WATSCO INC -CL B (WSO.B) Fundamental Analysis & Valuation

NYSE:WSO.B • US9426221019

Current stock price

450 USD
+82.46 (+22.44%)
Last:

This WSO.B fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. WSO.B Profitability Analysis

1.1 Basic Checks

  • In the past year WSO.B was profitable.
  • WSO.B had a positive operating cash flow in the past year.
  • 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.
WSO.B Yearly Net Income VS EBIT VS OCF VS FCFWSO.B Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

1.2 Ratios

  • The Return On Assets of WSO.B (10.47%) is better than 85.42% of its industry peers.
  • WSO.B's Return On Equity of 16.62% is fine compared to the rest of the industry. WSO.B outperforms 75.00% of its industry peers.
  • WSO.B has a Return On Invested Capital of 14.88%. This is amongst the best in the industry. WSO.B outperforms 87.50% of its industry peers.
  • WSO.B had an Average Return On Invested Capital over the past 3 years of 17.40%. This is significantly above the industry average of 9.21%.
Industry RankSector Rank
ROA 10.47%
ROE 16.62%
ROIC 14.88%
ROA(3y)11.68%
ROA(5y)12.63%
ROE(3y)19.29%
ROE(5y)21.98%
ROIC(3y)17.4%
ROIC(5y)19.52%
WSO.B Yearly ROA, ROE, ROICWSO.B Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • WSO.B has a better Profit Margin (6.39%) than 70.83% of its industry peers.
  • WSO.B's Profit Margin has improved in the last couple of years.
  • The Operating Margin of WSO.B (9.57%) is better than 75.00% of its industry peers.
  • WSO.B's Operating Margin has improved in the last couple of years.
  • WSO.B has a Gross Margin of 28.05%. This is comparable to the rest of the industry: WSO.B outperforms 47.92% of its industry peers.
  • WSO.B's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 9.57%
PM (TTM) 6.39%
GM 28.05%
OM growth 3Y-4.89%
OM growth 5Y4.41%
PM growth 3Y-5.33%
PM growth 5Y5.63%
GM growth 3Y0.16%
GM growth 5Y3%
WSO.B Yearly Profit, Operating, Gross MarginsWSO.B Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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9

2. WSO.B Health Analysis

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.
  • 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.
WSO.B Yearly Shares OutstandingWSO.B Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
WSO.B Yearly Total Debt VS Total AssetsWSO.B Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • WSO.B has an Altman-Z score of 8.67. This indicates that WSO.B is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 8.67, WSO.B belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of WSO.B (0.02) is better than 93.75% of its industry peers.
  • A Debt/Equity ratio of 0.00 indicates that WSO.B is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.00, WSO.B belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Altman-Z 8.67
ROIC/WACC1.64
WACC9.07%
WSO.B Yearly LT Debt VS Equity VS FCFWSO.B Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 4.12 indicates that WSO.B has no problem at all paying its short term obligations.
  • The Current ratio of WSO.B (4.12) is better than 91.67% of its industry peers.
  • A Quick Ratio of 2.18 indicates that WSO.B has no problem at all paying its short term obligations.
  • WSO.B has a Quick ratio of 2.18. This is amongst the best in the industry. WSO.B outperforms 83.33% of its industry peers.
Industry RankSector Rank
Current Ratio 4.12
Quick Ratio 2.18
WSO.B Yearly Current Assets VS Current LiabilitesWSO.B Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. WSO.B Growth Analysis

3.1 Past

  • WSO.B shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.57%.
  • WSO.B shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.98% yearly.
  • The Revenue has decreased by -4.98% in the past year.
  • The Revenue has been growing slightly by 7.45% on average over the past years.
EPS 1Y (TTM)-8.57%
EPS 3Y-7.71%
EPS 5Y11.98%
EPS Q2Q%-29.11%
Revenue 1Y (TTM)-4.98%
Revenue growth 3Y-0.16%
Revenue growth 5Y7.45%
Sales Q2Q%-9.99%

