WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - NYSE:WSO.B - US9426221019 - Common Stock
402.56 USD
-32.26 (-7.42%)
Overall WSO.B gets a fundamental rating of 6 out of 10. We evaluated WSO.B against 49 industry peers in the Trading Companies & Distributors industry. Both the health and profitability get an excellent rating, making WSO.B a very profitable company, without any liquidiy or solvency issues. WSO.B is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WSO.B was profitable.
WSO.B had a positive operating cash flow in the past year.
WSO.B had positive earnings in each of the past 5 years.
Each year in the past 5 years WSO.B had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.44%, WSO.B belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
With a decent Return On Equity value of 17.88%, WSO.B is doing good in the industry, outperforming 70.00% of the companies in the same industry.
WSO.B has a Return On Invested Capital of 16.15%. This is amongst the best in the industry. WSO.B outperforms 88.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSO.B is significantly above the industry average of 10.06%.
The last Return On Invested Capital (16.15%) for WSO.B is well below the 3 year average (20.81%), which needs to be investigated, but indicates that WSO.B had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.44% | ||
| ROE | 17.88% | ||
| ROIC | 16.15% |
ROA(3y)13.43%
ROA(5y)12.52%
ROE(3y)23.42%
ROE(5y)21.95%
ROIC(3y)20.81%
ROIC(5y)19.72%
1.3 Margins
The Profit Margin of WSO.B (6.58%) is better than 70.00% of its industry peers.
In the last couple of years the Profit Margin of WSO.B has grown nicely.
WSO.B's Operating Margin of 9.87% is fine compared to the rest of the industry. WSO.B outperforms 70.00% of its industry peers.
WSO.B's Operating Margin has improved in the last couple of years.
WSO.B has a Gross Margin (27.54%) which is comparable to the rest of the industry.
WSO.B's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.87% | ||
| PM (TTM) | 6.58% | ||
| GM | 27.54% |
OM growth 3Y0.55%
OM growth 5Y5.7%
PM growth 3Y2.52%
PM growth 5Y6.74%
GM growth 3Y0.36%
GM growth 5Y2.05%
2. Health
2.1 Basic Checks
WSO.B has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
WSO.B has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WSO.B has more shares outstanding
WSO.B has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.04 indicates that WSO.B is not in any danger for bankruptcy at the moment.
WSO.B's Altman-Z score of 8.04 is amongst the best of the industry. WSO.B outperforms 94.00% of its industry peers.
The Debt to FCF ratio of WSO.B is 0.04, which is an excellent value as it means it would take WSO.B, only 0.04 years of fcf income to pay off all of its debts.
WSO.B has a better Debt to FCF ratio (0.04) than 90.00% of its industry peers.
WSO.B has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
WSO.B has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. WSO.B outperforms 86.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 8.04 |
ROIC/WACC1.67
WACC9.65%
2.3 Liquidity
WSO.B has a Current Ratio of 3.08. This indicates that WSO.B is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.08, WSO.B is doing good in the industry, outperforming 80.00% of the companies in the same industry.
WSO.B has a Quick Ratio of 1.26. This is a normal value and indicates that WSO.B is financially healthy and should not expect problems in meeting its short term obligations.
WSO.B has a Quick ratio (1.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for WSO.B have decreased by -0.20% in the last year.
The Earnings Per Share has been growing by 15.67% on average over the past years. This is quite good.
WSO.B shows a small growth in Revenue. In the last year, the Revenue has grown by 0.98%.
Measured over the past years, WSO.B shows a quite strong growth in Revenue. The Revenue has been growing by 9.81% on average per year.
EPS 1Y (TTM)-0.2%
EPS 3Y7.25%
EPS 5Y15.67%
EPS Q2Q%0.76%
Revenue 1Y (TTM)0.98%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-3.59%
3.2 Future
WSO.B is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.39% yearly.
The Revenue is expected to grow by 6.81% on average over the next years.
EPS Next Y4.56%
EPS Next 2Y6.11%
EPS Next 3Y8.53%
EPS Next 5Y11.39%
Revenue Next Year0.74%
Revenue Next 2Y3.32%
Revenue Next 3Y4.31%
Revenue Next 5Y6.81%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.87, the valuation of WSO.B can be described as expensive.
WSO.B's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of WSO.B to the average of the S&P500 Index (27.54), we can say WSO.B is valued inline with the index average.
WSO.B is valuated quite expensively with a Price/Forward Earnings ratio of 26.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WSO.B indicates a slightly more expensive valuation: WSO.B is more expensive than 64.00% of the companies listed in the same industry.
WSO.B's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.87 | ||
| Fwd PE | 26.98 |
4.2 Price Multiples
WSO.B's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WSO.B is more expensive than 68.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WSO.B.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.39 | ||
| EV/EBITDA | 20.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WSO.B may justify a higher PE ratio.
