Examining the Quality Attributes of NYSE:WSO.

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.

Highlighting Notable Quality Metrics of NYSE:WSO.

• Over the past 5 years, WATSCO INC has experienced impressive revenue growth, with 9.88% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• WATSCO INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 27.61% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a favorable Debt/Free Cash Flow Ratio of 0.02, WATSCO INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• WATSCO INC demonstrates consistent Profit Quality over the past 5 years, with a strong 128.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• WATSCO INC 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 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.

What else is there to say on the fundamentals of NYSE:WSO?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall WSO gets a fundamental rating of 6 out of 10. We evaluated WSO against 51 industry peers in the Trading Companies & Distributors industry. WSO gets an excellent profitability rating and is at the same time showing great financial health properties. WSO has a expensive valuation and it also scores bad on growth.

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

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

Disclaimer

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.