{"schemaVersion":1,"research":true,"symbol":"aos","name":"Smith A O","topic":"moat","path":"/stock/aos/moat","status":"published","version":4,"updatedAt":"2026-10-18T14:54:10.777Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"A. O. Smith has a narrow moat centered on established North American brands and distribution access, particularly its long-standing exclusive Lowe’s relationship. Realized pricing benefits and partial contractual steel-cost pass-through support pricing power, but do not establish unrestricted pricing or customer lock-in. Declining disclosed distributor counts, China weakness and first-half 2026 cost pressure constrain durability. Relative cost advantages, network effects and efficient scale are unproven.","advantages":[{"mechanism":"intangible_assets","claim":"Established brands and distribution relationships provide a current North American channel-access advantage. The exclusive Lowe’s relationship persisted across the supplied annual disclosures, alongside broad wholesale distribution. Management’s market-leadership assertions are supporting context rather than independently established market shares.","durability":"The relationship history through 2025 and realized pricing benefits support a narrow advantage. Durability remains conditional: exclusivity duration, renewal provisions and comparative distributor economics are undisclosed.","risks":"Disclosed wholesale distributor counts fell from more than 1,000 in 2022 to more than 900 in 2023 and approximately 800 in 2025; the reason and economic effect are unknown. Price competition, technological transitions and channel changes could weaken access and brand preference. China declines demonstrate that premium positioning does not insulate demand, although they do not establish North American share loss.","invalidation":"Loss or material weakening of Lowe’s exclusivity, sustained contraction in economically productive wholesale coverage accompanied by relative volume losses, or repeated price reversals needed to defend demand would invalidate the channel-and-brand thesis. Persistent inability to recover input inflation after pricing actions would weaken its economic value.","competitors":[],"evidenceIds":["e1","e2","e3","e4","e5","e6","e7","e8"],"counterEvidenceIds":["e9","e10","e11","e12","e13","e14","e15"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"Business — North American wholesale distribution","excerpt":"O. Smith and State brands, includes approximately 800 independent wholesale plumbing distributors serving residential and commercial end markets."},{"id":"e2","sourceId":"filing-1","location":"Business — retail customers and Lowe’s exclusivity","excerpt":"In the retail channel, our customers include four of the six largest national hardware and home center chains, including a long-standing exclusive relationship with Lowe’s where we sell A."},{"id":"e3","sourceId":"filing-5","location":"2022 business — retail customers and Lowe’s exclusivity","excerpt":"In the retail channel, our customers include four of the six largest national hardware and home center chains, including a long-standing exclusive relationship with Lowe’s where we sell A."},{"id":"e4","sourceId":"filing-1","location":"Business — management’s North American leadership assertion","excerpt":"We believe we are the largest manufacturer and marketer of water heaters in North America with a leading share in both the residential and commercial portions of the market."},{"id":"e5","sourceId":"filing-1","location":"Business — importance of trade name","excerpt":"Our trade name is important with respect to our products, particularly in China, India, and North America."},{"id":"e6","sourceId":"filing-1","location":"2025 operating results — water heater pricing and volumes","excerpt":"In our North America segment, water heater sales increased one percent in 2025 compared to 2024 as pricing benefits and higher commercial volumes were partially offset by lower wholesale residential volumes."},{"id":"e7","sourceId":"filing-1","location":"2025 operating results — pricing and mix contribution to gross margin","excerpt":"The higher gross profit margin in 2025 compared to 2024 was primarily driven by the benefits of pricing actions implemented early in 2025 to address increased input costs in North America and higher mix of commercial water heaters and boilers."},{"id":"e8","sourceId":"filing-2","location":"First-half 2026 operating results — boiler pricing and pre-buy demand","excerpt":"Our boiler sales grew 21 percent and 12 percent in the second quarter and first half of 2026, respectively, due to carryover pricing benefits, a strong response to our annual seasonal pre-buy programs and pre-buy ahead of 2026 price increase."},{"id":"e9","sourceId":"filing-5","location":"2022 business — wholesale distributor count","excerpt":"O. Smith and State brands, includes more than 1,000 independent wholesale plumbing distributors serving residential and commercial end markets."