(WSO) Watsco - Overview
Exchange: NYSE •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US9426222009
Stock: Hvac Equipment, Parts, Supplies
Total Rating 33
Risk 90
Buy Signal 0.15
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 2.83% |
| Yield on Cost 5y | 5.42% |
| Yield CAGR 5y | 11.30% |
| Payout Consistency | 95.3% |
| Payout Ratio | 115.1% |
| Risk 5d forecast | |
|---|---|
| Volatility | 30.3% |
| Relative Tail Risk | -1.64% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.22 |
| Alpha | -21.94 |
| Character TTM | |
|---|---|
| Beta | 0.779 |
| Beta Downside | 0.612 |
| Drawdowns 3y | |
|---|---|
| Max DD | 41.62% |
| CAGR/Max DD | 0.38 |
Description: WSO Watsco January 03, 2026
Watsco, Inc. (NYSE:WSO) is a leading North-American distributor of HVAC-R equipment and related parts, serving contractors and dealers in residential and light-commercial markets across the United States, Canada, Latin America, and the Caribbean. Its product portfolio spans ducted and ductless air conditioners, gas/electric/oil furnaces, commercial HVAC systems, and a broad array of components such as compressors, coils, thermostats, refrigerants, and ancillary supplies, including plumbing and bathroom remodeling items.
Key operational metrics: FY 2023 revenue reached approximately $5.5 billion with an adjusted EBITDA margin near 9%, reflecting strong demand for replacement and new-construction HVAC projects. The U.S. HVAC market is projected to grow ~3% CAGR through 2028, driven by residential construction activity, tighter energy-efficiency standards, and climate-related temperature extremes. Watsco’s extensive distribution footprint-over 100 locations and a robust dealer network-provides a logistical advantage that helps mitigate supply-chain disruptions in refrigerants and core components.
For a deeper quantitative view, you might explore Watsco’s metrics on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 4.5
| Net Income: 549.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -3.26 > 1.0 |
| NWC/Revenue: 31.07% < 20% (prev 29.46%; Δ 1.61% < -1%) |
| CFO/TA 0.12 > 3% & CFO 548.7m > Net Income 549.7m |
| Net Debt (133.2m) to EBITDA (790.2m): 0.17 < 3 |
| Current Ratio: 3.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (37.9m) vs 12m ago 0.65% < -2% |
| Gross Margin: 28.27% > 18% (prev 0.27%; Δ 2800 % > 0.5%) |
| Asset Turnover: 163.5% > 50% (prev 165.3%; Δ -1.85% > 0%) |
| Interest Coverage Ratio: 25.99 > 6 (EBITDA TTM 790.2m / Interest Expense TTM 28.7m) |
Altman Z'' 6.53
| A: 0.51 (Total Current Assets 3.12b - Total Current Liabilities 812.1m) / Total Assets 4.55b |
| B: 0.30 (Retained Earnings 1.37b / Total Assets 4.55b) |
| C: 0.16 (EBIT TTM 747.0m / Avg Total Assets 4.54b) |
| D: 1.07 (Book Value of Equity 1.34b / Total Liabilities 1.25b) |
| Altman-Z'' Score: 6.53 = AAA |
Beneish M -3.06
| DSRI: 1.00 (Receivables 941.9m/944.5m, Revenue 7.41b/7.47b) |
| GMI: 0.94 (GM 28.27% / 26.66%) |
| AQI: 1.03 (AQ_t 0.19 / AQ_t-1 0.19) |
| SGI: 0.99 (Revenue 7.41b / 7.47b) |
| TATA: 0.00 (NI 549.7m - CFO 548.7m) / TA 4.55b) |
| Beneish M-Score: -3.06 (Cap -4..+1) = AA |
What is the price of WSO shares?
As of February 07, 2026, the stock is trading at USD 419.92 with a total of 803,124 shares traded.
Over the past week, the price has changed by +8.66%, over one month by +18.50%, over three months by +20.54% and over the past year by -8.73%.
Over the past week, the price has changed by +8.66%, over one month by +18.50%, over three months by +20.54% and over the past year by -8.73%.
Is WSO a buy, sell or hold?
Watsco has received a consensus analysts rating of 3.20.
Therefor, it is recommend to hold WSO.
- StrongBuy: 3
- Buy: 0
- Hold: 10
- Sell: 1
- StrongSell: 1
What are the forecasts/targets for the WSO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 391.6 | -6.8% |
| Analysts Target Price | 391.6 | -6.8% |
| ValueRay Target Price | 470.4 | 12% |
WSO Fundamental Data Overview February 04, 2026
P/E Trailing = 30.0396
P/E Forward = 26.1097
P/S = 2.1206
P/B = 5.5707
P/EG = 2.3187
Revenue TTM = 7.41b USD
EBIT TTM = 747.0m USD
EBITDA TTM = 790.2m USD
Long Term Debt = 12.6m USD (from longTermDebtTotal, last quarter)
Short Term Debt = 116.7m USD (from shortTermDebt, last quarter)
Debt = 457.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 133.2m USD (from netDebt column, last quarter)
Enterprise Value = 15.86b USD (15.72b + Debt 457.5m - CCE 324.3m)
Interest Coverage Ratio = 25.99 (Ebit TTM 747.0m / Interest Expense TTM 28.7m)
EV/FCF = 30.62x (Enterprise Value 15.86b / FCF TTM 517.8m)
FCF Yield = 3.27% (FCF TTM 517.8m / Enterprise Value 15.86b)
FCF Margin = 6.98% (FCF TTM 517.8m / Revenue TTM 7.41b)
Net Margin = 7.41% (Net Income TTM 549.7m / Revenue TTM 7.41b)
Gross Margin = 28.27% ((Revenue TTM 7.41b - Cost of Revenue TTM 5.32b) / Revenue TTM)
Gross Margin QoQ = 28.78% (prev 29.26%)
Tobins Q-Ratio = 3.48 (Enterprise Value 15.86b / Total Assets 4.55b)
Interest Expense / Debt = 2.08% (Interest Expense 9.50m / Debt 457.5m)
Taxrate = 9.06% (21.6m / 238.5m)
NOPAT = 679.3m (EBIT 747.0m * (1 - 9.06%))
Current Ratio = 3.84 (Total Current Assets 3.12b / Total Current Liabilities 812.1m)
Debt / Equity = 0.16 (Debt 457.5m / totalStockholderEquity, last quarter 2.81b)
Debt / EBITDA = 0.17 (Net Debt 133.2m / EBITDA 790.2m)
Debt / FCF = 0.26 (Net Debt 133.2m / FCF TTM 517.8m)
Total Stockholder Equity = 2.72b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.12% (Net Income 549.7m / Total Assets 4.55b)
RoE = 20.18% (Net Income TTM 549.7m / Total Stockholder Equity 2.72b)
RoCE = 27.29% (EBIT 747.0m / Capital Employed (Equity 2.72b + L.T.Debt 12.6m))
RoIC = 24.94% (NOPAT 679.3m / Invested Capital 2.72b)
WACC = 8.59% (E(15.72b)/V(16.18b) * Re(8.78%) + D(457.5m)/V(16.18b) * Rd(2.08%) * (1-Tc(0.09)))
Discount Rate = 8.78% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -1.95%
[DCF Debug] Terminal Value 79.37% ; FCFF base≈575.0m ; Y1≈708.9m ; Y5≈1.21b
Fair Price DCF = 517.8 (EV 18.22b - Net Debt 133.2m = Equity 18.08b / Shares 34.9m; r=8.59% [WACC]; 5y FCF grow 24.93% → 2.90% )
