A. O. Smith Corporation (AOS) 10-Year Financial Performance & Capital Metrics

AOS • • Industrial / General

IndustrialsIndustrial MachineryFluid Handling & Pumping SystemsWater & Fuel Pumping

AboutA. 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.Show more

Revenue $3.82B -0.9%
EBITDA $796M -4.8%
Net Income $534M -4.1%
EPS (Diluted) 3.63 -1.6%
Gross Margin 38.14% -1.0%
EBITDA Margin 20.84% -3.9%
Operating Margin 18.77% -4.5%
Net Margin 13.98% -3.3%
ROE 28.63% -7.6%
ROIC 30.54% -9.0%
Debt/Equity 0.12 +36.7%
Interest Coverage 106.99 +69.5%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 24.3%
✓14 consecutive years of dividend growth
✓Share count reduced 2.6% through buybacks
✓Healthy 5Y average net margin of 12.1%
✓Efficient asset utilization: 1.2x turnover

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y4.95%

5Y4.99%

3Y2.56%

TTM-1.64%

Profit (Net Income) CAGR

10Y9.89%

5Y7.6%

3Y3.09%

TTM-5.47%

EPS CAGR

10Y12.28%

5Y10.33%

3Y6.32%

TTM-2.37%

ROCE

10Y Avg24.68%

5Y Avg27.43%

3Y Avg30.42%

Latest31.09%

Peer Comparison

Water & Fuel Pumping

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
XYLXylem Inc.	35.26B	144.81	39.67	16.27%	10.66%	8.28%	2.67%	0.20
MWAMueller Water Products, Inc.	4.12B	26.36	35.62	3.06%	13.41%	19.53%	4.64%	0.59
WTSWatts Water Technologies, Inc.	8.13B	296.80	34.15	9.53%	13.79%	16.59%	4.01%	0.12
PNRPentair plc	17.5B	106.97	28.60	-0.53%	15.84%	17.29%	3.95%	0.50
FELEFranklin Electric Co., Inc.	4.47B	100.45	26.02	-2.12%	6.71%	10.69%	4.91%	0.15
AOSA. O. Smith Corporation	8.16B	71.99	19.83	-0.9%	13.85%	28.76%	5.81%	0.12

