Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. More Details
Flawless balance sheet with solid track record.
Share Price & News
How has Watsco's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WSO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: WSO's weekly volatility (3%) has been stable over the past year.
7 Day Return
US Trade Distributors
1 Year Return
US Trade Distributors
Return vs Industry: WSO underperformed the US Trade Distributors industry which returned 98.2% over the past year.
Return vs Market: WSO exceeded the US Market which returned 49.4% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Watsco's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StThis Insider Has Just Sold Shares In Watsco, Inc. (NYSE:WSO)
1 month ago | Simply Wall StWe Wouldn't Be Too Quick To Buy Watsco, Inc. (NYSE:WSO) Before It Goes Ex-Dividend
1 month ago | Simply Wall StHere's What To Make Of Watsco's (NYSE:WSO) Decelerating Rates Of Return
Is Watsco undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WSO ($294.94) is trading above our estimate of fair value ($241)
Significantly Below Fair Value: WSO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WSO is poor value based on its PE Ratio (38.3x) compared to the US Trade Distributors industry average (26.9x).
PE vs Market: WSO is poor value based on its PE Ratio (38.3x) compared to the US market (19.5x).
Price to Earnings Growth Ratio
PEG Ratio: WSO is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: WSO is overvalued based on its PB Ratio (7x) compared to the US Trade Distributors industry average (2.5x).
How is Watsco forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WSO's forecast earnings growth (9% per year) is above the savings rate (2%).
Earnings vs Market: WSO's earnings (9% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: WSO's earnings are forecast to grow, but not significantly.
Revenue vs Market: WSO's revenue (3.8% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: WSO's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WSO's Return on Equity is forecast to be high in 3 years time (20.1%)
How has Watsco performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WSO has high quality earnings.
Growing Profit Margin: WSO's current net profit margins (5.2%) are higher than last year (4.5%).
Past Earnings Growth Analysis
Earnings Trend: WSO's earnings have grown by 9.3% per year over the past 5 years.
Accelerating Growth: WSO's earnings growth over the past year (23.6%) exceeds its 5-year average (9.3% per year).
Earnings vs Industry: WSO earnings growth over the past year (23.6%) exceeded the Trade Distributors industry 4.1%.
Return on Equity
High ROE: WSO's Return on Equity (19.6%) is considered low.
How is Watsco's financial position?
Financial Position Analysis
Short Term Liabilities: WSO's short term assets ($1.7B) exceed its short term liabilities ($630.8M).
Long Term Liabilities: WSO's short term assets ($1.7B) exceed its long term liabilities ($264.6M).
Debt to Equity History and Analysis
Debt Level: WSO's debt to equity ratio (2.7%) is considered satisfactory.
Reducing Debt: WSO's debt to equity ratio has reduced from 19.6% to 2.7% over the past 5 years.
Debt Coverage: WSO's debt is well covered by operating cash flow (930%).
Interest Coverage: WSO's interest payments on its debt are well covered by EBIT (789.6x coverage).
What is Watsco current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WSO's dividend (2.64%) is higher than the bottom 25% of dividend payers in the US market (1.28%).
High Dividend: WSO's dividend (2.64%) is low compared to the top 25% of dividend payers in the US market (3.48%).
Stability and Growth of Payments
Stable Dividend: WSO's dividend payments have been volatile in the past 10 years.
Growing Dividend: WSO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (92.3%), WSO's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WSO's dividends in 3 years are forecast to be covered by earnings (89.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Albert Nahmad (79 yo)
Mr. Albert H. Nahmad has been the Chief Executive Officer of Watsco, Inc. since December 1972. Mr. Nahmad is a General Partner of Alna Capital Associates. Mr. Nahmad served as President of Watsco, Inc. fro...
CEO Compensation Analysis
Compensation vs Market: Albert's total compensation ($USD11.20M) is about average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Albert's compensation has increased by more than 20% in the past year.
Experienced Management: WSO's management team is seasoned and experienced (8.5 years average tenure).
Experienced Board: WSO's board of directors are considered experienced (3.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WSO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Watsco, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Watsco, Inc.
- Ticker: WSO
- Exchange: NYSE
- Founded: 1945
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: US$10.408b
- Shares outstanding: 35.35m
- Website: https://www.watsco.com
Number of Employees
- Watsco, Inc.
- 2665 South Bayshore Drive
- Suite 901
- United States
Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. It of...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/13 22:43|
|End of Day Share Price||2021/05/13 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.