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A.O. SmithMEX:AOS 79 Debt-to-EBITDA is 0.88 as of Mar. 2026, which is 167% above its 10-year median of 0.33. GuruFocus rates MEX:AOS with a GF Score™ of 79/100 and a GF Value™ of MXN1,714.40. The stock has 1 warning sign investors should review. Among 2,330 Industrial Products companies, A.O. Smith ranks better than 66.91% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for A.O. Smith's Debt-to-EBITDA or its related term are showing as below:
MEX:AOS'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.19 Med: 0.33 Max: 1.18
Current: 0.83
During the past 13 years, the highest Debt-to-EBITDA Ratio of A.O. Smith was 1.18. The lowest was 0.19. And the median was 0.33.
MEX:AOS's Debt-to-EBITDA is ranked better than 66.91% of 2330
companies
in the Industrial Products industry
Industry Median: 1.7
vs MEX:AOS: 0.83
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
A.O. Smith Debt-to-EBITDA Related Terms
A.O. Smith Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for A.O. Smith's Debt-to-EBITDA 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.
MEX:AOS vs NPO, MIDD, FLS: Debt-to-EBITDA Comparison
For the Specialty Industrial Machinery subindustry, A.O. Smith's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, A.O. Smith's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where A.O. Smith's Debt-to-EBITDA 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
A.O. Smith (MEX:AOS) has a Debt-to-EBITDA of 0.88 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on A.O. Smith. This is 167% above median its historical median of 0.33. Over the past decade, A.O. Smith's Debt-to-EBITDA has ranged from 0.19 to 1.18. According to the industry distribution chart, A.O. Smith ranks #771 out of 2330 companies in the Industrial Products industry, placing it in the top 33.1%.
Is A.O. Smith's Debt-to-EBITDA too high?
A.O. Smith's current Debt-to-EBITDA of 0.88 is 167% above median its 10-year median of 0.33. Over the past 10 years, this metric has ranged from a low of 0.19 to a high of 1.18. The Industrial Products industry median Debt-to-EBITDA is 1.70. A.O. Smith's value of 0.88 is 48.2% below this industry median. Based on the distribution chart, A.O. Smith ranks #771 out of 2330 companies in the Industrial Products industry, which is above the industry midpoint. Overall, A.O. Smith has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does A.O. Smith's Debt-to-EBITDA compare to NPO and MIDD?
According to the Industrial Products industry distribution chart, A.O. Smith ranks #771 out of 2330 companies for Debt-to-EBITDA. This puts A.O. Smith in the upper half of its industry. The industry median Debt-to-EBITDA is 1.70. A.O. Smith's value of 0.88 is 48.2% below this benchmark. Historically, A.O. Smith's own Debt-to-EBITDA has ranged from 0.19 to 1.18 over the past decade. While the company's 10-year median is 0.33 vs. the industry median of 1.70, 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 Debt-to-EBITDA for an Industrial Products company?
The median Debt-to-EBITDA among Industrial Products companies is 1.70, based on 2,330 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. A.O. Smith's current Debt-to-EBITDA of 0.88 is 48.2% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on A.O. Smith. For the Industrial Products industry, the median Debt-to-EBITDA is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A.O. Smith's current Debt-to-EBITDA is 0.88, which is 167% above median its own 10-year median of 0.33. 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?
A.O. Smith (MEX:AOS) has a current Debt-to-EBITDA of 0.88. The stock's GF Value™ is MXN1,714.40, compared to a current price of MXN1,347.00 — trading 21.4% below its estimated fair value. The current Debt-to-EBITDA is 0.88, which is 167% above median its 10-year median of 0.33 and 48.2% below the Industrial Products industry median of 1.70. A.O. Smith's overall GF Score™ is 79/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For A.O. Smith (MEX:AOS), the current Debt-to-EBITDA is 0.88 as of Mar. 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 (MEX:AOS) Overvalued in 2026?
Based on GuruFocus' analysis, A.O. Smith stock appears to be undervalued.
The current stock price of MXN1,347.00 is trading 21.4% below its estimated GF Value™ of MXN1,714.40.
Key valuation signals for MEX:AOS:
Debt-to-EBITDA: 0.88 (167% above median its 10-year median of 0.33)
GF Value™: MXN1,714.40 vs. price of MXN1,347.00 (21.4% below fair value)
Industry Position: 48.2% below the Industrial Products median (#771 of 2330)
No single metric tells the full story. See the MEX: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.
79GF Score
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