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Smith AO Corporation (AOS)

Upturn stock ratingUpturn stock rating
$65.57
Last Close (24-hour delay)
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PASS
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  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
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Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
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Time period over
  • ALL
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Upturn Advisory Summary

06/30/2025: AOS (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

15 Analysts rated it

Well-followed company, solid analyst reports, reliable data for confident investing.

1 Year Target Price $74.86

1 Year Target Price $74.86

Analysts Price Target For last 52 week
$74.86Target price
Low$58.53
Current$65.57
high$90.77

Analysis of Past Performance

Type Stock
Historic Profit -12.85%
Avg. Invested days 33
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 06/30/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 9.32B USD
Price to earnings Ratio 18.32
1Y Target Price 74.86
Price to earnings Ratio 18.32
1Y Target Price 74.86
Volume (30-day avg) 15
Beta 1.21
52 Weeks Range 58.53 - 90.77
Updated Date 06/30/2025
52 Weeks Range 58.53 - 90.77
Updated Date 06/30/2025
Dividends yield (FY) 2.07%
Basic EPS (TTM) 3.58

Analyzing Revenue: Products, Geography and Growth

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 13.74%
Operating Margin (TTM) 18.97%

Management Effectiveness

Return on Assets (TTM) 13.35%
Return on Equity (TTM) 27.97%

Valuation

Trailing PE 18.32
Forward PE 17.36
Enterprise Value 9412889883
Price to Sales(TTM) 2.45
Enterprise Value 9412889883
Price to Sales(TTM) 2.45
Enterprise Value to Revenue 2.48
Enterprise Value to EBITDA 12.1
Shares Outstanding 116239000
Shares Floating 114100771
Shares Outstanding 116239000
Shares Floating 114100771
Percent Insiders 0.77
Percent Institutions 99.59

Analyst Ratings

Rating 4
Target Price 74.86
Buy 1
Strong Buy 4
Buy 1
Strong Buy 4
Hold 9
Sell 1
Strong Sell -
Strong Sell -

ai summary icon Upturn AI SWOT

Smith AO Corporation

stock logo

Company Overview

overview logo History and Background

A. O. Smith was founded in 1874 in Milwaukee, Wisconsin, as a baby carriage manufacturer. Over time, it transitioned into producing steel auto parts and eventually became a leading manufacturer of water heaters and water treatment products. A.O. Smith has grown through innovation, acquisitions, and global expansion.

business area logo Core Business Areas

  • North America Water Heating: Manufactures and markets residential and commercial water heaters, including gas, electric, and tankless models, primarily in North America.
  • Rest of World Water Heating: Manufactures and markets water heaters and water treatment products in Asia, Europe, and other regions outside of North America.
  • Water Treatment: Manufactures and markets residential and commercial water treatment products, including water softeners, filters, and purification systems.

leadership logo Leadership and Structure

Kevin J. Wheeler is the Chairman, President, and Chief Executive Officer. The company operates with a divisional structure based on geographic regions and product lines. They have a standard corporate leadership structure with executive leadership over finance, operations, marketing, and human resources.

Top Products and Market Share

overview logo Key Offerings

  • Residential Gas Water Heaters: A.O. Smith is a leading manufacturer of residential gas water heaters in North America. Market share data indicates it is one of the top two brands alongside Rheem. Competitors include Rheem, Bradford White, and State Water Heaters. Significant revenue generation for AOS.
  • Commercial Water Heaters: A.O. Smith offers a wide range of commercial water heaters, including gas, electric, and condensing models. They compete with Bradford White, Lochinvar and Aerco. A.O. Smith has a strong presence in the commercial water heating market. Exact revenue data not publicly available.
  • Water Treatment Systems: A.O. Smith offers a comprehensive range of water treatment products for residential and commercial applications. Competitors include Culligan, Pentair, and EcoWater Systems. Market share is fragmented in this segment.

Market Dynamics

industry overview logo Industry Overview

The water heating and water treatment industries are driven by factors such as new construction, replacement demand, and increasing awareness of water quality. There is also a move towards more energy-efficient and technologically advanced products.

Positioning

A.O. Smith is positioned as a leading manufacturer with a strong brand reputation for quality and reliability. They have a well-established distribution network and a focus on innovation and customer service.

Total Addressable Market (TAM)

The global water heater market is expected to reach over $40 billion, and the water treatment market is also substantial and growing. A.O. Smith is well-positioned to capture a significant share of this TAM through its diverse product portfolio and global presence.

Upturn SWOT Analysis

Strengths

  • Strong brand recognition
  • Extensive distribution network
  • Diversified product portfolio
  • Global presence
  • Commitment to innovation

Weaknesses

  • Dependence on North American market
  • Exposure to raw material price fluctuations
  • Competition from lower-cost manufacturers
  • Sensitivity to housing market cycles

Opportunities

  • Expansion into emerging markets
  • Growth in water treatment products
  • Development of smart and connected water heaters
  • Acquisitions of complementary businesses
  • Government incentives for energy-efficient products

Threats

  • Economic downturns
  • Increased competition
  • Changes in regulations
  • Disruptive technologies
  • Fluctuations in currency exchange rates

Competitors and Market Share

competitor logo Key Competitors

  • Rheem (private)
  • Bradford White (private)
  • Pentair (PNR)

Competitive Landscape

A.O. Smith competes on product quality, brand reputation, and distribution network. Competitors like Rheem and Bradford White are strong in the water heating market, while Pentair is a key player in water treatment. A.O. Smith has a global presence that gives it an advantage over some competitors.

Major Acquisitions

Giant Factories, Inc.

  • Year: 2019
  • Acquisition Price (USD millions): 192
  • Strategic Rationale: Expanded A. O. Smith's presence in the Canadian water heater market.

Growth Trajectory and Initiatives

Historical Growth: A.O. Smith has historically grown through organic expansion, acquisitions, and increasing its presence in emerging markets. Its growth has been solid in recent years.

Future Projections: Analyst estimates project continued growth for A.O. Smith, driven by demand for water heating and water treatment products, particularly in emerging markets. The transition to high-efficiency units will also help.

Recent Initiatives: Recent initiatives include acquisitions of water treatment companies, expansion of manufacturing facilities in Asia, and the introduction of new smart water heater products.

Summary

A.O. Smith is a strong company with a leading position in the water heating and water treatment industries. Its strong brand, diversified product portfolio, and global presence are working well. However, it needs to manage raw material costs, competition, and potential economic downturns to continue its growth trajectory.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company website, Market research reports, Analyst reports, Public financial statements

Disclaimers:

This analysis is based on publicly available information and analyst estimates. It is not financial advice. Actual results may vary.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Smith AO Corporation

Exchange NYSE
Headquaters Milwaukee, WI, United States
IPO Launch date 1984-09-07
Chairman & CEO Mr. Kevin J. Wheeler
Sector Industrials
Industry Specialty Industrial Machinery
Full time employees 12700
Full time employees 12700

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, and other large commercial buildings, as well as homes, apartments, and condominiums; 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, 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; and offers Aquasana branded products directly to consumers through e-commerce channels. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.