WSO Stock Overview
Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, refrigeration equipment, and related parts and supplies.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$244.05|
|52 Week High||US$318.98|
|52 Week Low||US$239.62|
|1 Month Change||-16.13%|
|3 Month Change||-4.77%|
|1 Year Change||-14.58%|
|3 Year Change||56.78%|
|5 Year Change||73.92%|
|Change since IPO||9,249.75%|
Recent News & Updates
Here's Why We Think Watsco (NYSE:WSO) Is Well Worth Watching
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
Calculating The Fair Value Of Watsco, Inc. (NYSE:WSO)
Today we will run through one way of estimating the intrinsic value of Watsco, Inc. ( NYSE:WSO ) by projecting its...
|WSO||US Trade Distributors||US Market|
Return vs Industry: WSO underperformed the US Trade Distributors industry which returned -5.4% over the past year.
Return vs Market: WSO underperformed the US Market which returned -12.3% over the past year.
|WSO Average Weekly Movement||4.5%|
|Trade Distributors Industry Average Movement||7.4%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: WSO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: WSO's weekly volatility (5%) has been stable over the past year.
About the Company
Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, refrigeration equipment, and related parts and supplies. The company distributes equipment comprising residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. It also offers parts, including replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies.
Watsco Fundamentals Summary
|WSO fundamental statistics|
Is WSO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WSO income statement (TTM)|
|Cost of Revenue||US$4.84b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||12.27|
|Net Profit Margin||6.53%|
How did WSO perform over the long term?See historical performance and comparison
3.6%Current Dividend Yield
Is Watsco undervalued compared to its fair value and its price relative to the market?
Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WSO ($244.05) is trading below our estimate of fair value ($330.29)
Significantly Below Fair Value: WSO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WSO is poor value based on its Price-To-Earnings Ratio (19.9x) compared to the US Trade Distributors industry average (13.1x).
PE vs Market: WSO is poor value based on its Price-To-Earnings Ratio (19.9x) compared to the US market (15.1x).
Price to Earnings Growth Ratio
PEG Ratio: WSO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: WSO is overvalued based on its Price-To-Book Ratio (5x) compared to the US Trade Distributors industry average (2.1x).
How is Watsco forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WSO's earnings are forecast to decline over the next 3 years (-1.9% per year).
Earnings vs Market: WSO's earnings are forecast to decline over the next 3 years (-1.9% per year).
High Growth Earnings: WSO's earnings are forecast to decline over the next 3 years.
Revenue vs Market: WSO's revenue (2.9% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: WSO's revenue (2.9% 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 (20.7%)
How has Watsco performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WSO has high quality earnings.
Growing Profit Margin: WSO's current net profit margins (6.5%) are higher than last year (5.2%).
Past Earnings Growth Analysis
Earnings Trend: WSO's earnings have grown by 15.7% per year over the past 5 years.
Accelerating Growth: WSO's earnings growth over the past year (62.2%) exceeds its 5-year average (15.7% per year).
Earnings vs Industry: WSO earnings growth over the past year (62.2%) underperformed the Trade Distributors industry 80.4%.
Return on Equity
High ROE: WSO's Return on Equity (27.3%) is considered high.
How is Watsco's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: WSO's short term assets ($2.3B) exceed its short term liabilities ($836.8M).
Long Term Liabilities: WSO's short term assets ($2.3B) exceed its long term liabilities ($556.3M).
Debt to Equity History and Analysis
Debt Level: WSO's net debt to equity ratio (7.3%) is considered satisfactory.
Reducing Debt: WSO's debt to equity ratio has reduced from 23.4% to 12.6% over the past 5 years.
Debt Coverage: WSO's debt is well covered by operating cash flow (108.8%).
Interest Coverage: WSO's interest payments on its debt are well covered by EBIT (477.2x coverage).
What is Watsco current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WSO's dividend (3.61%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: WSO's dividend (3.61%) is low compared to the top 25% of dividend payers in the US market (4.05%).
Stability and Growth of Payments
Stable Dividend: WSO's dividend payments have been volatile in the past 10 years.
Growing Dividend: WSO's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (63.2%), WSO's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (121.7%), WSO's dividend payments are not well covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Albert Nahmad (80 yo)
Mr. Albert H. Nahmad has been the Chief Executive Officer of Watsco, Inc. since December 1972. Mr. Nahmad is a General Partner of Alna Capital Associates. Mr. Nahmad served as President of Watsco, Inc. fro...
CEO Compensation Analysis
Compensation vs Market: Albert's total compensation ($USD10.67M) is about average for companies of similar size in the US market ($USD8.23M).
Compensation vs Earnings: Albert's compensation has been consistent with company performance over the past year.
Experienced Management: WSO's management team is seasoned and experienced (17.5 years average tenure).
Experienced Board: WSO's board of directors are considered experienced (3.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Watsco, Inc.'s employee growth, exchange listings and data sources
- Name: Watsco, Inc.
- Ticker: WSO
- Exchange: NYSE
- Founded: 1945
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Implied Market Cap: US$8.794b
- Shares outstanding: 35.50m
- Website: https://www.watsco.com
Number of Employees
- Watsco, Inc.
- 2665 South Bayshore Drive
- Suite 901
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/24 00:00|
|End of Day Share Price||2022/05/24 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.