},{"id":"e10","sourceId":"filing-4","location":"2023 business — wholesale distributor count","excerpt":"O. Smith and State brands, includes more than 900 independent wholesale plumbing distributors serving residential and commercial end markets."},{"id":"e11","sourceId":"filing-1","location":"Risk factors — competitor resources and feature replication","excerpt":"Some of our competitors may have greater financial, marketing, manufacturing, research and development and distribution resources than we have; others may invest little in technology or product development but compete on price and the rapid replication of features, benefits, and technologies, and some are increasingly expanding beyond their existing manufacturing or geographic footprints."},{"id":"e12","sourceId":"filing-1","location":"Risk factors — tankless and heat pump competition","excerpt":"New technologies and new competitors have developed and continue to develop in certain markets in which we participate, such as gas tankless and heat pump technologies in North America."},{"id":"e13","sourceId":"filing-1","location":"Risk factors — realized 2025 China sales decline","excerpt":"■Because approximately 18 percent of our sales in 2025 were attributable to China, adverse economic conditions or changes in consumer behavior in China could impact our business Our third-party sales in China decreased twelve percent in local currency in 2025 compared to 2024."},{"id":"e14","sourceId":"filing-2","location":"Second-quarter 2026 operating results — China sales decline","excerpt":"In our Rest of World segment, China third-party sales declined 28 percent in local currency in the second quarter of 2026 due to continued challenging market conditions including the cessation of the government appliance subsidy programs."},{"id":"e15","sourceId":"filing-2","location":"First-half 2026 North American results — costs and volumes outweighed pricing benefits","excerpt":"Lower segment earnings and segment margin in the first six months of 2026 were primarily driven by the restructuring and impairment charges, increased material and input cost including steel and lower residential water heater volumes that more than offset the pricing benefits of our 2025 pricing actions and the earnings contribution from Leonard Valve."},{"id":"e16","sourceId":"filing-4","location":"Business — North American replacement demand","excerpt":"A significant portion of our North America sales is derived from the replacement of existing products."},{"id":"e17","sourceId":"filing-2","location":"Revenue recognition — independent unit performance obligations","excerpt":"Each unit sold is considered an independent, unbundled performance obligation."},{"id":"e18","sourceId":"filing-1","location":"Business — contractual steel-price adjustments","excerpt":"A portion of our customers are contractually obligated to accept price changes based on fluctuations in steel prices."},{"id":"e19","sourceId":"filing-1","location":"Risk factors — historical lag in material-cost recovery","excerpt":"Historically, there has been a lag in our ability to recover increased material costs from customers, and that lag, could negatively impact our profitability."},{"id":"e20","sourceId":"filing-2","location":"2026 pricing actions — announced increases effective at second-quarter end","excerpt":"In response to higher steel and other input costs, in April, we announced price increases of four to seven percent on most of our water heater and boiler products that went into effect at the end of the second quarter."},{"id":"e21","sourceId":"filing-2","location":"Revenue recognition — volume-linked pricing agreements and rebates","excerpt":"Rebates and incentives are based on pricing agreements and are tied to sales volume."},{"id":"e22","sourceId":"filing-2","location":"Liquidity — operating cash generation and working capital","excerpt":"(dollars in millions) Six Months Ended June 30, 2026 2025 Cash provided by operating activities $ 253.8 $ 178.3 Cash used in investing activities (471.8) (1.8) Cash provided by (used in) financing activities 223.6 (241.1) Cash provided by operations in the first six months of 2026 was $253.8 million, an increase of $75.5 million from $178.3 million in the first six months of 2025, primarily due to working capital management that more than offset lower earnings."},{"id":"e23","sourceId":"filing-2","location":"Liquidity — actual capital expenditure","excerpt":"Capital expenditures totaled $20.5 million in the first six months of 2026 compared with $38.4 million in the same period last year."},{"id":"e24","sourceId":"filing-2","location":"Liquidity — debt-to-capitalization increase","excerpt":"Our leverage, as measured by the ratio of total debt to total capitalization, was 25.7 percent at June 30, 2026, compared with 7.7 percent at December 31, 2025."},{"id":"e25","sourceId":"filing-2","location":"Operating results — acquisition-related debt and interest","excerpt":"The increase in interest expense in the second quarter and first six months of 2026 was primarily due to higher debt levels as a result of the Leonard Valve acquisition."