AOS
IndustrialsA. O. Smith Corporation · Industrial - Machinery · $8B
What is A. O. Smith Corporation?
A. O. Smith Corporation is a Milwaukee-based manufacturer of water heaters, boilers, and water treatment products serving residential and commercial customers across North America, China, Europe, and India.
A. O. Smith generates revenue by designing, manufacturing, and distributing water heating and treatment solutions through two segments: North America and Rest of World. Products reach customers via wholesale plumbing distributors, retail home center chains, and direct-to-consumer channels. Commercial customers include hospitals, hotels, schools, and restaurants, while residential customers range from single-family homeowners to apartment communities. The Aquasana brand extends the company's reach into consumer water filtration sold online.
The company traces its current corporate structure to 1983 and is headquartered in Milwaukee, Wisconsin.
- Residential and commercial water heaters (gas, electric, heat pump)
- Commercial and residential boilers under the Lochinvar brand
- Water softeners, whole-home filtration, and reverse osmosis systems
- Food and beverage filtration products
- Solar water heating systems and expansion tanks
Is AOS a Good Stock to Buy?
UQS Score rates AOS as Good overall, reflecting a balanced profile with notable strengths and a few areas of concern.
The Quality pillar stands out as the strongest element of AOS's profile, pointing to durable financial discipline and consistent operational execution. The Risk pillar also rates favorably, suggesting the business carries a manageable risk profile relative to sector peers. Valuation rounds out the positives, coming in at a level that does not appear stretched by UQS criteria.
Growth is the weakest pillar in AOS's scorecard, indicating that near-term expansion momentum lags behind higher-rated peers. The Moat pillar sits at Neutral, suggesting competitive advantages exist but are not dominant.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does AOS pay dividends?
Yes — A. O. Smith Corporation pays a dividend.
A. O. Smith pays a regular dividend, consistent with its profile as a mature industrial manufacturer with steady cash generation. The dividend reflects management's confidence in recurring free cash flow from its water heater and treatment businesses. Income-oriented investors may find the payout cadence appealing, though the full yield context is available in the Pro view.
When does AOS report earnings?
A. O. Smith reports earnings on a quarterly cadence, typical for US-listed equities.
The company's Quality pillar rating suggests consistent operational delivery over recent reporting periods. Revenue trends across North America and the Rest of World segments reflect the cyclical nature of residential construction and commercial renovation activity.
For the most recent quarter's results and guidance, visit A. O. Smith's investor relations page directly.
AOS Price History
-0.3% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in A. O. Smith Corporation?
Based on A. O. Smith Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
AOS Long-term Outlook
The Growth pillar rating for AOS signals a more measured near-term trajectory compared to faster-moving industrials peers. Structural demand for water heating upgrades — particularly heat pump and energy-efficient models — provides a long-run tailwind, but near-term volume growth in China and North America faces headwinds from softer construction activity. The Good Risk rating suggests the company is well-positioned to navigate cyclical pressure without significant balance sheet stress.
Growth drivers
- Transition toward energy-efficient heat pump water heaters in North America
- Expanding water treatment and filtration product lines in emerging markets
- Replacement cycle demand from aging residential and commercial water heater installed base
Key risks
- Slowing residential construction reducing new-installation volumes
- Competitive pricing pressure in China's water treatment market
- Input cost variability affecting manufacturing margins
AOS vs Peers
A. O. Smith competes across water technology and industrial fluid-management segments alongside several specialized peers.
Chart Industries focuses on industrial gas equipment and cryogenic technology, overlapping with AOS primarily in commercial thermal management rather than residential water heating.
Watts Water Technologies competes directly in flow control and water quality products, with a strong presence in plumbing and HVAC systems for commercial buildings.
Donaldson specializes in filtration systems across industrial and commercial applications, sharing the water and fluid filtration space with AOS's treatment product lines.
Frequently Asked Questions
What does A. O. Smith do?
A. O. Smith manufactures water heaters, boilers, and water treatment products for residential and commercial customers. Its products serve homes, hotels, hospitals, restaurants, and office buildings across North America, China, Europe, and India. Brands include A. O. Smith, State, Lochinvar, and Aquasana.
Does AOS pay dividends?
Yes, A. O. Smith pays a regular dividend. The company's mature business model and consistent cash generation from its water heater and treatment segments support ongoing dividend payments. For current yield and payout details, Pro members can access the full financial breakdown on UQS Score.
When does AOS report earnings?
