Analyzing the Quality Characteristics of WATSCO INC -CL B (NYSE:WSO.B).

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.

What matters for quality investors.

• The 5-year revenue growth of WATSCO INC -CL B has been remarkable, with 9.88% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• The ROIC excluding cash and goodwill of WATSCO INC -CL B stands at 25.28%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• WATSCO INC -CL B maintains a healthy Debt/Free Cash Flow Ratio of 0.02, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• The Profit Quality (5-year) of WATSCO INC -CL B stands at 128.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• WATSCO INC -CL B has experienced impressive EBIT growth over the past 5 years, with 16.2% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• WATSCO INC -CL B has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for NYSE:WSO.B?

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

WSO.B gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 49 industry peers in the Trading Companies & Distributors industry. WSO.B gets an excellent profitability rating and is at the same time showing great financial health properties. WSO.B is quite expensive at the moment. It does show a decent growth rate.

Check the latest full fundamental report of WSO.B for a complete fundamental analysis.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.