A.O. Smith (MEX:AOS) Moat Score: 6/10 (As of Jun. 29, 2026)


MEX:AOS A.O. Smith Corp MEX:AOS
86 GF Score
Price MXN1,347.00
GF Value MXN1,676.11
! 1 Warning Sign
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What is A.O. Smith Moat Score?

A.O. Smith MEX:AOS 86 Moat Score is 6 as of Jun. 29, 2026. 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 3,041 Industrial Products companies, A.O. Smith ranks better than 98.95% on this metric.

A.O. Smith has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

A.O. Smith has Narrow Moat: A.O. Smith Corp has a strong narrow moat due to its brand strength, economies of scale, and durable cost advantages in water heating solutions. Its established distribution network and consistent innovation support its competitive position, though not enough for a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes A.O. Smith might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

A.O. Smith  (MEX:AOS) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

A.O. Smith Moat Score Related Terms

MEX:AOS vs NPO, MIDD, FLS: Moat Score Comparison

For the Specialty Industrial Machinery subindustry, A.O. Smith's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, A.O. Smith's Moat Score distribution charts can be found below:

* The bar in red indicates where A.O. Smith's Moat Score falls into.


MEX:AOS
86GF Score
A.O. Smith Corp MEX:AOS
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
A.O. Smith (MEX:AOS) has a Moat Score of 6 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, A.O. Smith ranks #32 out of 3041 companies in the Industrial Products industry, placing it in the top 1.1%.
Is A.O. Smith's Moat Score too high?
A.O. Smith's current Moat Score is 6. Based on the distribution chart, A.O. Smith ranks #32 out of 3041 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 Moat Score compare to NPO and MIDD?
According to the Industrial Products industry distribution chart, A.O. Smith ranks #32 out of 3041 companies for Moat Score. This places A.O. Smith in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Industrial Products company?
A good Moat Score depends on the Industrial Products industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. A.O. Smith's current Moat Score is 6. 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 Moat Score of 6. 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 Moat Score is 6. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For A.O. Smith (MEX:AOS), the current Moat Score is 6 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:

  • Moat Score: 6
  • GF Value™: MXN1,676.11 vs. price of MXN1,347.00 (19.6% below fair value)
  • GF Score™: 86/100 with 1 warning sign

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 Business Description

Address 11270 West Park Place, Suite 170, Milwaukee, WI, USA, 53224
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

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN1,347.00
Price
MXN1,676.11
GF Value