Why WATSCO INC -CL B (NYSE:WSO.B) Deserves Consideration as a Quality Investment.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if WATSCO INC -CL B (NYSE:WSO.B) is suited for quality investing. Investors should of course do their own research, but we spotted WATSCO INC -CL B showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:WSO.B highlighted

• WATSCO INC -CL B has demonstrated significant revenue growth over the past 5 years, with a 9.88% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 27.59%, WATSCO INC -CL B demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• WATSCO INC -CL B demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.13, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 128.0%, WATSCO INC -CL B highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• The 5-year EBIT growth of WATSCO INC -CL B has been remarkable, with 16.2% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• The EBIT 5-year growth of WATSCO INC -CL B has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What is the full fundamental picture of NYSE:WSO.B telling us.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, WSO.B scores 6 out of 10 in our fundamental rating. WSO.B was compared to 52 industry peers in the Trading Companies & Distributors industry. WSO.B scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, WSO.B is valued expensive at the moment.

For an up to date full fundamental analysis you can check the fundamental report of WSO.B

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.