AOS
NEUTRAL
$72.46
Live
A. O. Smith Corporation · NYSE
Target $78.27
(+8.0%)
$58.83
52W Range
$77.31
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 24, 2026
Market cap
$10.15B
P/E
19.69
ROE
28.2%
Profit margin
13.9%
Debt/Equity
0.12
Dividend yield
1.92%
AI Analysis
AI-powered fundamental assessment
Confidence
75%
AOS exhibits mixed financial health with a weak Piotroski F-Score of 4/9, indicating borderline stability, and lacks an Altman Z-Score for distress risk assessment. Despite solid profitability metrics like a 28.21% ROE and 18.63% operating margin, the company faces headwinds from declining Q/Q EPS growth (-12.1%) and bearish insider activity. Valuation is stretched relative to Graham's defensive standard ($33.12) but aligns with growth-based intrinsic value ($106.35), while trading below analyst target ($78.27). The stock shows resilience in earnings beats over time, though recent deceleration and technical bearishness temper optimism.
Key Strengths
Strong return on equity (28.21%) well above sector average (6.07%)
Low debt/equity ratio (0.12) indicating conservative capital structure
Consistent earnings beat history with 3 out of last 4 quarters exceeding estimates
Attractive dividend yield (1.92%) with sustainable payout ratio (36.66%)
Trading below analyst target price ($78.27 vs. current $72.46)
Key Risks
Weak Piotroski F-Score (4/9) signaling suboptimal financial health
Negative Q/Q EPS growth (-12.1%) despite positive YoY growth
Bearish insider sentiment with $3M in net insider selling over last 6 months
High price-to-book ratio (5.47) compared to sector peers
Technical trend score of 0/100 indicating bearish momentum
AI Fair Value Estimate
Based on comprehensive analysis
$92.5
+27.7% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
61
Strong
58
55
70
50
72
AI Verdict
Neutral with upside potential if growth reaccelerates
Key drivers: High profitability and low leverage support valuation, Recent earnings deceleration and insider selling cap near-term upside, Valuation premium to Graham but discount to intrinsic and target
Confidence
75%
Value
58/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E (17.96) below sector average (48.97)
- Trading below analyst target and growth-based intrinsic value
Watchpoints
- Price significantly above Graham Number ($72.46 vs $33.12)
- High P/B (5.47) suggests premium valuation
Future
55/100
Ref Growth rates
Positives
- Positive YoY earnings growth (14.6%) and revenue growth (4.4%)
- Analyst target implies 8% upside
Watchpoints
- Q/Q EPS down -12.1%
- PEG Ratio unavailable, limiting growth-adjusted valuation
Past
70/100
Ref Historical trends
Positives
- Long history of earnings beats (20+ quarters with positive surprises)
- Strong average surprise of 5.17% over last 4 quarters
Watchpoints
- Most recent quarter missed estimates (-4.8%)
- Earnings growth has been volatile
Health
50/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Current ratio of 1.54 indicates adequate liquidity
- Debt/equity of 0.12 shows minimal leverage risk
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial health
- Quick ratio of 0.89 below 1.0 threshold suggests potential short-term liquidity pressure
- Altman Z-Score not available, limiting distress risk assessment
Dividend
72/100
Ref Yield, Payout
Positives
- Dividend yield (1.92%) above market average
- Payout ratio (36.66%) is sustainable
- Dividend strength score of 40/100 suggests room for improvement
Watchpoints
- 5-year average yield unavailable, limiting trend analysis
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$72.46
Analyst Target
$78.27
Upside/Downside
+8.0%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AOS and closest competitors.
Updated 2026-01-23
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AOS
A. O. Smith Corporation
Primary
|
+39.3% | +26.1% | +3.8% | +1.6% | +6.6% | -0.0% |
|
ASR
Grupo Aeroportuario del Sureste, S. A. B. de C. V.
Peer
|
+162.2% | +35.0% | +32.3% | +11.4% | +2.4% | +4.7% |
|
ARMK
Aramark
Peer
|
+61.1% | +25.2% | +2.9% | -10.4% | +3.5% | -1.4% |
|
DCI
Donaldson Company, Inc.
Peer
|
+54.2% | +47.0% | +37.2% | +7.5% | +2.1% | -0.3% |
|
GTLS
Chart Industries, Inc.
Peer
|
+27.6% | +56.0% | +53.7% | +4.0% | +0.4% | -0.3% |
AOS
A. O. Smith Corporation
Primary
5Y
+39.3%
3Y
+26.1%
1Y
+3.8%
6M
+1.6%
1M
+6.6%
1W
-0.0%
ASR
Grupo Aeroportuario del Sureste, S. A. B. de C. V.
Peer
5Y
+162.2%
3Y
+35.0%
1Y
+32.3%
6M
+11.4%
1M
+2.4%
1W
+4.7%
ARM
Aramark
Peer
5Y
+61.1%
3Y
+25.2%
1Y
+2.9%
6M
-10.4%
1M
+3.5%
1W
-1.4%
DCI
Donaldson Company, Inc.
