WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSO.B - US9426221019 - Common Stock
352.255 USD
+0.31 (+0.09%)
Taking everything into account, WSO.B scores 7 out of 10 in our fundamental rating. 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. Finally WSO.B also has an excellent dividend rating. These ratings would make WSO.B suitable for dividend and quality investing!
1. Profitability
1.1 Basic Checks
WSO.B had positive earnings in the past year.
WSO.B had a positive operating cash flow in the past year.
WSO.B had positive earnings in each of the past 5 years.
Each year in the past 5 years WSO.B had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.66%, WSO.B belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.24%, WSO.B is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.48%, WSO.B belongs to the best of the industry, outperforming 90.00% 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 9.63%.
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 better Profit Margin (6.55%) than 68.00% of its industry peers.
WSO.B's Profit Margin has improved in the last couple of years.
The Operating Margin of WSO.B (9.80%) is better than 68.00% of its industry peers.
WSO.B's Operating Margin has improved in the last couple of years.
The Gross Margin of WSO.B (27.92%) is comparable to the rest of the 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
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
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.
2.2 Solvency
An Altman-Z score of 8.11 indicates that WSO.B is not in any danger for bankruptcy at the moment.
WSO.B has a better Altman-Z score (8.11) than 90.00% 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.
WSO.B has a better Debt to FCF ratio (0.02) than 90.00% 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.
The Debt to Equity ratio of WSO.B (0.00) is better than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 8.11 |
ROIC/WACC1.57
WACC9.83%
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.
WSO.B has a Current ratio of 3.84. This is amongst the best in the industry. WSO.B outperforms 86.00% 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.
With a decent Quick ratio value of 1.86, WSO.B is doing good in the industry, outperforming 70.00% 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.
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.
The Revenue is expected to grow by 8.19% on average over the next years. This is quite good.
EPS Next Y-6.04%
EPS Next 2Y0.29%
EPS Next 3Y3.15%
EPS Next 5Y11.57%
Revenue Next Year-3.47%
Revenue Next 2Y0.3%
Revenue Next 3Y1.8%
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
A Price/Earnings ratio of 27.52 indicates a quite expensive valuation of 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 26.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 26.43, the valuation of WSO.B can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as WSO.B.
When comparing the Price/Forward Earnings ratio of WSO.B to the average of the S&P500 Index (23.84), we can say WSO.B is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 26.43 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WSO.B indicates a somewhat cheap valuation: WSO.B is cheaper than 64.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.61 | ||
| EV/EBITDA | 17.79 |
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 2Y0.29%
EPS Next 3Y3.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.26%, WSO.B has a reasonable but not impressive dividend return.
The stock price of WSO.B dropped by -27.26% 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.
WSO.B's Dividend Yield is rather good when compared to the industry average which is at 0.98. WSO.B pays more dividend than 92.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, WSO.B pays a better dividend.
| 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 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP95.01%
EPS Next 2Y0.29%
EPS Next 3Y3.15%
NYSE:WSO.B (12/15/2025, 8:04:00 PM)
352.255
+0.31 (+0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners112.32%
Inst Owner Change-0.62%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap14.29B
Revenue(TTM)7.41B
Net Income(TTM)485.36M
Analysts66
Price Target422.06 (19.82%)
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)-14.64%
PT rev (3m)-14.64%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)-24.36%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)-10.14%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-8.23%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 26.43 | ||
| P/S | 1.93 | ||
| P/FCF | 27.61 | ||
| P/OCF | 26.04 | ||
| P/B | 5.08 | ||
| P/tB | 6.67 | ||
| EV/EBITDA | 17.79 |
EPS(TTM)12.8
EY3.63%
EPS(NY)13.33
Fwd EY3.78%
FCF(TTM)12.76
FCFY3.62%
OCF(TTM)13.53
OCFY3.84%
SpS182.8
BVpS69.4
TBVpS52.83
PEG (NY)N/A
PEG (5Y)1.76
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 | 8.11 |
F-Score6
WACC9.83%
ROIC/WACC1.57
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 2Y0.29%
EPS Next 3Y3.15%
EPS Next 5Y11.57%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-4.31%
Revenue Next Year-3.47%
Revenue Next 2Y0.3%
Revenue Next 3Y1.8%
Revenue Next 5Y8.19%
EBIT growth 1Y0.38%
EBIT growth 3Y7.24%
EBIT growth 5Y16.07%
EBIT Next Year-0.44%
EBIT Next 3Y6.2%
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 -6.04% 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 7 / 10 and the dividend payout ratio is 95.01%.