WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSO.B - US9426221019 - Common Stock
375.68 USD
-0.51 (-0.14%)
Taking everything into account, WSO.B scores 6 out of 10 in our fundamental rating. WSO.B was compared to 50 industry peers in the Trading Companies & Distributors industry. WSO.B gets an excellent profitability rating and is at the same time showing great financial health properties. WSO.B is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- In the past 5 years WSO.B has always been profitable.
- WSO.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.66%, WSO.B belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
- The Return On Equity of WSO.B (17.24%) is better than 72.00% of its industry peers.
- The Return On Invested Capital of WSO.B (15.48%) is better than 92.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WSO.B is significantly above the industry average of 9.63%.
- 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
- Looking at the Profit Margin, with a value of 6.55%, WSO.B is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of WSO.B has grown nicely.
- WSO.B has a better Operating Margin (9.80%) than 70.00% of its industry peers.
- In the last couple of years the Operating Margin of WSO.B has grown nicely.
- WSO.B has a Gross Margin of 27.92%. This is comparable to the rest of the industry: WSO.B outperforms 48.00% of its industry peers.
- WSO.B's Gross Margin has improved in the last couple of years.
| 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 5Y6.73%
GM growth 3Y0.36%
GM growth 5Y2.05%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WSO.B is creating value.
- Compared to 1 year ago, WSO.B has more shares outstanding
- WSO.B has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for WSO.B has been reduced compared to a year ago.
2.2 Solvency
- WSO.B has an Altman-Z score of 8.44. 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 8.44, WSO.B belongs to the best of the industry, outperforming 88.00% 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.
- WSO.B has a better Debt to FCF ratio (0.02) than 92.00% of its industry peers.
- A Debt/Equity ratio of 0.00 indicates that WSO.B is not too dependend on debt financing.
- WSO.B's Debt to Equity ratio of 0.00 is amongst the best of the industry. WSO.B outperforms 86.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 8.44 |
ROIC/WACC1.58
WACC9.79%
2.3 Liquidity
- WSO.B has a Current Ratio of 3.84. This indicates that WSO.B is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of WSO.B (3.84) is better than 88.00% of its industry peers.
- A Quick Ratio of 1.86 indicates that WSO.B should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.86, WSO.B is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
| 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.
- Measured over the past years, WSO.B shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.67% on average per year.
- 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
- WSO.B is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.95% yearly.
- The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y-6.04%
EPS Next 2Y0.01%
EPS Next 3Y2.86%
EPS Next 5Y9.95%
Revenue Next Year-3.46%
Revenue Next 2Y-0.03%
Revenue Next 3Y1.65%
Revenue Next 5Y3.59%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 29.35, WSO.B can be considered very expensive at the moment.
- 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 27.32.
- WSO.B is valuated quite expensively with a Price/Forward Earnings ratio of 28.35.
- WSO.B's Price/Forward Earnings is on the same level as the industry average.
- WSO.B's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.35 | ||
| Fwd PE | 28.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WSO.B is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, WSO.B is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.45 | ||
| EV/EBITDA | 19.03 |
4.3 Compensation for Growth
- WSO.B has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.87
EPS Next 2Y0.01%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
- WSO.B has a Yearly Dividend Yield of 3.19%.
- In the last 3 months the price of WSO.B has falen by -22.35%. 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 1.48. WSO.B pays more dividend than 84.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.86, WSO.B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
5.2 History
- On average, the dividend of WSO.B grows each year by 11.05%, which is quite nice.
- WSO.B has paid a dividend for at least 10 years, which is 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.
- The dividend of WSO.B is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP95.01%
EPS Next 2Y0.01%
EPS Next 3Y2.86%
NYSE:WSO.B (1/20/2026, 8:04:00 PM)
375.68
-0.51 (-0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-16 2026-02-16/amc
Inst Owners112.05%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap15.24B
Revenue(TTM)7.41B
Net Income(TTM)485.36M
Analysts66
Price Target408.71 (8.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 2026-01-16 (3)
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)0.94%
EPS NQ rev (3m)-23.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.14%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-8.28%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-4.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.35 | ||
| Fwd PE | 28.35 | ||
| P/S | 2.06 | ||
| P/FCF | 29.45 | ||
| P/OCF | 27.77 | ||
| P/B | 5.41 | ||
| P/tB | 7.11 | ||
| EV/EBITDA | 19.03 |
EPS(TTM)12.8
EY3.41%
EPS(NY)13.25
Fwd EY3.53%
FCF(TTM)12.76
FCFY3.4%
OCF(TTM)13.53
OCFY3.6%
SpS182.8
BVpS69.4
TBVpS52.83
PEG (NY)N/A
PEG (5Y)1.87
Graham Number141.38
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 5Y9.41%
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 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 | 8.44 |
F-Score6
WACC9.79%
ROIC/WACC1.58
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-6.04%
EPS Next 2Y0.01%
EPS Next 3Y2.86%
EPS Next 5Y9.95%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-4.31%
Revenue Next Year-3.46%
Revenue Next 2Y-0.03%
Revenue Next 3Y1.65%
Revenue Next 5Y3.59%
EBIT growth 1Y0.38%
EBIT growth 3Y7.24%
EBIT growth 5Y16.07%
EBIT Next Year-0.31%
EBIT Next 3Y5.43%
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%.