# A.O. Smith Corporation (AOS) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Machinery. Price $60.48, market value $8.2 billion.

## Valuation
- **P/E (trailing): 16.8×** (5-yr avg 23.7×, 3-yr avg 18.9×). A.O. Smith Corporation trades at 16.8× trailing earnings, well below its own five-year average of 23.7×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 14.8×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.44**. A PEG of 2.44 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 2.2×**. Each dollar of revenue is priced at 2.2×.
- **Price / book: 4.5×**. The shares trade at 4.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 10.8×**. Enterprise value is 10.8× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 7.8%** (5-yr avg 4.8%). Free cash flow equals 7.8% of the market value, above its five-year average of 4.8%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.9%**. The inverse of the P/E: 5.9% of the price is earned each year.

## Profitability
- **Gross margin: 38.6%**. A.O. Smith Corporation keeps 38.6% of revenue after the direct cost of what it sells.
- **Operating margin: 17.5%**. 17.5% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 14.3%**. 14.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 29.4%**. 29.4% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 28.6%**. Return on all capital, debt included, is 28.6%: comfortably above what that capital costs.
- **Return on assets: 15.9%**. Each dollar of assets produces 15.9% of profit.

## Growth
- **Revenue growth (1 yr): 0.3%** (3-yr 0.7%/yr, 5-yr 5.8%/yr). Revenue grew 0.3% over the last year, against 5.8% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 6.1%** (3-yr 36.6%/yr, 5-yr 12.7%/yr). Earnings per share rose 6.1%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 19.4%/yr**. Free cash flow has compounded at 19.4% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.08**. Debt is 0.08 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. A.O. Smith Corporation holds more cash than debt.
- **Altman Z-score: 6.65**. A Z-score of 6.65 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.38%** ($1.42 per share, trailing). A.O. Smith Corporation yields 2.38%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 36%** (31% of free cash flow). 36% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 7.1%/yr** (1-yr 6.2%). The dividend has grown 7.1% a year over five years.

## Analyst view
- **Analyst consensus: hold** (11 analysts). 11 analysts cover A.O. Smith Corporation; the consensus is hold, with an average price target of $69.91 (+16% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -15.4%** (YTD -8.6%, 3-mo 5.7%). The shares are down 15.4% over twelve months including dividends.
- **From 52-week high: -26.1%** (11.7% above the low). Trading 26% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 0.79** (volatility 27%). Beta of 0.79 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AOS · Page: https://foliofundamentals.com/stocks/aos

Not investment advice.