Industrials · Industrial - Machinery
Price
$61.80
Market Cap
$8.6B
Employees
12,700
Beta
1.18
Avg Volume
1,693,508
CEO
Stephen Shafer
Business Description
A. O. Smith Corporation (AOS) is a global manufacturer and marketer specializing in a comprehensive array of water heating and treatment solutions. Its operations span North America, China, Europe, and India, organized into two primary geographic segments: North America and Rest of World. The company's product portfolio is extensive, featuring residential and commercial water heaters (gas, heat pump, and electric models), boilers, storage tanks, and various water treatment systems. These products cater to a wide range of applications, including homes, apartments, and condominiums, as well as commercial entities such as restaurants, hotels, office buildings, laundries, car washes, small businesses, hospitals, and schools. Specific offerings include diverse water treatment products like point-of-entry water softeners, well water purification systems, whole-home filtration units, portable filtration bottles, point-of-use carbon filters, and reverse osmosis systems, designed for residential, restaurant, hotel, and office use. A. O. Smith also supplies food and beverage filtration products, expansion tanks, commercial solar water heating installations, and heaters for swimming pools and spas, along with associated components. Advanced heating solutions further encompass heat pumps, electric wall-hung units, gas tankless heaters, combi-boilers, and integrated heat pump and solar water heaters. Products are primarily sold under established brands such as A. O. Smith, State, and Lochinvar, in addition to specialized water softener brands. The company leverages various distribution channels, including independent wholesale plumbing distributors, retail outlets like hardware and home center chains, and manufacturer representative firms. Its Aquasana-branded products are sold directly to consumers through e-commerce platforms and other online retailers. Founded in 1874, A. O. Smith Corporation maintains its corporate headquarters in Milwaukee, Wisconsin.
Business History
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
API Direct from provider
CALC Derived from statements
P/E Ratio (Price per dollar of earnings)
CALCStock Price / EPS (Diluted)
16.01
Stock Price: $61.80
EPS (Diluted): 3.86
EPS (Diluted): 3.86
P/B Ratio (Price vs net asset value)
APIStock Price / Book Value Per Share
5.04
Stock Price: $61.80
Total Equity: $1.86B
Shares: 139,933,000
Total Equity: $1.86B
Shares: 139,933,000
EV/EBITDA (Total value vs operating profit)
APIEnterprise Value / EBITDA
11.84
Market Cap: $8.63B
Total Debt: $155.00M
Cash: $174.50M
EBITDA: $792.20M
Total Debt: $155.00M
Cash: $174.50M
EBITDA: $792.20M
Enterprise Value (Takeover price (cap + debt - cash))
APIMarket Cap + Total Debt - Cash
$9.4B
Market Cap: $8.63B
Total Debt: $155.00M
Cash: $174.50M
Total Debt: $155.00M
Cash: $174.50M
Gross Margin (Revenue left after direct costs)
APIGross Profit / Revenue
38.8%
Gross Profit: $1.49B
Revenue: $3.83B
Revenue: $3.83B
Operating Margin (Revenue left after all operations)
APIOperating Income / Revenue
19.0%
Operating Income: $728.00M
Revenue: $3.83B
Revenue: $3.83B
Net Margin (Revenue left as actual profit)
APINet Income / Revenue
14.3%
Net Income: $546.20M
Revenue: $3.83B
Revenue: $3.83B
ROE (Profit from shareholder equity)
CALCNet Income / Total Equity
29.4%
Net Income: $546.20M
Total Equity: $1.86B
Total Equity: $1.86B
ROIC (Profit from all invested capital)
CALCNOPAT / Invested Capital
30.2%
Operating Income: $728.00M
Tax Rate: 23.6%
Equity: $1.86B
Total Debt: $155.00M
Cash: $174.50M
Tax Rate: 23.6%
Equity: $1.86B
Total Debt: $155.00M
Cash: $174.50M
Current Ratio (Can it pay short-term bills)
APICurrent Assets / Current Liabilities
1.50
Current Assets: $1.29B
Current Liabilities: $862.50M
Current Liabilities: $862.50M
Debt/Equity (Leverage — debt vs equity)
CALCTotal Debt / Total Equity
0.08
Short-Term Debt: $42.30M
Long-Term Debt: $112.70M
Total Debt: $155.00M
Total Equity: $1.86B
Long-Term Debt: $112.70M
Total Debt: $155.00M
Total Equity: $1.86B
Rev/Share (Top-line per share)
CALCRevenue / Shares Outstanding
$27.37
Revenue: $3.83B
Shares: 139,933,000
Shares: 139,933,000
Book Value/Share (Net assets per share)
CALC(Total Assets - Total Liabilities) / Shares
$13.28
Total Equity: $1.86B
Shares: 139,933,000
Shares: 139,933,000
FCF/Share (Real cash generated per share)
CALC(Operating Cash Flow + CapEx) / Shares
$3.90
Operating CF: $616.80M
CapEx: -$70.80M
Shares: 139,933,000
CapEx: -$70.80M
Shares: 139,933,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
APILast Annual Dividend / Stock Price
2.1%
Last Dividend: N/A
Stock Price: $61.80
Stock Price: $61.80
Payout Ratio (Earnings paid out as dividends)
Dividends Paid / Net Income
—
Dividends Paid: N/A
Net Income: $546.20M
Net Income: $546.20M
Dividends paid not available in cash flow statement
Industry Benchmarks
Compares AOS against LLM-researched typical ranges for its
industry. One research call per industry, cached indefinitely — every stock in the same industry
reuses the same baseline.