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	2.54B	2.69B	3B	3.19B	2.99B	2.9B	3.54B	3.75B	3.85B	3.82B
Revenue Growth %	0.08%	0.06%	0.12%	0.06%	-0.06%	-0.03%	0.22%	0.06%	0.03%	-0.01%
Cost of Goods Sold+	1.53B	1.57B	1.76B	1.88B	1.81B	1.79B	2.23B	2.42B	2.37B	2.36B
COGS % of Revenue	0.6%	0.58%	0.59%	0.59%	0.61%	0.62%	0.63%	0.65%	0.61%	0.62%
Gross Profit+	1.01B	1.12B	1.24B	1.31B	1.18B	1.11B	1.31B	1.33B	1.48B	1.46B
Gross Margin %	0.4%	0.42%	0.41%	0.41%	0.39%	0.38%	0.37%	0.35%	0.39%	0.38%
Gross Profit Growth %	0.18%	0.11%	0.11%	0.05%	-0.1%	-0.06%	0.18%	0.01%	0.12%	-0.02%
Operating Expenses+	610.7M	658.9M	718.2M	753.8M	715.6M	660.3M	701.4M	670.9M	727.4M	739.3M
OpEx % of Revenue	0.24%	0.25%	0.24%	0.24%	0.24%	0.23%	0.2%	0.18%	0.19%	0.19%
Selling, General & Admin	610.7M	658.9M	722.8M	753.8M	715.6M	660.3M	701.4M	670.9M	727.4M	757.4M
SG&A % of Revenue	0.24%	0.25%	0.24%	0.24%	0.24%	0.23%	0.2%	0.18%	0.19%	0.2%
Research & Development	73.7M	80.1M	86.4M	94M	87.9M	80.7M	94.2M	89M	97.5M	101.7M
R&D % of Revenue	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.02%	0.03%	0.03%
Other Operating Expenses	-73.7M	-80.1M	-91M	-94M	-87.9M	-80.7M	-94.2M	-89M	-97.5M	-119.8M
Operating Income+	399.1M	460.4M	520.5M	551.7M	466.8M	446.2M	609.5M	658.7M	757.4M	716.8M
Operating Margin %	0.16%	0.17%	0.17%	0.17%	0.16%	0.15%	0.17%	0.18%	0.2%	0.19%
Operating Income Growth %	0.39%	0.15%	0.13%	0.06%	-0.15%	-0.04%	0.37%	0.08%	0.15%	-0.05%
EBITDA+	462.1M	525.5M	590.6M	623.6M	545.1M	526.2M	687.4M	735.6M	835.7M	795.6M
EBITDA Margin %	0.18%	0.2%	0.2%	0.2%	0.18%	0.18%	0.19%	0.2%	0.22%	0.21%
EBITDA Growth %	0.33%	0.14%	0.12%	0.06%	-0.13%	-0.03%	0.31%	0.07%	0.14%	-0.05%
D&A (Non-Cash Add-back)	63M	65.1M	70.1M	71.9M	78.3M	80M	77.9M	76.9M	78.3M	78.8M
EBIT	409.9M	469.8M	530.9M	566.2M	483.1M	451.2M	629.9M	233.1M	745.5M	707.7M
Net Interest Income+	-7.4M	-7.3M	-10.1M	-8.4M	-11M	-7.3M	-4.3M	-9.4M	-12M	-6.7M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	7.4M	7.3M	10.1M	8.4M	11M	7.3M	4.3M	9.4M	12M	6.7M
Other Income/Expense	3.4M	2.1M	300K	6.1M	5.3M	-2.3M	16.1M	-435M	-23.9M	-15.8M
Pretax Income+	402.5M	462.5M	520.8M	557.8M	472.1M	443.9M	625.6M	223.7M	733.5M	701M
Pretax Margin %	0.16%	0.17%	0.17%	0.17%	0.16%	0.15%	0.18%	0.06%	0.19%	0.18%
Income Tax+	119.6M	136M	224.3M	113.6M	102.1M	99M	138.5M	-12M	176.9M	167.4M
Effective Tax Rate %	0.7%	0.71%	0.57%	0.8%	0.78%	0.78%	0.78%	1.05%	0.76%	0.76%
Net Income+	282.9M	326.5M	296.5M	444.2M	370M	344.9M	487.1M	235.7M	556.6M	533.6M
Net Margin %	0.11%	0.12%	0.1%	0.14%	0.12%	0.12%	0.14%	0.06%	0.14%	0.14%
Net Income Growth %	0.36%	0.15%	-0.09%	0.5%	-0.17%	-0.07%	0.41%	-0.52%	1.36%	-0.04%
Net Income (Continuing)	282.9M	326.5M	296.5M	444.2M	370M	344.9M	487.1M	235.7M	556.6M	533.6M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	1.58	1.85	1.70	2.58	2.22	2.12	3.02	1.51	3.69	3.63
EPS Growth %	0.39%	0.17%	-0.08%	0.52%	-0.14%	-0.05%	0.42%	-0.5%	1.44%	-0.02%
EPS (Basic)	1.59	1.87	1.72	2.60	2.24	2.14	3.05	1.52	3.71	3.65
Diluted Shares Outstanding	179.01M	176.82M	174.6M	172.19M	166.71M	162.6M	161.32M	155.78M	151.02M	147.08M
Basic Shares Outstanding	175.9M	173.44M	171.66M	168.16M	165.45M	161.53M	159.91M	154.79M	149.95M	147M
Dividend Payout Ratio	0.24%	0.26%	0.33%	0.29%	0.4%	0.46%	0.35%	0.75%	0.33%	0.36%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.4B	1.56B	1.77B	1.64B	1.5B	1.62B	1.75B	1.63B	1.5B	1.39B
