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A.O. SmithAOS -1.08%78 Cash-to-Debt is 0.27 as of Jun. 2026, which is 85% below its 10-year median of 1.80. GuruFocus rates AOS with a GF Score™ of 78/100 and a GF Value™ of $75.83 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 3,048 Industrial Products companies, A.O. Smith ranks worse than 79.49% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. A.O. Smith's cash to debt ratio for the quarter that ended in Jun. 2026 was 0.27.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, A.O. Smithcouldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for A.O. Smith's Cash-to-Debt or its related term are showing as below:
AOS'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.27 Med: 1.8 Max: 4.97
Current: 0.27
During the past 13 years, A.O. Smith's highest Cash to Debt Ratio was 4.97. The lowest was 0.27. And the median was 1.80.
AOS's Cash-to-Debt is ranked worse than 79.49% of 3048
companies
in the Industrial Products industry
Industry Median: 1.15
vs AOS: 0.27
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
A.O. Smith Cash-to-Debt Related Terms
A.O. Smith Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for A.O. Smith's Cash-to-Debt can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Specialty Industrial Machinery subindustry, A.O. Smith's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
A.O. Smith Cash-to-Debt vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, A.O. Smith's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where A.O. Smith's Cash-to-Debt falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A.O. Smith (AOS) has a Cash-to-Debt of 0.27 as of Jun. 2026. This is 85% below median its historical median of 1.80. Over the past decade, A.O. Smith's Cash-to-Debt has ranged from 0.27 to 4.97. According to the industry distribution chart, A.O. Smith ranks #2423 out of 3048 companies in the Industrial Products industry, placing it in the top 79.5%.
Is A.O. Smith's Cash-to-Debt too high?
A.O. Smith's current Cash-to-Debt of 0.27 is 85% below median its 10-year median of 1.80. Over the past 10 years, this metric has ranged from a low of 0.27 to a high of 4.97. The Industrial Products industry median Cash-to-Debt is 1.15. A.O. Smith's value of 0.27 is 76.5% below this industry median. Based on the distribution chart, A.O. Smith ranks #2423 out of 3048 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, A.O. Smith has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does A.O. Smith's Cash-to-Debt compare to PNR and GTES?
According to the Industrial Products industry distribution chart, A.O. Smith ranks #2423 out of 3048 companies for Cash-to-Debt. This places A.O. Smith in the lower half of its industry. The industry median Cash-to-Debt is 1.15. A.O. Smith's value of 0.27 is 76.5% below this benchmark. Historically, A.O. Smith's own Cash-to-Debt has ranged from 0.27 to 4.97 over the past decade. While the company's 10-year median is 1.80 vs. the industry median of 1.15, A.O. Smith has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash-to-Debt for an Industrial Products company?
The median Cash-to-Debt among Industrial Products companies is 1.15, based on 3,048 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. A.O. Smith's current Cash-to-Debt of 0.27 is 76.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median Cash-to-Debt is 1.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A.O. Smith's current Cash-to-Debt is 0.27, which is 85% below median its own 10-year median of 1.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is A.O. Smith stock overvalued right now?
Based on GuruFocus' analysis, A.O. Smith (AOS) is currently considered Modestly Undervalued. The stock's GF Value™ is $75.83, compared to a current price of $58.49 — trading 22.9% below its estimated fair value. The current Cash-to-Debt is 0.27, which is 85% below median its 10-year median of 1.80 and 76.5% below the Industrial Products industry median of 1.15. A.O. Smith's overall GF Score™ is 78/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For A.O. Smith (AOS), the current Cash-to-Debt is 0.27 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is A.O. Smith (AOS) Overvalued in 2026?
Based on GuruFocus' analysis, A.O. Smith stock appears to be undervalued.
The current stock price of $58.49 is trading 22.9% below its estimated GF Value™ of $75.83.
GuruFocus considers A.O. Smith to be Modestly Undervalued.
Key valuation signals for AOS:
Cash-to-Debt: 0.27 (85% below median its 10-year median of 1.80)
GF Value™: $75.83 vs. price of $58.49 (22.9% below fair value)
Industry Position: 76.5% below the Industrial Products median (#2423 of 3048)
No single metric tells the full story. See the AOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
A.O. Smith manufactures a broad lineup of water heaters, boilers, and water treatment products. The company has two reporting segments: North America (80% of sales) and rest of world (20% of sales). A.O. Smith is the leading manufacturer of water heaters in North America for the residential and commercial markets, with approximately 36% and 52% 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 in the mid-1990s.
78GF Score
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