#35Industrials· Building Products

AOSStrong Buy

A. O. Smith

$56.01USD

Composite Score63.9Strong

+38

Margin of safety+38%Undervalued

Fair value$90.71

Target$105.54

Loss chance22%

Price (1y)

Loading price history…

Fair price check

5 different valuation methods each estimate what AOS should be worth, then we compare to today's price.

Looks undervalued

Models suggest AOS is trading below fair value

Today's price

$56.01

Median fair price

$90.71

+62% vs today

Of 4 methods:3 say cheap1 say pricey(1 outlier excluded)

P/E multiplesUndervalued
thinks it's a bargain — estimates $105.54, about 88% above today
EV/EBITDAUndervalued
thinks it's a bargain — estimates $97.11, about 73% above today
P/B multiplesUndervalued
thinks it's a bargain — estimates $90.71, about 62% above today
Graham (defensive)Overvalued
thinks it's expensive — estimates $13.24, about 76% below today
Residual IncomeOutlier
estimate looks unreliable — estimates $4.77 — likely unreliable

How to read this: “Cheap” = method's fair price is at least 20% above today. “Fair” = within ±10–20%. “Pricey” = at least 10% below today. Outliers (values more than 5× or less than 0.2× today's price) are excluded.

Fair price ensemble

Median fair

$90.71

Margin of safety

+38.3%

Max (ex-outliers)

$105.54

Tangible BVPS

$2.58

Method	Value
Graham (defensive)	$13.24
P/E multiples(vs sector peers)	$105.54
P/B multiples(vs sector peers)	$90.71
EV/EBITDA(vs sector peers)	$97.11
Residual Income	$4.77
DCF (2-stage)	skipped

goodwill heavy
extreme rim estimate

Median of all applicable methods (current price $56.01). Outliers above 5× or below 0.2× current price are excluded from the max but kept in the median. See methodology for the 6-method ensemble + 7 defenses.

Pillar breakdown

8 dimensions, each scored 0–100 against the universe

Industrials median (n=79)

Quality
Profit margins & asset efficiency
73
Strong
Value
Price vs fundamentals
86
Strong
Growth
Revenue & earnings trajectory
53
Decent
Momentum
Recent price strength
21
Poor
Health
Balance sheet & solvency
77
Strong
Profitability
ROE, ROA, ROIC
74
Strong
Technical
Trend & volatility signals
28
Poor
Risk
Volatility & drawdown profile
35
Weak

0305070100

Strong (70+)Decent (50–70)Weak (30–50)Poor (<30)

Pillars not shown: Sentiment, ML (Phase 5+).

Raw fundamentals (SEC EDGAR)

Metric	Value
Market cap	$7.79B
Revenue (TTM)	$3.81B
Net income (TTM)	$527.60M
Operating cash flow (TTM)	$707.50M
CapEx (TTM)	$60.00M
Free cash flow (TTM)CFO − CapEx	$647.50M
Total assets	$3.65B
Total liabilities	$1.77B
Stockholders' equity	$1.88B
Cash & equivalents	$185.20M
Shares outstanding	139.17M
EPS (basic)	$0.85
EPS (diluted)	$0.85
P/E ratio (TTM)	14.77

TTM = trailing twelve months. Balance sheet items are point-in-time (latest filing).

Data quality

Latest filed date: 2026-04-30
Latest period end: 2026-03-31
Filing lag: 16 days
Missing metrics: 3(research_and_development, accounts_receivable, accounts_payable)

Phase 3c — composite is the 8-pillar weighted score over quality, value, growth, momentum, health, profitability, technical, and risk. Sentiment + ML pillars land in Phases 5-6; until then their weight redistributes pro-rata. Fair price is the median of 6 valuation methods (Graham, P/E / P/B / EV-EBITDA multiples, RIM, DCF) with outliers above 5× current price excluded from the max. Risk-overlay flags annotate only — they suppress the entered-top-5 badge but do not modify the composite.