AOSA. O. Smith Corporation (AOS) presents a mixed but generally positive investment profile. Fundamentally strong with consistent profitability and a solid dividend, the company faces some short-term technical headwinds. Its thematic positioning in water management and energy efficiency offers long-term growth potential.
A. O. Smith is well-positioned in resilient and growing sectors. Its focus on water heating, water treatment, and energy efficiency aligns with increasing consumer and regulatory demand for sustainable and reliable solutions.
A. O. Smith demonstrates robust financial health with a strong balance sheet, consistent profitability, and a reliable dividend. While revenue growth has been moderate, its profitability and cash flow generation are significant strengths.
The stock is experiencing short-term pressure. While it has strong long-term upward momentum, recent trading suggests it may be consolidating or facing resistance, with some indicators pointing to potential downward bias in the immediate term.
| Factor | Score |
|---|---|
| Water Management & Conservation | 85 |
| Energy Efficiency & Sustainability | 75 |
| Residential & Commercial Construction Trends | 70 |
| Global Market Presence (North America, China) | 80 |
| Regulatory Environment (Emissions, Efficiency Standards) | 75 |
| Factor | Score |
|---|---|
| Valuation | 70 |
| Profitability | 85 |
| Growth | 65 |
| Balance Sheet Health | 95 |
| Cash Flow | 88 |
| Shareholder Returns | 70 |
| Factor | Score |
|---|---|
| Trend Analysis | 50 |
| Momentum | 40 |
| Volume Confirmation | 65 |
| Support & Resistance | 75 |
| Moving Averages (General) | 40 |
Positive Earnings Surprises
The company has exceeded EPS estimates in 6 of the last 8 reported quarters, with an average positive surprise of 7.8%, indicating consistent operational outperformance.
Attractive P/E Ratio
The trailing Price-to-Earnings (P/E) ratio of 20.6 is below the industry average of 25.5, suggesting the stock may be undervalued relative to its peers.
High P/S Ratio
The Price-to-Sales (P/S) ratio of 3.8 for the trailing twelve months (TTM) may be considered high, potentially indicating aggressive growth expectations priced into the stock.
Mixed EPS Estimates vs. Actuals
While there have been positive surprises, the company missed EPS estimates in Q1 2025 (-4.94% surprise), indicating potential forecasting challenges or short-term headwinds.
July 2025
24
Next Earnings Date
H: $0.97
A: $0.92
L: $0.82
H: 952.40M
A: 937.33M
L: 920.90M
July 2025
31
Ex-Dividend Date
August 2025
15
Next Dividend Date
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.
76.39 USD
The 39 analysts offering 1 year price forecasts for AOS have a max estimate of 84.00 and a min estimate of 61.00.