WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSO.B - US9426221019 - Common Stock
338.85 USD
-18.1 (-5.07%)
Overall WSO.B gets a fundamental rating of 7 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. While showing a medium growth rate, WSO.B is valued expensive at the moment. WSO.B also has an excellent dividend rating. These ratings would make WSO.B suitable for dividend and quality investing!
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.
WSO.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WSO.B (10.66%) is better than 82.00% of its industry peers.
Looking at the Return On Equity, with a value of 17.24%, WSO.B is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
WSO.B's Return On Invested Capital of 15.48% is amongst the best of the industry. WSO.B outperforms 90.00% of its industry peers.
WSO.B had an Average Return On Invested Capital over the past 3 years of 20.81%. This is significantly above the industry average of 9.63%.
The last Return On Invested Capital (15.48%) 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 | 10.66% | ||
| ROE | 17.24% | ||
| ROIC | 15.48% |
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 Profit Margin of 6.55%. This is in the better half of the industry: WSO.B outperforms 68.00% 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 9.80% is fine compared to the rest of the industry. WSO.B outperforms 68.00% of its industry peers.
WSO.B's Operating Margin has improved in the last couple of years.
WSO.B's Gross Margin of 27.92% is in line compared 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 | 9.8% | ||
| PM (TTM) | 6.55% | ||
| GM | 27.92% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WSO.B is creating value.
WSO.B has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WSO.B has been increased compared to 5 years ago.
The debt/assets ratio for WSO.B has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.92 indicates that WSO.B is not in any danger for bankruptcy at the moment.
WSO.B has a Altman-Z score of 7.92. This is amongst the best in the industry. WSO.B outperforms 90.00% of its industry peers.
WSO.B 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.B has a better Debt to FCF ratio (0.02) than 90.00% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that WSO.B is not too dependend on debt financing.
The Debt to Equity ratio of WSO.B (0.00) is better than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 7.92 |
ROIC/WACC1.58
WACC9.82%
2.3 Liquidity
A Current Ratio of 3.84 indicates that WSO.B has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.84, WSO.B belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
A Quick Ratio of 1.86 indicates that WSO.B should not have too much problems paying its short term obligations.
WSO.B has a better Quick ratio (1.86) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.84 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
WSO.B shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.05%.
Measured over the past years, WSO.B shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.67% on average per year.
Looking at the last year, WSO.B shows a decrease in Revenue. The Revenue has decreased by -0.71% in the last year.
WSO.B shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.81% yearly.
EPS 1Y (TTM)-1.05%
EPS 3Y7.25%
EPS 5Y15.67%
EPS Q2Q%-5.69%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-4.31%
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 11.57% yearly.
Based on estimates for the next years, WSO.B will show a quite strong growth in Revenue. The Revenue will grow by 8.19% on average per year.
EPS Next Y-6.04%
EPS Next 2Y0.01%
EPS Next 3Y2.86%
EPS Next 5Y11.57%
Revenue Next Year-3.47%
Revenue Next 2Y0.07%
Revenue Next 3Y1.8%
Revenue Next 5Y8.19%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.47 indicates a quite expensive valuation of WSO.B.
The rest of the industry has a similar Price/Earnings ratio as WSO.B.
The average S&P500 Price/Earnings ratio is at 26.51. WSO.B is around the same levels.
With a Price/Forward Earnings ratio of 25.57, WSO.B can be considered very expensive at the moment.
WSO.B's Price/Forward Earnings ratio is in line with the industry average.
WSO.B's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.47 | ||
| Fwd PE | 25.57 |
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 62.00% of the companies in the same industry.
66.00% of the companies in the same industry are more expensive than WSO.B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.56 | ||
| EV/EBITDA | 17.09 |
4.3 Compensation for Growth
The excellent profitability rating of WSO.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.69
EPS Next 2Y0.01%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
WSO.B has a Yearly Dividend Yield of 3.26%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of WSO.B has falen by -26.98%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
WSO.B's Dividend Yield is rather good when compared to the industry average which is at 0.98. WSO.B pays more dividend than 92.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, WSO.B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
On average, the dividend of WSO.B grows each year by 11.05%, which is quite nice.