3.2 Future

  • WSO.B is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.57% yearly.
  • WSO.B is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.44% yearly.
EPS Next Y5.54%
EPS Next 2Y7.49%
EPS Next 3Y10.94%
EPS Next 5Y19.57%
Revenue Next Year1.91%
Revenue Next 2Y3.36%
Revenue Next 3Y4.24%
Revenue Next 5Y8.44%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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.
WSO.B Yearly Revenue VS EstimatesWSO.B Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
WSO.B Yearly EPS VS EstimatesWSO.B Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5 10 15 20 25

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2

4. WSO.B Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 37.16 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 27.42. WSO.B is valued slightly more expensive when compared to this.
  • With a Price/Forward Earnings ratio of 35.20, WSO.B can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WSO.B is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of WSO.B to the average of the S&P500 Index (22.29), we can say WSO.B is valued expensively.
Industry RankSector Rank
PE 37.16
Fwd PE 35.2
WSO.B Price Earnings VS Forward Price EarningsWSO.B Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, WSO.B is valued a bit more expensive than 62.50% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of WSO.B indicates a somewhat cheap valuation: WSO.B is cheaper than 68.75% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 34.13
EV/EBITDA 18.91
WSO.B Per share dataWSO.B EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WSO.B does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of WSO.B may justify a higher PE ratio.
PEG (NY)6.7
PEG (5Y)3.1
EPS Next 2Y7.49%
EPS Next 3Y10.94%

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7

5. WSO.B Dividend Analysis

5.1 Amount

  • WSO.B has a Yearly Dividend Yield of 3.19%.
  • In the last 3 months the price of WSO.B has falen by -26.88%. 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 0.76. WSO.B pays more dividend than 93.75% of the companies in the same industry.
  • WSO.B's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 3.19%

5.2 History

  • The dividend of WSO.B is nicely growing with an annual growth rate of 11.59%!
  • 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)11.59%
Div Incr Years11
Div Non Decr Years11
WSO.B Yearly Dividends per shareWSO.B Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

5.3 Sustainability

  • 102.49% of the earnings are spent on dividend by WSO.B. This is not a sustainable payout ratio.
  • WSO.B's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP102.49%
EPS Next 2Y7.49%
EPS Next 3Y10.94%
WSO.B Yearly Income VS Free CF VS DividendWSO.B Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
WSO.B Dividend Payout.WSO.B Dividend Payout, showing the Payout Ratio.WSO.B Dividend Payout.PayoutRetained Earnings

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WSO.B Fundamentals: All Metrics, Ratios and Statistics

WATSCO INC -CL B

NYSE:WSO.B (4/27/2026, 3:32:59 PM)

