Why WATSCO INC -CL B (NYSE:WSO.B) should be investigated by quality investors.

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.

Looking into the quality metrics of WATSCO INC -CL B

• WATSCO INC -CL B has shown strong performance in revenue growth over the past 5 years, with a 9.81% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 31.97%, WATSCO INC -CL B showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• The Debt/Free Cash Flow Ratio of WATSCO INC -CL B stands at 0.15, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• WATSCO INC -CL B demonstrates consistent Profit Quality over the past 5 years, with a strong 129.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• WATSCO INC -CL B has experienced impressive EBIT growth over the past 5 years, with 16.07% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• 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.

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

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

Taking everything into account, WSO.B scores 6 out of 10 in our fundamental rating. WSO.B was compared to 48 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. This makes WSO.B very considerable for quality investing!

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.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.