AOSNEUTRAL

Gross Margin

38.7%

Higher than 67% of Industrials sector peers

Updated 1878h ago

Sector Performance

67th percentile

AOS

38.7%

Sector Median

29.0%

Sector Avg

662.6%

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Deep Analysis

O. Smith Corporation's gross margin of 38.7% means that for every dollar of revenue, the company keeps roughly 38.7 cents after subtracting the direct costs of producing its products. This figure stands well above the industrials sector median of 28.9%, placing the company in the 70th percentile among its sector peers. However, the year-over-year change, quarter-over-quarter change, and the trend over the last eight quarters are all listed as N/A, meaning no historical comparison data is available in this entry. The combination of a strong gross margin level with no trend data offers limited insight into whether the margin is improving or deteriorating, so the competitive advantage appears solid but the trajectory remains unclear. This metric supports the overall NEUTRAL verdict because the high margin is a positive factor, but without trend information or a stronger catalyst, it does not warrant a bullish or bearish shift.

Frequently Asked Questions

What does the Gross Margin tell investors about AOS?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AOS's Gross Margin compare to its sector?

AOS's Gross Margin of 38.7% compares to a Industrials sector median of 29.0%, placing it in the 67th percentile.

Who are AOS's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: BLDR (28.3%), BE (30.0%), SAVE (31.3%), AAL (26.0%), CARR (23.3%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.