WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - NYSE:WSO.B - US9426221019 - Common Stock
379.35 USD
-23.21 (-5.77%)
Overall WSO.B gets a fundamental rating of 6 out of 10. We evaluated WSO.B against 50 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WSO.B was profitable.
In the past year WSO.B had a positive cash flow from operations.
WSO.B had positive earnings in each of the past 5 years.
WSO.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WSO.B has a better Return On Assets (10.44%) than 86.00% of its industry peers.
Looking at the Return On Equity, with a value of 17.88%, WSO.B is in the better half of 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 10.21%.
The 3 year average ROIC (20.81%) for WSO.B is well above the current ROIC(16.15%). The reason for the recent decline needs to be investigated.
| 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
WSO.B has a better Profit Margin (6.58%) than 70.00% of its industry peers.
WSO.B's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.87%, WSO.B is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
WSO.B's Operating Margin has improved in the last couple of years.
WSO.B has a Gross Margin of 27.54%. This is comparable to the rest of the industry: WSO.B outperforms 44.00% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WSO.B 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
The debt/assets ratio for WSO.B has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.75 indicates that WSO.B is not in any danger for bankruptcy at the moment.
WSO.B has a Altman-Z score of 7.75. This is amongst the best in the industry. WSO.B outperforms 90.00% 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.
Looking at the Debt to FCF ratio, with a value of 0.04, WSO.B belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
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's Debt to Equity ratio of 0.01 is amongst the best of 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 | 7.75 |
ROIC/WACC1.73
WACC9.35%
2.3 Liquidity
A Current Ratio of 3.08 indicates that WSO.B has no problem at all paying its short term obligations.
WSO.B has a better Current ratio (3.08) than 80.00% of its industry peers.
A Quick Ratio of 1.26 indicates that WSO.B should not have too much problems paying 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.
WSO.B shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.67% yearly.
The Revenue has been growing slightly by 0.98% in the past year.
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
Based on estimates for the next years, WSO.B will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.39% on average per year.
Based on estimates for the next years, WSO.B will show a small growth in Revenue. The Revenue will grow by 6.81% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 29.09, WSO.B can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WSO.B is on the same level as its industry peers.
When comparing the Price/Earnings ratio of WSO.B to the average of the S&P500 Index (27.00), we can say WSO.B is valued inline with the index average.
The Price/Forward Earnings ratio is 25.43, which means the current valuation is very expensive for WSO.B.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WSO.B is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.87. WSO.B is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 25.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WSO.B indicates a slightly more expensive valuation: WSO.B is more expensive than 68.00% of the companies listed in the same industry.
WSO.B's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.01 | ||
| EV/EBITDA | 19.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WSO.B has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.38
PEG (5Y)1.86
EPS Next 2Y6.11%
EPS Next 3Y8.53%
5. Dividend
5.1 Amount
WSO.B has a Yearly Dividend Yield of 2.97%.
The stock price of WSO.B dropped by -21.78% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
WSO.B's Dividend Yield is rather good when compared to the industry average which is at 1.85. WSO.B pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, WSO.B pays a bit more dividend than the S&P500 average.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
The dividend of WSO.B is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP90.85%
EPS Next 2Y6.11%
EPS Next 3Y8.53%
NYSE:WSO.B (10/20/2025, 8:22:19 PM)
379.35
-23.21 (-5.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners106.25%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap15.38B
Revenue(TTM)7.51B
Net Income(TTM)493.63M
Analysts67.62
Price Target494.45 (30.34%)
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 | 29.09 | ||
| Fwd PE | 25.43 | ||
| P/S | 2.05 | ||
| P/FCF | 39.01 | ||
| P/OCF | 36.06 | ||
| P/B | 5.57 | ||
| P/tB | 7.38 | ||
| EV/EBITDA | 19.42 |
EPS(TTM)13.04
EY3.44%
EPS(NY)14.92
Fwd EY3.93%
FCF(TTM)9.73
FCFY2.56%
OCF(TTM)10.52
OCFY2.77%
SpS185.14
BVpS68.08
TBVpS51.41
PEG (NY)6.38
PEG (5Y)1.86
Graham Number141.33
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%
ROICexgc growth 3Y-0.91%
ROICexgc 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 | 7.75 |
F-Score4
WACC9.35%
ROIC/WACC1.73
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%
WATSCO INC -CL B / WSO.B FAQ
What is the ChartMill fundamental rating of WATSCO INC -CL B (WSO.B) stock?
ChartMill assigns a fundamental rating of 6 / 10 to WSO.B.
What is the valuation status of WATSCO INC -CL B (WSO.B) stock?
ChartMill assigns a valuation rating of 2 / 10 to WATSCO INC -CL B (WSO.B). This can be considered as Overvalued.
Can you provide the profitability details for WATSCO INC -CL B?
WATSCO INC -CL B (WSO.B) has a profitability rating of 8 / 10.
What is the expected EPS growth for WATSCO INC -CL B (WSO.B) stock?
The Earnings per Share (EPS) of WATSCO INC -CL B (WSO.B) is expected to grow by 4.56% in the next year.
How sustainable is the dividend of WATSCO INC -CL B (WSO.B) stock?
The dividend rating of WATSCO INC -CL B (WSO.B) is 6 / 10 and the dividend payout ratio is 90.85%.