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Upturn AI SWOT - About
AOS 
Smith AO Corporation (AOS)
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Upturn Advisory Summary
07/03/2025: 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 $74.86
1 Year Target Price $74.86
| 4 | Strong Buy |
| 1 | Buy |
| 9 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -12.85% | Avg. Invested days 33 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/03/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.65B USD | Price to earnings Ratio 18.97 | 1Y Target Price 74.86 |
Price to earnings Ratio 18.97 | 1Y Target Price 74.86 | ||
Volume (30-day avg) 15 | Beta 1.21 | 52 Weeks Range 58.53 - 90.77 | Updated Date 07/3/2025 |
52 Weeks Range 58.53 - 90.77 | Updated Date 07/3/2025 | ||
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 18.97 | Forward PE 18.05 | Enterprise Value 9771004669 | Price to Sales(TTM) 2.54 |
Enterprise Value 9771004669 | Price to Sales(TTM) 2.54 | ||
Enterprise Value to Revenue 2.57 | Enterprise Value to EBITDA 12.56 | Shares Outstanding 116239000 | Shares Floating 114100771 |
Shares Outstanding 116239000 | Shares Floating 114100771 | ||
Percent Insiders 0.77 | Percent Institutions 99.02 |
Upturn AI SWOT
Smith AO Corporation
Company Overview
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.
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 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
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
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
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.
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 | Chairman & CEO Mr. Kevin J. Wheeler | ||
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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