A. O. Smith Corporation (AOS) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Industrial - Machinery
EV/EBITDA
↓
10.66
↓-25% vs avg
5yr avg: 14.20
30Y Low5.4·High19.8
P/FCF
↓
15.41
↓-31% vs avg
5yr avg: 22.28
30Y Low3.6·High49.2
P/B Ratio
↓
4.54
↓-24% vs avg
5yr avg: 5.95
30Y Low0.9·High7.6
ROE
↑
29.2%
↓+14% vs avg
5yr avg: 25.7%
30Y Low3%·High37%
Debt/EBITDA
↓
0.24
↓-20% vs avg
5yr avg: 0.30
30Y Low0.2·High4.2
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
AOS Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
A. O. Smith Corporation trades at 15.6x earnings, 37% below its 5-year average of 25.0x, sitting at the 37th percentile of its historical range. Compared to the Industrials sector median P/E of 25.5x, the stock trades at a discount of 39%. On a free-cash-flow basis, the stock trades at 15.4x P/FCF, 31% below the 5-year average of 22.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.4B | $9.4B | $10.0B | $12.4B | $8.9B | $13.8B | $8.9B | $7.9B | $7.4B | $10.7B | $8.4B |
| Enterprise Value | $8.4B | $9.4B | $10.0B | $12.3B | $8.9B | $13.6B | $8.5B | $7.9B | $7.3B | $10.8B | $8.4B |
| P/E Ratio → | 15.60 | 17.33 | 18.79 | 22.34 | 37.91 | 28.43 | 25.86 | 21.46 | 16.55 | 36.05 | 25.59 |
| P/S Ratio | 2.20 | 2.44 | 2.63 | 3.23 | 2.38 | 3.91 | 3.08 | 2.65 | 2.31 | 3.57 | 3.12 |
| P/B Ratio | 4.54 | 5.04 | 5.33 | 6.75 | 5.10 | 7.56 | 4.82 | 4.76 | 4.28 | 6.49 | 5.53 |
| P/FCF | 15.41 | 17.14 | 21.17 | 20.83 | 27.77 | 24.47 | 17.64 | 20.27 | 20.22 | 46.08 | 22.88 |
| P/OCF | 13.64 | 15.17 | 17.24 | 18.57 | 22.78 | 21.60 | 15.86 | 17.41 | 16.38 | 32.78 | 18.75 |
P/E links to full P/E history page with 30-year chart
AOS EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
A. O. Smith Corporation's enterprise value stands at 10.7x EBITDA, 25% below its 5-year average of 14.2x. The Industrials sector median is 13.8x, placing the stock at a 22% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.45 | 2.62 | 3.18 | 2.37 | 3.85 | 2.93 | 2.64 | 2.29 | 3.59 | 3.11 |
| EV / EBITDA | 10.66 | 11.86 | 12.58 | 14.68 | 12.09 | 19.82 | 16.13 | 14.48 | 11.73 | 18.22 | 15.92 |
| EV / EBIT | 11.58 | 12.85 | 14.14 | 16.45 | 38.15 | 21.63 | 18.81 | 16.33 | 12.92 | 20.27 | 17.81 |
| EV / FCF | — | 17.17 | 21.13 | 20.52 | 27.69 | 24.07 | 16.80 | 20.14 | 20.11 | 46.35 | 22.86 |
AOS Profitability
Margins and return-on-capital ratios measuring operating efficiency
A. O. Smith Corporation earns an operating margin of 19.0%, above the Industrials sector average of 4.9%. ROE of 29.2% indicates solid capital efficiency, compared to the sector median of 8.2%. ROIC of 29.2% represents excellent returns on invested capital versus a sector median of 6.3%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.8% | 38.8% | 38.1% | 38.5% | 35.4% | 37.0% | 38.3% | 39.5% | 41.0% | 41.3% | 41.7% |
