(WSO) Watsco - Ratings and Ratios
Heating, Air Conditioning, Refrigeration Equipment, Parts, Supplies
WSO EPS (Earnings per Share)
WSO Revenue
Description: WSO Watsco
Watsco Inc. is a leading distributor of air conditioning, heating, and refrigeration equipment, as well as related parts and supplies, operating in the United States, Canada, Latin America, and the Caribbean. The companys extensive product portfolio includes residential and commercial air conditioning and heating equipment, specialized equipment, and a wide range of parts and supplies, catering to contractors and dealers serving the replacement and new construction markets.
From a financial perspective, Watscos market capitalization stands at approximately $19.1 billion, indicating a significant presence in the industry. The companys price-to-earnings ratio is around 36.47, with a forward P/E of 31.65, suggesting a relatively high valuation. However, its return on equity (RoE) of 19.92% is notable, indicating a strong ability to generate profits from shareholder equity. To further evaluate Watscos performance, key performance indicators (KPIs) such as revenue growth rate, gross margin, and inventory turnover can be examined. For instance, a high inventory turnover ratio would suggest efficient management of inventory, while a stable gross margin would indicate a competitive pricing strategy.
Additional KPIs that can be used to assess Watscos operational efficiency include its days sales outstanding (DSO) and operating cash flow margin. A low DSO would indicate effective management of accounts receivable, while a high operating cash flow margin would suggest a strong ability to generate cash from operations. Furthermore, analyzing Watscos debt-to-equity ratio and interest coverage ratio can provide insights into its capital structure and ability to meet its debt obligations.
In terms of stock performance, Watscos current price is around $470.75, with support and resistance levels identified at various price points. Technical indicators such as the simple moving averages (SMA20, SMA50, and SMA200) can be used to gauge the stocks trend and momentum. For example, the stocks SMA20 and SMA50 are around $451-452, indicating a potential support level, while the SMA200 is around $480, suggesting a longer-term trend.
WSO Stock Overview
| Market Cap in USD | 16,474m |
| Sub-Industry | Trading Companies & Distributors |
| IPO / Inception | 1984-06-07 |
WSO Stock Ratings
| Growth Rating | 27.9% |
| Fundamental | 71.7% |
| Dividend Rating | 70.1% |
| Return 12m vs S&P 500 | -23.7% |
| Analyst Rating | 3.20 of 5 |
WSO Dividends
| Dividend Yield 12m | 2.60% |
| Yield on Cost 5y | 5.34% |
| Annual Growth 5y | 8.78% |
| Payout Consistency | 95.8% |
| Payout Ratio | 87.4% |
WSO Growth Ratios
| Growth Correlation 3m | -40.7% |
| Growth Correlation 12m | -46.8% |
| Growth Correlation 5y | 91.2% |
| CAGR 5y | 13.59% |
| CAGR/Max DD 5y | 0.48 |
| Sharpe Ratio 12m | -0.41 |
| Alpha | -31.05 |
| Beta | 1.096 |
| Volatility | 29.48% |
| Current Volume | 290.6k |
| Average Volume 20d | 290.6k |
| Stop Loss | 385.8 (-4.1%) |
| Signal | 1.55 |
Piotroski VR‑10 (Strict, 0-10) 4.5
| Net Income (531.5m TTM) > 0 and > 6% of Revenue (6% = 450.5m TTM) |
| FCFTA 0.09 (>2.0%) and ΔFCFTA -9.15pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 29.69% (prev 28.10%; Δ 1.59pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.09 (>3.0%) and CFO 426.6m <= Net Income 531.5m (YES >=105%, WARN >=100%) |
| Net Debt (161.1m) to EBITDA (782.4m) ratio: 0.21 <= 3.0 (WARN <= 3.5) |
| Current Ratio 3.08 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (37.9m) change vs 12m ago 0.66% (target <= -2.0% for YES) |
| Gross Margin 27.54% (prev 26.66%; Δ 0.88pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 164.6% (prev 169.1%; Δ -4.59pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 38.13 (EBITDA TTM 782.4m / Interest Expense TTM 20.0m) >= 6 (WARN >= 3) |
Altman Z'' 6.04
| (A) 0.47 = (Total Current Assets 3.30b - Total Current Liabilities 1.07b) / Total Assets 4.73b |
| (B) 0.28 = Retained Earnings (Balance) 1.33b / Total Assets 4.73b |
| (C) 0.17 = EBIT TTM 761.5m / Avg Total Assets 4.56b |
| (D) 0.86 = Book Value of Equity 1.30b / Total Liabilities 1.51b |
| Total Rating: 6.04 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 71.70
| 1. Piotroski 4.50pt = -0.50 |
| 2. FCF Yield 2.44% = 1.22 |
| 3. FCF Margin 5.44% = 1.36 |
| 4. Debt/Equity 0.20 = 2.48 |
| 5. Debt/Ebitda 0.71 = 2.13 |
| 6. ROIC - WACC 12.62% = 12.50 |
| 7. RoE 19.73% = 1.64 |
| 8. Rev. Trend 9.42% = 0.47 |
| 9. Rev. CAGR 0.47% = 0.06 |
| 10. EPS Trend -14.18% = -0.35 |
| 11. EPS CAGR 6.97% = 0.70 |
What is the price of WSO shares?
