WATSCO INC -CL B (WSO.B) Fundamental Analysis & Valuation

NYSE:WSO.B • US9426221019

Current stock price

368.33 USD
+0.79 (+0.21%)
Last:

This WSO.B fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. WSO.B Profitability Analysis

1.1 Basic Checks

  • WSO.B had positive earnings in the past year.
  • WSO.B had a positive operating cash flow in the past year.
  • 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.
WSO.B Yearly Net Income VS EBIT VS OCF VS FCFWSO.B Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

1.2 Ratios

  • With an excellent Return On Assets value of 10.47%, WSO.B belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
  • WSO.B has a Return On Equity of 16.62%. This is in the better half of the industry: WSO.B outperforms 75.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 14.88%, WSO.B belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for WSO.B is significantly above the industry average of 9.17%.
Industry RankSector Rank
ROA 10.47%
ROE 16.62%
ROIC 14.88%
ROA(3y)11.68%
ROA(5y)12.63%
ROE(3y)19.29%
ROE(5y)21.98%
ROIC(3y)17.4%
ROIC(5y)19.52%
WSO.B Yearly ROA, ROE, ROICWSO.B Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • WSO.B has a better Profit Margin (6.39%) than 70.83% of its industry peers.
  • WSO.B's Profit Margin has improved in the last couple of years.
  • WSO.B has a better Operating Margin (9.57%) than 75.00% of its industry peers.
  • WSO.B's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 28.05%, WSO.B perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
  • In the last couple of years the Gross Margin of WSO.B has grown nicely.
Industry RankSector Rank
OM 9.57%
PM (TTM) 6.39%
GM 28.05%
OM growth 3Y-4.89%
OM growth 5Y4.41%
PM growth 3Y-5.33%
PM growth 5Y5.63%
GM growth 3Y0.16%
GM growth 5Y3%
WSO.B Yearly Profit, Operating, Gross MarginsWSO.B Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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9

2. WSO.B Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WSO.B is creating value.
  • The number of shares outstanding for WSO.B has been increased compared to 1 year ago.
  • The number of shares outstanding for WSO.B has been increased compared to 5 years ago.
  • WSO.B has a better debt/assets ratio than last year.
WSO.B Yearly Shares OutstandingWSO.B Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
WSO.B Yearly Total Debt VS Total AssetsWSO.B Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • WSO.B has an Altman-Z score of 8.67. This indicates that WSO.B is financially healthy and has little risk of bankruptcy at the moment.
  • WSO.B has a better Altman-Z score (8.67) than 91.67% of its industry peers.
  • The Debt to FCF ratio of WSO.B is 0.02, which is an excellent value as it means it would take WSO.B, only 0.02 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of WSO.B (0.02) is better than 93.75% 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.
  • WSO.B has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. WSO.B outperforms 83.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Altman-Z 8.67
ROIC/WACC1.66
WACC8.96%
WSO.B Yearly LT Debt VS Equity VS FCFWSO.B Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 4.12 indicates that WSO.B has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 4.12, WSO.B belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
  • A Quick Ratio of 2.18 indicates that WSO.B has no problem at all paying its short term obligations.
  • With an excellent Quick ratio value of 2.18, WSO.B belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.12
Quick Ratio 2.18
WSO.B Yearly Current Assets VS Current LiabilitesWSO.B Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. WSO.B Growth Analysis

3.1 Past

  • WSO.B shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.57%.
  • Measured over the past years, WSO.B shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.98% on average per year.
  • The Revenue has decreased by -4.98% in the past year.
  • The Revenue has been growing slightly by 7.45% on average over the past years.
EPS 1Y (TTM)-8.57%
EPS 3Y-7.71%
EPS 5Y11.98%
EPS Q2Q%-29.11%
Revenue 1Y (TTM)-4.98%
Revenue growth 3Y-0.16%
Revenue growth 5Y7.45%
Sales Q2Q%-9.99%

