A.O. Smith AOS
A.O. Smith manufactures water heaters and purification systems for residential and commercial markets in North America and China. A.O. Smith shows solid financial health (ND/EBITDA 0.63) and exceptional quality (ROE 27.13%, ROIC 28.59%), but its growth is negative (revenue -0.70%, earnings -15.00%) and momentum is very weak (16th percentile in 52 weeks), which detracts from its appeal despite a reasonable valuation (P/E 16.34).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
A.O. Smith manufactures water heaters and purification systems for residential and commercial markets in North America and China. A.O. Smith shows solid financial health (ND/EBITDA 0.63) and exceptional quality (ROE 27.13%, ROIC 28.59%), but its growth is negative (revenue -0.70%, earnings -15.00%) and momentum is very weak (16th percentile in 52 weeks), which detracts from its appeal despite a reasonable valuation (P/E 16.34).
Score by category
| Category | Score |
|---|---|
| Financial health | 7.7 |
| Quality / Moat | 7.8 |
| Valuation | 6.9 |
| Growth | 3.0 |
| Dividend | 7.1 |
| Momentum | 1.8 |
| Risk & Context | 5.6 |
OVERALL SCORE: 6.3/10
Context and risks
No material exposure to current macro factors (rates, oil, geopolitics). The water heater and purification business is defensive; net debt is low (ND/EBITDA 0.63) and the P/E (16.34) is not long-duration, so the rise in rates does not affect it significantly.
News considered in the analysis
- Zacks Industry Outlook Highlights Eaton, Emerson Electric, A. O. Smith and EnerSys — Listículo de Zacks sin información nueva sobre la empresa.
- 4 Manufacturing Electronics Stocks to Watch on Promising Industry Trends — Listículo genérico sin información específica o cuantificable para AOS.
- Is A. O. Smith Stock Underperforming the S&P 500? — Comparativa de rendimiento sin información nueva sobre fundamentales.
- 1 Safe-and-Steady Stock to Own for Decades and 2 Facing Challenges — Opinión genérica de StockStory sin datos concretos o eventos.
- A. O. Smith (AOS) Is Getting Fresh Attention, What Is Behind It? — Artículo especulativo de Simply Wall St. sin hechos materiales.
Verdict: Hold; quality and balance sheet are solid, but the lack of growth and weak momentum do not justify an entry at the current time.
Main risk: The main risk is the persistence of negative revenue and earnings growth, which could indicate a loss of competitiveness or weak demand in its key markets (North America and China).
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