Reading the tape
NYSE: AOS
A. O. Smith Corporation
Industrials · Industrial - Machinery
Market Cap
$8.40B
52w High
$81.87
52w Low
$59.64
P/E
15.85
Volume
61.87K
Outstanding Shares
139.71M
Price vs Fundamentals
Why The Stock Is Moving
Mixed / unclearLow confidence
1Y Price: -10.47%Revenue (TTM): 0.23%FCF (TTM): 59.25%P/FCF: 0th pct
What changed
The stock fell 10.47% over the last year. Revenue grew 0.23% over the trailing twelve months. Operating margin moved from 18.57% to 18.55%. Free cash flow grew 59.25% over the trailing twelve months.
What the market seems to be pricing
The stock has moved lower against modestly improving underlying metrics. The operating data does not yet tell a clear story — the move may reflect sentiment, sector rotation, or macro factors rather than company-specific earnings power.
What would invalidate this read
Operating margin currently stands at 18.55%. A decisive move in revenue — currently up 0.23% — would be the clearest signal to resolve the ambiguity.
Company profile
A.
CEOStephen Shafer
SectorIndustrials
IndustryIndustrial - Machinery
Employees12,700
IPO dateSep 30, 1983
Valuation
Forward P/E—
EV/EBITDA11.84
Enterprise value$9.38B
Stock splits
Oct 6, 2016↑ Forward
Every 1 shares became 2
Sep 19, 2016↑ Forward
Every 1 shares became 2
May 16, 2013↑ Forward
Every 1 shares became 2
Nov 16, 2010↑ Forward
Every 2 shares became 3
Aug 18, 1998↑ Forward
Every 2 shares became 3
Aug 17, 1993↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth-1.9%
Gross margin38.77%▲1.83%vs FY2024
Operating margin18.55%▲1.24%vs FY2024
ROE29.4%▲3.77%vs FY2024
Analyst consensus
RatingHold
Target price$74.00▲23.14%
10
Buy
19
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 23, 2026
Q3 FY26 · EPS est $1.01 · Revenue est $1.01B
View
Dividends
$1.42/shareQuarterlyDividend Achiever · 12yrSafeAOS pays a dividend with a 2.36% dividend yield, 12 consecutive years of growth, growing at 6.84% annually, covered 2.8× by free cash flow.
Dividend Yield
2.36%
Annual Div / Share
$1.42
5yr CAGR
+6.84%
Doubles every ~10.5yr
Payout Ratio
37.28%
Safe
Dividend Growth Rate
3yr CAGR
+6.37%
5yr CAGR
+6.84%
10yr CAGR
+12.69%
Dividend Safety
10/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$1.42+6.0%
2025$1.34+6.3%
2024$1.26+6.8%
2023$1.18+7.3%
2022$1.10+7.8%
2021$1.02+8.5%
2020$0.94+11.9%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$24/yr
$2/mo
In 5 yrs
$33/yr+39%
$3/mo
In 10 yrs
$46/yr+94%
$4/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$24/yr $2/mo | $33/yr+39% $3/mo | $46/yr+94% $4/mo |
Yield-on-cost grows from 2.36% → 4.58% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
AOS has raised its dividend for 12 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 2.8× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 6.84% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.