A.O. Smith Corporation

Household Appliances

AOSStrong10 of 11 basics passed

$56.38

-0.32%

Market cap $7.66B

$56.38

-0.32%

Market cap $7.66B

A.O. Smith manufactures a broad lineup of water heaters, boilers, and water treatment products.

It is a $7.66B technology company. Revenue grew 0.4% over the last year, it keeps 13¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 15.3× earnings — near the lowest of its own history.

Website: aosmith.com
Location: Milwaukee, WI
Employees: 11 500
Sector: Technology

Share price · 3 years

$69.26 → $56.38-18.6%

price only — dividends excluded

Key facts · TTM

Revenue: total sales; $3.80B
Profit: keeps 13¢ of every $1 sold; $500M
Free cash flow: cash left after running the business; $639M
Net cash: more cash than debt; $80.5M
P/E: years of profit in the price; 15.3
EPS: earnings per share, TTM; $2.75
Dividend: pays out 40% of profit · 31% of FCF; 2.58%
Shares: shares outstanding; 182.1M
Volatility: beta vs the market — under 1 swings less; 1.06

Revenue, last 10 years

52-week range

Low $55.34$56.38High $80.47

Today's price is 4% of the way from the year's low to its high.

P/E vs its history5y

15.3×median 22.8×

Higher than 1% of past days — near the lowest of its own history.

Valuation vs own history

P/E

15.3×

99%

P/S

2.0×

100%

EV/EBITDA

11.9×

99%

P/B

4.2×

100%

FCF yield

8.3%

100%

Share of the last ~5 years that was pricier than today (unusually cheap vs its own history). Based on the daily valuation record.

Standing in Technology

Size$7.66Btop 92%
Revenue growth+1%top 83%
Net margin13%top 49%
Return on equity27%top 31%
P/E15.3×top 15%
Dividend yield2.58%top 12%

Ranked against 220 Technology companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Strong valuation, profitability, health, quality and moat; Growth lags behind.

Valuation90

P/E vs own history1th pct · 25/25
FCF yield8.3% · 25/25
P/S2.0x · 20/25
EV/EBITDA11.0x · 20/25

Growth36

Revenue CAGR2.0% · 6/25
Net income CAGR2.9% · 6/25
EPS CAGR ~5Y7.2% · 12/25
Fwd implied growth5.1% · 12/25

Profitability90

ROIC31.3% · 25/25
ROE27.0% · 25/25
Net margin13.1% · 20/25
Operating margin16.9% · 20/25

Health93

Altman Z5.15 · 25/25
Current ratio1.59 · 18/25
Interest coverage24.0x · 25/25
Net cash / debtNet cash · 25/25

Quality97

Piotroski F7/9 · 22/25
Beneish M-2.53 · 25/25
FCF conversion128% · 25/25
Margin stabilityσ 2.5% · 25/25

Moat81

ROIC >12% years10/10 yrs · 25/25
Median gross margin38.7% · 13/25
FCF-positive years10/10 yrs · 25/25
Worst-year net marginworst 6.3% · 18/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

FY2023Financial
Best year on record
$557M net income
FY2016Financial
Profitable every year on record
10 consecutive profitable years in our data
FY2016Financial
Revenue already above $1B
$2.69B in first reported year
FY2016Financial
Positive free cash flow every year since
10-year streak

Achievements

Verifiable track record, straight from the reported numbers.

$10 000 invested in 2021 would be worth ~$8 089 today — price return only

$3.8B revenue in FY2025

Profitable 10 years in a row

Positive free cash flow 10 years in a row

11 500 employees

ROIC of 31.3%

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

Strong cash conversion — FCF is 16.8% of revenue
Net cash position after subtracting debt from cash
Could repay net debt from ~0.8 years of free cash flow
Interest covered 24.0× by operating earnings
High returns on invested capital (ROIC 31.3%)

Watch-outs

Nothing stands out as a concern in the available data.

