XStocksXray

Research report · 16 October 2026

Smith A O Corp (AOS)

Industrials · Building Products · US stock · price as of 16 Oct 2026

Key indicators

Price	$59.22
52-week range	$53.83 – $80.92
Market cap	$8.2B
P/E (trailing)	16.6×
EV / EBITDA	11.4×
Free-cash-flow yield	7.8%
Dividend yield	2.4%
Revenue (last 12 months)	$3.8B
Revenue growth (3y a year)	0.7%
Operating margin	17.5%
Return on invested capital	22.5%
Net debt / EBITDA	0.6×

Fair value

Blended fair value$97.80 range $94 – $102

Versus priceUndervalued+65% to fair value

Peer multiples	$101.99
Fundamentals-adjusted multiple	$101.47
10-year DCF (market-scaled)	$89.94
Earnings power value (floor, not blended)	$37.34
Model uncertainty	Medium

X-Ray Score

68/ 100 · High confidence · ahead of 98% of sector peers

Valuation91

Growth42

Profitability60

Financial health79

Dividends60

Five-year price chart navy: price · brown: 200-day average · blue band: fair value range

Executive summary

A. O. Smith makes water heaters and water treatment products for homes and businesses, selling in North America, China, India and other regions. Its products reach customers through plumbing wholesalers, retailers, contractors and online channels. Revenue comes from product sales, with a large share from replacement of existing heaters, and results depend on housing activity, material costs and energy efficiency rules.

Revenue at Smith A O Corp was $3.8 billion across the last twelve months. Across three years, sales expanded by 0.7% a year. Operating profit was 17.5% of revenue. It earned a return on invested capital of 22%. Debt after cash comes to 0.6 times EBITDA. Shareholders receive a dividend yielding 2.4%.

StocksXray gives Smith A O Corp an X-Ray Score of 68 out of 100 (high confidence), ahead of 98% of the S&P 500 stocks in its sector. Its strongest lens is valuation (91) and its weakest is growth (42).

Our fair value blend is $97.80 (range $93.73 to $101.67). At $59.22 the stock trades 39% below that blend, so the label is "Undervalued" with medium model uncertainty. Fair value is a range, not a price target.

XStocksXray

Smith A O Corp (AOS)

Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months

	FY2021	FY2022	FY2023	FY2024	FY2025	Now
Price	$78.47	$53.30	$78.18	$65.73	$65.78	$59.22
Market cap	$12.7B	$8.3B	$11.8B	$9.7B	$9.3B	$8.2B
P/E	26.0×	35.3×	21.2×	18.1×	17.1×	16.6×
EV / revenue	3.5×	2.2×	3.0×	2.5×	2.4×	2.3×
EV / EBITDA	16.1×	18.6×	14.0×	12.2×	11.4×	11.4×
Price / free cash flow	22.4×	25.9×	19.8×	20.4×	17.1×	12.8×
Free-cash-flow yield	4.5%	3.9%	5.1%	4.9%	5.8%	7.8%
Price / book	6.9×	4.8×	6.4×	5.1×	5.0×	4.4×
Dividend yield	1.35%	2.14%	1.56%	1.98%	2.10%	2.43%

Fundamentals checklist ● 11 Good · ● 3 Average · ● 2 Bad · each check graded against the sector

Cash quality

Earnings backed by cash−5.3%Good

Free-cash-flow yield7.8%Good

Risk models

Altman Z score6.9×Good

Piotroski F-Score8 of 9Good

Growth

EPS growth (3y)36.6%Good

Free-cash-flow growth (3y)19.4%Average

Revenue growth (3y)0.7%Bad

Growth consistency40%Bad

Balance sheet

Current ratio1.6×Good

Net debt / EBITDA0.6×Good

Interest cover31.4×Average

Valuation

Fair value vs price1.7×Good

EBIT / EV yield7.7%Good

Profitability

Return on invested capital22.5%Good

Operating margin17.5%Average

Gross profitability40.3%Good

XStocksXray

Smith A O Corp (AOS)

