Added to YB: 2025-05-01
Pitch date: 2025-04-30
AOS [neutral]
A. O. Smith Corporation
+1.75%
current return
Author Info
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Company Info
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.
Market Cap
$9.3B
Pitch Price
$67.54
Price Target
75.00 (+9%)
Dividend
N/A
EV/EBITDA
11.86
P/E
18.10
EV/Sales
2.47
Sector
Building Products
Category
growth
A.O. Smith (NYSE:AOS)
AOS (pass): Dominant North American water heater player in oligopoly market with 90%+ share, 24% NA margins, 23% ROIC. Regulatory changes driving 2x-3x price uplift by 2029. Water treatment growing 12% CAGR, targeting $500M by 2028. China headwinds persist. DCF yields $75 PT, 10% IRR, limited reinvestment runway.
Read full article (18 min)