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%)
Overall WSO.B gets a fundamental rating of 6 out of 10. We evaluated WSO.B against 50 industry peers in the Trading Companies & Distributors industry. WSO.B gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
- Each year in the past 5 years WSO.B had a positive operating cash flow.
1.2 Ratios
- WSO.B has a Return On Assets of 10.66%. This is amongst the best in the industry. WSO.B outperforms 82.00% of its industry peers.
- WSO.B's Return On Equity of 17.24% is fine compared to the rest of the industry. WSO.B outperforms 70.00% of its industry peers.
- The Return On Invested Capital of WSO.B (15.48%) is better than 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 9.63%.
- 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
- WSO.B has a Profit Margin of 6.55%. This is in the better half of the industry: WSO.B outperforms 68.00% of its industry peers.
- In the last couple of years the Profit Margin of WSO.B has grown nicely.
- Looking at the Operating Margin, with a value of 9.80%, WSO.B is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of WSO.B has grown nicely.
- Looking at the Gross Margin, with a value of 27.92%, WSO.B is in line with its industry, outperforming 46.00% 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 5Y6.74%
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.
- The number of shares outstanding for WSO.B has been increased compared to 5 years ago.
- Compared to 1 year ago, WSO.B has an improved debt to assets ratio.
2.2 Solvency
- WSO.B has an Altman-Z score of 8.44. This indicates that WSO.B is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of WSO.B (8.44) is better than 92.00% 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.
- WSO.B's Debt to FCF ratio of 0.02 is amongst the best of 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 Debt to Equity ratio of 0.00. This is amongst the best in the industry. WSO.B outperforms 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 8.44 |
ROIC/WACC1.59
WACC9.76%
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.
- Looking at the Current ratio, with a value of 3.84, WSO.B belongs to the top of the industry, outperforming 86.00% 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.
- Looking at the Quick ratio, with a value of 1.86, WSO.B is in the better half of 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
- 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.
- The Revenue has decreased by -0.71% in the past 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 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-3.47%
Revenue Next 2Y0.07%
Revenue Next 3Y1.8%
Revenue Next 5Y3.59%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 29.39 indicates a quite expensive valuation of WSO.B.
- Compared to the rest of the industry, the Price/Earnings ratio of WSO.B is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.33. WSO.B is around the same levels.
- A Price/Forward Earnings ratio of 28.39 indicates a quite expensive valuation of WSO.B.
- WSO.B's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. WSO.B is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.39 | ||
| Fwd PE | 28.39 |
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 62.00% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, WSO.B is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.49 | ||
| EV/EBITDA | 19.05 |
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)1.88
EPS Next 2Y0.01%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.44%, WSO.B has a reasonable but not impressive dividend return.
- The stock price of WSO.B dropped by -22.24% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 1.35, WSO.B pays a better dividend. On top of this WSO.B pays more dividend than 90.00% 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 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
- The dividend of WSO.B is nicely growing with an annual growth rate of 11.05%!
- WSO.B has paid a dividend for at least 10 years, which is 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 Target422.06 (12.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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)-14.64%
PT rev (3m)-14.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.17%
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 5Y9.42%
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 | 8.44 |
F-Score6
WACC9.76%
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 5Y9.95%
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 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%.