WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSO.B - US9426221019 - Common Stock
345.38 USD
-6.12 (-1.74%)
Overall WSO.B gets a fundamental rating of 7 out of 10. We evaluated WSO.B against 49 industry peers in the Trading Companies & Distributors industry. WSO.B scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, WSO.B is valued expensive at the moment. These ratings would make WSO.B suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year WSO.B was profitable.
WSO.B had a positive operating cash flow in the past year.
Each year in the past 5 years WSO.B has been profitable.
WSO.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WSO.B has a better Return On Assets (10.66%) than 84.00% of its industry peers.
WSO.B has a better Return On Equity (17.24%) than 70.00% of its industry peers.
WSO.B's Return On Invested Capital of 15.48% is amongst the best of the industry. WSO.B outperforms 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSO.B is significantly above the industry average of 9.22%.
The last Return On Invested Capital (15.48%) for WSO.B is well below the 3 year average (20.81%), which needs to be investigated, but indicates that WSO.B had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.66% | ||
| ROE | 17.24% | ||
| ROIC | 15.48% |
ROA(3y)13.43%
ROA(5y)12.52%
ROE(3y)23.42%
ROE(5y)21.95%
ROIC(3y)20.81%
ROIC(5y)19.72%
1.3 Margins
WSO.B's Profit Margin of 6.55% is fine compared to the rest of the industry. WSO.B outperforms 70.00% of its industry peers.
In the last couple of years the Profit Margin of WSO.B has grown nicely.
WSO.B has a Operating Margin of 9.80%. This is in the better half of the industry: WSO.B outperforms 68.00% of its industry peers.
In the last couple of years the Operating Margin of WSO.B has grown nicely.
With a Gross Margin value of 27.92%, WSO.B perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
In the last couple of years the Gross Margin of WSO.B has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.8% | ||
| PM (TTM) | 6.55% | ||
| GM | 27.92% |
OM growth 3Y0.55%
OM growth 5Y5.7%
PM growth 3Y2.52%
PM growth 5Y6.74%
GM growth 3Y0.36%
GM growth 5Y2.05%
2. Health
2.1 Basic Checks
WSO.B has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for WSO.B has been increased compared to 1 year ago.
Compared to 5 years ago, WSO.B has more shares outstanding
WSO.B has a better debt/assets ratio than last year.
2.2 Solvency
WSO.B has an Altman-Z score of 8.10. This indicates that WSO.B is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.10, WSO.B belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
WSO.B has a debt to FCF ratio of 0.02. This is a very positive value and a sign of high solvency as it would only need 0.02 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.02, WSO.B belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that WSO.B is not too dependend on debt financing.
The Debt to Equity ratio of WSO.B (0.00) is better than 82.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 8.1 |
ROIC/WACC1.78
WACC8.69%
2.3 Liquidity
A Current Ratio of 3.84 indicates that WSO.B has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.84, WSO.B belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
WSO.B has a Quick Ratio of 1.86. This is a normal value and indicates that WSO.B is financially healthy and should not expect problems in meeting its short term obligations.
WSO.B has a better Quick ratio (1.86) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.84 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
The earnings per share for WSO.B have decreased by -1.05% in the last year.
The Earnings Per Share has been growing by 15.67% on average over the past years. This is quite good.
Looking at the last year, WSO.B shows a decrease in Revenue. The Revenue has decreased by -0.71% in the last year.
WSO.B shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.81% yearly.
EPS 1Y (TTM)-1.05%
EPS 3Y7.25%
EPS 5Y15.67%
EPS Q2Q%-5.69%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-4.31%
3.2 Future
Based on estimates for the next years, WSO.B will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.57% on average per year.
Based on estimates for the next years, WSO.B will show a quite strong growth in Revenue. The Revenue will grow by 8.19% on average per year.
EPS Next Y-3.88%
EPS Next 2Y1.89%
EPS Next 3Y4.64%
EPS Next 5Y11.57%
Revenue Next Year-2.43%
Revenue Next 2Y1.25%
Revenue Next 3Y2.49%
Revenue Next 5Y8.19%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.98, which means the current valuation is very expensive for WSO.B.
The rest of the industry has a similar Price/Earnings ratio as WSO.B.
WSO.B is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.11, the valuation of WSO.B can be described as expensive.
Based on the Price/Forward Earnings ratio, WSO.B is valued a bit more expensive than 60.00% of the companies in the same industry.
WSO.B's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 25.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WSO.B is valued a bit more expensive than 66.00% of the companies in the same industry.
WSO.B's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSO.B is cheaper than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.07 | ||
| EV/EBITDA | 17.75 |
4.3 Compensation for Growth
The excellent profitability rating of WSO.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.72
EPS Next 2Y1.89%
EPS Next 3Y4.64%
5. Dividend
5.1 Amount
WSO.B has a Yearly Dividend Yield of 3.26%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of WSO.B has falen by -32.36%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
WSO.B's Dividend Yield is rather good when compared to the industry average which is at 1.95. WSO.B pays more dividend than 92.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, WSO.B pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
The dividend of WSO.B is nicely growing with an annual growth rate of 11.05%!
WSO.B has been paying a dividend for at least 10 years, so it has a reliable track record.
WSO.B has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.05%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
95.01% of the earnings are spent on dividend by WSO.B. This is not a sustainable payout ratio.
