Watsco, Inc. (WSO) Stock Analysis
P/E 27.04×· 5Y range 17.75–47.88×· 36th percentile of history
Sector: Industrials · Industry: Wholesale-Hardware & Plumbing & Heating Equipment & Supplies
AnalystsSell23 analystsStrengths
- ✓Altman Z 5.6 — safe-zone balance sheet
- ✓ROE 18.0% — efficient capital deployment
- ✓Interest coverage 141.3× — debt well covered
What's happening with WSO
Price History
5-Year Weekly Candlestick Chart
Profile
Strong financial health, earnings quality and valuation; growth lags behind.
How is each axis scored?
- Valuation77/100 · Strong
- P/E vs own history (36th pct)20/25
- FCF yield (5.3%)20/25
- P/S (1.8x)25/25
- EV/EBIT (18.1x)12/25
- Growth30/100 · Weak
- Revenue CAGR (3.6%)6/25
- Net income CAGR (4.4%)6/25
- EPS CAGR 5Y (3.2%)6/25
- Fwd implied growth (8.4%)12/25
- Profitability65/100 · Moderate
- ROIC (21.4%)20/25
- ROE (18.0%)20/25
- Net margin (6.8%)13/25
- Operating margin (9.9%)12/25
- Financial Health100/100 · Strong
- Altman Z (5.63)25/25
- Current ratio (3.34)25/25
- Interest coverage (141.3x)25/25
- Net cash / debt (Net cash)25/25
- Quality90/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.63)25/25
- FCF conversion (140%)25/25
- Margin stability (σ 2.0%)25/25
About Watsco, Inc.
Watsco is the largest HVAC and refrigeration products distributor in North America with approximately 13% market share. Show more
The company primarily operates in the United States (90% of revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada, Latin America, and the Caribbean. The company's customer base comprises more than 120,000 dealers and contractors serving the replacement and new-construction HVAC/R markets for residential and light-commercial applications. As much as 20% of residential HVAC units are distributed through Watsco in any given year. Revenue is approximately 75%-80% residential HVAC and 20%-25% commercial, with relatively small exposure to more complex "applied" solutions.
Headquarters: COCONUT GROVE, FL · Employees: 7,050 · Website ↗
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
Valuation
77B+P/E (TTM)27.0xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 17.7x–47.9x · 36th pct
P/FCF18.2xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield5.3%A
Grade A: ValueTTM FCF / Market Cap — vs own 5Y history: 1.8%–5.4% · highest in history
P/S (TTM)1.81xA
Grade A: CheapPrice / TTM Revenue (own statements) — vs own 5Y history: 1.3x–3.3x · 24th pct
EV/EBIT18.1xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 12.3x–33.0x · 24th pct
EV/Sales1.8xA
Grade A: CheapEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E25.0xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio4.74xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio—
Finnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield3.72%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio95.3%D
Grade D: UnsustainableDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
65BROIC21.4%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE18.0%C
Grade C: AverageReturn on Equity. Neg. equity = heavy buybacks
ROA10.2%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin6.8%C
Grade C: AverageNet Income / Revenue
Operating Margin9.9%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin28.0%D
Grade D: LowGross Profit / Revenue
FCF Margin9.6%C
Grade C: AverageFCF / Revenue
True FCF Margin9.1%C
Grade C: AverageTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
30DRevenue CAGR3.6%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR4.4%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)3.2%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth8.4%B
Grade B: LowImplied 1Y EPS growth from forward P/E vs our TTM EPS. Sparse — only where forward estimates exist
Dilution (5Y)—
Share count change over 5Y
SBC / Net Income7.0%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.5%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
100A+Altman Z-Score5.63A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio3.34xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio2.18xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage141.3xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.18xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt1.22xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
90A+Piotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.63A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion140.0%A
Grade A: StrongFCF / Net Income
Margin Stability2.0%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue0.5%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover1.64xA
Grade A: HighRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
More metrics — Per Share, Balance Sheet, MarketHide additional metrics
Per Share
EPS (TTM)$11.73
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$16.43
Cash & short-term investments per share (Finnhub)
Book Value / Share$62.30
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$486.23M
Total debt obligations (short + long term)
Cash & Equiv.$592.68M
Cash and short-term investments
Net Debt$-106.45MA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$2.76B
Shareholders' equity (book value)
Asset / Liability2.46xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$13.09B
Current Market Capitalization
Beta1.02B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
Takeaway
Company is effectively debt-free after netting cash. · Current P/E of 27.0x sits at the 36th percentile of its historical range.
