WATSCO INC (WSO) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:WSO • US9426222009

425.31 USD
+10.57 (+2.55%)
Last: Feb 10, 2026, 02:48 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

WSO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Trading Companies & Distributors industry. WSO gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, WSO is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year WSO was profitable.
  • In the past year WSO had a positive cash flow from operations.
  • In the past 5 years WSO has always been profitable.
  • Each year in the past 5 years WSO had a positive operating cash flow.
WSO Yearly Net Income VS EBIT VS OCF VS FCFWSO 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

  • Looking at the Return On Assets, with a value of 10.66%, WSO belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
  • WSO has a Return On Equity of 17.24%. This is in the better half of the industry: WSO outperforms 70.59% of its industry peers.
  • With an excellent Return On Invested Capital value of 15.48%, WSO belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for WSO is significantly above the industry average of 9.59%.
  • The last Return On Invested Capital (15.48%) for WSO is well below the 3 year average (20.81%), which needs to be investigated, but indicates that WSO had better years and this may not be a problem.
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 Yearly ROA, ROE, ROICWSO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

  • With a decent Profit Margin value of 6.55%, WSO is doing good in the industry, outperforming 68.63% of the companies in the same industry.
  • WSO's Profit Margin has improved in the last couple of years.
  • With a decent Operating Margin value of 9.80%, WSO is doing good in the industry, outperforming 68.63% of the companies in the same industry.
  • WSO's Operating Margin has improved in the last couple of years.
  • WSO's Gross Margin of 27.92% is in line compared to the rest of the industry. WSO outperforms 45.10% of its industry peers.
  • WSO'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 Yearly Profit, Operating, Gross MarginsWSO 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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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WSO is creating value.
  • WSO has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for WSO has been increased compared to 5 years ago.
  • The debt/assets ratio for WSO has been reduced compared to a year ago.
WSO Yearly Shares OutstandingWSO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
WSO Yearly Total Debt VS Total AssetsWSO 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

  • WSO has an Altman-Z score of 8.98. This indicates that WSO is financially healthy and has little risk of bankruptcy at the moment.
  • WSO has a Altman-Z score of 8.98. This is amongst the best in the industry. WSO outperforms 94.12% of its industry peers.
  • The Debt to FCF ratio of WSO is 0.02, which is an excellent value as it means it would take WSO, only 0.02 years of fcf income to pay off all of its debts.
  • WSO's Debt to FCF ratio of 0.02 is amongst the best of the industry. WSO outperforms 90.20% of its industry peers.
  • WSO has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
  • WSO's Debt to Equity ratio of 0.00 is amongst the best of the industry. WSO outperforms 82.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Altman-Z 8.98
ROIC/WACC1.57
WACC9.83%
WSO Yearly LT Debt VS Equity VS FCFWSO 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

  • A Current Ratio of 3.84 indicates that WSO has no problem at all paying its short term obligations.
  • WSO has a better Current ratio (3.84) than 86.27% of its industry peers.
  • WSO has a Quick Ratio of 1.86. This is a normal value and indicates that WSO 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 is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.84
Quick Ratio 1.86
WSO Yearly Current Assets VS Current LiabilitesWSO 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

4

3. Growth

3.1 Past

  • The earnings per share for WSO have decreased by -1.05% in the last year.
  • WSO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.67% yearly.
  • The Revenue has decreased by -0.71% in the past year.
  • WSO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.81% yearly.
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 will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.95% on average per year.
  • Based on estimates for the next years, WSO will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y-6.01%
EPS Next 2Y-0.41%
EPS Next 3Y2.4%
EPS Next 5Y9.95%
Revenue Next Year-3.44%
Revenue Next 2Y-0.04%
Revenue Next 3Y1.62%
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.
WSO Yearly Revenue VS EstimatesWSO 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 Yearly EPS VS EstimatesWSO 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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 33.23, the valuation of WSO can be described as expensive.
  • WSO's Price/Earnings is on the same level as the industry average.
  • WSO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
  • WSO is valuated quite expensively with a Price/Forward Earnings ratio of 32.36.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WSO is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of WSO to the average of the S&P500 Index (27.86), we can say WSO is valued inline with the index average.
Industry RankSector Rank
PE 33.23
Fwd PE 32.36
WSO Price Earnings VS Forward Price EarningsWSO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • WSO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WSO is more expensive than 62.75% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, WSO is valued a bit cheaper than 64.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 33.34
EV/EBITDA 21.09
WSO Per share dataWSO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

