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Upturn AI SWOT - About
AOS 
Smith AO Corporation (AOS)
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Upturn Advisory Summary
09/18/2025: AOS (1-star) has a low Upturn Star Rating. Not recommended to BUY.
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 $79.83
1 Year Target Price $79.83
| 4 | Strong Buy |
| 1 | Buy |
| 9 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -7.94% | Avg. Invested days 35 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/18/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 10.25B USD | Price to earnings Ratio 20.37 | 1Y Target Price 79.83 |
Price to earnings Ratio 20.37 | 1Y Target Price 79.83 | ||
Volume (30-day avg) 15 | Beta 1.25 | 52 Weeks Range 58.25 - 90.29 | Updated Date 09/17/2025 |
52 Weeks Range 58.25 - 90.29 | Updated Date 09/17/2025 | ||
Dividends yield (FY) 1.82% | Basic EPS (TTM) 3.59 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 13.68% | Operating Margin (TTM) 20.35% |
Management Effectiveness
Return on Assets (TTM) 13.33% | Return on Equity (TTM) 27.6% |
Valuation
Trailing PE 20.37 | Forward PE 17.42 | Enterprise Value 10468638383 | Price to Sales(TTM) 2.7 |
Enterprise Value 10468638383 | Price to Sales(TTM) 2.7 | ||
Enterprise Value to Revenue 2.76 | Enterprise Value to EBITDA 13.48 | Shares Outstanding 114259519 | Shares Floating 223792544 |
Shares Outstanding 114259519 | Shares Floating 223792544 | ||
Percent Insiders 0.77 | Percent Institutions 98.77 |
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. It initially produced metal parts for baby carriages and bicycles before transitioning to automotive components. The company then moved into water heaters, becoming a leader in that market. It has grown through innovation and acquisitions.
Core Business Areas
- North America Water Heating: Manufactures and markets residential and commercial water heaters in North America.
- Rest of World Water Heating: Manufactures and markets water heaters in regions outside of North America, including China and India.
- Water Treatment: Manufactures and markets water treatment products for residential and commercial applications.
Leadership and Structure
Kevin J. Wheeler is the current Chairman and CEO. The company has a traditional corporate structure with distinct business units reporting to the executive leadership team.
Top Products and Market Share
Key Offerings
- Residential Water Heaters: A. O. Smith is a leading manufacturer of residential water heaters in North America. They hold a significant market share estimated at around 40%. Competitors include Rheem and Bradford White. Revenue from this product is substantial, contributing significantly to the company's overall revenue. Market Share: 40% (estimated).
- Commercial Water Heaters: A. O. Smith also manufactures commercial water heaters, competing with the same key players as in the residential market. While market share varies by region, A. O. Smith maintains a strong position in North America. Competitors: Rheem, Bradford White. Market Share: 35% (estimated).
- Water Treatment Systems: This segment includes water softeners, filters, and other purification systems. The market is fragmented with players like Culligan, Pentair, and various smaller companies. A. O. Smith is expanding its presence in this growing market. Competitors: Culligan, Pentair.
Market Dynamics
Industry Overview
The water heating industry is mature and relatively stable, driven by replacement demand and new construction. The water treatment industry is growing, fueled by increasing awareness of water quality issues. These markets are impacted by regulations, energy efficiency standards, and consumer preferences.
Positioning
A. O. Smith is positioned as a premium brand known for quality, innovation, and reliability. They have a strong distribution network and a reputation for excellent customer service. They continue to grow through acquisition.
Total Addressable Market (TAM)
The total addressable market (TAM) for water heating and water treatment globally is estimated to be over $50 billion. A.O. Smith is well positioned to capture a share of this market, especially with its strong brand recognition and distribution network.
Upturn SWOT Analysis
Strengths
- Strong Brand Recognition
- Extensive Distribution Network
- Focus on Innovation
- Financial Stability
- Diversified Product Portfolio
Weaknesses
- Dependence on North American Market
- Exposure to Raw Material Price Fluctuations
- Slower Growth in Mature Markets
- Capital Expenditure on technology
Opportunities
- Expansion into Emerging Markets
- Growth in Water Treatment Segment
- Development of Energy-Efficient Products
- Acquisition of smaller companies
Threats
- Increased Competition
- Fluctuations in Housing Market
- Changes in Government Regulations
- Rising energy costs
Competitors and Market Share
Key Competitors
- Rheem (Privately held)
- Bradford White (Privately held)
- Pentair (PNR)
Competitive Landscape
A. O. Smith competes primarily on brand reputation, product quality, and distribution network. Rheem and Bradford White are also major players with extensive distribution networks. Pentair competes in the water treatment segment.
Major Acquisitions
Giant Factories
- Year: 2019
- Acquisition Price (USD millions): 192
- Strategic Rationale: Expands A.O. Smith's water heater offerings in Canada.
Aquasana
- Year: 2016
- Acquisition Price (USD millions): 87
- Strategic Rationale: Strengthens A.O. Smith's position in the residential water treatment market.
Growth Trajectory and Initiatives
Historical Growth: A. O. Smith has experienced steady growth over the past decade, driven by strong performance in North America and expansion into emerging markets.
Future Projections: Analysts project continued growth for A. O. Smith, fueled by demand for water heating and water treatment products. Emerging markets are expected to be a key growth driver.
Recent Initiatives: Recent initiatives include investments in new product development, expansion of the water treatment segment, and strategic acquisitions.
Summary
A.O. Smith is a strong company with a well-established brand and a leading position in the water heating market. Its expansion into the water treatment segment offers growth opportunities. It needs to monitor increasing competition and raw material price fluctuations. Emerging markets continue to provide opportunities for growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance are subject to change.
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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