WATSCO INC -CL B (WSO.B)
US9426221019 - Common Stock
Overall WSO.B gets a fundamental rating of 6 out of 10. We evaluated WSO.B against 51 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.
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.
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 has a Return On Assets of 11.03%. This is amongst the best in the industry. WSO.B outperforms 82.35% of its industry peers.
WSO.B has a better Return On Equity (18.57%) than 64.71% of its industry peers.
The Return On Invested Capital of WSO.B (17.49%) is better than 92.16% 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 10.45%.
The last Return On Invested Capital (17.49%) for WSO.B is well below the 3 year average (22.74%), 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 | 11.03% | ||
| ROE | 18.57% | ||
| ROIC | 17.49% |
ROA(3y)13.84%
ROA(5y)12.05%
ROE(3y)24.81%
ROE(5y)21.34%
ROIC(3y)22.74%
ROIC(5y)19.68%
1.3 Margins
With a Profit Margin value of 6.52%, WSO.B perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
In the last couple of years the Profit Margin of WSO.B has grown nicely.
WSO.B's Operating Margin of 9.83% is fine compared to the rest of the industry. WSO.B outperforms 62.75% of its industry peers.
In the last couple of years the Operating Margin of WSO.B has grown nicely.
WSO.B has a worse Gross Margin (26.79%) than 60.78% of its industry peers.
WSO.B's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.83% | ||
| PM (TTM) | 6.52% | ||
| GM | 26.79% |
OM growth 3Y11.03%
OM growth 5Y5.75%
PM growth 3Y12.04%
PM growth 5Y6.92%
GM growth 3Y4.18%
GM growth 5Y2.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WSO.B is creating value.
The number of shares outstanding for WSO.B has been increased compared to 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
WSO.B has an Altman-Z score of 10.69. This indicates that WSO.B is financially healthy and has little risk of bankruptcy at the moment.
WSO.B has a better Altman-Z score (10.69) than 92.16% 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.
Looking at the Debt to FCF ratio, with a value of 0.02, WSO.B belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
WSO.B has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
WSO.B's Debt to Equity ratio of 0.01 is amongst the best of the industry. WSO.B outperforms 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 10.69 |
ROIC/WACC2.1
WACC8.32%
2.3 Liquidity
A Current Ratio of 3.21 indicates that WSO.B has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.21, WSO.B is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
A Quick Ratio of 1.55 indicates that WSO.B should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.55, WSO.B is doing good in the industry, outperforming 72.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The earnings per share for WSO.B have decreased strongly by -11.87% in the last year.
The Earnings Per Share has been growing by 16.30% on average over the past years. This is quite good.
WSO.B shows a small growth in Revenue. In the last year, the Revenue has grown by 3.68%.
WSO.B shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.88% yearly.
EPS 1Y (TTM)-11.87%
EPS 3Y25.69%
EPS 5Y16.3%
EPS Q2Q%1.58%
Revenue 1Y (TTM)3.68%
Revenue growth 3Y12.95%
Revenue growth 5Y9.88%
Sales Q2Q%6.8%
3.2 Future
Based on estimates for the next years, WSO.B will show a small growth in Earnings Per Share. The EPS will grow by 6.79% on average per year.
Based on estimates for the next years, WSO.B will show a small growth in Revenue. The Revenue will grow by 7.66% on average per year.
EPS Next Y3%
EPS Next 2Y7.74%
EPS Next 3Y9.07%
EPS Next 5Y6.79%
Revenue Next Year4.22%
Revenue Next 2Y5.68%
Revenue Next 3Y6.44%
Revenue Next 5Y7.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 37.11 indicates a quite expensive valuation of WSO.B.
68.63% of the companies in the same industry are cheaper than WSO.B, based on the Price/Earnings ratio.
WSO.B is valuated rather expensively when we compare the Price/Earnings ratio to 30.71, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 30.59, which means the current valuation is very expensive for WSO.B.
Based on the Price/Forward Earnings ratio, WSO.B is valued a bit more expensive than the industry average as 68.63% of the companies are valued more cheaply.
WSO.B's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.11 | ||
| Fwd PE | 30.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WSO.B indicates a slightly more expensive valuation: WSO.B is more expensive than 76.47% of the companies listed 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 64.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.49 | ||
| EV/EBITDA | 28.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WSO.B does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of WSO.B may justify a higher PE ratio.
PEG (NY)12.37
PEG (5Y)2.28
EPS Next 2Y7.74%
EPS Next 3Y9.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, WSO.B has a reasonable but not impressive dividend return.
WSO.B's Dividend Yield is rather good when compared to the industry average which is at 1.90. WSO.B pays more dividend than 88.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.26, WSO.B has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
The dividend of WSO.B is nicely growing with an annual growth rate of 11.93%!
WSO.B has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)11.93%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WSO.B pays out 82.05% of its income as dividend. This is not a sustainable payout ratio.
WSO.B's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.05%
EPS Next 2Y7.74%
EPS Next 3Y9.07%
WATSCO INC -CL B
NYSE:WSO.B (9/13/2024, 8:04:00 PM)
485
+29.1 (+6.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap22.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.11 | ||
| Fwd PE | 30.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)12.37
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.03% | ||
| ROE | 18.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.83% | ||
| PM (TTM) | 6.52% | ||
| GM | 26.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-11.87%
EPS 3Y25.69%
EPS 5Y
EPS Q2Q%
EPS Next Y3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.68%
Revenue growth 3Y12.95%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y