Cash & Short-Term Investments	645.2M	754.6M	820M	645M	551.4M	689.6M	631.4M	481.8M	363.4M	276.1M
Cash Only	323.6M	330.4M	346.6M	259.7M	374M	573.1M	443.3M	391.2M	339.9M	239.6M
Short-Term Investments	321.6M	424.2M	473.4M	385.3M	177.4M	116.5M	188.1M	90.6M	23.5M	36.5M
Accounts Receivable	501.4M	518.7M	598.4M	647.3M	589.5M	585M	634.4M	581.2M	596M	541.4M
Days Sales Outstanding	72.15	70.49	72.89	74.11	71.9	73.75	65.43	56.51	56.46	51.76
Inventory	222.9M	251.1M	291.2M	304.7M	303M	300.1M	447.7M	516.4M	497.4M	532.1M
Days Inventory Outstanding	53.29	58.5	60.46	59.08	61.03	61.29	73.34	77.75	76.67	82.23
Other Current Assets	33.8M	37.6M	57.2M	41.5M	56.5M	43.3M	39.1M	54.3M	43.5M	43.3M
Total Non-Current Assets+	1.19B	1.33B	1.43B	1.43B	1.56B	1.54B	1.72B	1.7B	1.71B	1.85B
Property, Plant & Equipment	442.7M	461.9M	528.9M	540M	592.3M	582.9M	639.2M	620.5M	634.8M	661.5M
Fixed Asset Turnover	5.73x	5.81x	5.67x	5.90x	5.05x	4.97x	5.54x	6.05x	6.07x	5.77x
Goodwill	420.9M	491.5M	516.7M	513M	546M	546.8M	627.8M	619.7M	633.4M	761.7M
Intangible Assets	291M	308.3M	308.7M	293.1M	338.4M	323.9M	364.8M	347.9M	336.7M	321.1M
Long-Term Investments	0	0	0	0	0	0	0	0	0	0
Other Non-Current Assets	-3.3M	67.3M	76.2M	92M	80.9M	89.1M	90M	110.5M	108.7M	102.8M
Total Assets+	2.65B	2.89B	3.2B	3.07B	3.06B	3.16B	3.47B	3.33B	3.21B	3.24B
Asset Turnover	0.96x	0.93x	0.94x	1.04x	0.98x	0.92x	1.02x	1.13x	1.20x	1.18x
Asset Growth %	0.05%	0.09%	0.11%	-0.04%	-0%	0.03%	0.1%	-0.04%	-0.04%	0.01%
Total Current Liabilities+	653.2M	765.6M	788.5M	785.3M	766.5M	886.3M	1.12B	934.2M	945.3M	897.2M
Accounts Payable	424.9M	528.6M	535M	543.8M	509.6M	595.2M	745.9M	625.8M	600.4M	588.7M
Days Payables Outstanding	101.58	123.16	111.08	105.44	102.65	121.56	122.2	94.22	92.54	90.97
Short-Term Debt	12.9M	7.2M	7.5M	0	6.8M	6.8M	6.8M	10M	10M	10M
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	133.9M	145.5M	155.2M	162.1M	41.8M	47.8M	70.9M	63.6M	65.3M	67M
Current Ratio	2.15x	2.04x	2.24x	2.09x	1.96x	1.83x	1.57x	1.75x	1.59x	1.55x
Quick Ratio	1.81x	1.71x	1.87x	1.70x	1.56x	1.49x	1.17x	1.20x	1.06x	0.96x
Cash Conversion Cycle	23.86	5.83	22.27	27.75	30.28	13.48	16.58	40.04	40.59	43.01
Total Non-Current Liabilities+	533.7M	610.1M	760M	569.2M	624.7M	426.1M	523.4M	650.4M	424.2M	459.3M
Long-Term Debt	236.1M	316.4M	402.9M	221.4M	277.2M	106.4M	189.9M	334.5M	117.3M	183.2M
Capital Lease Obligations	0	0	0	0	38.7M	34.4M	22.3M	22.4M	27.9M	23.5M
Deferred Tax Liabilities	21.3M	0	0	0	0	0	0	0	0	0
Other Non-Current Liabilities	276.3M	293.7M	357.1M	347.8M	308.8M	285.3M	311.2M	293.5M	279M	252.6M
Total Liabilities	1.2B	1.38B	1.55B	1.35B	1.39B	1.31B	1.64B	1.58B	1.37B	1.36B
Total Debt+	249M	323.6M	410.4M	221.4M	322.7M	147.6M	219M	366.9M	155.2M	216.7M
Net Debt	-74.6M	-6.8M	63.8M	-38.3M	-51.3M	-425.5M	-224.3M	-24.3M	-184.7M	-22.9M
Debt / Equity	0.17x	0.21x	0.25x	0.13x	0.19x	0.08x	0.12x	0.21x	0.08x	0.12x
Debt / EBITDA	0.54x	0.62x	0.69x	0.36x	0.59x	0.28x	0.32x	0.50x	0.19x	0.27x
Net Debt / EBITDA	-0.16x	-0.01x	0.11x	-0.06x	-0.09x	-0.81x	-0.33x	-0.03x	-0.22x	-0.03x
Interest Coverage	53.93x	63.07x	51.53x	65.68x	42.44x	61.12x	141.74x	70.07x	63.12x	106.99x
Total Equity+	1.44B	1.52B	1.65B	1.72B	1.67B	1.85B	1.83B	1.75B	1.84B	1.88B
Equity Growth %	0.04%	0.05%	0.09%	0.04%	-0.03%	0.11%	-0.01%	-0.05%	0.06%	0.02%
Book Value per Share	8.06	8.57	9.44	9.97	10.00	11.37	11.36	11.22	12.21	12.81
