WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSO.B - US9426221019 - Common Stock
376.19 USD
-0.06 (-0.02%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WSO.B is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- WSO.B had positive earnings in the past year.
- 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.
- In the past 5 years WSO.B always reported a positive cash flow from operatings.
1.2 Ratios
- WSO.B has a better Return On Assets (10.66%) than 84.00% of its industry peers.
- WSO.B has a better Return On Equity (17.24%) than 72.00% of its industry peers.
- WSO.B has a better Return On Invested Capital (15.48%) than 92.00% 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 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 70.00% of its industry peers.
- WSO.B's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 9.80%, WSO.B is in the better half of the industry, outperforming 70.00% 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 48.00% 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 5Y6.73%
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
- WSO.B has more shares outstanding than it did 5 years ago.
- 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's Altman-Z score of 8.44 is amongst the best of the industry. WSO.B outperforms 88.00% 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.
- Looking at the Debt to FCF ratio, with a value of 0.02, WSO.B belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.00 indicates that WSO.B is not too dependend on debt financing.
- WSO.B has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. WSO.B outperforms 86.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 8.44 |
ROIC/WACC1.58
WACC9.78%
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's Current ratio of 3.84 is amongst the best of the industry. WSO.B outperforms 88.00% 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.
- WSO.B's Quick ratio of 1.86 is fine compared to the rest of the industry. WSO.B outperforms 72.00% 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.
- 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 9.95% on average per year.
- The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y-6.04%
EPS Next 2Y0.01%
EPS Next 3Y2.86%
EPS Next 5Y9.95%
Revenue Next Year-3.46%
Revenue Next 2Y-0.03%
Revenue Next 3Y1.65%
Revenue Next 5Y3.59%
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.
- 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.
- WSO.B is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 28.39, WSO.B can be considered very expensive at the moment.
- WSO.B's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of WSO.B to the average of the S&P500 Index (24.29), we can say WSO.B is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.39 | ||
| Fwd PE | 28.39 |
4.2 Price Multiples
- WSO.B's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, WSO.B is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.49 | ||
| EV/EBITDA | 19.05 |
4.3 Compensation for Growth
- The excellent profitability rating of WSO.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.88
EPS Next 2Y0.01%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.19%, WSO.B has a reasonable but not impressive dividend return.
- In the last 3 months the price of WSO.B has falen by -22.24%. 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 1.48, WSO.B pays a better dividend. On top of this WSO.B pays more dividend than 84.00% of the companies listed in the same industry.
- WSO.B's Dividend Yield is rather good when compared to the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
- 95.01% of the earnings are spent on dividend by WSO.B. 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.
DP95.01%
EPS Next 2Y0.01%
EPS Next 3Y2.86%
NYSE:WSO.B (1/13/2026, 8:04:00 PM)
376.19
-0.06 (-0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-16 2026-02-16/amc
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 Target408.71 (8.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend9.55
Dividend Growth(5Y)11.05%
DP95.01%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-16 2026-01-16 (3)
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)-3.16%
PT rev (3m)-17.34%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)-23.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.14%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-8.28%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-4.16%
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 | 19.05 |
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 5Y9.41%
OM growth 3Y0.55%
OM growth 5Y5.7%
PM growth 3Y2.52%
PM growth 5Y6.73%
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
WACC9.78%
ROIC/WACC1.58
Cap/Depr(3y)95.78%
Cap/Depr(5y)88.26%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.42%
Profit Quality(3y)117.3%
Profit Quality(5y)129.4%
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-3.46%
Revenue Next 2Y-0.03%
Revenue Next 3Y1.65%
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%.