WATSCO INC -CL B (WSO.B) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WSO.B • US9426221019
389.44 USD
+13.76 (+3.66%)
Last: Jan 29, 2026, 08:04 PM
Taking everything into account, WSO.B scores 6 out of 10 in our fundamental rating. WSO.B was compared to 50 industry peers in the Trading Companies & Distributors industry. WSO.B gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, WSO.B is valued expensive at the moment.
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.
- Each year in the past 5 years WSO.B has been profitable.
- 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 has a Return On Invested Capital of 15.48%. This is amongst the best in the industry. WSO.B outperforms 90.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WSO.B is significantly above the industry average of 9.64%.
- 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 has a better Operating Margin (9.80%) than 68.00% of its industry peers.
- WSO.B's Operating Margin has improved in the last couple of years.
- WSO.B has a Gross Margin (27.92%) which is in line with 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 5Y6.73%
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.
- Compared to 5 years ago, WSO.B has more shares outstanding
- Compared to 1 year ago, WSO.B has an improved debt to assets ratio.
2.2 Solvency
- WSO.B has an Altman-Z score of 8.63. This indicates that WSO.B is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.63, WSO.B belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of WSO.B (0.02) is better than 90.00% of its industry peers.
- WSO.B has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
- With an excellent Debt to Equity ratio value of 0.00, WSO.B belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 8.63 |
ROIC/WACC1.58
WACC9.8%
2.3 Liquidity
- WSO.B has a Current Ratio of 3.84. This indicates that WSO.B is financially healthy and has no problem in meeting its short term obligations.
- WSO.B has a Current ratio of 3.84. This is amongst the best in the industry. WSO.B outperforms 86.00% of its industry peers.
- WSO.B has a Quick Ratio of 1.86. This is a normal value and indicates that WSO.B is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.86, WSO.B is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| 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%.
- 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.
- WSO.B shows a decrease in Revenue. In the last year, the revenue decreased by -0.71%.
- 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 9.95% yearly.
- Based on estimates for the next years, WSO.B will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y-6.01%
EPS Next 2Y-0.41%
EPS Next 3Y2.4%
EPS Next 5Y9.95%
Revenue Next Year-3.44%
Revenue Next 2Y-0.04%
Revenue Next 3Y1.62%
Revenue Next 5Y3.59%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- WSO.B is valuated quite expensively with a Price/Earnings ratio of 30.42.
- WSO.B's Price/Earnings ratio is in line with the industry average.
- WSO.B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.30.
- A Price/Forward Earnings ratio of 29.63 indicates a quite expensive valuation of WSO.B.
- WSO.B's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. WSO.B is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 29.63 |
4.2 Price Multiples
- 64.00% of the companies in the same industry are cheaper than WSO.B, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, WSO.B is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.53 | ||
| EV/EBITDA | 19.75 |
4.3 Compensation for Growth
- WSO.B has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.94
EPS Next 2Y-0.41%
EPS Next 3Y2.4%
5. Dividend
5.1 Amount
- WSO.B has a Yearly Dividend Yield of 3.19%.
- WSO.B's Dividend Yield is rather good when compared to the industry average which is at 1.31. WSO.B pays more dividend than 88.00% of the companies in the same industry.
- WSO.B's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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 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
- 95.01% of the earnings are spent on dividend by WSO.B. This is not a sustainable payout ratio.
- The dividend of WSO.B is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP95.01%
EPS Next 2Y-0.41%
EPS Next 3Y2.4%
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 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 6 / 10 and the dividend payout ratio is 95.01%.