PEG (NY)6.77
PEG (5Y)1.97
EPS Next 2Y6.11%
EPS Next 3Y8.53%
5. Dividend
5.1 Amount
WSO.B has a Yearly Dividend Yield of 2.97%.
Compared to an average industry Dividend Yield of 1.74, WSO.B pays a better dividend. On top of this WSO.B pays more dividend than 94.00% of the companies listed in the same industry.
WSO.B's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
The dividend of WSO.B is nicely growing with an annual growth rate of 11.05%!
WSO.B has paid a dividend for at least 10 years, which is a reliable track record.
WSO.B has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.05%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
90.85% of the earnings are spent on dividend by WSO.B. This is not a sustainable payout ratio.
WSO.B's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP90.85%
EPS Next 2Y6.11%
EPS Next 3Y8.53%
NYSE:WSO.B (9/9/2025, 8:18:18 PM)
402.56
-32.26 (-7.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners106.25%
Inst Owner Change6.97%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap16.32B
Analysts67.62
Price Target494.45 (22.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend9.55
Dividend Growth(5Y)11.05%
DP90.85%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11%
Min EPS beat(2)-15.33%
Max EPS beat(2)-6.66%
EPS beat(4)1
Avg EPS beat(4)-5.97%
Min EPS beat(4)-15.33%
Max EPS beat(4)9.8%
EPS beat(8)2
Avg EPS beat(8)-6.2%
EPS beat(12)4
Avg EPS beat(12)1.23%
EPS beat(16)7
Avg EPS beat(16)5.84%
Revenue beat(2)0
Avg Revenue beat(2)-8.48%
Min Revenue beat(2)-8.58%
Max Revenue beat(2)-8.37%
Revenue beat(4)1
Avg Revenue beat(4)-4.32%
Min Revenue beat(4)-8.58%
Max Revenue beat(4)4.34%
Revenue beat(8)2
Avg Revenue beat(8)-3%
Revenue beat(12)2
Avg Revenue beat(12)-3.22%
Revenue beat(16)4
Avg Revenue beat(16)-1.53%
PT rev (1m)0%
PT rev (3m)-3.49%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)-5.97%
EPS NY rev (1m)-4.5%
EPS NY rev (3m)-4.56%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-4.16%
Revenue NY rev (1m)-3.99%
Revenue NY rev (3m)-4.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.87 | ||
| Fwd PE | 26.98 | ||
| P/S | 2.17 | ||
| P/FCF | 41.39 | ||
| P/OCF | 38.27 | ||
| P/B | 5.91 | ||
| P/tB | 7.83 | ||
| EV/EBITDA | 20.62 |
EPS(TTM)13.04
EY3.24%
EPS(NY)14.92
Fwd EY3.71%
FCF(TTM)9.73
FCFY2.42%
OCF(TTM)10.52
OCFY2.61%
SpS185.14
BVpS68.08
TBVpS51.41
PEG (NY)6.77
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.44% | ||
| ROE | 17.88% | ||
| ROCE | 20.25% | ||
| ROIC | 16.15% | ||
| ROICexc | 17.56% | ||
| ROICexgc | 21.97% | ||
| OM | 9.87% | ||
| PM (TTM) | 6.58% | ||
| GM | 27.54% | ||
| FCFM | 5.25% |
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%
ROICexcg growth 3Y-0.91%
ROICexcg growth 5Y8.07%
ROICexc growth 3Y0.61%
ROICexc growth 5Y9.42%
OM growth 3Y0.55%
OM growth 5Y5.7%
PM growth 3Y2.52%
PM growth 5Y6.74%
GM growth 3Y0.36%
GM growth 5Y2.05%
F-Score4
Asset Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 75.57% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.44% | ||
| Profit Quality | 79.89% | ||
| Current Ratio | 3.08 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 8.04 |
F-Score4
WACC9.65%
ROIC/WACC1.67
Cap/Depr(3y)95.78%
Cap/Depr(5y)88.24%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.42%
Profit Quality(3y)117.3%
Profit Quality(5y)129.41%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.2%
EPS 3Y7.25%
EPS 5Y15.67%
EPS Q2Q%0.76%
EPS Next Y4.56%
EPS Next 2Y6.11%
EPS Next 3Y8.53%
EPS Next 5Y11.39%
Revenue 1Y (TTM)0.98%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-3.59%
Revenue Next Year0.74%
Revenue Next 2Y3.32%
Revenue Next 3Y4.31%
Revenue Next 5Y6.81%
EBIT growth 1Y1.38%
EBIT growth 3Y7.24%
EBIT growth 5Y16.07%
EBIT Next Year10.75%
EBIT Next 3Y10%
EBIT Next 5Y11.17%
FCF growth 1Y4.56%
FCF growth 3Y31.86%
FCF growth 5Y18.5%
OCF growth 1Y4.11%
OCF growth 3Y30.29%
OCF growth 5Y18.15%