Total Shareholders' Equity	1.44B	1.52B	1.65B	1.72B	1.67B	1.85B	1.83B	1.75B	1.84B	1.88B
Common Stock	296.2M	296M	295.7M	295.5M	295.4M	295.4M	295.2M	294.9M	294.8M	294.8M
Retained Earnings	1.35B	1.59B	1.79B	2.1B	2.32B	2.51B	2.83B	2.88B	3.26B	3.6B
Treasury Stock	-360.5M	-488.1M	-626.5M	-827.2M	-1.11B	-1.16B	-1.5B	-1.91B	-2.2B	-2.5B
Accumulated OCI	-313.4M	-363.2M	-299.5M	-350.8M	-348.3M	-321.2M	-331.4M	-82.4M	-84.2M	-111.9M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	344.4M	446.6M	326.4M	448.9M	456.2M	562.1M	641.1M	391.4M	670.3M	581.8M
Operating CF Margin %	0.14%	0.17%	0.11%	0.14%	0.15%	0.19%	0.18%	0.1%	0.17%	0.15%
Operating CF Growth %	0.31%	0.3%	-0.27%	0.38%	0.02%	0.23%	0.14%	-0.39%	0.71%	-0.13%
Net Income	282.9M	326.5M	296.5M	444.2M	370M	344.9M	487.1M	235.7M	556.6M	533.6M
Depreciation & Amortization	63M	65.1M	70.1M	71.9M	78.3M	80M	77.9M	76.9M	78.3M	78.8M
Stock-Based Compensation	8.8M	9.4M	9.9M	10.1M	13.3M	12.7M	11.9M	11.1M	11.5M	14.9M
Deferred Taxes	-8.8M	6.9M	81.8M	0	-136.6M	-79.7M	-159.8M	-167.7M	-3.6M	-4.6M
Other Non-Cash Items	-500K	-8.1M	-81.8M	0	136.6M	79.7M	159.8M	417.3M	14.7M	4.7M
Working Capital Changes	-1M	46.8M	-50.1M	-77.3M	-5.4M	124.5M	64.2M	-181.9M	12.8M	-45.6M
Change in Receivables	-25.9M	-15.1M	-75.8M	-54.6M	29.1M	4.5M	-25.5M	42.5M	-16.4M	49M
Change in Inventory	-14.7M	-23.4M	-37.5M	-7.7M	6.3M	2.9M	-109.5M	-82.8M	18.1M	-40.5M
Change in Payables	31M	101.5M	-5.1M	8.8M	-35.4M	85.6M	142.9M	-89.4M	-21.4M	-5.9M
Cash from Investing+	-186.1M	-300.2M	-158.1M	-12.7M	33.9M	11.8M	-349.9M	8.1M	-24.1M	-267.1M
Capital Expenditures	-72.7M	-80.7M	-94.2M	-85.2M	-64.4M	-56.8M	-75.1M	-70.3M	-72.6M	-108M
CapEx % of Revenue	0.03%	0.03%	0.03%	0.03%	0.02%	0.02%	0.02%	0.02%	0.02%	0.03%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-72.7M	0	0	-85.2M	0	-56.8M	0	0	0	0
Cash from Financing+	-154.1M	-139.6M	-152.1M	-523.1M	-375.8M	-374.8M	-421M	-430.8M	-684.7M	-408.4M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-67.8M	-84.2M	-96.9M	-130.1M	-149.2M	-158.7M	-170.1M	-177.2M	-183.5M	-190.4M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	13.7M	5.7M	-2.6M	-1.4M	-1.5M	11.4M	32.1M	-700K	23.4M	18.1M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	271.7M	365.9M	232.2M	363.7M	391.8M	505.3M	566M	321.1M	597.7M	473.8M
FCF Margin %	0.11%	0.14%	0.08%	0.11%	0.13%	0.17%	0.16%	0.09%	0.16%	0.12%
FCF Growth %	0.53%	0.35%	-0.37%	0.57%	0.08%	0.29%	0.12%	-0.43%	0.86%	-0.21%
FCF per Share	1.52	2.07	1.33	2.11	2.35	3.11	3.51	2.06	3.96	3.22
FCF Conversion (FCF/Net Income)	1.22x	1.37x	1.10x	1.01x	1.23x	1.63x	1.32x	1.66x	1.20x	1.09x
Interest Paid	0	0	0	0	0	0	0	0	0	0
Taxes Paid	0	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	20.04%	22.08%	18.74%	26.39%	21.87%	19.62%	26.47%	13.17%	30.99%	28.63%
Return on Invested Capital (ROIC)	22.56%	24.01%	24.24%	24.4%	21.26%	22.03%	30.17%	29.66%	33.58%	30.54%
Gross Margin	39.81%	41.67%	41.34%	40.95%	39.45%	38.28%	37.04%	35.42%	38.54%	38.14%
Net Margin	11.15%	12.16%	9.89%	13.93%	12.36%	11.91%	13.76%	6.28%	14.45%	13.98%
Debt / Equity	0.17x	0.21x	0.25x	0.13x	0.19x	0.08x	0.12x	0.21x	0.08x	0.12x
Interest Coverage	53.93x	63.07x	51.53x	65.68x	42.44x	61.12x	141.74x	70.07x	63.12x	106.99x
FCF Conversion	1.22x	1.37x	1.10x	1.01x	1.23x	1.63x	1.32x	1.66x	1.20x	1.09x
Revenue Growth	7.66%	5.89%	11.57%	6.38%	-6.12%	-3.25%	22.23%	6.08%	2.63%	-0.9%