},{"id":"e26","sourceId":"filing-2","location":"Capital deployment — actual second-quarter repurchases","excerpt":"During the second quarter of 2026, we repurchased 1,885,727 shares at an average price of $58.93 per share and at a total cost of $111.1 million."},{"id":"e27","sourceId":"filing-2","location":"Operating results — restructuring and impairment expense","excerpt":"Restructuring and impairment expense in the three and six months ended June 30, 2026 was $22.6 million, and was associated with a restructuring plan designed to increase operational efficiency and accelerate growth through footprint optimization and brand rationalization."},{"id":"e28","sourceId":"filing-3","location":"Executive compensation — actual 2025 CEO grants","excerpt":"Mr. Shafer received two grants in 2025: the first, valued at $3,120,000 during our regular grant cycle in February 2025, and a second grant valued at $1,000,000 on July 1, 2025 in recognition of his new role as president and chief executive officer."},{"id":"e29","sourceId":"filing-3","location":"Executive compensation — three-year ROIC performance cash","excerpt":"The value to the executive is dependent upon return on invested capital (or ROIC) performance over a three-year vesting period."},{"id":"e30","sourceId":"filing-3","location":"Executive compensation — RSU vesting and performance threshold","excerpt":"Restricted stock units are time-based but have a minimum performance threshold based on average Return on Equity that must be achieved in order to vest."},{"id":"e31","sourceId":"filing-3","location":"Executive compensation — 2025 RSU minimum ROE threshold","excerpt":"For 2025, the minimum average Return on Equity for restricted stock unit payouts was 5%."},{"id":"e32","sourceId":"filing-3","location":"Governance — class voting rights and board independence","excerpt":"Key benefits of our capital structure and commitment to strong governance practices include: • Both Common stockholders and Class A Common stockholders elect directors annually; • Common stockholders vote as a separate class and currently have the power to elect four of our ten director nominees; • Nominees for election as Common Stock directors now rotate every year at the direction of the Board of Directors, provided that the nominees for election as Common Stock directors will exclude directors who are Smith family members or management and will include at least one member of each of the Audit, Personnel and Compensation, and Nominating and Governance Committees, such member not to serve more than two years consecutively; • Common stockholders benefit from our decision not to utilize the “controlled company” exemption under the New York Stock Exchange (“NYSE”) rules, thus allowing Common stockholders to receive the same corporate governance protections as other NYSE companies that are not controlled; • For more than 40 years, our chief executive officer has not been a member of the Smith family; • Only one Smith family member currently serves as a director and none of the current independent directors were known to the Smith family prior to their placement on the Board through a third-party reputable search firm; • Eight of our ten directors are independent under the SEC and NYSE rules, and only independent directors serve on our Audit, Personnel and Compensation, and Nominating and Governance Committees; and • Our Presiding Director is an independent director with well-defined roles and responsibilities."},{"id":"e33","sourceId":"filing-3","location":"Stockholder engagement — dual-class and oversight concerns","excerpt":"Stockholders were supportive of our capital structure, but certain stockholders expressed specific concerns and questions on the following topics: • Formalizing and disclosing the process for the rotation of the Common Stock directors; • Enhancement of and more robust disclosure regarding the roles and responsibilities of the Presiding Director; • The lack of a resignation policy for director nominees receiving more “withheld” votes than “for” votes in an election; • The lack of a sunset provision for our dual class stock structure, i.e., a specific time-based conversion of the Class A Common Stock into Common Stock; and • The participation of Mark Smith, a trustee of the Smith Family Voting Trust, who we classify as independent, on the Personnel and Compensation Committee and the Nominating and Governance Committee."},{"id":"e34","sourceId":"filing-3","location":"Governance — implemented Presiding Director enhancements","excerpt":"In 2026, as a result of our stockholder engagement efforts, we enhanced the role of our Presiding Director, whose responsibilities now include: • presiding at all meetings of the Board of Directors at which the chairman is not present, including all executive sessions of the nonmanagement and/or independent directors; • having the authority to call meetings of the nonmanagement and/or independent directors; • serving as a contact for interested parties who wish to communicate with nonmanagement directors; • approving Board of Directors meeting agendas and information sent to the Board of Directors; • approving Board of Directors meeting schedules to assure that there is sufficient time for discussion of all agenda items; and • providing feedback to management regarding meetings of the nonmanagement and/or independent directors."