CAGR): 3.29%
EPS Trend (3Y Correlation): 14.6%

AOS Revenue

Revenue Growth (3Y CAGR): 0.25%
Revenue Trend (3Y Correlation): 4.8%

Description: AOS Smith AO October 31, 2025

A. O. Smith (NYSE:AOS) designs, manufactures, and markets a broad portfolio of residential and commercial water-heating and water-treatment solutions-including gas/electric water heaters, boilers, heat pumps, solar heaters, and filtration systems-across North America, China, Europe, and India.

In fiscal 2023 the company generated roughly $4.5 billion in revenue and posted an adjusted EPS of about $5.00, with an operating margin near 14 %, reflecting strong pricing power in a market driven by tightening building-code efficiency standards and rising demand for low-carbon heating solutions.

Key growth catalysts include: (1) the U.S. residential construction rebound, which fuels water-heater replacements; (2) global ESG and water-conservation regulations that boost sales of high-efficiency heat-pump water heaters and point-of-entry filtration products; and (3) expanding e-commerce sales of the Aquasana brand, which now accounts for roughly 5 % of total net sales.

For a deeper quantitative breakdown, you might explore AOS’s metrics on ValueRay, which aggregates peer-adjusted valuation and cash-flow data to help assess the company’s relative attractiveness.

AOS Stock Overview

Market Cap in USD	9,287m
Sub-Industry	Building Products
IPO / Inception	1984-09-07

AOS Stock Ratings

Growth Rating	21.7%
Fundamental	81.2%
Dividend Rating	60.4%
Return 12m vs S&P 500	-25.4%
Analyst Rating	3.53 of 5

AOS Dividends

Dividend Yield 12m	2.09%
Yield on Cost 5y	2.85%
Annual Growth 5y	7.32%
Payout Consistency	95.2%
Payout Ratio	36.2%

AOS Growth Ratios

Growth Correlation 3m	-59.3%
Growth Correlation 12m	10.8%
Growth Correlation 5y	56.4%
CAGR 5y	8.44%
CAGR/Max DD 3y (Calmar Ratio)	0.25
CAGR/Mean DD 3y (Pain Ratio)	0.73
Sharpe Ratio 12m	-1.24
Alpha	-35.54
Beta	1.303
Volatility	23.63%
Current Volume	983.5k
Average Volume 20d	1151.5k
Stop Loss	64 (-3.1%)
Signal	-0.18

Piotroski VR‑10 (Strict, 0-10) 8.5

Net Income (530.5m TTM) > 0 and > 6% of Revenue (6% = 229.8m TTM)

FCFTA 0.18 (>2.0%) and ΔFCFTA 2.69pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 12.10% (prev 14.59%; Δ -2.49pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.21 (>3.0%) and CFO 655.6m > Net Income 530.5m (YES >=105%, WARN >=100%)

Net Debt (68.7m) to EBITDA (786.1m) ratio: 0.09 <= 3.0 (WARN <= 3.5)

Current Ratio 1.54 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (140.4m) change vs 12m ago -4.28% (target <= -2.0% for YES)

Gross Margin 38.51% (prev 38.17%; Δ 0.34pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 121.1% (prev 123.4%; Δ -2.34pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 52.15 (EBITDA TTM 786.1m / Interest Expense TTM 13.5m) >= 6 (WARN >= 3)

Altman Z'' 10.33

(A) 0.15 = (Total Current Assets 1.32b - Total Current Liabilities 852.5m) / Total Assets 3.17b

(B) 1.22 = Retained Earnings (Balance) 3.88b / Total Assets 3.17b

warn (B) unusual magnitude: 1.22 — check mapping/units

(D) 3.70 = Book Value of Equity 3.91b / Total Liabilities 1.05b

Total Rating: 10.33 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 81.17

1. Piotroski 8.50pt = 3.50

2. FCF Yield 6.12% = 3.06

3. FCF Margin 14.93% = 3.73

4. Debt/Equity 0.10 = 2.49

5. Debt/Ebitda 0.09 = 2.49

6. ROIC - WACC (= 14.95)% = 12.50

7. RoE 27.56% = 2.30

8. Rev. Trend 4.76% = 0.36

9. EPS Trend 14.58% = 0.73

What is the price of AOS shares?

As of November 06, 2025, the stock is trading at USD 66.03 with a total of 983,482 shares traded.
Over the past week, the price has changed by +1.23%, over one month by -8.33%, over three months by -5.59% and over the past year by -11.24%.

Is Smith AO a good stock to buy?

Yes, based on ValueRay´s Fundamental Analyses, Smith AO (NYSE:AOS) is currently (November 2025) a good stock to buy. It has a ValueRay Fundamental Rating of 81.17 and therefor a positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of AOS is around 58.60 USD . This means that AOS is currently overvalued and has a potential downside of -11.25%.

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	78.2	18.4%
Analysts Target Price	78.2	18.4%
ValueRay Target Price	66.6	0.8%

AOS Fundamental Data Overview November 02, 2025

Market Cap USD = 9.29b (9.29b USD * 1.0 USD.USD)
P/E Trailing = 17.7871
P/E Forward = 17.3913
P/S = 2.4248
P/B = 5.5827
P/EG = 1.7907
Beta = 1.303
Revenue TTM = 3.83b USD
EBIT TTM = 704.0m USD
EBITDA TTM = 786.1m USD
Long Term Debt = 183.2m USD (from longTermDebt, last fiscal year)
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 = 9.34b USD (9.29b + Debt 221.4m - CCE 172.8m)
Interest Coverage Ratio = 52.15 (Ebit TTM 704.0m / Interest Expense TTM 13.5m)
FCF Yield = 6.12% (FCF TTM 571.8m / Enterprise Value 9.34b)
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 = 2.94 (Enterprise Value 9.34b / 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 = 0.10 (Debt 221.4m / totalStockholderEquity, last quarter 2.12b)
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 = 1.93b (last 4 quarters mean from totalStockholderEquity)
RoA = 16.73% (Net Income 530.5m / Total Assets 3.17b)
RoE = 27.56% (Net Income TTM 530.5m / Total Stockholder Equity 1.93b)
RoCE = 33.39% (EBIT 704.0m / Capital Employed (Equity 1.93b + L.T.Debt 183.2m))
RoIC = 25.55% (NOPAT 540.9m / Invested Capital 2.12b)
WACC = 10.60% (E(9.29b)/V(9.51b) * Re(10.82%) + D(221.4m)/V(9.51b) * Rd(1.63%) * (1-Tc(0.23)))
Discount Rate = 10.82% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -3.06%
[DCF Debug] Terminal Value 68.32% ; FCFE base≈536.6m ; Y1≈523.5m ; Y5≈528.6m
Fair Price DCF = 53.78 (DCF Value 6.10b / Shares Outstanding 113.4m; 5y FCF grow -3.50% → 3.0% )
EPS Correlation: 14.58 | EPS CAGR: 3.29% | SUE: 0.62 | # QB: 0
Revenue Correlation: 4.76 | Revenue CAGR: 0.25% | SUE: -0.24 | # QB: 0

Additional Sources for AOS Stock

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