WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:WSO.B • US9426221019

388.94 USD
-0.5 (-0.13%)
Last: Feb 3, 2026, 08:04 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Overall WSO.B gets a fundamental rating of 6 out of 10. We evaluated WSO.B against 51 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making WSO.B a very profitable company, without any liquidiy or solvency issues. WSO.B is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • WSO.B had positive earnings in the past year.
  • In the past year WSO.B had a positive cash flow from operations.
  • WSO.B had positive earnings in each of the past 5 years.
  • WSO.B had a positive operating cash flow in each of the past 5 years.
WSO.B Yearly Net Income VS EBIT VS OCF VS FCFWSO.B Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

1.2 Ratios

  • WSO.B has a Return On Assets of 10.66%. This is amongst the best in the industry. WSO.B outperforms 84.31% of its industry peers.
  • WSO.B's Return On Equity of 17.24% is fine compared to the rest of the industry. WSO.B outperforms 72.55% of its industry peers.
  • WSO.B has a Return On Invested Capital of 15.48%. This is amongst the best in the industry. WSO.B outperforms 92.16% 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 9.59%.
  • 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 RankSector 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%
WSO.B Yearly ROA, ROE, ROICWSO.B Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

  • WSO.B has a better Profit Margin (6.55%) than 70.59% of its industry peers.
  • WSO.B's Profit Margin has improved in the last couple of years.
  • WSO.B has a Operating Margin of 9.80%. This is in the better half of the industry: WSO.B outperforms 70.59% of its industry peers.
  • In the last couple of years the Operating Margin of WSO.B has grown nicely.
  • Looking at the Gross Margin, with a value of 27.92%, WSO.B is in line with its industry, outperforming 47.06% of the companies in the same industry.
  • In the last couple of years the Gross Margin of WSO.B has grown nicely.
Industry RankSector 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 5Y6.73%
GM growth 3Y0.36%
GM growth 5Y2.05%
WSO.B Yearly Profit, Operating, Gross MarginsWSO.B Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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.
  • Compared to 1 year ago, WSO.B has more shares outstanding
  • The number of shares outstanding for WSO.B has been increased compared to 5 years ago.
  • WSO.B has a better debt/assets ratio than last year.
WSO.B Yearly Shares OutstandingWSO.B Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
WSO.B Yearly Total Debt VS Total AssetsWSO.B Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

  • WSO.B has an Altman-Z score of 8.62. This indicates that WSO.B is financially healthy and has little risk of bankruptcy at the moment.
  • WSO.B has a better Altman-Z score (8.62) than 90.20% of its industry peers.
  • The Debt to FCF ratio of WSO.B is 0.02, which is an excellent value as it means it would take WSO.B, only 0.02 years of fcf income to pay off all of its debts.
  • WSO.B has a better Debt to FCF ratio (0.02) than 92.16% of its industry peers.
  • A Debt/Equity ratio of 0.00 indicates that WSO.B is not too dependend on debt financing.
  • WSO.B has a better Debt to Equity ratio (0.00) than 84.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Altman-Z 8.62
ROIC/WACC1.57
WACC9.83%
WSO.B Yearly LT Debt VS Equity VS FCFWSO.B Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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 88.24% 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 Quick ratio of 1.86. This is in the better half of the industry: WSO.B outperforms 72.55% of its industry peers.
Industry RankSector Rank
Current Ratio 3.84
Quick Ratio 1.86
WSO.B Yearly Current Assets VS Current LiabilitesWSO.B Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • WSO.B shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.05%.
  • The Earnings Per Share has been growing by 15.67% on average over the past years. This is quite good.
  • The Revenue has decreased by -0.71% in the past year.
  • The Revenue has been growing by 9.81% on average over the past years. This is quite good.
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 9.95% on average per year.
  • WSO.B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y-6.01%
EPS Next 2Y-0.41%
EPS Next 3Y2.4%
EPS Next 5Y9.95%
Revenue Next Year-3.44%
Revenue Next 2Y-0.04%
Revenue Next 3Y1.62%
Revenue Next 5Y3.59%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
WSO.B Yearly Revenue VS EstimatesWSO.B Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
WSO.B Yearly EPS VS EstimatesWSO.B Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5 10 15 20 25