},{"id":"e35","sourceId":"filing-3","location":"Governance — related-party transaction approval procedure","excerpt":"Further, the Corporate Governance Guidelines provide the procedure for review of related party transactions reportable under SEC rules, with approval by the Nominating and Governance Committee required if any such transaction involves a director, executive officer or his/her immediate family members."},{"id":"e36","sourceId":"filing-1","location":"Business — named competitors in India","excerpt":"Our primary competitors in India are Racold, Bajaj and Havells in the water heater market and Eureka Forbes and Kent in the water treatment market."},{"id":"e37","sourceId":"filing-2","location":"Commitments and contingencies — actual production relocation","excerpt":"During that period, the Company shifted certain production activities to other facilities to mitigate the operational impact."},{"id":"e38","sourceId":"filing-2","location":"Revenue disaggregation — segment sales and acquired contribution","excerpt":"The Company’s Rest of World segment sales are disaggregated by China and all other Rest of World: (dollars in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 North America Water heaters and related parts $ 656.4 $ 644.4 $ 1,268.2 $ 1,269.0 Boilers, related parts, and components (1) 101.7 71.2 183.2 135.6 Water treatment products and related parts 62.4 63.4 122.5 123.1 Total North America 820.5 779.0 1,573.9 1,527.7 Rest of World China $ 152.4 $ 192.3 $ 314.8 $ 379.5 All other Rest of World 42.5 47.8 80.8 87.3 Total Rest of World 194.9 240.1 395.6 466.8 Inter-segment sales (11.1) (7.8) (19.6) (19.3) Total Net Sales $ 1,004.3 $ 1,011.3 $ 1,949.9 $ 1,975.2 (1) Includes sales of $15.9 million and $31.8 million in the three and six months ended June 30, 2026, respectively, related to the January 6, 2026 acquisition of Leonard Valve."},{"id":"e39","sourceId":"filing-1","location":"Business — limits of dependence on individual intellectual property rights","excerpt":"Although we believe our trademarks, trade names, patents, trade secrets, and licenses to constitute a valuable asset in the aggregate, we do not regard our business as being materially dependent on any single trademark, trade name, patent, trade secret, license or any group of related such rights."}],"changes":["Retained the previous narrow verdict and North American distribution-and-brand thesis.","Added the disclosed decline in wholesale distributor counts across 2022, 2023 and 2025 as an erosion signal, without assuming customer losses or a consistent counting methodology.","Recognized contractual steel-price adjustment rights and separated realized carryover pricing from the newly effective 2026 increases.","Added evidence-based management assessments using actual compensation arrangements, capital deployment and proxy governance disclosures."],"limitations":["Only supplied issuer filings were assessed. Market leadership, brand importance and explanations of operating performance remain issuer representations; disclosed operating results and contractual arrangements nevertheless support numerical assessments.","North American and Chinese competitors are not named in the supplied competition passages. The named Indian competitors are Racold, Bajaj, Havells, Eureka Forbes and Kent; these do not establish competitor coverage for the North American advantage.","No comparable market shares, relative manufacturing costs, distributor productivity, exclusivity expiry terms or customer switching-cost measurements are supplied.","Replacement demand and a persistent channel relationship provide indirect retention evidence; they do not establish same-brand replacement rates or quantified customer retention.","The distributor-count decline could reflect consolidation, counting changes or actual attrition; its cause and economic impact are undisclosed.","The supplied proxy provides actual compensation and governance disclosures, but ownership excerpts are fragmented and do not establish complete beneficial ownership, ownership-guideline compliance or voting-control percentages.","All supplied source dates have dateKind filed. The latest supplied operating evidence covers June 30, 2026 and was filed July 30, 2026; later outcomes are not established."