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
North America	1.53B	1.57B	1.7B	1.82B	1.87B	2.12B	2.24B	2.43B	2.55B	2.57B
North America Growth	-	2.57%	8.11%	7.23%	2.63%	13.36%	5.70%	8.53%	4.82%	1.04%
World	1.01B	1.12B	1.3B	1.37B	1.12B	990.4M	1.3B	1.32B	1.31B	1.24B
World Growth	-	10.95%	16.45%	5.27%	-17.78%	-11.89%	31.24%	1.85%	-1.37%	-4.69%

Frequently Asked Questions

Valuation & Price

A. O. Smith Corporation (AOS) has a price-to-earnings (P/E) ratio of 19.8x. This is roughly in line with market averages.

Growth & Financials

A. O. Smith Corporation (AOS) reported $3.83B in revenue for fiscal year 2024. This represents a 124% increase from $1.71B in 2011.

A. O. Smith Corporation (AOS) saw revenue decline by 0.9% over the past year.

Yes, A. O. Smith Corporation (AOS) is profitable, generating $530.5M in net income for fiscal year 2024 (14.0% net margin).

Dividend & Returns

Yes, A. O. Smith Corporation (AOS) pays a dividend with a yield of 1.80%. This makes it attractive for income-focused investors.

A. O. Smith Corporation (AOS) has a return on equity (ROE) of 28.6%. This is excellent, indicating efficient use of shareholder capital.

A. O. Smith Corporation (AOS) generated $571.8M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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