WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - NYSE:WSO.B - US9426221019 - Common Stock
366.15 USD
-13.2 (-3.48%)
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. 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.
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 better Return On Assets (10.66%) than 90.20% 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 70.59% of its industry peers.
WSO.B's Return On Invested Capital of 15.48% is amongst the best of the industry. WSO.B outperforms 90.20% of its industry peers.
WSO.B had an Average Return On Invested Capital over the past 3 years of 20.81%. This is significantly above the industry average of 10.21%.
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
WSO.B's Profit Margin of 6.55% is fine compared to the rest of the industry. WSO.B outperforms 72.55% of its industry peers.
WSO.B's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.80%, WSO.B is doing good in the industry, outperforming 72.55% of the companies in the same industry.
WSO.B's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 27.92%, WSO.B perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
WSO.B has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.23 | ||
| Altman-Z | N/A |
ROIC/WACC1.64
WACC9.44%
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.
With an excellent Current ratio value of 3.84, WSO.B belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
A Quick Ratio of 1.86 indicates that WSO.B should not have too much problems paying its short term obligations.
WSO.B has a Quick ratio of 1.86. This is in the better half of the industry: WSO.B outperforms 72.55% 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.
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.
The Revenue has been growing by 9.81% on average over the past years. This is quite good.
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-0.81%
EPS Next 2Y3.8%
EPS Next 3Y6.29%
EPS Next 5Y11.57%
Revenue Next Year-1.17%
Revenue Next 2Y2.35%
Revenue Next 3Y3.49%
Revenue Next 5Y8.19%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 28.61, which means the current valuation is very expensive for WSO.B.
WSO.B's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of WSO.B to the average of the S&P500 Index (26.11), we can say WSO.B is valued inline with the index average.
The Price/Forward Earnings ratio is 25.65, which means the current valuation is very expensive for WSO.B.
WSO.B's Price/Forward Earnings is on the same level as the industry average.
WSO.B is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.61 | ||
| Fwd PE | 25.65 |
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 64.71% 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 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.67 | ||
| EV/EBITDA | 18.5 |
4.3 Compensation for Growth
The excellent profitability rating of WSO.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.83
EPS Next 2Y3.8%
EPS Next 3Y6.29%
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 -24.51%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.94, WSO.B pays a better dividend. On top of this WSO.B pays more dividend than 92.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, WSO.B pays a bit more dividend than the S&P500 average.
| 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 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
95.00% 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%
EPS Next 2Y3.8%
EPS Next 3Y6.29%
NYSE:WSO.B (10/30/2025, 8:04:00 PM)
366.15
-13.2 (-3.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners104.41%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap14.85B
Revenue(TTM)7.41B
Net Income(TTM)485.37M
Analysts67.62
Price Target494.45 (35.04%)
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%
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)-3.49%
EPS NQ rev (1m)-6.13%
EPS NQ rev (3m)-11.91%
EPS NY rev (1m)-5.14%
EPS NY rev (3m)-9.56%
Revenue NQ rev (1m)-2.35%
Revenue NQ rev (3m)-6.23%
Revenue NY rev (1m)-1.89%
Revenue NY rev (3m)-6.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.61 | ||
| Fwd PE | 25.65 | ||
| P/S | 2 | ||
| P/FCF | 28.67 | ||
| P/OCF | 27.06 | ||
| P/B | 5.27 | ||
| P/tB | 7.65 | ||
| EV/EBITDA | 18.5 |
EPS(TTM)12.8
EY3.5%
EPS(NY)14.28
Fwd EY3.9%
FCF(TTM)12.77
FCFY3.49%
OCF(TTM)13.53
OCFY3.7%
SpS182.85
BVpS69.42
TBVpS47.89
PEG (NY)N/A
PEG (5Y)1.83
Graham Number141.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.66% | ||
| ROE | 17.24% | ||
| ROCE | 19.41% | ||
| ROIC | 15.48% | ||
| ROICexc | 18% | ||
| ROICexgc | 24.7% | ||
| 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 | 0.23 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 71.62% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.31% | ||
| Profit Quality | 106.69% | ||
| Current Ratio | 3.84 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | N/A |
F-Score6
WACC9.44%
ROIC/WACC1.64
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-0.81%
EPS Next 2Y3.8%
EPS Next 3Y6.29%
EPS Next 5Y11.57%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-4.31%
Revenue Next Year-1.17%
Revenue Next 2Y2.35%
Revenue Next 3Y3.49%
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 1Y17.21%
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 of WATSCO INC -CL B (WSO.B) stock?
ChartMill assigns a valuation rating of 2 / 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 -0.81% 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%.