| Operating Margin | 19.0% | 19.0% | 18.8% | 19.7% | 17.5% | 17.2% | 15.4% | 15.6% | 17.3% | 17.4% | 17.1% |
| Net Profit Margin | 14.3% | 14.3% | 14.0% | 14.4% | 6.3% | 13.8% | 11.9% | 12.4% | 13.9% | 9.9% | 12.2% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 29.2% | 29.2% | 28.6% | 31.0% | 13.2% | 26.5% | 19.6% | 21.9% | 26.4% | 18.7% | 22.1% |
| ROA | 17.1% | 17.1% | 16.5% | 17.0% | 6.9% | 14.7% | 11.1% | 12.1% | 14.2% | 9.7% | 11.8% |
| ROIC | 29.2% | 29.2% | 30.5% | 33.6% | 29.7% | 30.2% | 22.0% | 21.3% | 24.4% | 24.2% | 24.0% |
| ROCE | 31.5% | 31.5% | 31.1% | 32.5% | 27.7% | 26.3% | 19.5% | 20.4% | 23.5% | 23.0% | 22.4% |
AOS Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
A. O. Smith Corporation carries a Debt/EBITDA ratio of 0.2x, which is very conservative (92% below the sector average of 3.2x). Net debt stands at $18M ($192M total debt minus $175M cash). Interest coverage of 54.0x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.10 | 0.10 | 0.12 | 0.08 | 0.21 | 0.12 | 0.08 | 0.19 | 0.13 | 0.25 | 0.21 |
| Debt / EBITDA | 0.24 | 0.24 | 0.27 | 0.19 | 0.50 | 0.32 | 0.28 | 0.59 | 0.36 | 0.69 | 0.62 |
| Net Debt / Equity | — | 0.01 | -0.01 | -0.10 | -0.01 | -0.12 | -0.23 | -0.03 | -0.02 | 0.04 | -0.00 |
| Net Debt / EBITDA | 0.02 | 0.02 | -0.03 | -0.22 | -0.03 | -0.33 | -0.81 | -0.09 | -0.06 | 0.11 | -0.01 |
| Debt / FCF | — | 0.03 | -0.05 | -0.31 | -0.08 | -0.40 | -0.84 | -0.13 | -0.11 | 0.27 | -0.02 |
| Interest Coverage | 54.03 | 54.03 | 105.63 | 62.13 | 24.80 | 146.49 | 61.81 | 43.92 | 67.40 | 52.56 | 64.36 |
AOS Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.50x means A. O. Smith Corporation can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.94x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 1.59x to 1.50x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.50 | 1.50 | 1.55 | 1.59 | 1.75 | 1.57 | 1.83 | 1.96 | 2.09 | 2.24 | 2.04 |
| Quick Ratio | 0.94 | 0.94 | 0.96 | 1.06 | 1.20 | 1.17 | 1.49 | 1.56 | 1.70 | 1.87 | 1.71 |
| Cash Ratio | 0.22 | 0.22 | 0.31 | 0.38 | 0.52 | 0.56 | 0.78 | 0.72 | 0.82 | 1.04 | 0.99 |
| Asset Turnover | — | 1.22 | 1.18 | 1.20 | 1.13 | 1.02 | 0.92 | 0.98 | 1.04 | 0.94 | 0.93 |
| Inventory Turnover | 4.89 | 4.89 | 4.44 | 4.76 | 4.69 | 4.98 | 5.96 | 5.98 | 6.18 | 6.04 | 6.24 |
| Days Sales Outstanding | — | 55.49 | 51.76 | 56.46 | 56.51 | 65.43 | 73.75 | 71.90 | 74.11 | 72.89 | 70.49 |
AOS Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
A. O. Smith Corporation returns 7.1% to shareholders annually — split between a 2.3% dividend yield and 4.8% buyback yield. The payout ratio of 35.8% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 6.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.3% | 2.1% | 1.9% | 1.5% | 2.0% | 1.2% | 1.8% | 1.9% | 1.8% | 0.9% | 1.0% |
