A. O. Smith Corporation (AOS) Stock

A. O. Smith Corporation (AOS) is a Consumer Discretionary stock trading at $63.07 (as of 2026-08-21), with a market capitalization of $8.69B and a trailing P/E of 17.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

A. O. Smith Corporation manufactures and markets residential and commercial gas, heat pump and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; commercial boilers for hospitals, schools, hotels, and other large commercial buildings, as well as residential boilers for homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, on-the-go filtration bottles, point-of-use carbon, and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides food and beverage filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and heat pumps, electric wall-hung, gas tankless, combi-boiler, heat pump and solar water heaters. The company offers its products primarily under the A. O. Smith, State, Lochinvar, and water softener brands. It distributes its products through independent wholesale plumbing distributors, as well as through retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce, as well as other online retailers. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.

Understand A. O. Smith Corporation: how it makes money

A. O. Smith manufactures and markets residential and commercial water heaters, boilers, tanks, and water treatment products, and makes money by selling these products through its North America and Rest of World businesses.

Earnings quality is driven by replacement-oriented demand, as shown by the company tracking a Proactive Replacement Percentage of 30 percent.

Revenue by segment (latest quarter)
NA$0.8B
RoW$0.2B

Business quality (Solid): The profit engine appears anchored in replacement business that supports earnings, with strong North America profitability and much smaller Rest of World contribution.

Valuation: At 15× earnings, AOS trades 42% below the Consumer Goods average (26×). Note: one-time items can distort reported P/E.

Bull case

  • Replacement-focused demand tracking: The company reports Proactive Replacement Percentage of 30 percent, which links sales and earnings to a repeatable replacement process.
  • North America is the main profitability driver: Segment Earnings (North America Segment) are 0.17 USD_B, compared with 0.02 USD_B for Segment Earnings (Rest of World Segment).

Bear case

  • Earnings concentration in North America: Rest of World has much smaller Segment Earnings (0.02 USD_B), so shifts outside North America could weigh more on consolidated earnings.
  • Operational execution matters: The company tracks Residential Water Heater Lead Times (20.0 count), and changes in execution around replacement timing could affect results.
Valuation — source: SEC EDGAR (first-party)
Price$63.07
Market Cap$8.69B
P/E Ratio17.4
EV / EBITDA12.1
Price / Book4.72
Price / Sales2.29
FCF Yield7.4%
DCF Value (model)$72.28
DCF Upside vs Price14.6%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$3.83B
Net Margin14.3%
Revenue Growth (YoY)-0.7%
EPS Growth (YoY)-15.0%
FCF Growth (YoY)-6.6%
Financial Health — source: SEC EDGAR
Altman Z-Score8.09 (safe)
Valuation vs Sector & Industry
Stock P/E17.4
Sector P/E (Consumer Discretionary)20.7
Industry P/E (Consumer Goods)22.1
vs Sector-16.0%
vs Industry-21.2%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($1.01B)
Institutional Holders Tracked10
Congressional Trades (recent)3
Company
SectorConsumer Discretionary
IndustryConsumer Goods
CEOStephen Shafer
Employees12,700
CountryUS
IPO Date1983-09-30

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AOS earnings history · AOS institutional & insider holders · AOS KPIs & operating metrics · AOS financials · AOS investor presentations & press releases · AOS SEC filings · AOS peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.