WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSO.B - US9426221019 - Common Stock
338.85 USD
-18.1 (-5.07%)
Overall WSO.B gets a fundamental rating of 7 out of 10. We evaluated WSO.B against 50 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 quite expensive at the moment. It does show a decent growth rate. Finally WSO.B also has an excellent dividend rating. With these ratings, WSO.B could be worth investigating further for dividend and quality investing!.
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.
Each year in the past 5 years WSO.B had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WSO.B (10.66%) is better than 82.00% of its industry peers.
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.
WSO.B's Return On Invested Capital of 15.48% is amongst the best of the industry. WSO.B outperforms 90.00% 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
The Profit Margin of WSO.B (6.55%) is better than 68.00% of its industry peers.
WSO.B's Profit Margin has improved in the last couple of years.
WSO.B has a better Operating Margin (9.80%) than 68.00% of its industry peers.
In the last couple of years the Operating Margin of WSO.B has grown nicely.
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.
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 7.92 indicates that WSO.B is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.92, WSO.B belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
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 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.
WSO.B has a better Debt to Equity ratio (0.00) than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 7.92 |
ROIC/WACC1.59
WACC9.75%
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 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
WSO.B shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.05%.
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
The Earnings Per Share is expected to grow by 11.57% on average over the next years. This is quite good.
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 2Y0.01%
EPS Next 3Y2.86%
EPS Next 5Y11.57%
Revenue Next Year-3.47%
Revenue Next 2Y0.07%
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.
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
WSO.B is valuated quite expensively with a Price/Earnings ratio of 26.47.
Compared to the rest of the industry, the Price/Earnings ratio of WSO.B is on the same level as its industry peers.
When comparing the Price/Earnings ratio of WSO.B to the average of the S&P500 Index (26.51), we can say WSO.B is valued inline with the index average.
With a Price/Forward Earnings ratio of 25.57, WSO.B can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as WSO.B.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, WSO.B is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.47 | ||
| Fwd PE | 25.57 |
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.
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 | 26.56 | ||
| EV/EBITDA | 17.09 |
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)1.69
EPS Next 2Y0.01%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.26%, WSO.B has a reasonable but not impressive dividend return.
In the last 3 months the price of WSO.B has falen by -26.98%. 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 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 2.00, WSO.B pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has 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
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 2Y0.01%
EPS Next 3Y2.86%
NYSE:WSO.B (12/31/2025, 8:04:00 PM)
338.85
-18.1 (-5.07%)
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 Cap13.74B
Revenue(TTM)7.41B
Net Income(TTM)485.36M
Analysts66
Price Target422.06 (24.56%)
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-DateN/A
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 | 26.47 | ||
| Fwd PE | 25.57 | ||
| P/S | 1.85 | ||
| P/FCF | 26.56 | ||
| P/OCF | 25.05 | ||
| P/B | 4.88 | ||
| P/tB | 6.41 | ||
| EV/EBITDA | 17.09 |
EPS(TTM)12.8
EY3.78%
EPS(NY)13.25
Fwd EY3.91%
FCF(TTM)12.76
FCFY3.77%
OCF(TTM)13.53
OCFY3.99%
SpS182.8
BVpS69.4
TBVpS52.83
PEG (NY)N/A
PEG (5Y)1.69
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 | 7.92 |
F-Score6
WACC9.75%
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 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 2Y0.07%
Revenue Next 3Y1.8%
Revenue Next 5Y8.19%
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 7 / 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 7 / 10 and the dividend payout ratio is 95.01%.