Peer
5Y
+54.2%
3Y
+47.0%
1Y
+37.2%
6M
+7.5%
1M
+2.1%
1W
-0.3%
GTL
Chart Industries, Inc.
Peer
5Y
+27.6%
3Y
+56.0%
1Y
+53.7%
6M
+4.0%
1M
+0.4%
1W
-0.3%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
19.69
Forward P/E
17.96
PEG Ratio
N/A
P/B Ratio
5.47
P/S Ratio
2.65
EV/Revenue
2.65
EV/EBITDA
12.93
Market Cap
$10.15B
Profitability
Profit margins and return metrics
Profit Margin
13.85%
Operating Margin
18.63%
Gross Margin
38.51%
ROE
28.21%
ROA
13.88%
Growth
Revenue and earnings growth rates
Revenue Growth
+4.4%
Earnings Growth
+14.6%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+9.9%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.12
Low debt
Current Ratio
1.54
Good
Quick Ratio
0.89
Poor
Cash/Share
$1.24
Quarterly Earnings History
EPS performance vs analyst estimates
2026-01-29
$N/A
2025-10-28
$0.94
+3.3% surprise
2025-07-24
$1.07
+7.9% surprise
2025-04-29
$0.95
+4.3% surprise
Industrials Sector Comparison
Comparing AOS against 469 companies in the Industrials sector
(39 bullish, 174 neutral, 256 bearish)
P/E Ratio
19.69
This Stock
vs
98.24
Sector Avg
-80.0%
(Discount)
Return on Equity (ROE)
28.21%
This Stock
vs
-19.38%
Sector Avg
-245.5%
(Below Avg)
Profit Margin
13.85%
This Stock
vs
6.65%
Sector Avg
+108.2%
(Superior)
Debt to Equity
0.12
This Stock
vs
2.63
Sector Avg
-95.4%
(Less Debt)
Revenue Growth
4.4%
This Stock
vs
71.29%
Sector Avg
-93.8%
(Slower)
Current Ratio
1.54
This Stock
vs
3.09
Sector Avg
-50.0%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
AOS
A. O. Smith Corporation
|
NEUTRAL | $10.15B | 19.69 | 28.2% | 13.9% | $72.46 | |
|
ASR
Grupo Aeroportuario del...
|
NEUTRAL | $10.2B | 13.07 | 23.0% | 31.7% | $338.17 | Compare |
|
ARMK
Aramark
|
NEUTRAL | $10.28B | 32.3 | 10.5% | 1.8% | $39.08 | Compare |
|
DCI
Donaldson Company, Inc.
|
BEARISH | $10.3B | 27.8 | 24.3% | 10.1% | $88.96 | Compare |
|
GTLS
Chart Industries, Inc.
|
BEARISH | $9.94B | 629.0 | 1.2% | 1.0% | $207.57 | Compare |
AOS
A. O. Smith Corporation
NEUTRAL
Mkt Cap
$10.2B
P/E
19.7
ROE
28.2%
Price
$72.46
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-01 | STERN JAMES F | Officer | Gift | 2,500 | - |
| 2025-08-29 | KULKARNI PARAG | Officer | Option Exercise | 2,140 | $152,561 |
| 2025-08-07 | STERN JAMES F | General Counsel | Sale | 17,434 | $1,241,953 |
| 2025-07-31 | LAUBER CHARLES T. | Chief Financial Officer | Option Exercise | 2,933 | $92,888 |
| 2025-07-30 | WHEELER KEVIN J. | Officer and Director | Sale | 22,200 | $1,581,868 |
| 2025-07-30 | WHEELER KEVIN J. | Officer and Director | Option Exercise | 22,200 | $703,074 |
| 2025-07-29 | SMITH MARK D | Director | Sale | 2,400 | $171,264 |
STERN JAMES F
Officer
2025-12-01
2,500 shares
KULKARNI PARAG
Officer
2025-08-29
2,140 shares
·
$152,561
STERN JAMES F
General Counsel
2025-08-07
17,434 shares
·
$1,241,953
LAUBER CHARLES T.
Chief Financial Officer
2025-07-31
2,933 shares
·
$92,888
WHEELER KEVIN J.
Officer and Director
2025-07-30
22,200 shares
·
$1,581,868
WHEELER KEVIN J.
Officer and Director
2025-07-30
22,200 shares
·
$703,074
SMITH MARK D
Director
2025-07-29
2,400 shares
·
$171,264
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
11 analysts
DA Davidson
2025-11-13
Neutral
Neutral
Citigroup
2025-10-29
Neutral
Neutral
Stifel
2025-10-29
Buy
Buy
UBS
2025-07-28
Neutral
Neutral
Oppenheimer
2025-07-28
Outperform
Outperform
Past News Coverage
Recent headlines mentioning AOS from our newsroom.
Newest → oldest
No matching news yet.