(WSO-B) Watsco - Ratings and Ratios
HVAC, Equipment, Parts, Tools, Supplies
WSO-B EPS (Earnings per Share)
WSO-B Revenue
Description: WSO-B Watsco
Watsco Inc (NYSE:WSO-B) is a US-based trading company and distributor operating in the HVAC/R industry, providing a comprehensive range of products and services. The companys financial performance is characterized by a strong return on equity (ROE) of 16.68%, indicating effective use of shareholder capital.
Key drivers of Watscos financial performance include its dominant market position, diversified product offerings, and robust distribution network. The companys ability to maintain a strong market share and drive growth through strategic acquisitions and investments is critical to its success. Key performance indicators (KPIs) to monitor include revenue growth, gross margin expansion, and operating expense management.
Economic drivers influencing Watscos business include the overall health of the HVAC/R market, driven by factors such as construction activity, housing starts, and replacement demand for existing equipment. Additionally, trends in energy efficiency, technological innovation, and regulatory changes impact the companys product offerings and competitiveness. The companys valuation, as reflected in its price-to-earnings (P/E) ratio of 33.12, suggests a premium is being placed on its earnings, potentially due to its strong market position and growth prospects.
To evaluate Watscos investment potential, it is essential to analyze its financial statements, assess its competitive positioning, and monitor industry trends. A thorough examination of the companys income statement, balance sheet, and cash flow statement can provide insights into its profitability, capital structure, and liquidity. Furthermore, tracking KPIs such as revenue growth, operating margins, and return on invested capital (ROIC) can help investors make informed decisions.
WSO-B Stock Overview
| Market Cap in USD | 16,661m |
| Sub-Industry | Trading Companies & Distributors |
| IPO / Inception | 1992-03-17 |
WSO-B Stock Ratings
| Growth Rating | 29.5% |
| Fundamental | 71.7% |
| Dividend Rating | 70.2% |
| Return 12m vs S&P 500 | -22.0% |
| Analyst Rating | - |
WSO-B Dividends
| Dividend Yield 12m | 2.51% |
| Yield on Cost 5y | 5.40% |
| Annual Growth 5y | 8.78% |
| Payout Consistency | 96.8% |
| Payout Ratio | 87.5% |
WSO-B Growth Ratios
| Growth Correlation 3m | -52% |
| Growth Correlation 12m | -57.6% |
| Growth Correlation 5y | 92.3% |
| CAGR 5y | 15.61% |
| CAGR/Max DD 5y | 0.64 |
| Sharpe Ratio 12m | -0.16 |
| Alpha | -13.86 |
| Beta | 0.116 |
| Volatility | 5.27% |
| Current Volume | 0k |
| Average Volume 20d | 0k |
| Stop Loss | 404.3 (-7%) |
| Signal | 0.00 |
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 102.3 (EBITDA TTM 782.4m / Interest Expense TTM 7.44m) >= 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) 71.69
| 1. Piotroski 4.50pt = -0.50 |
| 2. FCF Yield 2.42% = 1.21 |
| 3. FCF Margin 5.44% = 1.36 |
| 4. Debt/Equity 0.20 = 2.48 |
| 5. Debt/Ebitda 0.71 = 2.13 |
| 6. ROIC - WACC 16.18% = 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-B shares?
Over the past week, the price has changed by +0.00%, over one month by -0.61%, over three months by -2.70% and over the past year by -8.18%.
Is Watsco a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of WSO-B is around 440.19 USD . This means that WSO-B is currently overvalued and has a potential downside of 1.23%.
Is WSO-B a buy, sell or hold?
What are the forecasts/targets for the WSO-B price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | - | - |
| Analysts Target Price | - | - |
| ValueRay Target Price | 480.7 | 10.5% |
Last update: 2025-08-28 04:55
WSO-B Fundamental Data Overview
CCE Cash And Equivalents = 293.0m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 33.1169
P/E Forward = 30.1205
P/S = 2.2192
P/B = 6.3869
P/EG = 2.7193
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 = 16.92b USD (16.66b + Debt 552.2m - CCE 293.0m)
Interest Coverage Ratio = 102.3 (Ebit TTM 761.5m / Interest Expense TTM 7.44m)
FCF Yield = 2.42% (FCF TTM 408.6m / Enterprise Value 16.92b)
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 = 12.99 (Enterprise Value 16.92b / Book Value Of Equity 1.30b)
Interest Expense / Debt = -1.22% (Interest Expense -6.71m / 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 = 6.20% (E(16.66b)/V(17.21b) * Re(6.44%)) + (D(552.2m)/V(17.21b) * Rd(-1.22%) * (1-Tc(0.21)))
Shares Correlation 5-Years: -60.0 | Cagr: -0.63%
Discount Rate = 6.44% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 81.37% ; FCFE base≈558.0m ; Y1≈685.3m ; Y5≈1.16b
Fair Price DCF = 3491 (DCF Value 19.70b / Shares Outstanding 5.64m; 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-B Stock
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Fund Manager Positions: Dataroma | Stockcircle