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AOS 
Smith AO Corporation (AOS)
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Upturn Advisory Summary
11/04/2025: AOS (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
15 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $78.18
1 Year Target Price $78.18
| 4 | Strong Buy |
| 1 | Buy |
| 9 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -14.63% | Avg. Invested days 37 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 11/04/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.14B USD | Price to earnings Ratio 17.7 | 1Y Target Price 78.18 |
Price to earnings Ratio 17.7 | 1Y Target Price 78.18 | ||
Volume (30-day avg) 15 | Beta 1.3 | 52 Weeks Range 57.94 - 76.52 | Updated Date 11/3/2025 |
52 Weeks Range 57.94 - 76.52 | Updated Date 11/3/2025 | ||
Dividends yield (FY) 2.06% | Basic EPS (TTM) 3.71 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-10-28 | When Before Market | Estimate 0.91 | Actual 0.94 |
Profitability
Profit Margin 13.85% | Operating Margin (TTM) 18.63% |
Management Effectiveness
Return on Assets (TTM) 13.88% | Return on Equity (TTM) 28.21% |
Valuation
Trailing PE 17.7 | Forward PE 17.39 | Enterprise Value 10458829312 | Price to Sales(TTM) 2.39 |
Enterprise Value 10458829312 | Price to Sales(TTM) 2.39 | ||
Enterprise Value to Revenue 2.76 | Enterprise Value to EBITDA 13.47 | Shares Outstanding 113372121 | Shares Floating 112143531 |
Shares Outstanding 113372121 | Shares Floating 112143531 | ||
Percent Insiders 0.78 | Percent Institutions 99.54 |
Upturn AI SWOT
Smith AO Corporation
Company Overview
History and Background
A. O. Smith Corporation was founded in 1874 in Milwaukee, Wisconsin, as a machine shop. Initially focused on metal components, it expanded into manufacturing water heaters in the early 20th century. It grew through acquisitions and innovations in water heating and water treatment technologies.
Core Business Areas
- North America Water Heating: Manufactures and markets residential and commercial water heaters in North America. This includes gas, electric, and heat pump water heaters.
- Rest of World Water Heating: Manufactures and markets residential and commercial water heaters in regions outside North America, including China, India, and Europe.
- Water Treatment: Provides residential and commercial water treatment products and solutions. This includes water softeners, filters, and purification systems.
Leadership and Structure
Kevin J. Wheeler serves as Chairman, President and Chief Executive Officer. The company has a functional organizational structure with divisions for water heating (North America and Rest of World) and water treatment, supported by central functions like finance, HR, and legal.
Top Products and Market Share
Key Offerings
- Residential Gas Water Heaters: These are tank-style water heaters that use natural gas or propane. A. O. Smith is a leader in this market. Competitors: Rheem, Bradford White. Market share estimates vary but A.O. Smith holds a significant portion in North America, approx. 40%
- Residential Electric Water Heaters: These are tank-style water heaters that use electricity. A. O. Smith also holds a significant share in this category. Competitors: Rheem, Bradford White. Market share estimates vary but A.O. Smith holds a significant portion in North America, approx. 35%
- Commercial Water Heaters: These water heaters are designed for businesses and large buildings, and are typically larger and more powerful than residential models. Competitors: Rheem, Bradford White, Lochinvar. Revenue numbers from this product line are significant but not broken out separately.
- Water Treatment Products: Water filtration, softening, and purification systems for both residential and commercial use. Competitors: Culligan, Pentair, GE. Revenue numbers from this product line are growing but are not broken out separately.
Market Dynamics
Industry Overview
The water heating industry is mature, driven by replacement demand and new construction. The water treatment industry is growing, driven by increasing awareness of water quality and stricter regulations.
Positioning
A. O. Smith is a market leader in water heating and a growing player in water treatment. Its competitive advantages include brand reputation, distribution network, and product innovation.
Total Addressable Market (TAM)
The global water heater market is estimated at USD 40 Billion. A.O. Smith is strongly positioned to capture a growing part of the market.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Extensive distribution network
- Product innovation
- Strong financial performance
- Established market presence in North America and Asia
Weaknesses
- Exposure to cyclical construction markets
- Dependence on commodity prices
- Limited presence in some international markets
- Competition from lower-cost manufacturers
Opportunities
- Growth in emerging markets
- Expansion into water treatment
- Development of energy-efficient products
- Acquisitions of complementary businesses
Threats
- Rising commodity prices
- Increased competition
- Economic downturns
- Changes in regulations
- Technological disruptions (e.g., tankless water heaters)
Competitors and Market Share
Key Competitors
- Rheem Manufacturing
- Bradford White (Private)
- Pentair (PNR)
Competitive Landscape
A. O. Smith competes on product innovation, brand reputation, and distribution network. Rheem is its main direct competitor.
Major Acquisitions
Aquasana
- Year: 2016
- Acquisition Price (USD millions): 87
- Strategic Rationale: Expanded A. O. Smith's presence in the residential water treatment market.
Growth Trajectory and Initiatives
Historical Growth: A. O. Smith has grown through organic expansion and acquisitions, particularly in Asia.
Future Projections: Analysts' projections vary, but generally expect continued growth in water heating and water treatment, particularly in international markets.
Recent Initiatives: Recent initiatives include expansion of water treatment offerings and investments in digital technologies.
Summary
A. O. Smith is a strong company with a leading position in the water heating market. Its focus on water treatment and international expansion provides growth opportunities. Key risks include commodity price fluctuations and increased competition. The company's financial stability and strong brand make it well-positioned for continued success. They should closely watch their exposure to housing market fluctuations.
Similar Stocks
Sources and Disclaimers
Data Sources:
- A. O. Smith Investor Relations
- Market Research Reports
- Analyst Estimates
- SEC Filings (10-K, 10-Q)
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Data may be outdated and subject to change. Consult a financial professional before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
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 | President, CEO & Director Mr. Stephen M. Shafer | ||
Sector Industrials | Industry Specialty Industrial Machinery | Full time employees 12700 | Website https://www.aosmith.com |
Full time employees 12700 | Website https://www.aosmith.com | ||
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.
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