Why WATSCO INC (NYSE:WSO) qualifies as a quality stock.

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 (NYSE:WSO) is suited for quality investing. Investors should of course do their own research, but we spotted WATSCO INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NYSE:WSO.

• WATSCO INC has achieved substantial revenue growth over the past 5 years, with a 9.81% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• WATSCO INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 31.97% 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 0.15, 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 exhibits impressive Profit Quality (5-year) with a 129.0% 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 16.07%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• WATSCO INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

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

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, WSO scores 6 out of 10 in our fundamental rating. WSO was compared to 48 industry peers in the Trading Companies & Distributors industry. WSO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WSO is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, WSO could be worth investigating further 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.

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.