📊 AOS Key Takeaways
Is Smith A O Corp. (AOS) a Good Investment?
AOS is a financially sound, mature household appliance manufacturer with fortress-like fundamentals: strong profitability margins, excellent balance sheet management, and robust free cash flow generation. However, revenue growth is essentially flat at +0.3% YoY, limiting upside potential and indicating a saturated market position.
SMITH A O CORP shows high-quality fundamentals with strong profitability, excellent free cash flow generation, and a very conservative balance sheet. Margins are robust across the income statement, while low leverage and strong interest coverage reduce financial risk. The main limitation is modest revenue growth, so the fundamental case depends more on sustained execution and margin durability than on rapid expansion.
Why Buy Smith A O Corp. Stock? AOS Key Strengths
- Fortress balance sheet with conservative leverage (0.31x debt/equity) and exceptional interest coverage ratio (22.8x)
- Consistent profitability across metrics: 38.7% gross margin, 17.1% operating margin, 12.5% net margin
- Strong free cash flow generation of $118.9M with 12.6% FCF margin, demonstrating capital-efficient operations
- Strong profitability with 38.8% gross margin, 19.0% operating margin, and 14.3% net margin
- Excellent financial health with low debt/equity of 0.08x and very strong 54.0x interest coverage
- High-quality cash generation with $546.0M free cash flow and a 14.3% FCF margin
AOS Stock Risks: Smith A O Corp. Investment Risks
- Stagnant revenue growth of +0.3% YoY indicates a mature market with limited organic growth prospects
- Subpar returns on equity (6.3%) and assets (3.2%) suggest limited capital efficiency and growth investments
- EPS growth of 6.1% appears to be driven by share count reduction rather than operational growth, masking underlying business stagnation
- Revenue growth is weak at only 0.3% YoY, which may limit earnings expansion over time
- Quick ratio of 0.94x is adequate but shows less immediate liquidity strength than the current ratio suggests
- High returns may be difficult to sustain if input costs, competition, or demand pressure margins
Key Metrics to Watch
- Revenue growth acceleration—need to demonstrate movement beyond flat territory
- Return on equity and asset trends—should improve to justify capital deployment
- Free cash flow consistency and dividend/buyback policy to assess shareholder returns
- Revenue growth and segment demand trends
- Operating margin and free cash flow conversion
Smith A O Corp. (AOS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Smith A O Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AOS Profit Margin, ROE & Profitability Analysis
AOS vs Market Sector: How Smith A O Corp. Compares
How Smith A O Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Smith A O Corp. Stock Overvalued? AOS Valuation Analysis 2026
Based on fundamental analysis, Smith A O Corp. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Smith A O Corp. Balance Sheet: AOS Debt, Cash & Liquidity
AOS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Smith A O Corp.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.69 reflects profitable operations.
AOS Revenue Growth, EPS Growth & YoY Performance
AOS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $945.6M | $118.0M | $0.85 |
| Q3 2025 | $902.6M | $120.1M | $0.82 |
| Q2 2025 | $1.0B | $152.2M | $1.06 |
| Q1 2025 | $963.9M | $136.6M | $0.95 |
| Q3 2024 | $902.6M | $120.1M | $0.82 |
| Q2 2024 | $960.8M | $156.2M | $1.04 |
| Q1 2024 | $966.4M | $126.9M | $0.84 |
| Q3 2023 | $874.2M | $109.8M | $0.71 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Smith A O Corp. Dividends, Buybacks & Capital Allocation
AOS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Smith A O Corp. (CIK: 0000091142)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AOS
What is the AI rating for AOS?
Smith A O Corp. (AOS) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AOS's key strengths?
Claude: Fortress balance sheet with conservative leverage (0.31x debt/equity) and exceptional interest coverage ratio (22.8x). Consistent profitability across metrics: 38.7% gross margin, 17.1% operating margin, 12.5% net margin. ChatGPT: Strong profitability with 38.8% gross margin, 19.0% operating margin, and 14.3% net margin. Excellent financial health with low debt/equity of 0.08x and very strong 54.0x interest coverage.
What are the risks of investing in AOS?
Claude: Stagnant revenue growth of +0.3% YoY indicates a mature market with limited organic growth prospects. Subpar returns on equity (6.3%) and assets (3.2%) suggest limited capital efficiency and growth investments. ChatGPT: Revenue growth is weak at only 0.3% YoY, which may limit earnings expansion over time. Quick ratio of 0.94x is adequate but shows less immediate liquidity strength than the current ratio suggests.
What is AOS's revenue and growth?
Smith A O Corp. reported revenue of $945.6M.
Does AOS pay dividends?
Smith A O Corp. pays dividends, with $50.2M distributed to shareholders in the trailing twelve months.
Where can I find AOS SEC filings?
Official SEC filings for Smith A O Corp. (CIK: 0000091142) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AOS's EPS?
Smith A O Corp. has a diluted EPS of $0.85.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AOS a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Smith A O Corp. has a BUY rating with 84% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AOS stock overvalued or undervalued?
Valuation metrics for AOS: ROE of 6.3% (sector avg: 15%), net margin of 12.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy AOS stock in 2026?
Our dual AI analysis gives Smith A O Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AOS's free cash flow?
Smith A O Corp.'s operating cash flow is $129.4M, with capital expenditures of $10.5M. FCF margin is 12.6%.
How does AOS compare to other Market stocks?
Vs Default sector averages: Net margin 12.5% (avg: 12%), ROE 6.3% (avg: 15%), current ratio 1.56 (avg: 1.8).