450

+82.46 (+22.44%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-17
Earnings (Next)04-16
Inst Owners110.99%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap18.26B
Revenue(TTM)7.24B
Net Income(TTM)462.26M
Analysts66
Price Target408.71 (-9.18%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.19%
Yearly Dividend10.64
Dividend Growth(5Y)11.59%
DP102.49%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-16
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.83%
Min EPS beat(2)-11.57%
Max EPS beat(2)-6.09%
EPS beat(4)0
Avg EPS beat(4)-9.91%
Min EPS beat(4)-15.33%
Max EPS beat(4)-6.09%
EPS beat(8)1
Avg EPS beat(8)-6.53%
EPS beat(12)3
Avg EPS beat(12)-4.99%
EPS beat(16)5
Avg EPS beat(16)3.47%
Revenue beat(2)0
Avg Revenue beat(2)-4.09%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)-3.56%
Revenue beat(4)0
Avg Revenue beat(4)-6.28%
Min Revenue beat(4)-8.58%
Max Revenue beat(4)-3.56%
Revenue beat(8)1
Avg Revenue beat(8)-3.9%
Revenue beat(12)2
Avg Revenue beat(12)-3.56%
Revenue beat(16)3
Avg Revenue beat(16)-2.52%
PT rev (1m)0%
PT rev (3m)-3.16%
EPS NQ rev (1m)-10.1%
EPS NQ rev (3m)-13.59%
EPS NY rev (1m)-2.71%
EPS NY rev (3m)-3.52%
Revenue NQ rev (1m)-4.52%
Revenue NQ rev (3m)-4.88%
Revenue NY rev (1m)-1.56%
Revenue NY rev (3m)-1.78%
Valuation
Industry RankSector Rank
PE 37.16
Fwd PE 35.2
P/S 2.52
P/FCF 34.13
P/OCF 32.06
P/B 6.57
P/tB 8.66
EV/EBITDA 18.91
EPS(TTM)12.11
EY2.69%
EPS(NY)12.79
Fwd EY2.84%
FCF(TTM)13.19
FCFY2.93%
OCF(TTM)14.04
OCFY3.12%
SpS178.4
BVpS68.54
TBVpS51.96
PEG (NY)6.7
PEG (5Y)3.1
Graham Number136.659 (-69.63%)
Profitability
Industry RankSector Rank
ROA 10.47%
ROE 16.62%
ROCE 18.73%
ROIC 14.88%
ROICexc 18.56%
ROICexgc 24.01%
OM 9.57%
PM (TTM) 6.39%
GM 28.05%
FCFM 7.39%
ROA(3y)11.68%
ROA(5y)12.63%
ROE(3y)19.29%
ROE(5y)21.98%
ROIC(3y)17.4%
ROIC(5y)19.52%
ROICexc(3y)20.77%
ROICexc(5y)22.06%
ROICexgc(3y)27.24%
ROICexgc(5y)29.35%
ROCE(3y)21.9%
ROCE(5y)24.57%
ROICexgc growth 3Y-11.92%
ROICexgc growth 5Y-0.32%
ROICexc growth 3Y-11.07%
ROICexc growth 5Y2.11%
OM growth 3Y-4.89%
OM growth 5Y4.41%
PM growth 3Y-5.33%
PM growth 5Y5.63%
GM growth 3Y0.16%
GM growth 5Y3%
F-Score6
Asset Turnover1.64
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Debt/EBITDA 0.01
Cap/Depr 78.97%
Cap/Sales 0.48%
Interest Coverage 993.66
Cash Conversion 77.36%
Profit Quality 115.75%
Current Ratio 4.12
Quick Ratio 2.18
Altman-Z 8.67
F-Score6
WACC9.07%
ROIC/WACC1.64
Cap/Depr(3y)84.59%
Cap/Depr(5y)91.37%
Cap/Sales(3y)0.45%
Cap/Sales(5y)0.45%
Profit Quality(3y)123.21%
Profit Quality(5y)110.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.57%
EPS 3Y-7.71%
EPS 5Y11.98%
EPS Q2Q%-29.11%
EPS Next Y5.54%
EPS Next 2Y7.49%
EPS Next 3Y10.94%
EPS Next 5Y19.57%
Revenue 1Y (TTM)-4.98%
Revenue growth 3Y-0.16%
Revenue growth 5Y7.45%
Sales Q2Q%-9.99%
Revenue Next Year1.91%
Revenue Next 2Y3.36%
Revenue Next 3Y4.24%
Revenue Next 5Y8.44%
EBIT growth 1Y-7.81%
EBIT growth 3Y-5.04%
EBIT growth 5Y12.18%
EBIT Next Year8.08%
EBIT Next 3Y9.93%
EBIT Next 5Y18.01%
FCF growth 1Y-27.99%
FCF growth 3Y-0.08%
FCF growth 5Y0.65%
OCF growth 1Y-26.32%
OCF growth 3Y-0.14%
OCF growth 5Y1.29%

WATSCO INC -CL B / WSO.B Fundamental Analysis FAQ

What is the ChartMill fundamental rating of WATSCO INC -CL B (WSO.B) stock?

ChartMill assigns a fundamental rating of 7 / 10 to WSO.B.


What is the valuation status for WSO.B stock?

ChartMill assigns a valuation rating of 2 / 10 to WATSCO INC -CL B (WSO.B). This can be considered as Overvalued.


What is the profitability of WSO.B stock?

WATSCO INC -CL B (WSO.B) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for WSO.B stock?

The Price/Earnings (PE) ratio for WATSCO INC -CL B (WSO.B) is 37.16 and the Price/Book (PB) ratio is 6.57.


What is the earnings growth outlook for WATSCO INC -CL B?

The Earnings per Share (EPS) of WATSCO INC -CL B (WSO.B) is expected to grow by 5.54% in the next year.