EPS Correlation: -42.74 | EPS CAGR: -43.84% | SUE: -4.0 | # QB: 0
Revenue Correlation: 29.89 | Revenue CAGR: 8.70% | SUE: -0.78 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.86 | Chg30d=-0.088 | Revisions Net=-3 | Analysts=8
EPS next Year (2026-12-31): EPS=13.25 | Chg30d=-0.128 | Revisions Net=-4 | Growth EPS=+6.6% | Growth Revenue=+3.6%
P/E Forward = 26.1097
P/S = 2.1206
P/B = 5.5707
P/EG = 2.3187
Revenue TTM = 7.41b USD
EBIT TTM = 747.0m USD
EBITDA TTM = 790.2m USD
Long Term Debt = 12.6m USD (from longTermDebtTotal, last quarter)
Short Term Debt = 116.7m USD (from shortTermDebt, last quarter)
Debt = 457.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 133.2m USD (from netDebt column, last quarter)
Enterprise Value = 15.86b USD (15.72b + Debt 457.5m - CCE 324.3m)
Interest Coverage Ratio = 25.99 (Ebit TTM 747.0m / Interest Expense TTM 28.7m)
EV/FCF = 30.62x (Enterprise Value 15.86b / FCF TTM 517.8m)
FCF Yield = 3.27% (FCF TTM 517.8m / Enterprise Value 15.86b)
FCF Margin = 6.98% (FCF TTM 517.8m / Revenue TTM 7.41b)
Net Margin = 7.41% (Net Income TTM 549.7m / Revenue TTM 7.41b)
Gross Margin = 28.27% ((Revenue TTM 7.41b - Cost of Revenue TTM 5.32b) / Revenue TTM)
Gross Margin QoQ = 28.78% (prev 29.26%)
Tobins Q-Ratio = 3.48 (Enterprise Value 15.86b / Total Assets 4.55b)
Interest Expense / Debt = 2.08% (Interest Expense 9.50m / Debt 457.5m)
Taxrate = 9.06% (21.6m / 238.5m)
NOPAT = 679.3m (EBIT 747.0m * (1 - 9.06%))
Current Ratio = 3.84 (Total Current Assets 3.12b / Total Current Liabilities 812.1m)
Debt / Equity = 0.16 (Debt 457.5m / totalStockholderEquity, last quarter 2.81b)
Debt / EBITDA = 0.17 (Net Debt 133.2m / EBITDA 790.2m)
Debt / FCF = 0.26 (Net Debt 133.2m / FCF TTM 517.8m)
Total Stockholder Equity = 2.72b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.12% (Net Income 549.7m / Total Assets 4.55b)
RoE = 20.18% (Net Income TTM 549.7m / Total Stockholder Equity 2.72b)
RoCE = 27.29% (EBIT 747.0m / Capital Employed (Equity 2.72b + L.T.Debt 12.6m))
RoIC = 24.94% (NOPAT 679.3m / Invested Capital 2.72b)
WACC = 8.59% (E(15.72b)/V(16.18b) * Re(8.78%) + D(457.5m)/V(16.18b) * Rd(2.08%) * (1-Tc(0.09)))
Discount Rate = 8.78% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -1.95%
[DCF Debug] Terminal Value 79.37% ; FCFF base≈575.0m ; Y1≈708.9m ; Y5≈1.21b
Fair Price DCF = 517.8 (EV 18.22b - Net Debt 133.2m = Equity 18.08b / Shares 34.9m; r=8.59% [WACC]; 5y FCF grow 24.93% → 2.90% )
EPS Correlation: -42.74 | EPS CAGR: -43.84% | SUE: -4.0 | # QB: 0
Revenue Correlation: 29.89 | Revenue CAGR: 8.70% | SUE: -0.78 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.86 | Chg30d=-0.088 | Revisions Net=-3 | Analysts=8
EPS next Year (2026-12-31): EPS=13.25 | Chg30d=-0.128 | Revisions Net=-4 | Growth EPS=+6.6% | Growth Revenue=+3.6%