WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSO.B - US9426221019 - Common Stock
376.19 USD
+2.67 (+0.71%)
WSO.B gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, WSO.B is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WSO.B was profitable.
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
Looking at the Return On Assets, with a value of 10.66%, WSO.B belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
The Return On Equity of WSO.B (17.24%) is better than 70.00% of its industry peers.
WSO.B has a better Return On Invested Capital (15.48%) than 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 9.63%.
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
WSO.B has a Profit Margin of 6.55%. 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 Profit Margin of WSO.B has grown nicely.
With a decent Operating Margin value of 9.80%, WSO.B is doing good in the industry, outperforming 68.00% of the companies in the same industry.
WSO.B's Operating Margin has improved in the last couple of years.
WSO.B has a Gross Margin (27.92%) which is in line with 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.
WSO.B has more shares outstanding than it did 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
An Altman-Z score of 8.44 indicates that WSO.B is not in any danger for bankruptcy at the moment.
WSO.B has a better Altman-Z score (8.44) than 92.00% 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.
With an excellent Debt to FCF ratio value of 0.02, WSO.B belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
WSO.B has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, WSO.B belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 8.44 |
ROIC/WACC1.59
WACC9.76%
2.3 Liquidity
A Current Ratio of 3.84 indicates that WSO.B has no problem at all paying its short term obligations.
The Current ratio of WSO.B (3.84) is better than 86.00% 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.
The Quick ratio of WSO.B (1.86) is better 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.
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.
The Revenue has decreased by -0.71% in the past year.
Measured over the past years, WSO.B shows a quite strong growth in Revenue. The Revenue has been growing by 9.81% on average per year.
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.
Based on estimates for the next years, WSO.B will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y-6.04%
EPS Next 2Y0.01%
EPS Next 3Y2.86%
EPS Next 5Y9.95%
Revenue Next Year-3.47%
Revenue Next 2Y0.07%
Revenue Next 3Y1.8%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.39, 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.
The average S&P500 Price/Earnings ratio is at 27.25. WSO.B is around the same levels.
The Price/Forward Earnings ratio is 28.39, which means the current valuation is very expensive for WSO.B.
The rest of the industry has a similar Price/Forward Earnings ratio as WSO.B.
The average S&P500 Price/Forward Earnings ratio is at 23.98. WSO.B is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.39 | ||
| Fwd PE | 28.39 |
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 62.00% of the companies are valued more cheaply.
WSO.B's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSO.B is cheaper than 66.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.49 | ||
| EV/EBITDA | 19.06 |
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)1.88
EPS Next 2Y0.01%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
WSO.B has a Yearly Dividend Yield of 3.44%.
In the last 3 months the price of WSO.B has falen by -22.23%. 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 1.35. WSO.B pays more dividend than 90.00% of the companies in the same industry.
WSO.B's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
On average, the dividend of WSO.B grows each year by 11.05%, which is quite nice.
WSO.B has been paying a dividend for at least 10 years, so it has 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.
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 (1/13/2026, 3:11:40 PM)
376.19
+2.67 (+0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners112.05%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap15.26B
Revenue(TTM)7.41B
Net Income(TTM)485.36M
Analysts66
Price Target422.06 (12.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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)-14.64%
PT rev (3m)-14.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.39 | ||
| Fwd PE | 28.39 | ||
| P/S | 2.06 | ||
| P/FCF | 29.49 | ||
| P/OCF | 27.81 | ||
| P/B | 5.42 | ||
| P/tB | 7.12 | ||
| EV/EBITDA | 19.06 |
EPS(TTM)12.8
EY3.4%
EPS(NY)13.25
Fwd EY3.52%
FCF(TTM)12.76
FCFY3.39%
OCF(TTM)13.53
OCFY3.6%
SpS182.8
BVpS69.4
TBVpS52.83
PEG (NY)N/A
PEG (5Y)1.88
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 5Y9.42%
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 | 8.44 |
F-Score6
WACC9.76%
ROIC/WACC1.59
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-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-3.47%
Revenue Next 2Y0.07%
Revenue Next 3Y1.8%
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%.