Obermatt

A. O. Smith

NYQ:AOS · US8318652091
Building ProductsMedium

360

81
EV / EBIT83
Price / Owner Earnings74
Owner Earnings Yield93
Dividend Yield87
Price/Sales59
EV / Gross Profit60
Price/Book43
Return on Capital92
Cash Return on Capital95
Return on Equity83
EBIT Margin80
Gross Profitability76
Cash Conversion30
Accruals13
Owner Earnings Margin83
Sales growth35
Profit Growth70
Long-Term EPS Growth58
Owner Earnings Growth67
Reinvestment34
Price momentum32
Debt load69
Refinancing37
Debt Payback65
Liquidity94
Analyst ratings17
Opinion Changes75
Price Target Upside58
Market mood34
Value Creation16/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

A. O. Smith generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryUSA
IndustryBuilding Products
SizeMedium
TypePublic Company
ExchangeNYSE
Founded1986
Employees2,664
ISINUS8318652091
Last UpdateApr 2, 2026
Themes
CleanTechEnergy EfficiencyWater PurificationSmart Water Networks (SWN)

Description

A. O. Smith Corporation manufactures and markets comprehensive lines of residential and commercial gas, heat pump and electric water heaters, boilers, tanks and water treatment products. Segments The company has two reporting segments: North Americ…

Analysis

Bargain bin

A. O. Smith Corporation is priced cheaply, and that invites the natural question of why, since the underlying business scores below average. Worth noting: the cash the business generates has lagged behind what the income statement shows.

On valuation, the picture is attractive. The owner-earnings multiple stands at 14.5×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 2% a year, against analyst forecasts of 12%. The price, in other words, assumes less than the experts do.

Growth is moderate; the safety picture is sturdy. The company scores 16/20 on our value-creation score: strong value creator. Analyst sentiment is cautious.

Flags to be aware of: Some accounting patterns deserve a closer look. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
53
2023202420252026

All-time high

80

Jan 2024

All-time low

53

Jun 2026

Average rank

70

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
59
34
24
32
Price/Earnings
67
55
28
36
Price/Book
43
26
12
16
Dividend Yield
87
88
85
91
Value (overall)
76
47
27
37

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →