WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSO.B - US9426221019 - Common Stock
351.5 USD
-14.63 (-4%)
Taking everything into account, WSO.B scores 7 out of 10 in our fundamental rating. WSO.B was compared to 49 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 quite expensive at the moment. It does show a decent growth rate. These ratings could make WSO.B a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year WSO.B was profitable.
In the past year WSO.B had a positive cash flow from operations.
Each year in the past 5 years WSO.B has been profitable.
In the past 5 years WSO.B always reported a positive cash flow from operatings.
1.2 Ratios
WSO.B's Return On Assets of 10.66% is amongst the best of the industry. WSO.B outperforms 84.00% of its industry peers.
WSO.B has a better Return On Equity (17.24%) than 70.00% of its industry peers.
WSO.B's Return On Invested Capital of 15.48% is amongst the best of the industry. WSO.B outperforms 90.00% 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 9.22%.
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
Looking at the Profit Margin, with a value of 6.55%, WSO.B is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of WSO.B has grown nicely.
With a decent Operating Margin value of 9.80%, WSO.B is doing good in the industry, outperforming 68.00% of the companies in the same industry.
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.
The number of shares outstanding for WSO.B has been increased compared to 1 year ago.
WSO.B has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WSO.B has been reduced compared to a year ago.
2.2 Solvency
WSO.B has an Altman-Z score of 8.10. This indicates that WSO.B is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WSO.B (8.10) is better than 90.00% 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.
WSO.B has a Debt to FCF ratio of 0.02. This is amongst the best in the industry. WSO.B outperforms 90.00% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that WSO.B is not too dependend on debt financing.
WSO.B has a better Debt to Equity ratio (0.00) than 82.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 8.1 |
ROIC/WACC1.78
WACC8.69%
2.3 Liquidity
A Current Ratio of 3.84 indicates that WSO.B has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.84, WSO.B belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
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.
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.
WSO.B shows a decrease in Revenue. In the last year, the revenue decreased by -0.71%.
Measured over the past years, WSO.B shows a quite strong growth in Revenue. The Revenue has been growing by 9.81% on average per year.
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.
WSO.B is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
EPS Next Y-3.88%
EPS Next 2Y1.89%
EPS Next 3Y4.64%
EPS Next 5Y11.57%
Revenue Next Year-2.43%
Revenue Next 2Y1.25%
Revenue Next 3Y2.49%
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
With a Price/Earnings ratio of 27.46, WSO.B can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WSO.B is on the same level as its industry peers.
WSO.B is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
WSO.B is valuated quite expensively with a Price/Forward Earnings ratio of 25.55.
Based on the Price/Forward Earnings ratio, WSO.B is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 35.79. WSO.B is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.46 | ||
| Fwd PE | 25.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WSO.B is valued a bit more expensive than 66.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WSO.B is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.55 | ||
| EV/EBITDA | 17.75 |
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)1.75
EPS Next 2Y1.89%
EPS Next 3Y4.64%
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 -32.36%. 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 2.08. WSO.B pays more dividend than 92.00% of the companies in the same industry.
WSO.B's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| 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.
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 2Y1.89%
EPS Next 3Y4.64%
NYSE:WSO.B (11/10/2025, 8:04:00 PM)
351.5
-14.63 (-4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners104.41%
Inst Owner Change-0.62%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap14.25B
Revenue(TTM)7.41B
Net Income(TTM)485.36M
Analysts65.71
Price Target494.45 (40.67%)
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-23.03%
EPS NQ rev (3m)-22.95%
EPS NY rev (1m)-8.07%
EPS NY rev (3m)-12.21%
Revenue NQ rev (1m)-7.78%
Revenue NQ rev (3m)-8.19%
Revenue NY rev (1m)-3.14%
Revenue NY rev (3m)-7.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.46 | ||
| Fwd PE | 25.55 | ||
| P/S | 1.92 | ||
| P/FCF | 27.55 | ||
| P/OCF | 25.97 | ||
| P/B | 5.06 | ||
| P/tB | 6.65 | ||
| EV/EBITDA | 17.75 |
EPS(TTM)12.8
EY3.64%
EPS(NY)13.76
Fwd EY3.91%
FCF(TTM)12.76
FCFY3.63%
OCF(TTM)13.53
OCFY3.85%
SpS182.85
BVpS69.42
TBVpS52.84
PEG (NY)N/A
PEG (5Y)1.75
Graham Number141.39
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 | 8.1 |
F-Score6
WACC8.69%
ROIC/WACC1.78
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-3.88%
EPS Next 2Y1.89%
EPS Next 3Y4.64%
EPS Next 5Y11.57%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-4.31%
Revenue Next Year-2.43%
Revenue Next 2Y1.25%
Revenue Next 3Y2.49%
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 1Y17.12%
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 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 -3.88% 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 95.01%.