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Mar 2026 · Ratio snapshot Sep 27, 2026
Key Insights: Watsco, Inc. (WSO)
WSO is down 0.93% at the last close. Piotroski F-Score of 6/9 indicates mixed fundamentals for Watsco, Inc.. Altman Z-Score of 5.63 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.63 suggests a low likelihood of earnings manipulation.
- Company is effectively debt-free after netting cash.
- At a valuation score of 77/100, WSO trades near the cheapest end of its own historical range (P/E 27.0).
- The stock currently yields 3.7% in dividends.
Insider Transactions
Recent SEC Form 4 filings · 8 records
| Transaction date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
MENENDEZ ANA M Filed | MENENDEZ ANA M | BuyJ | +25 | |
LOGAN BARRY S Filed | LOGAN BARRY S | BuyJ | +19 | |
Nahmad Aaron J Filed | Nahmad Aaron J | BuyJ | +25 | |
NAHMAD ALBERT H Filed | NAHMAD ALBERT H | BuyJ | +25 | |
Nahmad Aaron J Filed | Nahmad Aaron J | BuyGrant / award | +14.0K |
Show 3 more filingsShow fewer filings
| Transaction date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Lopez-Blazquez Ana Filed | Lopez-Blazquez Ana | SellOption exercise | -1000 | |
Lopez-Blazquez Ana Filed | Lopez-Blazquez Ana | SellTax withholding | -707 | |
Lopez-Blazquez Ana Filed | Lopez-Blazquez Ana | BuyOption exercise | +1.0K |
See how WSO ranks on the Capex Tracker — top 50 capital spenders compared.
No significant market moves for WSO in the last 30 days.
See WSO move history →Frequently Asked Questions about WSO
What is the current Watsco, Inc. (WSO) stock price?
WSO is trading at $317.23 at the last market close, down 0.93% on the session. PreMarketPrice tracks WSO pre-market, intraday and after-hours prices.
Is WSO stock a buy right now?
PreMarketPrice's quantitative model rates Watsco, Inc.'s financial health at 100/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is WSO stock overvalued?
Watsco, Inc. trades at a trailing P/E of 27.0 and our valuation score rates it 77/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Watsco, Inc. report earnings?
No confirmed earnings date is currently scheduled for WSO. The Earnings section lists recent reports and updates as dates are announced.
What sector does Watsco, Inc. operate in?
Watsco, Inc. operates in the Industrials sector, within the Wholesale-Hardware & Plumbing & Heating Equipment & Supplies industry. The Related Stocks section lists sector peers for comparison.
What does Watsco, Inc. do?
Watsco is the largest HVAC and refrigeration products distributor in North America with approximately 13% market share.
About Watsco, Inc. (WSO) Stock
Watsco, Inc. (WSO) is a US-listed stock operating in the Industrials sector, specifically the Wholesale-Hardware & Plumbing & Heating Equipment & Supplies industry. As of the latest update, Watsco, Inc. is trading at $317.23, down 0.93% on the day with a market capitalization of $13.1 billion. The financial health score for WSO is 100/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for WSO stock.
WSO Stock Analysis & Key Metrics
On PreMarketPrice, you can track Watsco, Inc. (WSO) across multiple dimensions:
- Pre-market price & movement: Real-time WSO stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for WSO with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Watsco, Inc. across multiple reporting periods.
- Financial health score: A composite score of 100/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for WSO.
- Sector peers: Compare WSO against 10 other industrials stocks on key financial metrics.
Is WSO a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Watsco, Inc. (WSO) as an investment. The financial health score of 100/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Watsco, Inc. (WSO) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.