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":3,"rationale":"Broad wholesale access and the exclusive Lowe’s relationship documented across multiple years establish a meaningful channel asset. Realized pricing supports its economic relevance. Comparative market leadership remains a management assertion, and neither switching costs nor relative cost superiority is demonstrated.","evidenceIds":["e1","e2","e3","e4","e6"]},{"criterion":"durability","grade":2,"rationale":"The persistent exclusive retail relationship supports durability, but declining distributor counts and emerging technology competition limit confidence. No expiry or renewal terms establish how long exclusivity will persist.","evidenceIds":["e1","e2","e3","e9","e10","e12"]},{"criterion":"customer_dependency","grade":1,"rationale":"Replacement demand supports category necessity, but does not demonstrate dependence on this supplier. Independent unit obligations and the absence of demonstrated switching friction leave customer dependence weak; the exclusive retail relationship establishes channel access rather than end-user lock-in.","evidenceIds":["e2","e16","e17"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Realized pricing benefits demonstrate some resilience, while first-half 2026 costs and lower residential volumes outweighed those benefits. China declines are realized weakness, although their disclosed market and subsidy causes do not establish competitive share losses.","evidenceIds":["e7","e8","e13","e14","e15"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":3,"rationale":"Pricing contributed to 2025 water heater sales and gross margin, with carryover benefits also reported in 2026 boilers. This is demonstrated pass-through capability. The four-to-seven-percent increases effective at second-quarter end are not treated as fully realized revenue gains.","evidenceIds":["e6","e7","e8","e20"]},{"criterion":"retention","grade":2,"rationale":"Assessed indirectly from replacement demand, a persistent exclusive retail relationship and continued boiler demand alongside pricing benefits. Falling wholesale coverage and pre-buy effects make the evidence mixed; no customer retention or same-brand replacement rate is inferred.","evidenceIds":["e1","e2","e3","e8","e9","e16"]},{"criterion":"margin_resilience","grade":2,"rationale":"Pricing and commercial mix supported 2025 gross margin, but input costs, residential volume declines and restructuring outweighed pricing benefits in first-half 2026 North America. The historical recovery lag reinforces incomplete protection rather than an absence of pricing power.","evidenceIds":["e7","e15","e19"]},{"criterion":"contractual_freedom","grade":2,"rationale":"Some customers are contractually obligated to accept steel-linked price changes, and new price increases were implemented. This provides partial adjustment rights, while volume-linked rebates and undisclosed coverage and reset terms prevent concluding broad unilateral freedom.","evidenceIds":["e18","e20","e21"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Operating cash flow improved through working capital management and capital expenditures were contained. Acquisition-related financing sharply increased leverage while repurchases continued, and restructuring charges indicate mixed deployment outcomes. Supplied acquisition returns and repurchase valuation evidence are insufficient to establish exceptional discipline.","evidenceIds":["e22","e23","e24","e25","e26","e27"]},{"criterion":"incentive_alignment","grade":3,"rationale":"Actual CEO equity grants, three-year ROIC-linked performance cash and RSUs with a performance threshold establish substantive alignment mechanisms. The five-percent ROE floor is modest, and the passages do not establish complete executive ownership or exceptional realized pay-for-performance outcomes. These are existing arrangements, not assumed approval of the advisory vote.","evidenceIds":["e28","e29","e30","e31"]},{"criterion":"execution","grade":2,"rationale":"Assessed partly from indirect operating evidence: realized pricing, improved working capital cash generation and actual production relocation demonstrate execution capability. China declines, lower residential volumes and restructuring impairments make outcomes mixed. Acquired sales and pre-buy demand are not treated as underlying organic execution.","evidenceIds":["e7","e8","e14","e15","e22","e27","e37","e38"]},{"criterion":"governance","grade":2,"rationale":"Disclosed independent board and committee representation, related-party approval procedures and implemented Presiding Director enhancements support oversight. Dual-class voting rights and disclosed shareholder concerns over the absence of a sunset and family-trustee committee participation constrain the assessment. Proposed director elections are not treated as completed.","evidenceIds":["e32","e33","e34","e35"]}]}],"financialAssessments":[],"qualityPolicy":"quality-scores-2","sourcePolicy":"issuer-evidence-4","basisHash":"a6045cdee7fb58be2d63bde8022777300de87f9d5e46a17bd84a8933f502e43e","updatedAt":"2026-10-18T14:54:10.777Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/91142/000009114226000008/aos-20251231.htm","publishedAt":"2026-02-10","sha256":"cb8cae688e1402a406df3b2b80f3343f5ddaeb813d6c72b5bba7f87900e35174","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/91142/000009114226000098/aos-20260630.htm","publishedAt":"2026-07-30","sha256":"b60aab3fa38959de34b85773cfa03f53a22b98cc4013de4ea9fb04b474243144","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/91142/000119312526089938/d79196ddef14a.htm","publishedAt":"2026-03-04","sha256":"a9bd5875f73bf07b00d22df334385216f6ffe8d481895e085fe660