WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - NYSE:WSO.B - US9426221019 - Common Stock
402.56 USD
-32.26 (-7.42%)
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 has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
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
With an excellent Return On Assets value of 10.44%, WSO.B belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.88%, WSO.B is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
WSO.B has a Return On Invested Capital of 16.15%. This is amongst the best in 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 10.22%.
The last Return On Invested Capital (16.15%) 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 | 10.44% | ||
| ROE | 17.88% | ||
| ROIC | 16.15% |
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 better Profit Margin (6.58%) than 72.00% of its industry peers.
WSO.B's Profit Margin has improved in the last couple of years.
The Operating Margin of WSO.B (9.87%) is better than 70.00% of its industry peers.
WSO.B's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 27.54%, WSO.B is in line with its industry, outperforming 46.00% of the companies in the same industry.
In the last couple of years the Gross Margin of WSO.B has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.87% | ||
| PM (TTM) | 6.58% | ||
| GM | 27.54% |
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
WSO.B has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
WSO.B has more shares outstanding than it did 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
There is no outstanding debt for WSO.B. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | N/A |
ROIC/WACC1.69
WACC9.58%
2.3 Liquidity
WSO.B has a Current Ratio of 3.08. 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 3.08, WSO.B belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
A Quick Ratio of 1.26 indicates that WSO.B should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.26, WSO.B perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 1.26 |
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 -0.20%.
WSO.B shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.67% yearly.
WSO.B shows a small growth in Revenue. In the last year, the Revenue has grown by 0.98%.
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)-0.2%
EPS 3Y7.25%
EPS 5Y15.67%
EPS Q2Q%0.76%
Revenue 1Y (TTM)0.98%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-3.59%
3.2 Future
The Earnings Per Share is expected to grow by 11.39% on average over the next years. This is quite good.
WSO.B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.81% yearly.
EPS Next Y9.48%
EPS Next 2Y8.97%
EPS Next 3Y10.25%
EPS Next 5Y11.39%
Revenue Next Year4.93%
Revenue Next 2Y5.09%
Revenue Next 3Y5.37%
Revenue Next 5Y6.81%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.87, the valuation of WSO.B can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WSO.B is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.41, WSO.B is valued at the same level.
The Price/Forward Earnings ratio is 25.58, which means the current valuation is very expensive for WSO.B.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WSO.B indicates a slightly more expensive valuation: WSO.B is more expensive than 62.00% of the companies listed in the same industry.
WSO.B is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.87 | ||
| Fwd PE | 25.58 |
4.2 Price Multiples
WSO.B's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WSO.B is more expensive than 70.00% of the companies in the same industry.
WSO.B's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.32 | ||
| EV/EBITDA | 20.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WSO.B may justify a higher PE ratio.
PEG (NY)3.25
PEG (5Y)1.97
EPS Next 2Y8.97%
EPS Next 3Y10.25%
5. Dividend
5.1 Amount
WSO.B has a Yearly Dividend Yield of 2.82%.
Compared to an average industry Dividend Yield of 2.75, WSO.B pays a better dividend. On top of this WSO.B pays more dividend than 86.00% of the companies listed in the same industry.
WSO.B's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
On average, the dividend of WSO.B grows each year by 11.05%, which is quite nice.
WSO.B has paid a dividend for at least 10 years, which is 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
90.85% of the earnings are spent on dividend by WSO.B. This is not a sustainable payout ratio.
WSO.B's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP90.85%
EPS Next 2Y8.97%
EPS Next 3Y10.25%
NYSE:WSO.B (9/9/2025, 8:18:18 PM)
402.56
-32.26 (-7.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners106.25%
Inst Owner Change6.97%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap16.31B
Analysts67.62
Price Target494.45 (22.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Yearly Dividend9.55
Dividend Growth(5Y)11.05%
DP90.85%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11%
Min EPS beat(2)-15.33%
Max EPS beat(2)-6.66%
EPS beat(4)1
Avg EPS beat(4)-5.97%
Min EPS beat(4)-15.33%
Max EPS beat(4)9.8%
EPS beat(8)2
Avg EPS beat(8)-6.2%
EPS beat(12)4
Avg EPS beat(12)1.23%
EPS beat(16)7
Avg EPS beat(16)5.84%
Revenue beat(2)0
Avg Revenue beat(2)-8.48%
Min Revenue beat(2)-8.58%
Max Revenue beat(2)-8.37%
Revenue beat(4)1
Avg Revenue beat(4)-4.32%
Min Revenue beat(4)-8.58%
Max Revenue beat(4)4.34%
Revenue beat(8)2
Avg Revenue beat(8)-3%
Revenue beat(12)2
Avg Revenue beat(12)-3.22%
Revenue beat(16)4
Avg Revenue beat(16)-1.53%
PT rev (1m)-3.49%
PT rev (3m)-3.49%
EPS NQ rev (1m)-6.13%
EPS NQ rev (3m)-8.35%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-2.17%
Revenue NQ rev (1m)-3.7%
Revenue NQ rev (3m)-4.52%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.87 | ||
| Fwd PE | 25.58 | ||
| P/S | 2.17 | ||
| P/FCF | 41.32 | ||
| P/OCF | 38.23 | ||
| P/B | 5.91 | ||
| P/tB | 8.61 | ||
| EV/EBITDA | 20.58 |
EPS(TTM)13.04
EY3.24%
EPS(NY)15.74
Fwd EY3.91%
FCF(TTM)9.74
FCFY2.42%
OCF(TTM)10.53
OCFY2.62%
SpS185.33
BVpS68.14
TBVpS46.75
PEG (NY)3.25
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.44% | ||
| ROE | 17.88% | ||
| ROCE | 20.25% | ||
| ROIC | 16.15% | ||
| ROICexc | 17.56% | ||
| ROICexgc | 23.65% | ||
| OM | 9.87% | ||
| PM (TTM) | 6.58% | ||
| GM | 27.54% | ||
| FCFM | 5.26% |
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%
ROICexcg growth 3Y-0.91%
ROICexcg 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-Score4
Asset Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.29 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 74.77% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.44% | ||
| Profit Quality | 79.96% | ||
| Current Ratio | 3.08 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | N/A |
F-Score4
WACC9.58%
ROIC/WACC1.69
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)-0.2%
EPS 3Y7.25%
EPS 5Y15.67%
EPS Q2Q%0.76%
EPS Next Y9.48%
EPS Next 2Y8.97%
EPS Next 3Y10.25%
EPS Next 5Y11.39%
Revenue 1Y (TTM)0.98%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-3.59%
Revenue Next Year4.93%
Revenue Next 2Y5.09%
Revenue Next 3Y5.37%
Revenue Next 5Y6.81%
EBIT growth 1Y1.38%
EBIT growth 3Y7.24%
EBIT growth 5Y16.07%
EBIT Next Year10.75%
EBIT Next 3Y10%
EBIT Next 5Y11.17%
FCF growth 1Y4.65%
FCF growth 3Y31.86%
FCF growth 5Y18.5%
OCF growth 1Y4.11%
OCF growth 3Y30.29%
OCF growth 5Y18.15%