  • The excellent profitability rating of WSO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.12
EPS Next 2Y-0.41%
EPS Next 3Y2.4%

More info and screens

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

6

5. Dividend

5.1 Amount

  • WSO has a Yearly Dividend Yield of 3.19%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.82, WSO pays a better dividend. On top of this WSO pays more dividend than 94.12% of the companies listed in the same industry.
  • WSO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 3.19%

5.2 History

  • The dividend of WSO is nicely growing with an annual growth rate of 11.05%!
  • WSO has been paying a dividend for at least 10 years, so it has a reliable track record.
  • WSO 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 Yearly Dividends per shareWSO 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 pays out 95.01% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of WSO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP95.01%
EPS Next 2Y-0.41%
EPS Next 3Y2.4%
WSO Yearly Income VS Free CF VS DividendWSO 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 Dividend Payout.WSO Dividend Payout, showing the Payout Ratio.WSO Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

WATSCO INC

NYSE:WSO (2/10/2026, 2:48:09 PM)

425.31

+10.57 (+2.55%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)10-29
Earnings (Next)02-17
Inst Owners112.05%
Inst Owner Change-0.32%
Ins Owners0.38%
Ins Owner Change0%
Market Cap17.25B
Revenue(TTM)7.41B
Net Income(TTM)485.36M
Analysts66
Price Target404.02 (-5.01%)
Short Float %9.43%
Short Ratio7.93
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)-2.51%
PT rev (3m)-8.55%
EPS NQ rev (1m)1%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.04%
Valuation
Industry RankSector Rank
PE 33.23
Fwd PE 32.36
P/S 2.33
P/FCF 33.34
P/OCF 31.44
P/B 6.13
P/tB 8.05
EV/EBITDA 21.09
EPS(TTM)12.8
EY3.01%
EPS(NY)13.14
Fwd EY3.09%
FCF(TTM)12.76
FCFY3%
OCF(TTM)13.53
OCFY3.18%
SpS182.8
BVpS69.4
TBVpS52.83
PEG (NY)N/A
PEG (5Y)2.12
Graham Number141.38
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 8.98
F-Score6
WACC9.83%
ROIC/WACC1.57
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)-1.05%
EPS 3Y7.25%
EPS 5Y15.67%
EPS Q2Q%-5.69%
EPS Next Y-6.01%
EPS Next 2Y-0.41%
EPS Next 3Y2.4%
EPS Next 5Y9.95%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-4.31%
Revenue Next Year-3.44%
Revenue Next 2Y-0.04%
Revenue Next 3Y1.62%
Revenue Next 5Y3.59%
EBIT growth 1Y0.38%
EBIT growth 3Y7.24%
EBIT growth 5Y16.07%
EBIT Next Year-0.07%
EBIT Next 3Y5.26%
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 / WSO FAQ

What is the fundamental rating for WSO stock?

ChartMill assigns a fundamental rating of 6 / 10 to WSO.


Can you provide the valuation status for WATSCO INC?

ChartMill assigns a valuation rating of 3 / 10 to WATSCO INC (WSO). This can be considered as Overvalued.


What is the profitability of WSO stock?

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


What is the financial health of WATSCO INC (WSO) stock?

The financial health rating of WATSCO INC (WSO) is 8 / 10.


Is the dividend of WATSCO INC sustainable?

The dividend rating of WATSCO INC (WSO) is 6 / 10 and the dividend payout ratio is 95.01%.