WSO.B's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP95.01%
EPS Next 2Y1.89%
EPS Next 3Y4.64%
NYSE:WSO.B (12/3/2025, 8:04:00 PM)
345.38
-6.12 (-1.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners104.41%
Inst Owner Change-0.62%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap14.01B
Revenue(TTM)7.41B
Net Income(TTM)485.36M
Analysts65.71
Price Target494.45 (43.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Yearly Dividend9.55
Dividend Growth(5Y)11.05%
DP95.01%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.38%
Min EPS beat(2)-6.66%
Max EPS beat(2)-6.09%
EPS beat(4)1
Avg EPS beat(4)-4.57%
Min EPS beat(4)-15.33%
Max EPS beat(4)9.8%
EPS beat(8)1
Avg EPS beat(8)-7.02%
EPS beat(12)4
Avg EPS beat(12)1.45%
EPS beat(16)6
Avg EPS beat(16)5.32%
Revenue beat(2)0
Avg Revenue beat(2)-6.6%
Min Revenue beat(2)-8.58%
Max Revenue beat(2)-4.61%
Revenue beat(4)1
Avg Revenue beat(4)-4.31%
Min Revenue beat(4)-8.58%
Max Revenue beat(4)4.34%
Revenue beat(8)1
Avg Revenue beat(8)-3.93%
Revenue beat(12)2
Avg Revenue beat(12)-3.5%
Revenue beat(16)4
Avg Revenue beat(16)-1.61%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-23.03%
EPS NQ rev (3m)-22.95%
EPS NY rev (1m)-8.07%
EPS NY rev (3m)-12.21%
Revenue NQ rev (1m)-7.78%
Revenue NQ rev (3m)-8.19%
Revenue NY rev (1m)-3.14%
Revenue NY rev (3m)-7.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 25.11 | ||
| P/S | 1.89 | ||
| P/FCF | 27.07 | ||
| P/OCF | 25.52 | ||
| P/B | 4.98 | ||
| P/tB | 6.54 | ||
| EV/EBITDA | 17.75 |
EPS(TTM)12.8
EY3.71%
EPS(NY)13.76
Fwd EY3.98%
FCF(TTM)12.76
FCFY3.69%
OCF(TTM)13.53
OCFY3.92%
SpS182.85
BVpS69.42
TBVpS52.84
PEG (NY)N/A
PEG (5Y)1.72
Graham Number141.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.66% | ||
| ROE | 17.24% | ||
| ROCE | 19.41% | ||
| ROIC | 15.48% | ||
| ROICexc | 18% | ||
| ROICexgc | 22.75% | ||
| OM | 9.8% | ||
| PM (TTM) | 6.55% | ||
| GM | 27.92% | ||
| FCFM | 6.98% |
ROA(3y)13.43%
ROA(5y)12.52%
ROE(3y)23.42%
ROE(5y)21.95%
ROIC(3y)20.81%
ROIC(5y)19.72%
ROICexc(3y)23.47%
ROICexc(5y)21.78%
ROICexgc(3y)31.07%
ROICexgc(5y)29.54%
ROCE(3y)26.1%
ROCE(5y)24.73%
ROICexgc growth 3Y-0.91%
ROICexgc growth 5Y8.07%
ROICexc growth 3Y0.61%
ROICexc growth 5Y9.42%
OM growth 3Y0.55%
OM growth 5Y5.7%
PM growth 3Y2.52%
PM growth 5Y6.74%
GM growth 3Y0.36%
GM growth 5Y2.05%
F-Score6
Asset Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 72.48% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.31% | ||
| Profit Quality | 106.61% | ||
| Current Ratio | 3.84 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 8.1 |
F-Score6
WACC8.69%
ROIC/WACC1.78
Cap/Depr(3y)95.78%
Cap/Depr(5y)88.24%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.42%
Profit Quality(3y)117.3%
Profit Quality(5y)129.41%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.05%
EPS 3Y7.25%
EPS 5Y15.67%
EPS Q2Q%-5.69%
EPS Next Y-3.88%
EPS Next 2Y1.89%
EPS Next 3Y4.64%
EPS Next 5Y11.57%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-4.31%
Revenue Next Year-2.43%
Revenue Next 2Y1.25%
Revenue Next 3Y2.49%
Revenue Next 5Y8.19%
EBIT growth 1Y0.38%
EBIT growth 3Y7.24%
EBIT growth 5Y16.07%
EBIT Next Year9.21%
EBIT Next 3Y10.63%
EBIT Next 5Y10.74%
FCF growth 1Y17.12%
FCF growth 3Y31.86%
FCF growth 5Y18.5%
OCF growth 1Y15.18%
OCF growth 3Y30.29%
OCF growth 5Y18.15%
WATSCO INC -CL B / WSO.B FAQ
What is the ChartMill fundamental rating of WATSCO INC -CL B (WSO.B) stock?
ChartMill assigns a fundamental rating of 6 / 10 to WSO.B.
What is the valuation status of WATSCO INC -CL B (WSO.B) stock?
ChartMill assigns a valuation rating of 3 / 10 to WATSCO INC -CL B (WSO.B). This can be considered as Overvalued.
Can you provide the profitability details for WATSCO INC -CL B?
WATSCO INC -CL B (WSO.B) has a profitability rating of 8 / 10.
What is the expected EPS growth for WATSCO INC -CL B (WSO.B) stock?
The Earnings per Share (EPS) of WATSCO INC -CL B (WSO.B) is expected to decline by -3.88% in the next year.
How sustainable is the dividend of WATSCO INC -CL B (WSO.B) stock?
The dividend rating of WATSCO INC -CL B (WSO.B) is 6 / 10 and the dividend payout ratio is 95.01%.