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A.O. SmithMEX:AOS 79 Debt-to-Equity is 0.35 as of Mar. 2026, which is 106% above its 10-year median of 0.17. GuruFocus rates MEX:AOS with a GF Score™ of 79/100 and a GF Value™ of MXN1,763.35. The stock has 1 warning sign investors should review. Among 2,679 Industrial Products companies, A.O. Smith ranks worse than 56.33% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for A.O. Smith's Debt-to-Equity or its related term are showing as below:
MEX:AOS'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.07 Med: 0.17 Max: 0.35
Current: 0.35
During the past 13 years, the highest Debt-to-Equity Ratio of A.O. Smith was 0.35. The lowest was 0.07. And the median was 0.17.
MEX:AOS's Debt-to-Equity is ranked worse than 56.33% of 2679
companies
in the Industrial Products industry
Industry Median: 0.28
vs MEX:AOS: 0.35
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
A.O. Smith Debt-to-Equity Related Terms
A.O. Smith Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for A.O. Smith's Debt-to-Equity 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-Equity Comparison
For the Specialty Industrial Machinery subindustry, A.O. Smith's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, A.O. Smith's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where A.O. Smith's Debt-to-Equity 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 (MEX:AOS) has a Debt-to-Equity of 0.35 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on A.O. Smith and its competitors. This is 106% above median its historical median of 0.17. Over the past decade, A.O. Smith's Debt-to-Equity has ranged from 0.07 to 0.35. According to the industry distribution chart, A.O. Smith ranks #1509 out of 2679 companies in the Industrial Products industry, placing it in the top 56.3%.
Is A.O. Smith's Debt-to-Equity too high?
A.O. Smith's current Debt-to-Equity of 0.35 is 106% above median its 10-year median of 0.17. Over the past 10 years, this metric has ranged from a low of 0.07 to a high of 0.35. The Industrial Products industry median Debt-to-Equity is 0.28. A.O. Smith's value of 0.35 is 25% above this industry median. Based on the distribution chart, A.O. Smith ranks #1509 out of 2679 companies in the Industrial Products industry, which is below 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-Equity compare to NPO and MIDD?
According to the Industrial Products industry distribution chart, A.O. Smith ranks #1509 out of 2679 companies for Debt-to-Equity. This places A.O. Smith in the lower half of its industry. The industry median Debt-to-Equity is 0.28. A.O. Smith's value of 0.35 is 25% above this benchmark. Historically, A.O. Smith's own Debt-to-Equity has ranged from 0.07 to 0.35 over the past decade. While the company's 10-year median is 0.17 vs. the industry median of 0.28, A.O. Smith has consistently been above 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-Equity for an Industrial Products company?
The median Debt-to-Equity among Industrial Products companies is 0.28, based on 2,679 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. A.O. Smith's current Debt-to-Equity of 0.35 is 25% above 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on A.O. Smith and its competitors. For the Industrial Products industry, the median Debt-to-Equity is 0.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A.O. Smith's current Debt-to-Equity is 0.35, which is 106% above median its own 10-year median of 0.17. 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-Equity of 0.35. The stock's GF Value™ is MXN1,763.35, compared to a current price of MXN1,347.00 — trading 23.6% below its estimated fair value. The current Debt-to-Equity is 0.35, which is 106% above median its 10-year median of 0.17 and 25% above the Industrial Products industry median of 0.28. 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For A.O. Smith (MEX:AOS), the current Debt-to-Equity is 0.35 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 23.6% below its estimated GF Value™ of MXN1,763.35.
Key valuation signals for MEX:AOS:
Debt-to-Equity: 0.35 (106% above median its 10-year median of 0.17)
GF Value™: MXN1,763.35 vs. price of MXN1,347.00 (23.6% below fair value)
Industry Position: 25% above the Industrial Products median (#1509 of 2679)
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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