Where A.O. Smith Stands With Analysts

Across the recent three months, 5 analysts have shared their insights on A.O. Smith (NYSE:AOS), expressing a variety of opinions spanning from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $72.8, with a high estimate of $78.00 and a low estimate of $65.00. Highlighting a 3.89% decrease, the current average has fallen from the previous average price target of $75.75.

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of A.O. Smith by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to A.O. Smith. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of A.O. Smith compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for A.O. Smith's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of A.O. Smith's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on A.O. Smith analyst ratings.

All You Need to Know About A.O. Smith

A.O. Smith manufactures a broad lineup of water heaters, boilers, and water treatment products. The company has two reporting segments: North America (75% of sales) and rest of world (25% of sales). A.O. Smith is the leading manufacturer of water heaters in North America for the residential and commercial markets, with approximately 37% and 54% market share, respectively. Residential water heaters account for most of North American sales and are distributed equally through wholesale and retail channels. Most of A.O. Smith's international revenue is from China, a market the company entered during the mid-1990s.

Key Indicators: A.O. Smith's Financial Health

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: A.O. Smith's revenue growth over a period of 3M has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -1.52%. This indicates a decrease in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: A.O. Smith's net margin is impressive, surpassing industry averages. With a net margin of 14.17%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): A.O. Smith's ROE stands out, surpassing industry averages. With an impressive ROE of 7.31%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): A.O. Smith's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.2%, the company showcases efficient use of assets and strong financial health.

Debt Management: A.O. Smith's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.16.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.