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A.O. SmithSTU:3SM +1.91%78 Pretax Margin % is 15.73% as of Jun. 2026, which is 10% below its 10-year median of 17.44. 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 3,036 Industrial Products companies, A.O. Smith ranks better than 85.8% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. A.O. Smith's Pre-Tax Income for the
three
months ended in Jun. 2026 was €137 Mil. A.O. Smith's Revenue for the
three
months ended in Jun. 2026 was €872 Mil. Therefore, A.O. Smith's pretax margin for the quarter that ended in Jun. 2026 was 15.73%.
The historical rank and industry rank for A.O. Smith's Pretax Margin % or its related term are showing as below:
STU:3SM'
s Pretax Margin % Range Over the Past 10 Years
Min: 5.96 Med: 17.44 Max: 19.04
Current: 16.95
STU:3SM's Pretax Margin % is ranked better than 85.8% of 3036
companies
in the Industrial Products industry
Industry Median: 5.82
vs STU:3SM: 16.95
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
A.O. Smith Pretax Margin % Related Terms
A.O. Smith Pretax Margin % Historical Data
* Premium members only.
The historical data trend for A.O. Smith's Pretax 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: Pretax Margin % Comparison
For the Specialty Industrial Machinery subindustry, A.O. Smith's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, A.O. Smith's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where A.O. Smith's Pretax 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 Pretax Margin % of 15.73% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on A.O. Smith and its competitors. This is 10% below median its historical median of 17.44. Over the past decade, A.O. Smith's Pretax Margin % has ranged from 5.96 to 19.04. According to the industry distribution chart, A.O. Smith ranks #431 out of 3036 companies in the Industrial Products industry, placing it in the top 14.2%.
Is A.O. Smith's Pretax Margin % too high?
A.O. Smith's current Pretax Margin % of 15.73% is 10% below median its 10-year median of 17.44. Over the past 10 years, this metric has ranged from a low of 5.96 to a high of 19.04. The Industrial Products industry median Pretax Margin % is 5.82. A.O. Smith's value of 15.73% is 170.3% above this industry median. Based on the distribution chart, A.O. Smith ranks #431 out of 3036 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 Pretax Margin % compare to FLS and JBTM?
According to the Industrial Products industry distribution chart, A.O. Smith ranks #431 out of 3036 companies for Pretax Margin %. This places A.O. Smith in the top 14% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.82. A.O. Smith's value of 15.73% is 170.3% above this benchmark. Historically, A.O. Smith's own Pretax Margin % has ranged from 5.96 to 19.04 over the past decade. While the company's 10-year median is 17.44 vs. the industry median of 5.82, 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 Pretax Margin % for an Industrial Products company?
The median Pretax Margin % among Industrial Products companies is 5.82, based on 3,036 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. A.O. Smith's current Pretax Margin % of 15.73% is 170.3% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on A.O. Smith and its competitors. For the Industrial Products industry, the median Pretax Margin % is 5.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A.O. Smith's current Pretax Margin % is 15.73%, which is 10% below median its own 10-year median of 17.44. 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 Pretax Margin % is 15.73%, which is 10% below median its 10-year median of 17.44 and 170.3% above the Industrial Products industry median of 5.82. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For A.O. Smith (STU:3SM), the current Pretax Margin % is 15.73% 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:
Pretax Margin %: 15.73% (10% below median its 10-year median of 17.44)
GF Value™: €67.17 vs. price of €52.34 (22.1% below fair value)
Industry Position: 170.3% above the Industrial Products median (#431 of 3036)
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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