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 30.39, the valuation of WSO.B can be described as expensive.
  • WSO.B's Price/Earnings ratio is in line with the industry average.
  • WSO.B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
  • A Price/Forward Earnings ratio of 29.60 indicates a quite expensive valuation of WSO.B.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WSO.B is on the same level as its industry peers.
  • WSO.B's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
Industry RankSector Rank
PE 30.39
Fwd PE 29.6
WSO.B Price Earnings VS Forward Price EarningsWSO.B Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as WSO.B.
  • Based on the Price/Free Cash Flow ratio, WSO.B is valued a bit cheaper than the industry average as 72.55% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 30.49
EV/EBITDA 19.73
WSO.B Per share dataWSO.B EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

  • The excellent profitability rating of WSO.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.94
EPS Next 2Y-0.41%
EPS Next 3Y2.4%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • WSO.B has a Yearly Dividend Yield of 3.19%.
  • The stock price of WSO.B dropped by -24.02% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 0.82, WSO.B pays a better dividend. On top of this WSO.B pays more dividend than 92.16% of the companies listed in the same industry.
  • WSO.B's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 3.19%

5.2 History

  • The dividend of WSO.B is nicely growing with an annual growth rate of 11.05%!
  • WSO.B has paid a dividend for at least 10 years, which is a reliable track record.
  • WSO.B has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.05%
Div Incr Years11
Div Non Decr Years11
WSO.B Yearly Dividends per shareWSO.B Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

5.3 Sustainability

  • WSO.B pays out 95.01% of its income as dividend. This is not a sustainable payout ratio.
  • WSO.B's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP95.01%
EPS Next 2Y-0.41%
EPS Next 3Y2.4%
WSO.B Yearly Income VS Free CF VS DividendWSO.B Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
WSO.B Dividend Payout.WSO.B Dividend Payout, showing the Payout Ratio.WSO.B Dividend Payout.PayoutRetained Earnings

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WATSCO INC -CL B

NYSE:WSO.B (2/3/2026, 8:04:00 PM)

388.94

-0.5 (-0.13%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)10-29
Earnings (Next)02-17
Inst Owners112.05%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap15.78B
Revenue(TTM)7.41B
Net Income(TTM)485.36M
Analysts66
Price Target408.71 (5.08%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.19%
Yearly Dividend9.55
Dividend Growth(5Y)11.05%
DP95.01%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-16
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)-3.16%
PT rev (3m)-17.34%
EPS NQ rev (1m)1%
EPS NQ rev (3m)-18.61%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-5.24%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-6.07%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-2.3%
Valuation
Industry RankSector Rank
PE 30.39
Fwd PE 29.6
P/S 2.13
P/FCF 30.49
P/OCF 28.75
P/B 5.6
P/tB 7.36
EV/EBITDA 19.73
EPS(TTM)12.8
EY3.29%
EPS(NY)13.14
Fwd EY3.38%
FCF(TTM)12.76
FCFY3.28%
OCF(TTM)13.53
OCFY3.48%
SpS182.8
BVpS69.4
TBVpS52.83
PEG (NY)N/A
PEG (5Y)1.94
Graham Number141.38
Profitability
Industry RankSector 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 5Y9.41%
OM growth 3Y0.55%
OM growth 5Y5.7%
PM growth 3Y2.52%
PM growth 5Y6.73%
GM growth 3Y0.36%
GM growth 5Y2.05%
F-Score6
Asset Turnover1.63
Health
Industry RankSector 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 8.62
F-Score6
WACC9.83%
ROIC/WACC1.57
Cap/Depr(3y)95.78%
Cap/Depr(5y)88.26%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.42%
Profit Quality(3y)117.3%
Profit Quality(5y)129.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.05%
EPS 3Y7.25%
EPS 5Y15.67%
EPS Q2Q%-5.69%
EPS Next Y-6.01%
EPS Next 2Y-0.41%
EPS Next 3Y2.4%
EPS Next 5Y9.95%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-4.31%
Revenue Next Year-3.44%
Revenue Next 2Y-0.04%
Revenue Next 3Y1.62%
Revenue Next 5Y3.59%
EBIT growth 1Y0.38%
EBIT growth 3Y7.24%
EBIT growth 5Y16.07%
EBIT Next Year-0.07%
EBIT Next 3Y5.26%
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 for 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.


Can you provide the financial health for WSO.B stock?

The financial health rating of WATSCO INC -CL B (WSO.B) is 8 / 10.


Is the dividend of WATSCO INC -CL B sustainable?

The dividend rating of WATSCO INC -CL B (WSO.B) is 6 / 10 and the dividend payout ratio is 95.01%.