Financials US$ millions, from SEC filings; last column is the last twelve months

Income statement	FY21	FY22	FY23	FY24	FY25	LTM
Revenue	3,539	3,754	3,853	3,818	3,830	3,805
Gross profit	1,311	1,330	1,485	1,456	1,487	1,468
Operating income	682	362	746	708	729	666
Net income	487	236	557	534	546	500
Diluted EPS ($)	3.02	1.51	3.69	3.63	3.85	3.57
Free cash flow	566	321	598	474	546	639
Gross margin	37.0%	35.4%	38.5%	38.1%	38.8%	38.6%
Operating margin	19.3%	9.6%	19.3%	18.5%	19.0%	17.5%
Net margin	13.8%	6.3%	14.4%	14.0%	14.3%	13.1%
Balance sheet	FY21	FY22	FY23	FY24	FY25	LTM
Total assets	3,474	3,332	3,214	3,240	3,143	3,645
Cash	443	391	340	240	175	181
Total debt	197	345	127	193	155	638
Equity	1,832	1,748	1,844	1,884	1,858	1,842
Dividend per share ($)	1.06	1.14	1.22	1.30	1.38	1.42

Revenue and net income US$ billions: navy revenue, teal net income

Margins blue gross, teal operating, brown net

Latest quarters

	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue ($M)	964	1,011	943	913	946	1,004
Growth vs a year earlier	−1.5%	−1.3%	+4.4%	+0.0%	−1.9%	−0.7%
Net income ($M)	137	152	132	125	118	125
Diluted EPS ($)	0.95	1.07	0.94	–	0.85	0.91

XStocksXray

Smith A O Corp (AOS)

Peers in Building Products

Company	X-Ray
AOS · Smith A O Corp	68
LII · Lennox International Inc	62
ALLE · Allegion plc	62
MAS · Masco Corp	58
TT · Trane Technologies plc	58

Market Compass outlook for Industrials: Neutral (45/100). It blends regime history, macro sensitivity, momentum and valuation.

Returns

1 week	+5.0%
1 month	+4.0%
3 months	+1.2%
6 months	−7.6%
1 year	−12.5%
3 years	−11.7%
5 years	+1.3%

Technical summary

DailyNeutral6 bullish · 3 neutral · 7 bearish

WeeklyStrongly bearish2 bullish · 1 neutral · 9 bearish

MonthlyStrongly bearish0 bullish · 1 neutral · 7 bearish

50-day / 200-day average	$59.22 / $63.35
52-week low / high	$53.83 / $80.92
Classic pivot, support and resistance	S2 57.63 · S1 58.42 · P – · R1 60.40 · R2 61.59

Recent dividends

Ex-dividend date	Amount per share
30 Oct 2026	$0.3800
31 Jul 2026	$0.3600
30 Apr 2026	$0.3600
30 Jan 2026	$0.3600
31 Oct 2025	$0.3600
31 Jul 2025	$0.3400

XStocksXray

Smith A O Corp (AOS)

Strengths

Return on invested capital of 22.5% is ahead of 69% of its sector peers.
Free-cash-flow yield of 7.8% is ahead of 94% of its sector peers.
Net debt is only 0.6× EBITDA, ahead of 89% of its sector peers.
Piotroski F-Score of 8 out of 9: most of the nine accounting health tests pass.
Has raised its dividend for 7 years in a row.

Risks and weak spots

Revenue growth (3y) is weak against Industrials peers (0.7%).
Growth consistency is weak against Industrials peers (40%).

Latest SEC filings

Date	Form	Items
30 Jul 2026	10-Q
30 Jul 2026	8-K	2.02,9.01
22 Jun 2026	8-K	5.02,9.01
19 May 2026	8-K	5.02,9.01
30 Apr 2026	10-Q
30 Apr 2026	8-K	2.02,9.01
17 Apr 2026	8-K	5.07,8.01
4 Mar 2026	DEF 14A

How to read this report

Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.