AOS
Industrials · Specialty Industrial Machinery
Performance
AOS (AOS) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
AOS (AOS) operates in the Specialty Industrial Machinery space within the Industrials sector. With a market cap of $8.3B, it qualifies as a small-cap company. Revenue has been contracting year-over-year, a headwind that investors will watch closely in upcoming earnings.
- Forward P/E (14.5×) is lower than trailing P/E (16.1×) — analysts expect earnings to improve
- Healthy profit margin of 13.8%
- ROE of 28.3% shows management efficiently converts equity into profit
- Dividend yield of 2.37% provides consistent income on top of price appreciation
- Price is near its 52-week low — potential entry point with asymmetric upside
- Revenue declined 2% YoY — warning sign for business momentum
- Earnings fell 11% YoY — profitability is under pressure
- High debt-to-equity of 34.98× increases financial risk, especially with elevated interest rates
Verdict
Buy / Hold
More positives than negatives. Fundamentals support holding while monitoring key risks.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
Current DY
2.37%
5Y Avg Annual
$1.1520
Last Payment
$0.3600
Ex-Date
04/30/2026
Annual dividends paid per share
| Ex-Date | Payment | Amount | Est. DY |
|---|---|---|---|
Latest04/30/2026 | 05/15/2026 | $0.3600 | 2.38% |
01/30/2026 | 02/14/2026 | $0.3600 | 2.38% |
10/31/2025 | 11/15/2025 | $0.3600 | 2.38% |
07/31/2025 | 08/15/2025 | $0.3400 | 2.25% |
04/30/2025 | 05/15/2025 | $0.3400 | 2.25% |
01/31/2025 | 02/15/2025 | $0.3400 | 2.25% |
10/31/2024 | 11/15/2024 | $0.3400 | 2.25% |
07/31/2024 | 08/15/2024 | $0.3200 | 2.11% |
Magic Number
Shares needed to self-fund your next purchase
$60.55
Price
$0.3600
Last div. (quarterly)
169
shares
Own 169 AOS shares ($10,232.95) and each quarterly dividend pays for 1 new share — the snowball runs on its own.
Investment target
$10,232.95
New shares / year
+4 shares
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
Next Earnings
Jul 30, 2026
44
days
EPS (TTM)
$3.75
P/E (TTM)
16.1
Fwd P/E
14.5
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $60.55
Graham Number
√(22.5 × EPS × Book Value)
$33.91
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
$20.33
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
7/10
70% score
Pays dividends
15Y hist.15+ years of dividend history
Dividend consistency (5Y+)
15 yrsUninterrupted dividend payments for at least 5 years
ROE above 10%
28.3%Return on equity — measures how efficiently capital is used
Positive profit margin
13.8%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
-1.9%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
-10.5%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
34.98×Low financial leverage reduces risk of distress
Current ratio above 1
1.56×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$99M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
2.37%Stock must distribute income to shareholders
Related Assets
Industrials
About AOS
A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, homes, apartments, and condominiums, and other large commercial buildings; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides commercial water treatment and filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, Impact, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms, as well as offers Aquasana branded products directly to consumers through e-commerce channels; and A. O. Smith branded water treatment products through dealer network and Amazon. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.
Sector
Industrials
Industry
Specialty Industrial Machinery
Location
Milwaukee, United States
Employees
11,500