d2afab09a1","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/91142/000009114224000041/aos-20231231.htm","publishedAt":"2024-02-13","sha256":"1401edf4abc900d41d05dedc612654b880aa44a748882c4cdbb829988191935f","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/91142/000009114223000025/aos-20221231.htm","publishedAt":"2023-02-14","sha256":"11f16938bb97700f864416446708e320a65bdad3187adeb4a8d0b5617ef19959","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/91142/000009114226000084/aos-20260331.htm","publishedAt":"2026-04-30","sha256":"24bf90afaedcb9159d8a2ccf353da86a869621065c0c65fd0887be0cdd3c744c","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:f4098ac67ed97b3af3be6433e4601616db9b5e6b49280d35759c5e8894c2aa9f","usage":{"input_tokens":81730,"cached_input_tokens":21120,"cache_write_input_tokens":0,"output_tokens":3505,"reasoning_output_tokens":158},"basisSupplement":{"previousHash":"16e59aac988767f1f2ddfebb1bcb3f5e7ae9c09d1d958f6450e6dd3c4416b49e","checkedAt":"2026-10-18T16:49:32.080Z","rule":"dated historical and missing inputs only; accepted observations and research date retained"}},"signals":[{"period":"2020","end":"2020-12-31","values":{"gross_margin":38.27582633923946,"operating_margin":17.3798915483715,"roic":26.37088385518314,"fcf_margin":17.452422892273685,"sbc_revenue":0.4386419369322695},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. ROIIC requires a positive increase.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2021","end":"2021-12-31","values":{"gross_margin":37.04258385373986,"operating_margin":19.27152505015683,"roic":35.710406644456555,"fcf_margin":15.993670349543642,"sbc_revenue":0.33626268049393876},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2022","end":"2022-12-31","values":{"gross_margin":35.41916406936785,"operating_margin":9.643304296864594,"roic":null,"fcf_margin":8.55377074509177,"sbc_revenue":0.2956924798209862},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic":"NOPAT is undefined under this method: pretax profit must be positive and the effective tax rate must be between 0 and 100%.","roiic":"NOPAT is undefined under this method: pretax profit must be positive and the effective tax rate must be between 0 and 100%.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2023","end":"2023-12-31","values":{"gross_margin":38.538205980066444,"operating_margin":21.01328903654485,"roic":36.86670521680197,"fcf_margin":15.513392857142854,"sbc_revenue":0.298484219269103},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. ROIIC requires a positive increase.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2025","end":"2025-12-31","values":{"gross_margin":38.8334812803509,"operating_margin":19.02250535220093,"roic":null,"fcf_margin":14.255130280403113,"sbc_revenue":0.3602945015926061},"issues":{"peg":"The matching period one year earlier is unavailable.","pfcf_growth":"The matching period one year earlier is unavailable.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic":"The matching period one year earlier is unavailable.","roce":"The matching period one year earlier is unavailable.","roiic":"The matching period one year earlier is unavailable.","roe":"The matching period one year earlier is unavailable.","roa":"The matching period one year earlier is unavailable.","roic_wacc":"Enter a WACC assumption from 0 to 100%.","dilution":"The matching period one year earlier is unavailable."}}],"sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/91142/000009114226000008/aos-20251231.htm","publishedAt":"2026-02-10","sha256":"cb8cae688e1402a406df3b2b80f3343f5ddaeb813d6c72b5bba7f87900e35174","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/91142/000009114226000098/aos-20260630.htm","publishedAt":"2026-07-30","sha256":"b60aab3fa38959de34b85773cfa03f53a22b98cc4013de4ea9fb04b474243144","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/91142/000119312526089938/d79196ddef14a.htm","publishedAt":"2026-03-04","sha256":"a9bd5875f73bf07b00d22df334385216f6ffe8d481895e085fe660d2afab09a1","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/91142/000009114224000041/aos-20231231.htm","publishedAt":"2024-02-13","sha256":"1401edf4abc900d41d05dedc612654b880aa44a748882c4cdbb829988191935f","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/91142/000009114223000025/aos-20221231.htm","publishedAt":"2023-02-14","sha256":"11f16938bb97700f864416446708e320a65bdad3187adeb4a8d0b5617ef19959","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/91142/000009114226000084/aos-20260331.htm","publishedAt":"2026-04-30","sha256":"24bf90afaedcb9159d8a2ccf353da86a869621065c0c65fd0887be0cdd3c744c","dateKind":"filed"}],"history":[{"version":4,"updatedAt":"2026-10-18T16:49:32.080Z","verdict":"narrow","value":null},{"version":3,"updatedAt":"2026-10-18T16:35:43.872Z","verdict":"narrow","value":null},{"version":2,"updatedAt":"2026-10-18T02:27:49.793Z","verdict":"narrow","value":null},{"version":1,"updatedAt":"2026-10-18T02:18:02.026Z","verdict":null,"value":null}],"hasRequested":false,"requestStatus":"completed","researchIssue":null,"archivedMoat":null,"scope":"supported_catalog"}