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Smith A O Corp. (AOS) Stock Fundamental Analysis & AI Rating 2026

AOS NYSE Household Appliances DE CIK: 0000091142
Updated This Month • Analysis: Mar 20, 2026 • SEC Data: 2025-12-31
Combined AI Rating
BUY
84% Confidence
AGREEMENT
STRONG BUY
87% Conf
BUY
82% Conf

📊 AOS Key Takeaways

Revenue: $3.8B
Net Margin: 14.3%
Free Cash Flow: $546.0M
Current Ratio: 1.50x
Debt/Equity: 0.08x
EPS: $3.85
AI Rating: STRONG BUY with 87% confidence
Smith A O Corp. (AOS) receives a BUY rating with 84% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $3.8B, net profit margin of 14.3%, and return on equity (ROE) of 29.4%, Smith A O Corp. demonstrates strong fundamentals in the Market sector. Below is our complete AOS stock analysis for 2026.

Is Smith A O Corp. (AOS) a Good Investment?

Claude

Smith A O Corp demonstrates exceptional financial health with robust profitability margins (14.3% net, 19.0% operating), outstanding returns on equity (29.4%) and assets (17.4%), and strong cash generation with $546M free cash flow. The company maintains a fortress balance sheet with minimal leverage (0.08x debt/equity) and exceptional interest coverage (54.0x), positioning it well to fund growth, acquisitions, or shareholder returns despite modest revenue growth.

ChatGPT

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

Claude
  • + Outstanding profitability with net margin of 14.3% and operating margin of 19.0%, demonstrating pricing power and operational efficiency
  • + Exceptional return metrics (ROE 29.4%, ROA 17.4%) indicate superior capital allocation and asset utilization
  • + Strong cash generation with $546M free cash flow and 14.3% FCF margin, providing financial flexibility
  • + Conservative balance sheet with 0.08x debt/equity ratio and $174.5M cash, indicating minimal financial risk
  • + Excellent interest coverage of 54.0x demonstrates strong debt service capacity
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
  • + 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

Claude
  • ! Slow revenue growth at 0.3% YoY suggests limited organic expansion in household appliances sector
  • ! Quick ratio of 0.94x indicates potential near-term liquidity constraints if operational cash flow declines
  • ! Concentrated exposure to cyclical household appliances sector vulnerable to economic downturns and consumer spending
  • ! 27 Form 4 filings in 90 days warrant monitoring for insider activity patterns and potential conflicts
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
  • ! High returns may be difficult to sustain if input costs, competition, or demand pressure margins

Key Metrics to Watch

Claude
  • * Revenue growth acceleration to confirm market share gains and demand strength
  • * Free cash flow trends and capital deployment decisions
  • * Gross margin stability to monitor pricing power and input cost pressures
ChatGPT
  • * Revenue growth and segment demand trends
  • * Operating margin and free cash flow conversion

Smith A O Corp. (AOS) Financial Metrics & Key Ratios

Revenue
$3.8B
Net Income
$546.2M
EPS (Diluted)
$3.85
Free Cash Flow
$546.0M
Total Assets
$3.1B
Cash Position
$174.5M

💡 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

Gross Margin 38.8%
Operating Margin 19.0%
Net Margin 14.3%
ROE 29.4%
ROA 17.4%
FCF Margin 14.3%

AOS vs Market Sector: How Smith A O Corp. Compares

How Smith A O Corp. compares to Market sector averages

Net Margin
AOS 14.3%
vs
Sector Avg 12.0%
AOS Sector
ROE
AOS 29.4%
vs
Sector Avg 15.0%
AOS Sector
Current Ratio
AOS 1.5x
vs
Sector Avg 1.8x
AOS Sector
Debt/Equity
AOS 0.1x
vs
Sector Avg 0.7x
AOS Sector

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. appears fundamentally strong relative to the Market sector in 2026.

Return on Equity
29.4%
Sector avg: 15%
Net Profit Margin
14.3%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.08x
Sector avg: 0.7x

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

Current Ratio
1.50x
Quick Ratio
0.94x
Debt/Equity
0.08x
Debt/Assets
40.9%
Interest Coverage
53.97x
Long-term Debt
$155.0M

AOS Revenue & Earnings Growth: 5-Year Financial Trend

AOS 5-year financial data: Year 2020: Revenue $3.2B, Net Income $444.2M, EPS $2.58. Year 2021: Revenue $3.5B, Net Income $370.0M, EPS $2.22. Year 2022: Revenue $3.8B, Net Income $344.9M, EPS $2.12. Year 2023: Revenue $3.9B, Net Income $487.1M, EPS $3.02. Year 2025: Revenue $3.9B, Net Income $556.6M, EPS $3.69.
Revenue
Net Income
EPS (right axis)

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

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
14.3%
Free cash flow / Revenue

AOS Quarterly Earnings & Performance

Quarterly financial performance data for Smith A O Corp. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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
Q2 2023 $960.8M $126.2M $0.81

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Smith A O Corp. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$616.8M
Cash generated from operations
Stock Buybacks
$400.8M
Shares repurchased (TTM)
Capital Expenditures
$70.8M
Investment in assets
Dividends Paid
$195.7M
Returned to shareholders

AOS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Smith A O Corp. (CIK: 0000091142)

📋 Recent SEC Filings

Date Form Document Action
Apr 15, 2026 4 xslF345X06/wk-form4_1776280260.xml View →
Apr 15, 2026 4 xslF345X06/wk-form4_1776280011.xml View →
Apr 15, 2026 4 xslF345X06/wk-form4_1776279789.xml View →
Apr 15, 2026 4 xslF345X06/wk-form4_1776279699.xml View →
Apr 15, 2026 4 xslF345X06/wk-form4_1776279129.xml View →

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 (STRONG BUY) and ChatGPT (BUY) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.

What are AOS's key strengths?

Claude: Outstanding profitability with net margin of 14.3% and operating margin of 19.0%, demonstrating pricing power and operational efficiency. Exceptional return metrics (ROE 29.4%, ROA 17.4%) indicate superior capital allocation and asset utilization. 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: Slow revenue growth at 0.3% YoY suggests limited organic expansion in household appliances sector. Quick ratio of 0.94x indicates potential near-term liquidity constraints if operational cash flow declines. 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 $3.8B.

Does AOS pay dividends?

Smith A O Corp. pays dividends, with $195.7M 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 $3.85.

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 April 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 29.4% (sector avg: 15%), net margin of 14.3% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.

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 $616.8M, with capital expenditures of $70.8M. FCF margin is 14.3%.

How does AOS compare to other Market stocks?

Vs Default sector averages: Net margin 14.3% (avg: 12%), ROE 29.4% (avg: 15%), current ratio 1.50 (avg: 1.8).

Why is AOS's return on equity (ROE) so high?

Smith A O Corp. has a return on equity of 29.4%, significantly above the Market sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 14.3% net margin.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-12-31 | Powered by Claude AI