Why NYSE:WSO qualifies as a quality stock.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if WATSCO INC (NYSE:WSO) is suited for quality investing. Investors should of course do their own research, but we spotted WATSCO INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NYSE:WSO Holds Appeal for Quality Investors.

• WATSCO INC has demonstrated significant revenue growth over the past 5 years, with a 10.87% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• WATSCO INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 36.42% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a favorable Debt/Free Cash Flow Ratio of 0.46, WATSCO INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• WATSCO INC demonstrates consistent Profit Quality over the past 5 years, with a strong 120.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• WATSCO INC has consistently achieved strong EBIT growth over the past 5 years, with a 18.24% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• WATSCO INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

WSO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 52 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. With these ratings, WSO could be worth investigating further for quality investing!.

For an up to date full fundamental analysis you can check the fundamental report of WSO

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.