A.O. SmithMEX:AOS 86 FCF Yield % is 7.61 as of Jun. 29, 2026, which is 67% above its 10-year median of 4.57. GuruFocus rates MEX:AOS with a GF Score™ of 86/100 and a GF Value™ of MXN1,676.11. The stock has 1 warning sign investors should review. Among 3,062 Industrial Products companies, A.O. Smith ranks better than 84.68% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
A.O. Smith FCF Yield % Related Terms
A.O. Smith FCF Yield % Historical Data
* Premium members only.
The historical data trend for A.O. Smith's FCF Yield % 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.
For the Specialty Industrial Machinery subindustry, A.O. Smith's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 Yield % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, A.O. Smith's FCF Yield % distribution charts can be found below:
* The bar in red indicates where A.O. Smith's FCF Yield % 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 FCF Yield % of 7.61 as of Jun. 29, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on A.O. Smith and its competitors. This is 67% above median its historical median of 4.57. Over the past decade, A.O. Smith's FCF Yield % has ranged from 1.97 to 8.31. According to the industry distribution chart, A.O. Smith ranks #469 out of 3062 companies in the Industrial Products industry, placing it in the top 15.3%.
Is A.O. Smith's FCF Yield % too high?
A.O. Smith's current FCF Yield % of 7.61 is 67% above median its 10-year median of 4.57. Over the past 10 years, this metric has ranged from a low of 1.97 to a high of 8.31. The Industrial Products industry median FCF Yield % is 0.56. A.O. Smith's value of 7.61 is 1258.9% above this industry median. Based on the distribution chart, A.O. Smith ranks #469 out of 3062 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 86/100, reflecting its overall financial health beyond just this single metric.
How does A.O. Smith's FCF Yield % compare to NPO and MIDD?
According to the Industrial Products industry distribution chart, A.O. Smith ranks #469 out of 3062 companies for FCF Yield %. This places A.O. Smith in the top 15% of its industry — outperforming the majority of peers. The industry median FCF Yield % is 0.56. A.O. Smith's value of 7.61 is 1258.9% above this benchmark. Historically, A.O. Smith's own FCF Yield % has ranged from 1.97 to 8.31 over the past decade. While the company's 10-year median is 4.57 vs. the industry median of 0.56, 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 Yield % for an Industrial Products company?
The median FCF Yield % among Industrial Products companies is 0.56, based on 3,062 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. A.O. Smith's current FCF Yield % of 7.61 is 1258.9% 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 Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on A.O. Smith and its competitors. For the Industrial Products industry, the median FCF Yield % is 0.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A.O. Smith's current FCF Yield % is 7.61, which is 67% above median its own 10-year median of 4.57. 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 FCF Yield % of 7.61. The stock's GF Value™ is MXN1,676.11, compared to a current price of MXN1,347.00 — trading 19.6% below its estimated fair value. The current FCF Yield % is 7.61, which is 67% above median its 10-year median of 4.57 and 1258.9% above the Industrial Products industry median of 0.56. A.O. Smith's overall GF Score™ is 86/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For A.O. Smith (MEX:AOS), the current FCF Yield % is 7.61 as of Jun. 29, 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 19.6% below its estimated GF Value™ of MXN1,676.11.
Key valuation signals for MEX:AOS:
FCF Yield %: 7.61 (67% above median its 10-year median of 4.57)
GF Value™: MXN1,676.11 vs. price of MXN1,347.00 (19.6% below fair value)
Industry Position: 1258.9% above the Industrial Products median (#469 of 3062)
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.
86GF Score
Get the complete analysis for MEX:AOS
FCF Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:AOS has been successfully added to your 
