# A.O. Smith Corporation (AOS) — Stock CV

A.O. Smith Corporation is a $7.66B technology company. Revenue grew 0.4% over the last year, it keeps 13¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 15.3× earnings — near the lowest of its own history.

> A.O. Smith manufactures a broad lineup of water heaters, boilers, and water treatment products.

## Identity

- **Ticker**: AOS
- **Sector**: Technology
- **Industry**: Household Appliances
- **Headquarters**: MILWAUKEE, WI
- **Employees**: 11 500
- **Website**: https://www.aosmith.com
- **Market cap**: $7.66B
- **Last price**: $56.38
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $3.80B
- **Net income**: $500M
- **Free cash flow**: $639M
- **Net cash**: $80.5M
- **P/E**: 15.3
- **Revenue growth (YoY)**: 0.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 90 |
| Growth | 36 |
| Profitability | 90 |
| Health | 93 |
| Quality | 97 |
| Moat | 81 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +0.4% YoY
- [x] Profitable — $500M TTM
- [x] Profit growing — +36.5% YoY
- [x] Generates cash — $639M TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $7.66B market cap
- [ ] Not printing shares — +11.9% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [x] Financially stable — Altman Z 5.1 — safe
- [x] Pays a dividend — yield 2.58%
- [x] Valuation not extreme — P/E 15.3

## Experience (career milestones)

- **FY2023** — Best year on record: $557M net income
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $2.69B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak

## Strengths

- Strong cash conversion — FCF is 16.8% of revenue
- Net cash position after subtracting debt from cash
- Could repay net debt from ~0.8 years of free cash flow
- Interest covered 24.0× by operating earnings
- High returns on invested capital (ROIC 31.3%)

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $3.54B | $487M | $566M |
| FY2022 | $3.75B | $236M | $321M |
| FY2023 | $3.85B | $557M | $598M |
| FY2024 | $3.82B | $534M | $474M |
| FY2025 | $3.83B | $546M | $546M |

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Source: https://stockcv.com/AOS — derived from company filings; may be delayed or incomplete. Information, not investment advice.