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
WSO.B pays out 95.01% of its income as dividend. 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.
DP95.01%
EPS Next 2Y0.01%
EPS Next 3Y2.86%
NYSE:WSO.B (12/31/2025, 8:04:00 PM)
338.85
-18.1 (-5.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners112.32%
Inst Owner Change-0.62%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap13.74B
Revenue(TTM)7.41B
Net Income(TTM)485.36M
Analysts66
Price Target422.06 (24.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Yearly Dividend9.55
Dividend Growth(5Y)11.05%
DP95.01%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.38%
Min EPS beat(2)-6.66%
Max EPS beat(2)-6.09%
EPS beat(4)1
Avg EPS beat(4)-4.57%
Min EPS beat(4)-15.33%
Max EPS beat(4)9.8%
EPS beat(8)1
Avg EPS beat(8)-7.02%
EPS beat(12)4
Avg EPS beat(12)1.45%
EPS beat(16)6
Avg EPS beat(16)5.32%
Revenue beat(2)0
Avg Revenue beat(2)-6.6%
Min Revenue beat(2)-8.58%
Max Revenue beat(2)-4.61%
Revenue beat(4)1
Avg Revenue beat(4)-4.31%
Min Revenue beat(4)-8.58%
Max Revenue beat(4)4.34%
Revenue beat(8)1
Avg Revenue beat(8)-3.93%
Revenue beat(12)2
Avg Revenue beat(12)-3.5%
Revenue beat(16)4
Avg Revenue beat(16)-1.61%
PT rev (1m)-14.64%
PT rev (3m)-14.64%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)-24.36%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)-10.14%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-8.23%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.47 | ||
| Fwd PE | 25.57 | ||
| P/S | 1.85 | ||
| P/FCF | 26.56 | ||
| P/OCF | 25.05 | ||
| P/B | 4.88 | ||
| P/tB | 6.41 | ||
| EV/EBITDA | 17.09 |
EPS(TTM)12.8
EY3.78%
EPS(NY)13.25
Fwd EY3.91%
FCF(TTM)12.76
FCFY3.77%
OCF(TTM)13.53
OCFY3.99%
SpS182.8
BVpS69.4
TBVpS52.83
PEG (NY)N/A
PEG (5Y)1.69
Graham Number141.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.66% | ||
| ROE | 17.24% | ||
| ROCE | 19.41% | ||
| ROIC | 15.48% | ||
| ROICexc | 18% | ||
| ROICexgc | 22.75% | ||
| OM | 9.8% | ||
| PM (TTM) | 6.55% | ||
| GM | 27.92% | ||
| FCFM | 6.98% |
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-Score6
Asset Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 72.48% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.31% | ||
| Profit Quality | 106.61% | ||
| Current Ratio | 3.84 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 7.92 |
F-Score6
WACC9.82%
ROIC/WACC1.58
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)-1.05%
EPS 3Y7.25%
EPS 5Y15.67%
EPS Q2Q%-5.69%
EPS Next Y-6.04%
EPS Next 2Y0.01%
EPS Next 3Y2.86%
EPS Next 5Y11.57%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y6.65%
Revenue growth 5Y9.81%
Sales Q2Q%-4.31%
Revenue Next Year-3.47%
Revenue Next 2Y0.07%
Revenue Next 3Y1.8%
Revenue Next 5Y8.19%
EBIT growth 1Y0.38%
EBIT growth 3Y7.24%
EBIT growth 5Y16.07%
EBIT Next Year-0.31%
EBIT Next 3Y5.43%
EBIT Next 5Y10.74%
FCF growth 1Y17.12%
FCF growth 3Y31.86%
FCF growth 5Y18.5%
OCF growth 1Y15.18%
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 7 / 10 to WSO.B.
What is the valuation status for WSO.B stock?
ChartMill assigns a valuation rating of 3 / 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.
Can you provide the financial health for WSO.B stock?
The financial health rating of WATSCO INC -CL B (WSO.B) is 8 / 10.
Is the dividend of WATSCO INC -CL B sustainable?
The dividend rating of WATSCO INC -CL B (WSO.B) is 7 / 10 and the dividend payout ratio is 95.01%.