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

NYSE:WSO.B • US9426221019

419.25 USD
+30.31 (+7.79%)
Last: Feb 12, 2026, 08:21 PM
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This WSO.B fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Overall WSO.B gets a fundamental rating of 6 out of 10. We evaluated WSO.B against 47 industry peers in the Trading Companies & Distributors industry. WSO.B has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WSO.B does not seem to be growing, but still is valued expensively. Finally WSO.B also has an excellent dividend rating. With these ratings, WSO.B could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

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.
  • Of the past 5 years WSO.B 4 years were profitable.
  • Of the past 5 years WSO.B 4 years had a positive operating cash flow.
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 200M 400M 600M 800M

1.2 Ratios

  • With an excellent Return On Assets value of 10.66%, WSO.B belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
  • With a decent Return On Equity value of 17.24%, WSO.B is doing good in the industry, outperforming 70.59% 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 90.20% 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 9.21%.
  • 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 RankSector 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%
WSO.B Yearly ROA, ROE, ROICWSO.B Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

  • WSO.B's Profit Margin of 6.55% is fine compared to the rest of the industry. WSO.B outperforms 68.63% of its industry peers.
  • WSO.B's Profit Margin has improved in the last couple of years.
  • WSO.B has a Operating Margin of 9.80%. This is in the better half of the industry: WSO.B outperforms 68.63% of its industry peers.
  • In the last couple of years the Operating Margin of WSO.B has grown nicely.
  • WSO.B has a Gross Margin of 27.92%. This is comparable to the rest of the industry: WSO.B outperforms 45.10% of its industry peers.
  • In the last couple of years the Gross Margin of WSO.B has grown nicely.
Industry RankSector 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%
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 5 10 15 20 25

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. WSO.B Health Analysis

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.
  • There is no outstanding debt for WSO.B. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
WSO.B Yearly Shares OutstandingWSO.B Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 1B 2B 3B 4B

2.2 Solvency

  • WSO.B has an Altman-Z score of 9.05. This indicates that WSO.B is financially healthy and has little risk of bankruptcy at the moment.
  • WSO.B has a Altman-Z score of 9.05. This is amongst the best in the industry. WSO.B outperforms 94.12% 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's Debt to FCF ratio of 0.02 is amongst the best of the industry. WSO.B outperforms 90.20% of its industry peers.
  • A Debt/Equity ratio of 0.00 indicates that WSO.B is not too dependend on debt financing.
  • WSO.B has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. WSO.B outperforms 82.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.02
Altman-Z 9.05
ROIC/WACC1.6
WACC9.68%
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 500M 1B 1.5B 2B 2.5B

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's Current ratio of 3.84 is amongst the best of the industry. WSO.B outperforms 86.27% 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.
  • Looking at the Quick ratio, with a value of 1.86, WSO.B is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.84
Quick Ratio 1.86
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 1B 2B 3B

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

3

3. WSO.B Growth Analysis

3.1 Past

  • The earnings per share for WSO.B have decreased by -8.57% in the last year.
  • 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.
EPS 1Y (TTM)-8.57%
EPS 3Y-7.71%
EPS 5Y11.98%
EPS Q2Q%-29.11%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.99%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.30% on average over the next years. This is quite good.
  • WSO.B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.55% yearly.
EPS Next Y8.48%
EPS Next 2Y8.37%
EPS Next 3Y12.88%
EPS Next 5Y14.3%
Revenue Next Year3.96%
Revenue Next 2Y4.87%
Revenue Next 3Y4.82%
Revenue Next 5Y5.55%

3.3 Evolution

  • The EPS 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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3

4. WSO.B Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 34.62, the valuation of WSO.B can be described as expensive.
  • The rest of the industry has a similar Price/Earnings ratio as WSO.B.
  • The average S&P500 Price/Earnings ratio is at 27.03. WSO.B is valued slightly more expensive when compared to this.
  • With a Price/Forward Earnings ratio of 31.90, 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 valuation a bit more expensive than the S&P500 average which is at 25.11.
Industry RankSector Rank
PE 34.62
Fwd PE 31.9
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

  • 64.71% of the companies in the same industry are cheaper than WSO.B, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of WSO.B indicates a somewhat cheap valuation: WSO.B is cheaper than 64.71% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 32.86
EV/EBITDA 21.32
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 an expensive valuation of the company.
  • WSO.B has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as WSO.B's earnings are expected to grow with 12.88% in the coming years.
PEG (NY)4.08
PEG (5Y)2.89
EPS Next 2Y8.37%
EPS Next 3Y12.88%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. WSO.B Dividend Analysis

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 0.80. WSO.B pays more dividend than 86.27% 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 RankSector 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 been paying a dividend for at least 10 years, so it has 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
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

  • 95.01% 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.
DP95.01%
EPS Next 2Y8.37%
EPS Next 3Y12.88%
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 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 (2/12/2026, 8:21:32 PM)

419.25

+30.31 (+7.79%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-17
Earnings (Next)04-21
Inst Owners112.05%
Inst Owner Change-5.61%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap17.00B
Revenue(TTM)N/A
Net Income(TTM)485.36M
Analysts66
Price Target408.71 (-2.51%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.19%
Yearly Dividend9.55
Dividend Growth(5Y)11.05%
DP95.01%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-16
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)-3.16%
PT rev (3m)-17.34%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.04%
Valuation
Industry RankSector Rank
PE 34.62
Fwd PE 31.9
P/S 2.29
P/FCF 32.86
P/OCF 30.99
P/B 6.04
P/tB 7.94
EV/EBITDA 21.32
EPS(TTM)12.11
EY2.89%
EPS(NY)13.14
Fwd EY3.13%
FCF(TTM)12.76
FCFY3.04%
OCF(TTM)13.53
OCFY3.23%
SpS182.8
BVpS69.4
TBVpS52.83
PEG (NY)4.08
PEG (5Y)2.89
Graham Number137.51
Profitability
Industry RankSector 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 5Y9.41%
OM growth 3Y0.55%
OM growth 5Y5.7%
PM growth 3Y2.52%
PM growth 5Y6.73%
GM growth 3Y0.36%
GM growth 5Y2.05%
F-Score6
Asset Turnover1.63
Health
Industry RankSector 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 9.05
F-Score6
WACC9.68%
ROIC/WACC1.6
Cap/Depr(3y)95.78%
Cap/Depr(5y)88.26%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.42%
Profit Quality(3y)117.3%
Profit Quality(5y)129.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.57%
EPS 3Y-7.71%
EPS 5Y11.98%
EPS Q2Q%-29.11%
EPS Next Y8.48%
EPS Next 2Y8.37%
EPS Next 3Y12.88%
EPS Next 5Y14.3%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.99%
Revenue Next Year3.96%
Revenue Next 2Y4.87%
Revenue Next 3Y4.82%
Revenue Next 5Y5.55%
EBIT growth 1Y0.38%
EBIT growth 3Y7.24%
EBIT growth 5Y16.07%
EBIT Next Year-0.07%
EBIT Next 3Y5.26%
EBIT Next 5Y14.76%
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 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 7 / 10 and the dividend payout ratio is 95.01%.