3.2 Future

  • The Earnings Per Share is expected to grow by 19.57% on average over the next years. This is quite good.
  • WSO.B is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.44% yearly.
EPS Next Y5.54%
EPS Next 2Y7.49%
EPS Next 3Y10.94%
EPS Next 5Y19.57%
Revenue Next Year1.91%
Revenue Next 2Y3.36%
Revenue Next 3Y4.24%
Revenue Next 5Y8.44%

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 accelerating.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
WSO.B Yearly Revenue VS EstimatesWSO.B Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
WSO.B Yearly EPS VS EstimatesWSO.B Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5 10 15 20 25

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2

4. WSO.B Valuation Analysis

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 is valuated rather expensively when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 28.81, which means the current valuation is very expensive for WSO.B.
  • The rest of the industry has a similar Price/Forward Earnings ratio as WSO.B.
  • WSO.B is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 30.42
Fwd PE 28.81
WSO.B Price Earnings VS Forward Price EarningsWSO.B Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 62.50% 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 68.75% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 27.93
EV/EBITDA 18.91
WSO.B Per share dataWSO.B EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WSO.B does not grow enough to justify the current Price/Earnings ratio.
  • WSO.B has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.49
PEG (5Y)2.54
EPS Next 2Y7.49%
EPS Next 3Y10.94%

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7

5. WSO.B Dividend Analysis

5.1 Amount

  • WSO.B has a Yearly Dividend Yield of 3.19%. Purely for dividend investing, there may be better candidates out there.
  • In the last 3 months the price of WSO.B has falen by -26.88%. 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 0.90. WSO.B pays more dividend than 93.75% 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 1.90.
Industry RankSector Rank
Dividend Yield 3.19%

5.2 History

  • The dividend of WSO.B is nicely growing with an annual growth rate of 11.59%!
  • WSO.B has been paying a dividend for at least 10 years, so it has 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)11.59%
Div Incr Years11
Div Non Decr Years11
WSO.B Yearly Dividends per shareWSO.B Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

5.3 Sustainability

  • 102.49% of the earnings are spent on dividend by WSO.B. This is not a sustainable payout ratio.
  • WSO.B's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP102.49%
EPS Next 2Y7.49%
EPS Next 3Y10.94%
WSO.B Yearly Income VS Free CF VS DividendWSO.B Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
WSO.B Dividend Payout.WSO.B Dividend Payout, showing the Payout Ratio.WSO.B Dividend Payout.PayoutRetained Earnings

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WSO.B Fundamentals: All Metrics, Ratios and Statistics

WATSCO INC -CL B

NYSE:WSO.B (3/16/2026, 8:04:00 PM)