A. O. Smith reports earnings on a quarterly cadence, in line with standard US-listed company practice. For the exact schedule and most recent results, check A. O. Smith's investor relations page, as specific dates are subject to change.
Is AOS a good stock to buy?
UQS Score rates AOS as Good overall. The Quality and Risk pillars are the standout strengths, while Growth is the weakest area. Whether AOS fits your portfolio depends on your investment goals — the full pillar breakdown is available to Pro members.
Is AOS overvalued?
The UQS Valuation pillar for AOS rates as Good, suggesting the stock is not trading at a stretched premium relative to its fundamentals. That said, valuation is one of five pillars — the complete picture requires reviewing all dimensions together, which Pro members can access in full.
How does AOS compare to its competitors?
A. O. Smith sits alongside peers like Watts Water Technologies and Chart Industries in the water and industrial fluid management space. AOS differentiates through its broad residential and commercial water heater portfolio and its growing water treatment segment. Detailed UQS comparisons are available on each competitor's page.
What is AOS's market cap bracket?
A. O. Smith is classified as a mid-cap company. This places it in a range typically associated with established businesses that have moved beyond early growth phases but retain meaningful expansion potential in their core and adjacent markets.
Who founded A. O. Smith Corporation?
A. O. Smith has roots going back to the late 19th century, founded by Arthur O. Smith in Milwaukee, Wisconsin. The company evolved over more than a century from a metal parts manufacturer into the water technology business it operates today. Full founding history is widely available through public sources.
Is AOS a long-term quality indicator?
The UQS Quality pillar for AOS rates as Strong, which is the highest category in our framework. This reflects durable financial discipline and operational consistency — factors that matter for long-term investors. Growth rates as Weak, so long-term holders should weigh quality against expansion pace.
What is the main competitive advantage of A. O. Smith?
A. O. Smith's competitive position rests on brand recognition across multiple product tiers, an established distribution network through wholesale plumbing channels, and a growing water treatment portfolio. The UQS Moat pillar rates as Neutral, indicating these advantages are real but face meaningful competition.
What sector does AOS belong to?
A. O. Smith is classified in the Industrials sector. Within that broad sector, it operates in the water technology and thermal management niche, serving both residential construction and commercial building markets globally.
Is AOS a growth stock or value stock?
Based on UQS pillar labels, AOS leans toward value characteristics — the Valuation pillar rates as Good while the Growth pillar rates as Weak. This profile may appeal more to investors seeking quality and reasonable pricing than to those prioritizing rapid revenue expansion.
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Pro Analysis
AOS — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 23, 2026 | 62.1 | 93.8 | 47.0 | 23.4 | 75.4 | 72.5 | 0.0 |
| May 22, 2026 | 62.1 | 93.8 | 47.0 | 23.4 | 75.4 | 72.8 | -0.1 |
| May 21, 2026 | 62.2 | 93.8 | 47.0 | 23.4 | 75.4 | 73.2 | 0.0 |
| May 20, 2026 | 62.2 | 93.8 | 47.0 | 23.4 | 75.4 | 73.8 | 0.0 |
| May 19, 2026 | 62.2 | 93.8 | 47.0 | 23.4 | 75.4 | 73.1 | -0.1 |
| May 16, 2026 | 62.3 | 93.8 | 47.0 | 23.4 | 75.4 | 73.8 | +0.3 |
| May 15, 2026 | 62.0 | 93.8 | 47.0 | 23.4 | 75.4 | 71.9 | -0.1 |
| May 14, 2026 | 62.1 | 93.8 | 47.0 | 23.4 | 75.4 | 72.7 | +0.2 |
| May 13, 2026 | 61.9 | 93.6 | 47.0 | 23.4 | 75.4 | 71.6 | +0.1 |
| May 11, 2026 | 61.8 | 93.6 | 47.0 | 23.4 | 75.4 | 71.2 | +1.3 |
AOS — Pillar Breakdown
Quality
— 93.8/100 (25%)A. O. Smith Corporation demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 23.4/100 (20%)A. O. Smith Corporation faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 75.4/100 (15%)A. O. Smith Corporation carries minimal financial risk with conservative leverage and strong solvency.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 72.8/100 (15%)A. O. Smith Corporation trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 47/100 (25%)A. O. Smith Corporation possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for AOS.
Score Composition
Financial Data
More Stock Analysis
How is the AOS UQS Score Calculated?
The UQS (Unified Quality Score) for A. O. Smith Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses A. O. Smith Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether A. O. Smith Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.