Over the past week, the price has changed by -1.38%, over one month by -10.76%, over three months by -6.64% and over the past year by -9.73%.
Is Watsco a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of WSO is around 380.37 USD . This means that WSO is currently overvalued and has a potential downside of -5.47%.
Is WSO a buy, sell or hold?
- Strong Buy: 3
- Buy: 0
- Hold: 10
- Sell: 1
- Strong Sell: 1
What are the forecasts/targets for the WSO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 468.6 | 16.5% |
| Analysts Target Price | 468.6 | 16.5% |
| ValueRay Target Price | 428.9 | 6.6% |
Last update: 2025-08-30 05:05
WSO Fundamental Data Overview
CCE Cash And Equivalents = 293.0m USD (last quarter)
P/E Trailing = 30.6641
P/E Forward = 28.3286
P/S = 2.1944
P/B = 6.0027
P/EG = 2.5558
Beta = 0.947
Revenue TTM = 7.51b USD
EBIT TTM = 761.5m USD
EBITDA TTM = 782.4m USD
Long Term Debt = 436.8m USD (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 115.4m USD (from shortTermDebt, last quarter)
Debt = 552.2m USD (Calculated: Short Term 115.4m + Long Term 436.8m)
Net Debt = 161.1m USD (from netDebt column, last quarter)
Enterprise Value = 16.73b USD (16.47b + Debt 552.2m - CCE 293.0m)
Interest Coverage Ratio = 38.13 (Ebit TTM 761.5m / Interest Expense TTM 20.0m)
FCF Yield = 2.44% (FCF TTM 408.6m / Enterprise Value 16.73b)
FCF Margin = 5.44% (FCF TTM 408.6m / Revenue TTM 7.51b)
Net Margin = 7.08% (Net Income TTM 531.5m / Revenue TTM 7.51b)
Gross Margin = 27.54% ((Revenue TTM 7.51b - Cost of Revenue TTM 5.44b) / Revenue TTM)
Tobins Q-Ratio = 12.85 (Enterprise Value 16.73b / Book Value Of Equity 1.30b)
Interest Expense / Debt = 1.34% (Interest Expense 7.38m / Debt 552.2m)
Taxrate = 20.79% (from yearly Income Tax Expense: 166.9m / 802.6m)
NOPAT = 603.1m (EBIT 761.5m * (1 - 20.79%))
Current Ratio = 3.08 (Total Current Assets 3.30b / Total Current Liabilities 1.07b)
Debt / Equity = 0.20 (Debt 552.2m / last Quarter total Stockholder Equity 2.76b)
Debt / EBITDA = 0.71 (Net Debt 161.1m / EBITDA 782.4m)
Debt / FCF = 1.35 (Debt 552.2m / FCF TTM 408.6m)
Total Stockholder Equity = 2.69b (last 4 quarters mean)
RoA = 11.24% (Net Income 531.5m, Total Assets 4.73b )
RoE = 19.73% (Net Income TTM 531.5m / Total Stockholder Equity 2.69b)
RoCE = 24.32% (Ebit 761.5m / (Equity 2.69b + L.T.Debt 436.8m))
RoIC = 22.38% (NOPAT 603.1m / Invested Capital 2.69b)
WACC = 9.76% (E(16.47b)/V(17.03b) * Re(10.05%)) + (D(552.2m)/V(17.03b) * Rd(1.34%) * (1-Tc(0.21)))
Shares Correlation 5-Years: -60.0 | Cagr: -0.63%
Discount Rate = 10.05% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 75.12% ; FCFE base≈558.0m ; Y1≈685.3m ; Y5≈1.16b
Fair Price DCF = 399.5 (DCF Value 13.94b / Shares Outstanding 34.9m; 5y FCF grow 24.41% → 3.0% )
Revenue Correlation: 9.42 | Revenue CAGR: 0.47%
Rev Growth-of-Growth: -2.62
EPS Correlation: -14.18 | EPS CAGR: 6.97%
EPS Growth-of-Growth: 11.33
Additional Sources for WSO Stock
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Fund Manager Positions: Dataroma | Stockcircle