WATSCO INC (WSO) Fundamental Analysis & Valuation

NYSE:WSO • US9426222009

Current stock price

368.39 USD
+4.6 (+1.26%)
At close:
368.39 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.
  • In the past year WSO had a positive cash flow from operations.
  • WSO had positive earnings in each of the past 5 years.
  • In the past 5 years WSO always reported a positive cash flow from operatings.
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

  • WSO has a better Return On Assets (10.47%) than 89.13% of its industry peers.
  • WSO has a Return On Equity of 16.62%. This is in the better half of the industry: WSO outperforms 76.09% of its industry peers.
  • WSO has a Return On Invested Capital of 14.88%. This is amongst the best in the industry. WSO outperforms 89.13% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for WSO is significantly above the industry average of 9.03%.
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

  • WSO has a Profit Margin of 6.39%. This is in the better half of the industry: WSO outperforms 71.74% of its industry peers.
  • 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.
  • In the last couple of years the Operating Margin of WSO has grown nicely.
  • With a Gross Margin value of 28.05%, WSO perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
  • WSO'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 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

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WSO is still creating some value.
  • The number of shares outstanding for WSO has been increased compared to 1 year ago.
  • WSO has more shares outstanding than it did 5 years ago.
  • WSO has a better debt/assets ratio than last year.
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 8.61 indicates that WSO is not in any danger for bankruptcy at the moment.
  • WSO has a better Altman-Z score (8.61) than 91.30% of its industry peers.
  • 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.
  • WSO has a better Debt to FCF ratio (0.02) than 93.48% of its industry peers.
  • A Debt/Equity ratio of 0.00 indicates that WSO is not too dependend on debt financing.
  • WSO's Debt to Equity ratio of 0.00 is amongst the best of the industry. WSO outperforms 82.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Altman-Z 8.61
ROIC/WACC1.47
WACC10.09%
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.
  • Looking at the Current ratio, with a value of 4.12, WSO belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
  • WSO has a Quick Ratio of 2.18. This indicates that WSO is financially healthy and has no problem in meeting its short term obligations.
  • WSO's Quick ratio of 2.18 is amongst the best of the industry. WSO outperforms 84.78% 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

  • The earnings per share for WSO have decreased by -8.57% in the last year.
  • 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.
  • 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 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.57% yearly.
  • 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 Y5.54%
EPS Next 2Y7.49%
EPS Next 3Y10.94%
EPS Next 5Y19.57%
Revenue Next Year1.89%
Revenue Next 2Y3.36%
Revenue Next 3Y4.31%
Revenue Next 5Y8.44%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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

3

4. WSO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 30.42, WSO can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Earnings ratio as WSO.
  • WSO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.70, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 28.81, the valuation of WSO can be described as expensive.
  • WSO's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 23.84. WSO is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 30.42
Fwd PE 28.81
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

  • Based on the Enterprise Value to EBITDA ratio, WSO is valued a bit more expensive than 63.04% of the companies in the same industry.
  • WSO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSO is cheaper than 65.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.94
EV/EBITDA 18.66
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.
  • The excellent profitability rating of WSO may justify a higher PE ratio.
PEG (NY)5.49
PEG (5Y)2.54
EPS Next 2Y7.49%
EPS Next 3Y10.94%

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 3.19%, WSO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.89, WSO pays a better dividend. On top of this WSO pays more dividend than 91.30% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, WSO pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.19%

5.2 History

  • The dividend of WSO is nicely growing with an annual growth rate of 11.59%!
  • 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 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

  • 102.49% of the earnings are spent on dividend by WSO. This is not a sustainable payout ratio.
  • WSO'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 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 (3/13/2026, 8:04:00 PM)

After market: 368.39 0 (0%)

368.39

+4.6 (+1.26%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-17
Earnings (Next)04-21
Inst Owners110.99%
Inst Owner Change4.57%
Ins Owners0.38%
Ins Owner Change0%
Market Cap14.95B
Revenue(TTM)7.24B
Net Income(TTM)462.26M
Analysts66
Price Target421.36 (14.38%)
Short Float %10.11%
Short Ratio8.61
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)4.29%
PT rev (3m)0.91%
EPS NQ rev (1m)-9.16%
EPS NQ rev (3m)-12.96%
EPS NY rev (1m)-2.71%
EPS NY rev (3m)-4.07%
Revenue NQ rev (1m)-4.52%
Revenue NQ rev (3m)-4.88%
Revenue NY rev (1m)-1.58%
Revenue NY rev (3m)-2.23%
Valuation
Industry RankSector Rank
PE 30.42
Fwd PE 28.81
P/S 2.07
P/FCF 27.94
P/OCF 26.24
P/B 5.37
P/tB 7.09
EV/EBITDA 18.66
EPS(TTM)12.11
EY3.29%
EPS(NY)12.79
Fwd EY3.47%
FCF(TTM)13.19
FCFY3.58%
OCF(TTM)14.04
OCFY3.81%
SpS178.4
BVpS68.54
TBVpS51.96
PEG (NY)5.49
PEG (5Y)2.54
Graham Number136.66
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 8.61
F-Score6
WACC10.09%
ROIC/WACC1.47
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 Year1.89%
Revenue Next 2Y3.36%
Revenue Next 3Y4.31%
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 / 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 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 9 / 10.


Is the dividend of WATSCO INC sustainable?

The dividend rating of WATSCO INC (WSO) is 7 / 10 and the dividend payout ratio is 102.49%.