Is A. O. Smith Corporation (AOS) Overvalued?
We dive into why A. O. Smith Corporation (AOS) could be considered overvalued on 2026-07-24, based on AAII’s Value Score and Grade.Jenna Brashear
A+ Stock Grade Summary:
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COMPANY SUMMARY
A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, homes, apartments, and condominiums, and other large commercial buildings; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides commercial water treatment and filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, Impact, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms, as well as offers Aquasana branded products directly to consumers through e-commerce channels; and A. O. Smith branded water treatment products through dealer network and Amazon. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.
Commentary & Analysis
Which Is a Better Investment, A. O. Smith Corporation or Louisiana-Pacific Corporation Stock?
Learn more about whether A. O. Smith Corporation or Louisiana-Pacific Corporation is a better investment based on AAII's A+ Investor grades, which compare both companies' key financial metrics.Tudor Pop
Which Is a Better Investment, A. O. Smith Corporation or MasterBrand, Inc. Stock?
Learn more about whether A. O. Smith Corporation or MasterBrand, Inc. is a better investment based on AAII's A+ Investor grades, which compare both companies' key financial metrics.Michael Rose
Why A. O. Smith Corporation’s (AOS) Stock Is Up 5.97%
As of Wednesday, June 24, A. O. Smith Corporation’s AOS share price has surged by 5.97%, which has investors questioning if this is right time to sell.Jenna Brashear
What You Need to Know About A. O. Smith Corporation's Q2 Earnings
A. O. Smith Corporation's fiscal Q2 earnings report was released on Thursday, April 30. Let's dive in to see if (AOS) missed or beat analyst's expectations.Jenna Brashear
Financial Summary
| Share Statistics | AOS | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $8,243.5 | $5,257.5 | 75% |
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| Shares Out (Mil) | 139.2 | 62.3 | 70% |
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| Institutional Ownership | 99.1% | 95.3% | 85% |
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| Float (Mil) | 109.8 | 71.1 | 63% |
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| Beta | 1.17 | 1.20 | 69% |
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| Avg Daily Volume (000s) | 1,878 | 313 | 81% |
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| Price Change (52-week) |
(16.5%) | 77.3% | 33% |
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| Growth | AOS | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 5.8% | 6.1% | 40% |
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| Net Income (5yr) | 9.6% | 5.6% | 54% |
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| EPS (5yr) | 12.7% | 4.1% | 51 |
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| Dividends (5yr) | 7.1% | 2.9% | 84% |
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| Cash Flow (5yr) | (18.9%) | (16.3%) | 36% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 12 | 6 | 12 | |
| Current EPS | $0.924 | $3.811 | $4.181 | |
| Month Ago EPS | $0.942 | $3.773 | $4.178 | |
| # Rev Up | 0 | 0 | 1 | |
| # Rev Down | 1 | 1 | 0 | |
| Three Months Ago EPS | $0.960 | $3.818 | $4.289 | |
| Year/Year Chg | 8.7% | (1.0%) | 17.9% | |
| Financials | AOS | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $3,812 | $3,050 | 71% |
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| Net Income (TTM) (Mil) | $528 | $156 | 80% |
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| EPS (TTM) | $3.776 | $1.700 | 82% |
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| Operating Cash Flow (TTM) (Mil) | $708 | $351 | 76% |
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| Net Cash Flow (TTM) (Mil) | $12 | ($12) | 59% |
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| Long-Term Debt (Q1) (Mil) | $615 | $844 | 61% |
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| Enterprise Value (Q1) (Mil) | $8,542 | $6,790 | 71% |
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| Valuation | AOS | Industry Median |
Percentile (All Stocks) |
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| P/B | 4.39 | 3.07 | 75% |
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| P/E | 15.9 | 21.9 | 38% |
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| Dividend Yield | 2.4% | 0.6% | 80% |
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| PEG (5yr hist) | 1.3 | 1.6 | 52% |
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| Ratios | AOS | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 38.8% | 34.9% | 48% |
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| Net Margin | 13.8% | 5.5% | 71% |
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| ROA | 15.3% | 5.0% | 94% |
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| ROE | 28.3% | 9.5% | 86% |
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| Liabilities to Assets | 48.6% | 55.0% | 40% |
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| F-Score | 5 | 5 | 51% |
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Passing Stock Screens
As of 7/30/2026, from a list of 60 stock screening strategies,
FACTOR STRATEGY
Dividend (High Relative Yield) Screen
Factors: Yield, Value, Growth
Using the dividend-yield approach to invest during volatile markets.
| Performance Since Inception: | 8.9% |
| +/- S&P 500: | +1.4 |