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

10 of 11 checks passed

Revenue growing — the company sells more than a year ago+0.4% YoY
Profitable — makes more than it spends$500M TTM
Profit growing — earnings are higher than last year+36.5% YoY
Generates cash — cash left after running and investing$639M TTM
Debt under control — could handle its obligationsmore cash than debt
Established company — not a micro-cap — lower blow-up risk$7.66B market cap
Not printing shares — share count not ballooning — you keep your slice+11.9% shares over ~5y
Proven track record — years of profitability behind it10/10 profitable years
Financially stable — balance sheet not near distressAltman Z 5.1 — safe
Pays a dividend — returns cash to shareholdersyield 2.58%
Valuation not extreme — price not wildly above earningsP/E 15.3

Peer comparisonA.O. Smith Corporation vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
AOS this company	$7.7B	15.3	+0.4%	13.1%	Strong
NVDA Nvidia Corp	$5.5T	28.6	+83.4%	63.7%	Mixed
AAPL Apple Inc.	$4.9T	38.1	+14.2%	27.6%	Strong
GOOGL Alphabet Inc.	$4.3T	17.6	+20.1%	54.8%	Mixed
MSFT Microsoft Corp	$4.0T	29.7	+17.8%	40.3%	Strong
SPCX Space Exploration Technologies Corp.	$2.1T	—	+33.2%	-34.0%	Strained
META Meta Platforms, Inc.	$1.8T	26.9	+27.7%	29.8%	Mixed

Head-to-head: AOS vs NVDA · AOS vs AAPL · AOS vs GOOGL

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 4Buy 4Hold 8Sell 2

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Profit & lossRevenue $3.80B · net income $500M (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2025 revenue flows to profit

RevenueNet income

Revenue (TTM)

$3.80B

YoY 0.4%

Net income (TTM)

$500M

Margin 13.1%

Gross margin

38.6%

Operating margin

16.9%

P/E ratio

15.3

Dividend yield

2.58%

Income statement — full detail

Figures in USD billions · EPS in USD

	2020	2021	2022	2023	2024	2025
Revenue	2.9	3.5	3.8	3.9	3.8	3.8
Gross profit	1.1	1.3	1.3	1.5	1.5	1.5
Operating income (EBIT)	0.4	0.6	0.6	0.7	0.7	0.7
Net income	0.3	0.5	0.2	0.6	0.5	0.5
EPS (diluted)	2.12	3.02	1.51	3.00	3.00	3.00

Cash flowFree cash flow $639M · operating cash flow $692M (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

$639M

Margin 16.8%

Operating cash flow (TTM)

$692M

FCF margin

16.8%

Cash flow statement — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Operating cash flow	0.6	0.6	0.4	0.7	0.6	0.6
Capital expenditure	-0.1	-0.1	-0.1	-0.1	-0.1	-0.1
Free cash flow	0.5	0.6	0.3	0.6	0.5	0.5
FCF margin	17.5%	16.0%	8.6%	15.5%	12.4%	14.3%

Balance sheetAssets $3.14B · net cash $80.5M (FY2025)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $3.14B of assets is financed

41%

59%

Liabilities $1.28B — borrowed moneyEquity $1.86B — owners' stake

Cash vs debt

Total debt $113M − cash $193M = net cash $80.5M

Cash on hand covers all debt.

Altman Z-Score

5.15

Safe zone

Debt repayment

Not needed

Cash already covers all debt

Interest coverage

24.0x

EBIT ÷ interest expense

ROE

27.0%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Cash & equivalents	0.7	0.6	0.5	0.4	0.3	0.2
Total assets	3.2	3.5	3.3	3.2	3.2	3.1
Total liabilities	1.3	1.6	1.6	1.4	1.4	1.3
Total debt	0.1	0.2	0.3	0.1	0.2	0.1
Equity	1.8	1.8	1.7	1.8	1.9	1.9
Net debt	-0.6	-0.4	-0.1	-0.2	-0.1	-0.1

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of AOS on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $56.38 · market cap $7.66B.