| Payout Ratio | 35.8% | 35.8% | 35.7% | 33.0% | 75.2% | 34.9% | 46.0% | 40.3% | 29.3% | 32.7% | 25.8% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.4% | 5.8% | 5.3% | 4.5% | 2.6% | 3.5% | 3.9% | 4.7% | 6.0% | 2.8% | 3.9% |
| FCF Yield | 6.5% | 5.8% | 4.7% | 4.8% | 3.6% | 4.1% | 5.7% | 4.9% | 4.9% | 2.2% | 4.4% |
| Buyback Yield | 4.8% | 4.3% | 3.0% | 2.5% | 4.5% | 2.6% | 0.6% | 3.6% | 2.8% | 1.3% | 1.6% |
| Total Shareholder Yield | 7.1% | 6.4% | 4.9% | 3.9% | 6.5% | 3.9% | 2.4% | 5.5% | 4.5% | 2.2% | 2.6% |
| Shares Outstanding | — | $140M | $147M | $151M | $156M | $161M | $163M | $167M | $172M | $175M | $177M |
Peer Comparison
Compare AOS with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 AOSYou | $8B | 15.6 | 10.7 | 15.4 | 38.8% | 19.0% | 29.2% | 29.2% | 0.2 |
 LII | $18B | 23.7 | 18.2 | 28.7 | 33.0% | 19.5% | 78.1% | 29.8% | 1.8 |
 WSO | $17B | 35.0 | 23.8 | 32.6 | 28.0% | 9.6% | 15.8% | 16.6% | 0.7 |
 AAON | $11B | 100.2 | 48.8 | — | 26.7% | 10.1% | 12.5% | 9.4% | 1.9 |
 MWA | $4B | 22.0 | 14.1 | 24.4 | 36.1% | 18.2% | 21.4% | 19.7% | 1.5 |
 WTS | $10B | 28.9 | 18.2 | 27.5 | 49.5% | 19.3% | 18.2% | 21.2% | 0.4 |
 ALLE | $12B | 18.4 | 13.8 | 17.1 | 45.2% | 21.1% | 36.1% | 18.1% | 2.3 |
 CARR | $56B | 39.5 | 21.7 | 33.0 | 25.9% | 9.9% | 10.5% | 6.7% | 4.1 |
 JCI | $85B | 52.9 | 26.0 | 88.3 | 36.4% | 12.0% | 21.7% | 8.5% | 3.0 |
 TT | $104B | 36.2 | 25.3 | 37.0 | 36.2% | 18.6% | 36.3% | 26.2% | 1.1 |
 GNRC | $16B | 99.2 | 34.4 | 58.4 | 38.3% | 6.9% | 6.2% | 5.9% | 2.8 |
| Industrials Median | — | 25.5 | 13.8 | 20.7 | 32.7% | 4.9% | 8.2% | 6.3% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonAOS — Frequently Asked Questions
Quick answers to the most common questions about buying AOS stock.
What is A. O. Smith Corporation's P/E ratio?
A. O. Smith Corporation's current P/E ratio is 15.6x. The historical average is 19.8x. This places it at the 37th percentile of its historical range.
What is A. O. Smith Corporation's EV/EBITDA?
A. O. Smith Corporation's current EV/EBITDA is 10.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.3x.
What is A. O. Smith Corporation's ROE?
A. O. Smith Corporation's return on equity (ROE) is 29.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 17.0%.
Is AOS stock overvalued?
Based on historical data, A. O. Smith Corporation is trading at a P/E of 15.6x. This is at the 37th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is A. O. Smith Corporation's dividend yield?
A. O. Smith Corporation's current dividend yield is 2.32% with a payout ratio of 35.8%.
What are A. O. Smith Corporation's profit margins?
A. O. Smith Corporation has 38.8% gross margin and 19.0% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does A. O. Smith Corporation have?
A. O. Smith Corporation's Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.