Why WATSCO INC -CL B (NYSE:WSO.B) should be investigated by quality investors.

In this article we will dive into WATSCO INC -CL B (NYSE:WSO.B) as a possible candidate for quality investing. Investors should always do their own research, but we noticed WATSCO INC -CL B showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into WATSCO INC -CL B's Quality Metrics.

• Over the past 5 years, WATSCO INC -CL B has experienced impressive revenue growth, with 9.88% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 29.85%, WATSCO INC -CL B showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• The Debt/Free Cash Flow Ratio of WATSCO INC -CL B stands at 0.15, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a favorable Profit Quality (5-year) ratio of 128.0%, WATSCO INC -CL B showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 16.2%, WATSCO INC -CL B showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• WATSCO INC -CL B has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

How does the complete fundamental picture look for NYSE:WSO.B?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to WSO.B. WSO.B was compared to 52 industry peers in the Trading Companies & Distributors industry. WSO.B scores excellent on profitability, but there are some minor concerns on its financial health. WSO.B does not seem to be growing, but still is valued expensively.

Our latest full fundamental report of WSO.B contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.