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
0
Company Classification
— What type of company is this?
1
Industry Landscape
— Where is the industry headed?
2
Company Momentum
— Where is this company trending?
3
Forward Projection
— 1Y & 2Y projected metrics (requires Layer 1 + 2)
4a
DCF Valuation
— Present value of future cash flows
4b
Earnings Power Value
— Floor value — worth with zero growth
4c
Anchored PE
— Industry PE adjusted for growth differential
4d
Reverse DCF
— What growth is the market pricing in?
4e
Revenue-Based DCF
— For growth/narrative companies (skip if mature earner)
4f
Anchored P/S
— Price-to-Sales peer comparison (skip if mature earner)
4g
Scenario Analysis
— Bull / Base / Bear (skip if mature earner)
4h
Dividend Discount Model
— For dividend/income stocks only
4i
Book Value Analysis
— For deep value / turnaround stocks only
4j
Insider Activity
— Are insiders buying or selling?
4f
Cash Flow Quality
— How trustworthy is the FCF?
4g
Debt Maturity Risk
— Can it handle its debt?
4h
Macro Environment
— Rates, market valuation, volatility
4i
Sector Intelligence
— How does this company compare within its sector?
4j
Revenue Confidence
— How reliable is the growth projection?
4k
Sensitivity Analysis
— How fragile is the fair value estimate?
4l
Sector Demand Cycle
— Is the sector in a boom, steady state, or contraction?
5
AI Investigation
— Adaptive research engine (Claude)
5b
Thesis Evaluation
— What does the market believe? (narrative/platform stocks only)
6
Valuation Synthesis
— Weighted verdict from all methods (requires Layer 4)
Income Statement (Annual)
Last updated: Jun 21, 2026 6:59pm (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.5B | $3.8B | $3.9B | $3.8B | $3.8B |
| Cost of Revenue | $2.2B | $2.4B | $2.4B | $2.4B | $2.3B |
| Gross Profit | $1.3B | $1.3B | $1.5B | $1.5B | $1.5B |
| Operating Expenses | $701.4M | $670.9M | $727.4M | $739.3M | $759.4M |
| Operating Income | $609.5M | $658.7M | $757.4M | $716.8M | $728.0M |
| Net Income | $487.1M | $235.7M | $556.6M | $533.6M | $546.2M |
| EBITDA | $707.8M | $310.0M | $823.8M | $786.5M | $792.2M |
| EPS | $3.05 | $1.52 | $3.71 | $3.65 | $3.86 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 21, 2026 6:59pm (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $443.3M | $391.2M | $339.9M | $239.6M | $174.5M |
| Total Current Assets | $1.8B | $1.6B | $1.5B | $1.4B | $1.3B |
| Total Assets | $3.5B | $3.3B | $3.2B | $3.2B | $3.1B |
| Current Liabilities | $1.1B | $934.2M | $945.3M | $897.2M | $862.5M |
| Long-Term Debt | $189.9M | $334.5M | $117.3M | $183.2M | $112.7M |
| Total Liabilities | $1.6B | $1.6B | $1.4B | $1.4B | $1.3B |
| Total Equity | $1.8B | $1.7B | $1.8B | $1.9B | $1.9B |
| Retained Earnings | $2.8B | $2.9B | $3.3B | $3.6B | $4.0B |
Cash Flow (Annual)
Last updated: Jun 21, 2026 6:59pm (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $641.1M | $391.4M | $670.3M | $581.8M | $616.8M |
| Capital Expenditure | -$75.1M | -$70.3M | -$72.6M | -$108.0M | -$70.8M |
