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Makes residential and commercial water heaters, boilers and water treatment products sold through wholesale and retail channels.
Makes residential and commercial water heaters, boilers and water treatment products sold through wholesale and retail channels.
Most water heaters are bought when an old one fails, so replacement demand is steady and plumbers choose the brand, with new construction a smaller and more cyclical part. Water treatment in China and India is mostly sold to households through stores and online.
Moat: wide (brand, distribution, installed base). The dominant North American water heater brand with deep plumbing-wholesale distribution and replacement-driven demand.
Headquarters: Milwaukee, Wisconsin, US · Founded: 1874 · Employees: 11,500
Size A. O. Smith (AOS) is a United States Industrials company (Building Products) with a market value of $8.67B, the 848th largest of 3,117 United States companies the cockpit tracks. Shares closed at $64.55 on 6 Nov 2026.
Performance Over six months the shares gained 10.2%, against -1.2% for the median peer and -1.1% for the United States market (cap-weighted) — 6th highest of 18 in its peer set.
Growth Revenue fell 0.7% over the last twelve months (peer median +2.5%); the operating margin is 18.1% (peer median 13.2%).
Valuation It trades at 17.3× forward earnings against a peer median of 17.1× (9th most expensive of 18).
Price implies For today's price to make sense, revenue must grow about 4% a year for seven years (Req g). Recent delivered growth is +6%, so the hurdle is -1 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 13.9 points above its cost of capital (9.6% WACC).
Short interest Short interest is 10.0% of the free float (15 Oct 2026).
Next results Next results expected around 2 Feb 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $3.80B | $3.83B | $3.82B | $3.85B | $3.75B |
| Revenue growth | — | 0% | -1% | +3% | — |
| Gross profit | $1.47B | $1.49B | $1.45B | $1.48B | $1.33B |
| EBITDA | $782M | $812M | $793M | $826M | $732M |
| Net income | $495M | $546M | $534M | $557M | $236M |
| Free cash flow | $562M | $546M | $474M | $598M | $321M |
| Capital expenditure | $50.8M | $70.8M | $108M | $72.6M | $70.3M |
| Total debt | $715M | $203M | $228M | $167M | $377M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| A. O. Smith AOS | $8.67B | +10% | -1% | 18% | 17.3× | 4.5% |
| Rinnai 5947.T | $3.07B | -3% | +4% | 10% | 13.3× | -9.5% |
| Ariston ARIS.MI | $1.20B | -17% | +5% | 6% | 8.8× | 0.1% |
| Pentair PNR | $10.9B | -11% | -4% | 22% | 13.2× | 7.1% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | AOS | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +14.1% | +2.9% | 5th highest of 18 |
| 6-month return | +10.2% | -1.2% | 6th highest of 18 |
| Distance from 52-week high | -20.7% | -22.4% | 9th highest of 18 |
| Revenue growth (TTM) | -0.7% | +2.5% | 5th lowest of 18 |
| Operating margin | 18.1% | 13.2% | 5th highest of 17 |
| Forward P/E | 17.3× | 17.1× | 9th most expensive of 18 |
| Growth the price implies (Req g, 7 yrs) | 4.5% | 5.5% | 7th least demanding of 17 |
| Growth delivered (Del g) | +5.8% | +5.8% | 9th highest of 17 |
| Hurdle (Req g minus delivered) | -1.3 pp | +2.2 pp | 5th least demanding of 17 |
| ROIC minus cost of capital | +13.9 pp | +6.5 pp | 6th highest of 17 |
| EV / EBITDA | 11.7× | 11.9× | 7th cheapest of 14 |
| Net debt / EBITDA | 0.6× | -0.1× | 7th most indebted of 14 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| A. O. Smith AOS | United States | $8.67B | +10% | -1% | 18% | 17.3× | 4.5% | +5.8% |
| Simpson Manufacturing SSD | United States | $8.07B | +4% | +5% | 20% | 20.9× | 13.2% | +13.0% |
| SPX Technologies SPXC | United States | $7.15B | -30% | +20% | 17% | 15.3× | 15.7% | +15.0% |
| Watsco WSO | United States | $12.7B | -28% | 0% | 9% | 24.3× | 13.2% | +7.4% |
| Fortune Brands Innovations FBIN | United States | $5.74B | +27% | -3% | 14% | 19.7× | 5.3% | -6.0% |
| Toto 5332.T | Japan | $5.40B | -1% | +5% | 8% | 18.2× | 7.8% | +5.0% |
| SPIC Industry-Finance 000958.SZ | China | $14.0B | -14% | +102% | n/a | 22.2× | n/a | n/a |
| Carlisle Companies CSL | United States | $14.5B | +4% | +4% | 20% | 15.9× | 3.7% | +4.8% |
| Sanwa 5929.T | Japan | $5.10B | +8% | +2% | 11% | 14.8× | -2.6% | +9.1% |
| Masco MAS | United States | $15.8B | +15% | +1% | 18% | 18.0× | 4.9% | +1.0% |
| Griffon GFF | United States | $4.58B | +15% | -12% | 20% | 17.1× | 7.5% | +4.0% |
| Nichias 5393.T | Japan | $3.52B | -5% | +3% | 15% | 15.2× | 7.1% | +5.1% |
| STO Express 002468.SZ | China | $3.40B | -8% | +26% | 5% | 10.2× | -12.5% | +20.8% |
| Rinnai 5947.T | Japan | $3.07B | -3% | +4% | 10% | 13.3× | -9.5% | +6.4% |
| Shanghai Mechanical & Electrical Industry 600835.SS | China | $2.34B | -27% | -2% | 2% | 22.5× | 0.6% | -3.8% |
| Reliance Worldwide RWC.AX | Australia | $2.33B | +47% | -5% | 12% | 16.3× | 9.9% | +7.5% |
| Qingdao East Steel Tower Stock 002545.SZ | China | $2.25B | -50% | +23% | 32% | 8.5× | -10.2% | +13.0% |
| KONE KNEBV.HE | Finland | $33.8B | +15% | +2% | 12% | 27.1× | 5.8% | +2.5% |