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A. O. Smith

NYSE: AOS

Stock price

62.5 USD

(+0%) TODAY

Building ProductsIndustrial - Machinery

Financial Performance

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5Y price score: (17)

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The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.

A score of 100 indicates that the stock did as well as the S&P 500 Index.

A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.

10Y return: 53.6%

DATE RANGE:

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    54.1

    52-week range

    81.8

    62.5

    Your model inputs

    Required return / cost of capital
    %
    FCFF terminal growth rate
    %

    Your fair value & Margin of safety

    To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

    Forecast:

    Valuation

    Free Cash Flow Yield

    Help
    FCF Yield TTM = Trailing Twelve Months free cash flow per share / current market price per shareLearn more

    7.3 %

    Dividend Yield TTM

    2.3 %

    Market cap $

    $ 8,662

    Price / Earnings TTM

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    P/E TTM = current market price per share / Trailing Twelve Months diluted earnings per shareLearn more

    17.4

    Price / Book TTM

    4.7

    PEG TTM

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    Price/Earnings-to-Growth ratio = P/E TTM divided by most recent annual diluted earnings per share growth rateLearn more

    2.7

    Earnings growth and return

    LTM

    5YR

    10YR

    Total return (price & dividends)

    (13.3) %

    (4.7) %

    53.6 %

    Free cash flow per share growth

    21.1 %

    25.6 %

    157.1 %

    Earnings per share growth

    6.3 %

    82.1 %

    144.3 %

    Founded: 1,916

    Employees: 12,700

    Business Summary: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.

    Fair Value Reference Estimate

    Latest Earnings Call Takeaways

    2026 Q2 (Jul 30, 2026)

    1) Leadership Transition and Strategic Focus - Stephen Shafer acknowledged the retirement of Chuck Lauber, the former CFO, and welcomed Carrie L. Anderson as the new CFO, highlighting her extensive experience in global manufacturing. - The leadership transition is part of a planned strategy to strengthen execution and advance the company's priorities. - A. O. Smith remains focused on operational execution and cost management, particularly in light of challenging market conditions.

    2) Financial Performance and Segment Results - Total sales for Q2 2026 were approximately $1 billion, with adjusted earnings per share at $1.03. - North America segment sales increased 5% to $821 million, with organic growth of 3% excluding the impact of the Leonard Valve acquisition, which contributed $16 million. - The boiler business performed strongly, with sales up 21% in the quarter, contributing to 12% growth year-to-date. - In contrast, sales in China decreased 28% in local currency due to weak market conditions, impacting overall performance.

    3) Challenges and Headwinds - The company faces continued weakness in the China market, particularly in the premium segment, and is conducting a strategic assessment to determine the best path forward. - North America residential water heater demand remains soft, with industry expectations revised to low single-digit declines for the year. - Steel costs rose approximately 20% year-over-year, contributing to margin pressures alongside other inflationary costs.

    4) Operational Plans and Cash Flow - A. O. Smith generated $233 million in free cash flow in the first half of 2026, a 67% increase compared to the previous year, allowing for a 50% increase in the share repurchase target to $300 million. - The company is optimizing its footprint and streamlining its brand portfolio, expecting annual savings of $6 to $8 million starting in 2027. - Investments in product innovation, particularly in tankless and heat pump technologies, are prioritized to drive future growth.

    5) Guidance and Outlook - The full-year sales growth outlook has been narrowed to 2% to 3%, with adjusted EPS guidance updated to $3.70 to $3.85 per share, reflecting softer demand in the residential water heater market. - The company expects Q3 EPS to be lower than both Q2 and Q4 due to the timing of price increases and continued challenges in the China market. - The strategic assessment of the China business is nearing completion, with updates expected in the next earnings call.

    Bottom line: A. O. Smith's Q2 results reflect solid performance in North America, particularly in the boiler segment, but are tempered by challenges in China and the residential water heater market. The leadership transition and strategic focus on operational efficiency and innovation position the company for long-term value creation, despite near-term headwinds.

    Annual Reports, Presentations And IR Contacts

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    A. O. Smith — Financial Overview, Stock Price, Market Cap

    A. O. Smith is a company. Founded in 1916. As of August 14, 2026, the company's market capitalization is $8661673813 with a current stock price of $62.50.