A.O. SmithFRA:3SM -0.91%84 EBITDA Margin % is 19.64% as of Mar. 2026, which is 2% below its 10-year median of 20.01. GuruFocus rates FRA:3SM with a GF Score™ of 84/100 and a GF Value™ of €63.91 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 3,039 Industrial Products companies, A.O. Smith ranks better than 86.54% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. A.O. Smith's EBITDA for the
three
months ended in Mar. 2026 was €161 Mil. A.O. Smith's Revenue for the
three
months ended in Mar. 2026 was €818 Mil. Therefore, A.O. Smith's EBITDA margin for the quarter that ended in Mar. 2026 was 19.64%.
A.O. Smith (FRA:3SM) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
A.O. Smith EBITDA Margin % Related Terms
A.O. Smith EBITDA Margin % Historical Data
* Premium members only.
The historical data trend for A.O. Smith's EBITDA Margin % 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.
FRA:3SM vs XE, MIDD, JBTM: EBITDA Margin % Comparison
For the Specialty Industrial Machinery subindustry, A.O. Smith's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, A.O. Smith's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where A.O. Smith's EBITDA Margin % 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 (FRA:3SM) has a EBITDA Margin % of 19.64% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on A.O. Smith and its competitors. This is near median its historical median of 20.01. Over the past decade, A.O. Smith's EBITDA Margin % has ranged from 8.26 to 21.38. According to the industry distribution chart, A.O. Smith ranks #409 out of 3039 companies in the Industrial Products industry, placing it in the top 13.5%.
Is A.O. Smith's EBITDA Margin % too high?
A.O. Smith's current EBITDA Margin % of 19.64% is near median its 10-year median of 20.01. Over the past 10 years, this metric has ranged from a low of 8.26 to a high of 21.38. The Industrial Products industry median EBITDA Margin % is 9.45. A.O. Smith's value of 19.64% is 107.8% above this industry median. Based on the distribution chart, A.O. Smith ranks #409 out of 3039 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, A.O. Smith has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does A.O. Smith's EBITDA Margin % compare to XE and MIDD?
According to the Industrial Products industry distribution chart, A.O. Smith ranks #409 out of 3039 companies for EBITDA Margin %. This places A.O. Smith in the top 14% of its industry — outperforming the majority of peers. The industry median EBITDA Margin % is 9.45. A.O. Smith's value of 19.64% is 107.8% above this benchmark. Historically, A.O. Smith's own EBITDA Margin % has ranged from 8.26 to 21.38 over the past decade. While the company's 10-year median is 20.01 vs. the industry median of 9.45, 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 EBITDA Margin % for an Industrial Products company?
The median EBITDA Margin % among Industrial Products companies is 9.45, based on 3,039 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. A.O. Smith's current EBITDA Margin % of 19.64% is 107.8% 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on A.O. Smith and its competitors. For the Industrial Products industry, the median EBITDA Margin % is 9.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A.O. Smith's current EBITDA Margin % is 19.64%, which is near median its own 10-year median of 20.01. 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 (FRA:3SM) is currently considered Modestly Undervalued. The stock's GF Value™ is €63.91, compared to a current price of €50.08 — trading 21.6% below its estimated fair value. The current EBITDA Margin % is 19.64%, which is near median its 10-year median of 20.01 and 107.8% above the Industrial Products industry median of 9.45. A.O. Smith's overall GF Score™ is 84/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For A.O. Smith (FRA:3SM), the current EBITDA Margin % is 19.64% 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 (FRA:3SM) Overvalued in 2026?
Based on GuruFocus' analysis, A.O. Smith stock appears to be undervalued.
The current stock price of €50.08 is trading 21.6% below its estimated GF Value™ of €63.91.
GuruFocus considers A.O. Smith to be Modestly Undervalued.
Key valuation signals for FRA:3SM:
EBITDA Margin %: 19.64% (near median its 10-year median of 20.01)
GF Value™: €63.91 vs. price of €50.08 (21.6% below fair value)
Industry Position: 107.8% above the Industrial Products median (#409 of 3039)
No single metric tells the full story. See the FRA:3SM 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.
84GF Score
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