WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSO.B - US9426221019 - Common Stock
355.76 USD
+3.5 (+1%)
WSO.B gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making WSO.B a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, WSO.B is valued expensive at the moment. WSO.B also has an excellent dividend rating. This makes WSO.B very considerable for dividend and 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.
Each year in the past 5 years WSO.B had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.66%, WSO.B belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
WSO.B has a better Return On Equity (17.24%) than 70.00% of its industry peers.
WSO.B has a better Return On Invested Capital (15.48%) 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 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 better Profit Margin (6.55%) than 68.00% of its industry peers.
In the last couple of years the Profit Margin of WSO.B has grown nicely.
WSO.B's Operating Margin of 9.80% is fine compared to the rest of the industry. WSO.B outperforms 68.00% of its industry peers.
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 44.00% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
Compared to 1 year ago, WSO.B has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.16 indicates that WSO.B is not in any danger for bankruptcy at the moment.
The Altman-Z score of WSO.B (8.16) is better than 90.00% 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.
The Debt to FCF ratio of WSO.B (0.02) is better than 90.00% of its industry peers.
WSO.B has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, WSO.B belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 8.16 |
ROIC/WACC1.59
WACC9.74%
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 86.00% of its industry peers.
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.
WSO.B has a Quick ratio of 1.86. This is in the better half of the industry: WSO.B outperforms 70.00% of its industry peers.
| 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
WSO.B is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.57% yearly.
Based on estimates for the next years, WSO.B will show a quite strong growth in Revenue. The Revenue will grow by 8.19% on average per year.
EPS Next Y-6.04%
EPS Next 2Y0.01%
EPS Next 3Y2.86%
EPS Next 5Y11.57%
Revenue Next Year-3.47%
Revenue Next 2Y0.07%
Revenue Next 3Y1.8%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.79, the valuation of WSO.B can be described as expensive.
WSO.B's Price/Earnings ratio is in line with the industry average.
WSO.B is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.84 indicates a quite expensive valuation of WSO.B.
WSO.B's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WSO.B to the average of the S&P500 Index (23.46), we can say WSO.B is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.79 | ||
| Fwd PE | 26.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA 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.
Based on the Price/Free Cash Flow ratio, WSO.B is valued a bit cheaper than 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.89 | ||
| EV/EBITDA | 17.98 |
4.3 Compensation for Growth
The excellent profitability rating of WSO.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.77
EPS Next 2Y0.01%
EPS Next 3Y2.86%
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 -26.53%. 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 0.98, WSO.B pays a better dividend. On top of this WSO.B pays more dividend than 92.00% 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP95.01%
EPS Next 2Y0.01%
EPS Next 3Y2.86%
NYSE:WSO.B (12/26/2025, 8:21:50 PM)
355.76
+3.5 (+1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners112.32%
Inst Owner Change-0.62%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap14.43B
Revenue(TTM)7.41B
Net Income(TTM)485.36M
Analysts66
Price Target422.06 (18.64%)
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)-14.64%
PT rev (3m)-14.64%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)-24.36%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)-10.14%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-8.23%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.79 | ||
| Fwd PE | 26.84 | ||
| P/S | 1.95 | ||
| P/FCF | 27.89 | ||
| P/OCF | 26.3 | ||
| P/B | 5.13 | ||
| P/tB | 6.73 | ||
| EV/EBITDA | 17.98 |
EPS(TTM)12.8
EY3.6%
EPS(NY)13.25
Fwd EY3.73%
FCF(TTM)12.76
FCFY3.59%
OCF(TTM)13.53
OCFY3.8%
SpS182.8
BVpS69.4
TBVpS52.83
PEG (NY)N/A
PEG (5Y)1.77
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 | 8.16 |
F-Score6
WACC9.74%
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 5Y11.57%
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 5Y8.19%
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 7 / 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 -6.04% 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 7 / 10 and the dividend payout ratio is 95.01%.