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A.O. SmithSTU:3SM +1.91%78 FCF Margin % is 11.39% as of Jun. 2026, which is 15% below its 10-year median of 13.36. GuruFocus rates STU:3SM with a GF Score™ of 78/100 and a GF Value™ of €67.17 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 3,043 Industrial Products companies, A.O. Smith ranks better than 90.96% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. A.O. Smith's Free Cash Flow for the
three
months ended in Jun. 2026 was €99 Mil. A.O. Smith's Revenue for the
three
months ended in Jun. 2026 was €872 Mil. Therefore, A.O. Smith's FCF Margin % for the quarter that ended in Jun. 2026 was 11.39%.
The historical data trend for A.O. Smith's FCF 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.
STU:3SM vs FLS, JBTM, NPO: FCF Margin % Comparison
For the Specialty Industrial Machinery subindustry, A.O. Smith's FCF Margin %, along with its competitors' market caps and FCF 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 FCF Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, A.O. Smith's FCF Margin % distribution charts can be found below:
* The bar in red indicates where A.O. Smith's FCF 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 (STU:3SM) has a FCF Margin % of 11.39% as of Jun. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on A.O. Smith and its competitors. This is 15% below median its historical median of 13.36. Over the past decade, A.O. Smith's FCF Margin % has ranged from 7.75 to 17.45. According to the industry distribution chart, A.O. Smith ranks #275 out of 3043 companies in the Industrial Products industry, placing it in the top 9%.
Is A.O. Smith's FCF Margin % too high?
A.O. Smith's current FCF Margin % of 11.39% is 15% below median its 10-year median of 13.36. Over the past 10 years, this metric has ranged from a low of 7.75 to a high of 17.45. The Industrial Products industry median FCF Margin % is 1.54. A.O. Smith's value of 11.39% is 639.6% above this industry median. Based on the distribution chart, A.O. Smith ranks #275 out of 3043 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 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does A.O. Smith's FCF Margin % compare to FLS and JBTM?
According to the Industrial Products industry distribution chart, A.O. Smith ranks #275 out of 3043 companies for FCF Margin %. This places A.O. Smith in the top 9% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 1.54. A.O. Smith's value of 11.39% is 639.6% above this benchmark. Historically, A.O. Smith's own FCF Margin % has ranged from 7.75 to 17.45 over the past decade. While the company's 10-year median is 13.36 vs. the industry median of 1.54, 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 FCF Margin % for an Industrial Products company?
The median FCF Margin % among Industrial Products companies is 1.54, based on 3,043 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. A.O. Smith's current FCF Margin % of 11.39% is 639.6% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on A.O. Smith and its competitors. For the Industrial Products industry, the median FCF Margin % is 1.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A.O. Smith's current FCF Margin % is 11.39%, which is 15% below median its own 10-year median of 13.36. 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 (STU:3SM) is currently considered Modestly Undervalued. The stock's GF Value™ is €67.17, compared to a current price of €52.34 — trading 22.1% below its estimated fair value. The current FCF Margin % is 11.39%, which is 15% below median its 10-year median of 13.36 and 639.6% above the Industrial Products industry median of 1.54. 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 FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For A.O. Smith (STU:3SM), the current FCF Margin % is 11.39% 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 (STU:3SM) Overvalued in 2026?
Based on GuruFocus' analysis, A.O. Smith stock appears to be undervalued.
The current stock price of €52.34 is trading 22.1% below its estimated GF Value™ of €67.17.
GuruFocus considers A.O. Smith to be Modestly Undervalued.
Key valuation signals for STU:3SM:
FCF Margin %: 11.39% (15% below median its 10-year median of 13.36)
GF Value™: €67.17 vs. price of €52.34 (22.1% below fair value)
Industry Position: 639.6% above the Industrial Products median (#275 of 3043)
No single metric tells the full story. See the STU: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.
78GF Score
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