WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSO.B - US9426221019 - Common Stock
351.94 USD
+1.19 (+0.34%)
We assign a fundamental rating of 7 out of 10 to WSO.B. WSO.B was compared to 50 industry peers in the Trading Companies & Distributors industry. WSO.B has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WSO.B is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, WSO.B could be worth investigating further for quality investing!.
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.
1.2 Ratios
WSO.B's Return On Assets of 10.66% is amongst the best of the industry. WSO.B outperforms 84.00% of its industry peers.
WSO.B has a Return On Equity of 17.24%. This is in the better half of the industry: WSO.B outperforms 72.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.48%, WSO.B belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WSO.B is significantly above the industry average of 9.41%.
The 3 year average ROIC (20.81%) for WSO.B is well above the current ROIC(15.48%). The reason for the recent decline needs to be investigated.
| 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
With a decent Profit Margin value of 6.55%, WSO.B is doing good in the industry, outperforming 70.00% of the companies in the same industry.
WSO.B's Profit Margin has improved in the last couple of years.
The Operating Margin of WSO.B (9.80%) is better than 70.00% of its industry peers.
WSO.B's Operating Margin has improved in the last couple of years.
WSO.B's Gross Margin of 27.92% is in line compared to the rest of the industry. WSO.B outperforms 46.00% 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 5Y6.74%
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.
Compared to 1 year ago, WSO.B has more shares outstanding
Compared to 5 years ago, WSO.B has more shares outstanding
Compared to 1 year ago, WSO.B has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.10 indicates that WSO.B is not in any danger for bankruptcy at the moment.
WSO.B has a Altman-Z score of 8.10. This is amongst the best in the industry. WSO.B outperforms 88.00% of its industry peers.
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.
The Debt to FCF ratio of WSO.B (0.02) is better than 92.00% of its industry peers.
WSO.B has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
WSO.B has a better Debt to Equity ratio (0.00) than 86.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 8.1 |
ROIC/WACC1.55
WACC9.99%
2.3 Liquidity
A Current Ratio of 3.84 indicates that WSO.B has no problem at all paying its short term obligations.
WSO.B has a better Current ratio (3.84) than 90.00% of its industry peers.
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.
With a decent Quick ratio value of 1.86, WSO.B is doing good in 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.
WSO.B shows a decrease in Revenue. In the last year, the revenue decreased by -0.71%.
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 11.57% yearly.
WSO.B is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.50, WSO.B can be considered very expensive at the moment.
WSO.B's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.54. WSO.B is around the same levels.
The Price/Forward Earnings ratio is 25.58, which means the current valuation is very expensive for 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 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 25.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WSO.B is valued a bit more expensive than 62.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WSO.B is valued a bit cheaper than 66.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.58 | ||
| EV/EBITDA | 17.77 |
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)1.76
EPS Next 2Y1.89%
EPS Next 3Y4.64%
5. Dividend
5.1 Amount
WSO.B has a Yearly Dividend Yield of 3.26%.
The stock price of WSO.B dropped by -34.22% 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 2.86, WSO.B pays a better dividend. On top of this WSO.B pays more dividend than 84.00% of the companies listed in the same industry.
WSO.B's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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 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
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 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 (12/9/2025, 8:04:00 PM)
351.94
+1.19 (+0.34%)
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 Cap14.27B
Revenue(TTM)7.41B
Net Income(TTM)485.36M
Analysts65.71
Price Target494.45 (40.49%)
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 | 27.5 | ||
| Fwd PE | 25.58 | ||
| P/S | 1.92 | ||
| P/FCF | 27.58 | ||
| P/OCF | 26.01 | ||
| P/B | 5.07 | ||
| P/tB | 6.66 | ||
| EV/EBITDA | 17.77 |
EPS(TTM)12.8
EY3.64%
EPS(NY)13.76
Fwd EY3.91%
FCF(TTM)12.76
FCFY3.63%
OCF(TTM)13.53
OCFY3.85%
SpS182.85
BVpS69.42
TBVpS52.84
PEG (NY)N/A
PEG (5Y)1.76
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
WACC9.99%
ROIC/WACC1.55
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 7 / 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%.