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

NYSE:WSO.B • US9426221019

367.54 USD
-21.4 (-5.5%)
Last: Mar 12, 2026, 08:16 PM
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This WSO.B fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Overall WSO.B gets a fundamental rating of 6 out of 10. We evaluated WSO.B against 46 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. WSO.B has a expensive valuation and it also scores bad on growth. WSO.B also has an excellent dividend rating. These ratings could make WSO.B a good candidate for dividend investing.


Dividend Valuation Growth Profitability Health

8

1. WSO.B Profitability Analysis

1.1 Basic Checks

  • WSO.B had positive earnings in the past year.
  • WSO.B had a positive operating cash flow in the past year.
  • WSO.B had positive earnings in 4 of the past 5 years.
  • Of the past 5 years WSO.B 4 years 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 200M 400M 600M 800M

1.2 Ratios

  • WSO.B has a Return On Assets of 10.66%. This is amongst the best in the industry. WSO.B outperforms 82.35% of its industry peers.
  • WSO.B has a Return On Equity of 17.24%. This is in the better half of the industry: WSO.B outperforms 70.59% of its industry peers.
  • WSO.B has a Return On Invested Capital of 15.48%. This is amongst the best in the industry. WSO.B outperforms 90.20% 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 9.03%.
  • 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 RankSector 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%
WSO.B Yearly ROA, ROE, ROICWSO.B Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

  • The Profit Margin of WSO.B (6.55%) is better than 68.63% of its industry peers.
  • In the last couple of years the Profit Margin of WSO.B has grown nicely.
  • WSO.B has a better Operating Margin (9.80%) than 68.63% of its industry peers.
  • In the last couple of years the Operating Margin of WSO.B has grown nicely.
  • WSO.B's Gross Margin of 27.92% is in line compared to the rest of the industry. WSO.B outperforms 45.10% of its industry peers.
  • WSO.B's Gross Margin has improved in the last couple of years.
Industry RankSector 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 5Y6.73%
GM growth 3Y0.36%
GM growth 5Y2.05%
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 5 10 15 20 25

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8

2. WSO.B Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WSO.B is creating value.
  • 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.
WSO.B Yearly Shares OutstandingWSO.B Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 9.05 indicates that WSO.B is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of WSO.B (9.05) is better than 94.12% 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's Debt to FCF ratio of 0.02 is amongst the best of the industry. WSO.B outperforms 90.20% 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 82.35% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Altman-Z 9.05
ROIC/WACC1.6
WACC9.68%
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 500M 1B 1.5B 2B 2.5B

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.
  • The Current ratio of WSO.B (3.84) is better than 86.27% 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.
  • The Quick ratio of WSO.B (1.86) is better than 72.55% of its industry peers.
Industry RankSector Rank
Current Ratio 3.84
Quick Ratio 1.86
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 1B 2B 3B

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

3

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%.
  • Measured over the past years, WSO.B shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.98% on average per year.
EPS 1Y (TTM)-8.57%
EPS 3Y-7.71%
EPS 5Y11.98%
EPS Q2Q%-29.11%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.99%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.30% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 5.55% on average over the next years.
EPS Next Y8.48%
EPS Next 2Y8.37%
EPS Next 3Y12.88%
EPS Next 5Y14.3%
Revenue Next Year3.96%
Revenue Next 2Y4.87%
Revenue Next 3Y4.82%
Revenue Next 5Y5.55%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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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3

4. WSO.B Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 30.35 indicates a quite expensive valuation of WSO.B.
  • WSO.B's Price/Earnings is on the same level as the industry average.
  • WSO.B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.70.
  • With a Price/Forward Earnings ratio of 27.97, WSO.B can be considered very expensive at the moment.
  • WSO.B's Price/Forward Earnings is on the same level as the industry average.
  • WSO.B's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.84.
Industry RankSector Rank
PE 30.35
Fwd PE 27.97
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

4.2 Price Multiples

  • 64.71% of the companies in the same industry are cheaper than WSO.B, based on the Enterprise Value to EBITDA ratio.
  • 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 64.71% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 28.81
EV/EBITDA 21.32
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 an expensive valuation of the company.
  • WSO.B has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as WSO.B's earnings are expected to grow with 12.88% in the coming years.
PEG (NY)3.58
PEG (5Y)2.53
EPS Next 2Y8.37%
EPS Next 3Y12.88%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. WSO.B Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.19%, WSO.B has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.04, WSO.B pays a better dividend. On top of this WSO.B pays more dividend than 86.27% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, WSO.B pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.19%

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
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

  • WSO.B pays out 95.01% of its income as dividend. This is not a sustainable payout ratio.
  • WSO.B's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP95.01%
EPS Next 2Y8.37%
EPS Next 3Y12.88%
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 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 (3/12/2026, 8:16:33 PM)

367.54

-21.4 (-5.5%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-17
Earnings (Next)04-21
Inst Owners112.05%
Inst Owner Change-5.61%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap14.91B
Revenue(TTM)N/A
Net Income(TTM)485.36M
Analysts66
Price Target408.71 (11.2%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.19%
Yearly Dividend9.55
Dividend Growth(5Y)11.05%
DP95.01%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-16
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)-3.16%
PT rev (3m)-17.34%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.04%
Valuation
Industry RankSector Rank
PE 30.35
Fwd PE 27.97
P/S 2.01
P/FCF 28.81
P/OCF 27.17
P/B 5.3
P/tB 6.96
EV/EBITDA 21.32
EPS(TTM)12.11
EY3.29%
EPS(NY)13.14
Fwd EY3.58%
FCF(TTM)12.76
FCFY3.47%
OCF(TTM)13.53
OCFY3.68%
SpS182.8
BVpS69.4
TBVpS52.83
PEG (NY)3.58
PEG (5Y)2.53
Graham Number137.51
Profitability
Industry RankSector 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 5Y9.41%
OM growth 3Y0.55%
OM growth 5Y5.7%
PM growth 3Y2.52%
PM growth 5Y6.73%
GM growth 3Y0.36%
GM growth 5Y2.05%
F-Score6
Asset Turnover1.63
Health
Industry RankSector 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 9.05
F-Score6
WACC9.68%
ROIC/WACC1.6
Cap/Depr(3y)95.78%
Cap/Depr(5y)88.26%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.42%
Profit Quality(3y)117.3%
Profit Quality(5y)129.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.57%
EPS 3Y-7.71%
EPS 5Y11.98%
EPS Q2Q%-29.11%
EPS Next Y8.48%
EPS Next 2Y8.37%
EPS Next 3Y12.88%
EPS Next 5Y14.3%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.99%
Revenue Next Year3.96%
Revenue Next 2Y4.87%
Revenue Next 3Y4.82%
Revenue Next 5Y5.55%
EBIT growth 1Y0.38%
EBIT growth 3Y7.24%
EBIT growth 5Y16.07%
EBIT Next Year-0.07%
EBIT Next 3Y5.26%
EBIT Next 5Y14.76%
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 7 / 10 and the dividend payout ratio is 95.01%.