WATSCO INC (WSO) Fundamental Analysis & Valuation

NYSE:WSO • US9426222009

Current stock price

440.64 USD
+3.15 (+0.72%)
At close:
440.64 USD
0 (0%)
After Hours:

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

8

1. WSO Profitability Analysis

1.1 Basic Checks

  • In the past year WSO was profitable.
  • WSO had a positive operating cash flow in the past year.
  • In the past 5 years WSO has always been profitable.
  • WSO had a positive operating cash flow in each of the past 5 years.
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 2025 200M 400M 600M 800M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 10.47%, WSO belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
  • The Return On Equity of WSO (16.62%) is better than 73.91% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 14.88%, WSO belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
  • WSO 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 Yearly ROA, ROE, ROICWSO 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

  • With a decent Profit Margin value of 6.39%, WSO is doing good in the industry, outperforming 71.74% of the companies in the same industry.
  • WSO's Profit Margin has improved in the last couple of years.
  • WSO's Operating Margin of 9.57% is fine compared to the rest of the industry. WSO outperforms 76.09% of its industry peers.
  • WSO's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 28.05%, WSO is in line with its industry, outperforming 43.48% of the companies in the same industry.
  • In the last couple of years the Gross Margin of WSO has grown nicely.
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 Yearly Profit, Operating, Gross MarginsWSO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. WSO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WSO is creating value.
  • Compared to 1 year ago, WSO has more shares outstanding
  • 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 2025 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 2025 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 9.71 indicates that WSO is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 9.71, WSO belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
  • WSO 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 (0.02) is better than 97.83% of its industry peers.
  • A Debt/Equity ratio of 0.00 indicates that WSO is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.00, WSO belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Altman-Z 9.71
ROIC/WACC1.59
WACC9.35%
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 2025 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • WSO has a Current Ratio of 4.12. This indicates that WSO is financially healthy and has no problem in meeting its short term obligations.
  • WSO's Current ratio of 4.12 is amongst the best of the industry. WSO outperforms 91.30% of its industry peers.
  • A Quick Ratio of 2.18 indicates that WSO has no problem at all paying its short term obligations.
  • WSO has a Quick ratio of 2.18. This is amongst the best in the industry. WSO outperforms 80.43% of its industry peers.
Industry RankSector Rank
Current Ratio 4.12
Quick Ratio 2.18
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 2025 1B 2B 3B

More info and screens

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

5

3. WSO Growth Analysis

3.1 Past

  • WSO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.57%.
  • The Earnings Per Share has been growing by 11.98% on average over the past years. This is quite good.
  • Looking at the last year, WSO shows a decrease in Revenue. The Revenue has decreased by -4.98% in the last year.
  • WSO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.45% yearly.
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

  • The Earnings Per Share is expected to grow by 19.57% on average over the next years. This is quite good.
  • Based on estimates for the next years, WSO will show a quite strong growth in Revenue. The Revenue will grow by 8.44% on average per year.
EPS Next Y5.69%
EPS Next 2Y7.4%
EPS Next 3Y10.42%
EPS Next 5Y19.57%
Revenue Next Year1.52%
Revenue Next 2Y3.35%
Revenue Next 3Y4.23%
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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same 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

More info and screens

Find the best growth stocksShow best growing peers

2

4. WSO Valuation Analysis

4.1 Price/Earnings Ratio

  • WSO is valuated quite expensively with a Price/Earnings ratio of 36.39.
  • WSO's Price/Earnings ratio is in line with the industry average.
  • WSO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.42.
  • A Price/Forward Earnings ratio of 34.42 indicates a quite expensive valuation of WSO.
  • WSO's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.24. WSO is valued rather expensively when compared to this.
Industry RankSector Rank
PE 36.39
Fwd PE 34.42
WSO Price Earnings VS Forward Price EarningsWSO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 69.57% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, WSO is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 33.42
EV/EBITDA 22.72
WSO Per share dataWSO 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 does not grow enough to justify the current Price/Earnings ratio.
  • WSO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.39
PEG (5Y)3.04
EPS Next 2Y7.4%
EPS Next 3Y10.42%

More info and screens

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

7

5. WSO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.17%, WSO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.78, WSO pays a better dividend. On top of this WSO pays more dividend than 93.48% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, WSO pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.17%

5.2 History

  • On average, the dividend of WSO grows each year by 11.59%, which is quite nice.
  • WSO has been paying a dividend for at least 10 years, so it has a reliable track record.
  • WSO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.59%
Div Incr Years12
Div Non Decr Years12
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 102.49% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of WSO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP102.49%
EPS Next 2Y7.4%
EPS Next 3Y10.42%
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 2025 200M 400M 600M
WSO Dividend Payout.WSO Dividend Payout, showing the Payout Ratio.WSO Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

WSO Fundamentals: All Metrics, Ratios and Statistics

WATSCO INC

NYSE:WSO (4/24/2026, 8:14:38 PM)

After market: 440.64 0 (0%)

440.64

+3.15 (+0.72%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-17
Earnings (Next)04-28
Inst Owners110.58%
Inst Owner Change-0.13%
Ins Owners0.38%
Ins Owner Change0%
Market Cap17.88B
Revenue(TTM)7.24B
Net Income(TTM)462.26M
Analysts66
Price Target422.85 (-4.04%)
Short Float %8.39%
Short Ratio6.37
Dividend
Industry RankSector Rank
Dividend Yield 3.17%
Yearly Dividend10.64
Dividend Growth(5Y)11.59%
DP102.49%
Div Incr Years12
Div Non Decr Years12
Ex-Date04-16
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)0.35%
PT rev (3m)3.49%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-10.31%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-3.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.52%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-1.96%
Valuation
Industry RankSector Rank
PE 36.39
Fwd PE 34.42
P/S 2.47
P/FCF 33.42
P/OCF 31.39
P/B 6.43
P/tB 8.48
EV/EBITDA 22.72
EPS(TTM)12.11
EY2.75%
EPS(NY)12.8
Fwd EY2.91%
FCF(TTM)13.19
FCFY2.99%
OCF(TTM)14.04
OCFY3.19%
SpS178.4
BVpS68.54
TBVpS51.96
PEG (NY)6.39
PEG (5Y)3.04
Graham Number136.659 (-68.99%)
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 9.71
F-Score6
WACC9.35%
ROIC/WACC1.59
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 Y5.69%
EPS Next 2Y7.4%
EPS Next 3Y10.42%
EPS Next 5Y19.57%
Revenue 1Y (TTM)-4.98%
Revenue growth 3Y-0.16%
Revenue growth 5Y7.45%
Sales Q2Q%-9.99%
Revenue Next Year1.52%
Revenue Next 2Y3.35%
Revenue Next 3Y4.23%
Revenue Next 5Y8.44%
EBIT growth 1Y-7.81%
EBIT growth 3Y-5.04%
EBIT growth 5Y12.18%
EBIT Next Year6.81%
EBIT Next 3Y9.56%
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 / WSO Fundamental Analysis FAQ

What is the fundamental rating for WSO stock?

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


Can you provide the valuation status for WATSCO INC?

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


How profitable is WATSCO INC (WSO) stock?

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


Can you provide the financial health for WSO stock?

The financial health rating of WATSCO INC (WSO) is 9 / 10.


Can you provide the expected EPS growth for WSO stock?

The Earnings per Share (EPS) of WATSCO INC (WSO) is expected to grow by 5.69% in the next year.