Why NYSE:WSO qualifies as a quality stock.

In this article we will dive into WATSCO INC (NYSE:WSO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed WATSCO INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:WSO may be interesting for quality investors.

• WATSCO INC has demonstrated significant revenue growth over the past 5 years, with a 10.87% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• WATSCO INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 26.98% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of WATSCO INC stands at 1.19, 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 exhibits impressive Profit Quality (5-year) with a 120.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• WATSCO INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 18.24%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of WATSCO INC 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.

Fundamental analysis of NYSE:WSO

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.

We assign a fundamental rating of 6 out of 10 to WSO. WSO was compared to 52 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making WSO a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, WSO is valued expensive at the moment. These ratings could make WSO a good candidate for quality investing.

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

More quality stocks can be found 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.