| Free Cash Flow | $566.0M | $321.1M | $597.7M | $473.8M | $546.0M |
| Acquisitions (net) | -$207.6M | -$8.0M | -$16.8M | -$145.9M | $0 |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$366.5M | -$403.5M | -$306.5M | -$305.8M | -$400.8M |
| Net Change in Cash | -$129.8M | -$52.1M | -$51.3M | -$100.3M | -$65.1M |
Analyst Estimates (Annual)
Last updated: Jun 26, 2026 12:11pm (20h ago)| Metric | 2026 | 2027 | 2028 | 2029 |
|---|---|---|---|---|
| Revenue |
$3.9B $3.9B – $3.9B
|
$4.1B $4.1B – $4.1B
|
$4.2B $4.2B – $4.2B
|
$4.4B $4.4B – $4.5B
|
| EBITDA |
$1.1B $1.0B – $1.1B
|
$1.1B $1.1B – $1.1B
|
$1.1B $1.1B – $1.1B
|
$1.2B $1.2B – $1.2B
|
| Net Income |
$531.1M $521.9M – $540.2M
|
$582.7M $577.0M – $588.3M
|
$600.5M $592.4M – $664.1M
|
$670.3M $663.6M – $678.1M
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 21, 2026 6:59pm (5d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +6.1% | +2.6% | -0.9% | +0.3% |
| Gross Profit Growth | +1.4% | +11.7% | -1.9% | +2.1% |
| Operating Income Growth | +8.1% | +15.0% | -5.4% | +1.6% |
| Net Income Growth | -51.6% | +136.1% | -4.1% | +2.4% |
| EBITDA Growth | -56.2% | +165.7% | -4.5% | +0.7% |
Dividend History (Last 20)
Last updated: Jun 21, 2026 6:59pm (5d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-04-30 | $0.36 | 2026-04-13 | 2026-04-30 | 2026-05-15 |
| 2026-01-30 | $0.36 | 2026-01-15 | 2026-01-30 | 2026-02-17 |
| 2025-10-31 | $0.36 | 2025-10-13 | 2025-10-31 | 2025-11-17 |
| 2025-07-31 | $0.34 | 2025-07-07 | 2025-07-31 | 2025-08-15 |
| 2025-04-30 | $0.34 | 2025-04-07 | 2025-04-30 | 2025-05-15 |
| 2025-01-31 | $0.34 | 2025-01-16 | 2025-01-31 | 2025-02-18 |
| 2024-10-31 | $0.34 | 2024-10-07 | 2024-10-31 | 2024-11-15 |
| 2024-07-31 | $0.32 | 2024-07-08 | 2024-07-31 | 2024-08-15 |
| 2024-04-29 | $0.32 | 2024-04-09 | 2024-04-30 | 2024-05-15 |
| 2024-01-30 | $0.32 | 2024-01-16 | 2024-01-31 | 2024-02-15 |
| 2023-10-30 | $0.32 | 2023-10-09 | 2023-10-31 | 2023-11-15 |
| 2023-07-28 | $0.30 | 2023-07-10 | 2023-07-31 | 2023-08-15 |
| 2023-04-27 | $0.30 | 2023-04-10 | 2023-04-28 | 2023-05-15 |
| 2023-01-30 | $0.30 | 2023-01-17 | 2023-01-31 | 2023-02-15 |
| 2022-10-28 | $0.30 | 2022-10-12 | 2022-10-31 | 2022-11-15 |
| 2022-07-28 | $0.28 | 2022-07-11 | 2022-07-29 | 2022-08-15 |
| 2022-04-28 | $0.28 | 2022-04-11 | 2022-04-29 | 2022-05-16 |
| 2022-01-28 | $0.28 | 2022-01-18 | 2022-01-31 | 2022-02-15 |
| 2021-10-28 | $0.28 | 2021-10-11 | 2021-10-29 | 2021-11-15 |
| 2021-07-29 | $0.26 | 2021-07-12 | 2021-07-30 | 2021-08-16 |
Narrative Economics
The story the market is telling about this stock — the intangible X-factor
(founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond
what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for AOS — it's generated by the pipeline (
market-narrative step).
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Data via Financial Modeling Prep · Cached for performance · fmp
v1.1.352 · d1100787 · 2026-06-26 11:39:30