368.33

+0.79 (+0.21%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-17
Earnings (Next)04-16
Inst Owners110.99%
Inst Owner Change-5.61%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap14.95B
Revenue(TTM)7.24B
Net Income(TTM)462.26M
Analysts66
Price Target408.71 (10.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.19%
Yearly Dividend10.64
Dividend Growth(5Y)11.59%
DP102.49%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-16
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.83%
Min EPS beat(2)-11.57%
Max EPS beat(2)-6.09%
EPS beat(4)0
Avg EPS beat(4)-9.91%
Min EPS beat(4)-15.33%
Max EPS beat(4)-6.09%
EPS beat(8)1
Avg EPS beat(8)-6.53%
EPS beat(12)3
Avg EPS beat(12)-4.99%
EPS beat(16)5
Avg EPS beat(16)3.47%
Revenue beat(2)0
Avg Revenue beat(2)-4.09%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)-3.56%
Revenue beat(4)0
Avg Revenue beat(4)-6.28%
Min Revenue beat(4)-8.58%
Max Revenue beat(4)-3.56%
Revenue beat(8)1
Avg Revenue beat(8)-3.9%
Revenue beat(12)2
Avg Revenue beat(12)-3.56%
Revenue beat(16)3
Avg Revenue beat(16)-2.52%
PT rev (1m)0%
PT rev (3m)-3.16%
EPS NQ rev (1m)-9.16%
EPS NQ rev (3m)-12.96%
EPS NY rev (1m)-2.71%
EPS NY rev (3m)-4.07%
Revenue NQ rev (1m)-4.52%
Revenue NQ rev (3m)-4.88%
Revenue NY rev (1m)-1.56%
Revenue NY rev (3m)-2.22%
Valuation
Industry RankSector Rank
PE 30.42
Fwd PE 28.81
P/S 2.06
P/FCF 27.93
P/OCF 26.24
P/B 5.37
P/tB 7.09
EV/EBITDA 18.91
EPS(TTM)12.11
EY3.29%
EPS(NY)12.79
Fwd EY3.47%
FCF(TTM)13.19
FCFY3.58%
OCF(TTM)14.04
OCFY3.81%
SpS178.4
BVpS68.54
TBVpS51.96
PEG (NY)5.49
PEG (5Y)2.54
Graham Number136.66
Profitability
Industry RankSector Rank
ROA 10.47%
ROE 16.62%
ROCE 18.73%
ROIC 14.88%
ROICexc 18.56%
ROICexgc 24.01%
OM 9.57%
PM (TTM) 6.39%
GM 28.05%
FCFM 7.39%
ROA(3y)11.68%
ROA(5y)12.63%
ROE(3y)19.29%
ROE(5y)21.98%
ROIC(3y)17.4%
ROIC(5y)19.52%
ROICexc(3y)20.77%
ROICexc(5y)22.06%
ROICexgc(3y)27.24%
ROICexgc(5y)29.35%
ROCE(3y)21.9%
ROCE(5y)24.57%
ROICexgc growth 3Y-11.92%
ROICexgc growth 5Y-0.32%
ROICexc growth 3Y-11.07%
ROICexc growth 5Y2.11%
OM growth 3Y-4.89%
OM growth 5Y4.41%
PM growth 3Y-5.33%
PM growth 5Y5.63%
GM growth 3Y0.16%
GM growth 5Y3%
F-Score6
Asset Turnover1.64
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Debt/EBITDA 0.01
Cap/Depr 78.97%
Cap/Sales 0.48%
Interest Coverage 993.66
Cash Conversion 77.36%
Profit Quality 115.75%
Current Ratio 4.12
Quick Ratio 2.18
Altman-Z 8.67
F-Score6
WACC8.96%
ROIC/WACC1.66
Cap/Depr(3y)84.59%
Cap/Depr(5y)91.37%
Cap/Sales(3y)0.45%
Cap/Sales(5y)0.45%
Profit Quality(3y)123.21%
Profit Quality(5y)110.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.57%
EPS 3Y-7.71%
EPS 5Y11.98%
EPS Q2Q%-29.11%
EPS Next Y5.54%
EPS Next 2Y7.49%
EPS Next 3Y10.94%
EPS Next 5Y19.57%
Revenue 1Y (TTM)-4.98%
Revenue growth 3Y-0.16%
Revenue growth 5Y7.45%
Sales Q2Q%-9.99%
Revenue Next Year1.91%
Revenue Next 2Y3.36%
Revenue Next 3Y4.24%
Revenue Next 5Y8.44%
EBIT growth 1Y-7.81%
EBIT growth 3Y-5.04%
EBIT growth 5Y12.18%
EBIT Next Year8.08%
EBIT Next 3Y9.93%
EBIT Next 5Y18.01%
FCF growth 1Y-27.99%
FCF growth 3Y-0.08%
FCF growth 5Y0.65%
OCF growth 1Y-26.32%
OCF growth 3Y-0.14%
OCF growth 5Y1.29%

WATSCO INC -CL B / WSO.B Fundamental Analysis 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 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.


Can you provide the financial health for WSO.B stock?

The financial health rating of WATSCO INC -CL B (WSO.B) is 9 / 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 102.49%.