March 07, 2026 a 08:00 am
AOS: Fundamental Ratio Analysis - A. O. Smith Corporation
A. O. Smith Corporation, a notable player in the water heating and treatment sector, continues to demonstrate robust financial health. The firm’s diverse product range and expansive global market presence are highlighted by solid historical financial performances. However, like many in the industrial machinery sector, it may face challenges from fluctuating raw material costs and international trade dynamics.
Fundamental Rating
The fundamental rating for A. O. Smith is currently an "A-", reflecting strong performance across key financial metrics. The company has effectively maintained a healthy balance between debt and equity, showcasing efficient resource management.
| Category | Score | Visual |
|---|---|---|
| Discounted Cash Flow | 3 | |
| Return on Equity | 5 | |
| Return on Assets | 5 | |
| Debt to Equity | 4 | |
| Price to Earnings | 3 | |
| Price to Book | 1 |
Historical Rating
The historical ratings provide insight into the company's trajectory in financial performance. Over time, A. O. Smith has consistently been able to maintain or improve its scores, indicating a stable financial health.
| Date | Overall | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2026-03-06 | 4 | 3 | 5 | 5 | 4 | 3 | 1 |
| -- | 0 | 3 | 5 | 5 | 4 | 3 | 1 |
Analyst Price Targets
Analysts have set a range of price targets for A. O. Smith, reflecting varied opinions on its growth potential. The consensus suggests a hold recommendation, indicating stable future performance.
| High | Low | Median | Consensus |
|---|---|---|---|
| $85 | $69 | $75 | $76.2 |
Analyst Sentiment
Analyst sentiment is mixed, with a tilt towards hold recommendations. The current distribution of recommendations suggests careful optimism regarding A. O. Smith's market positioning.
| Recommendation | Count | Visual |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 10 | |
| Hold | 18 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
A. O. Smith Corporation demonstrates financial robustness backed by solid fundamentals and a stable market presence. While the company faces typical industry risks, such as raw material cost fluctuations, its diverse product portfolio and strategic market expansions mitigate these challenges. Analyst ratings suggest a hold position, aligning with the company’s conservative but steady growth outlook. Potential investors should weigh the steady historical performance and current market conditions when considering investments. As always, due diligence in monitoring market trends and corporate developments is essential.