Stock Analysis
Watsco, Inc.WSO
P/E 25.66×· 5Y range 17.75–47.88×· 26th percentile of history
Sector: Industrials · Industry: Wholesale-Hardware & Plumbing & Heating Equipment & Supplies
AnalystsSell23 analystsP/E 25.7× sits at the 26th percentile of its 5.0513347022587265-year history.
Cash covers 87% of debt · Q2 2026.
PMP Verdict
Mixed fundamentals, fairly valued
Strengths
- Financial Health95
- Quality90
Risks
- Growth23
Mixed picture — no clear quality or value edge.
Bull Case
- ✓Altman Z 6.4 — safe-zone balance sheet
- ✓Interest coverage 95.3× — debt well covered
What's happening with WSO
Profile
Strong financial health, earnings quality and valuation; growth lags behind.
How is each axis scored?
- Valuation77/100 · Strong
- P/E vs own history (26th pct)20/25
- FCF yield (5.7%)20/25
- P/S (1.7x)25/25
- EV/EBIT (17.9x)12/25
- Growth23/100 · Weak
- Revenue CAGR (3.6%)6/25
- Net income CAGR (4.4%)6/25
- EPS CAGR 5Y (3.2%)6/25
- Fwd implied growth (2.5%)5/25
- Profitability57/100 · Moderate
- ROIC (15.3%)20/25
- ROE (13.7%)12/25
- Net margin (6.5%)13/25
- Operating margin (9.4%)12/25
- Financial Health95/100 · Strong
- Altman Z (6.36)25/25
- Current ratio (3.20)25/25
- Interest coverage (95.3x)25/25
- Net cash / debt (D/A 1%)20/25
- Quality90/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.63)25/25
- FCF conversion (147%)25/25
- Margin stability (σ 2.1%)25/25
- Moat68/100 · Moderate
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (25.6%)6/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 4.3%)12/25
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 ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
77B+P/E (TTM)25.6xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 17.7x–47.9x · 26th pct
P/FCF16.0xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield5.7%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.8%–6.1% · 96th pct
P/S (TTM)1.67xA
Grade A: CheapPrice / TTM Revenue (own statements) — vs own 5Y history: 1.3x–3.3x · 21st pct
EV/EBIT17.9xB
Grade B: FairEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 12.3x–33.0x · 25th pct
EV/Sales1.6xA
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 Ratio3.50xC
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 Yield4.24%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio104.9%D
Grade D: UnsustainableDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
57CROIC15.3%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE13.7%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 Margin6.5%C
Grade C: AverageNet Income / Revenue
Operating Margin9.4%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin27.5%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
23ERevenue 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 Growth2.5%B
Grade B: LowAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+6.2%C
Grade C: DilutiveShare count change over 5Y
SBC / Net Income7.2%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
95A+Altman Z-Score6.36A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio3.20xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio1.45xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage95.3xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment0.1yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT0.1xA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.15xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.87xC
Grade C: PartialCash 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 Conversion146.5%A
Grade A: StrongFCF / Net Income
Margin Stability2.1%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 Turnover1.56xA
Grade A: HighRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 records| Trade 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 | Grant / award | +14.0K |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Lopez-Blazquez Ana Filed | Lopez-Blazquez Ana | Option exercise | -1000 | |
Lopez-Blazquez Ana Filed | Lopez-Blazquez Ana | Tax withholding | -707 | |
Lopez-Blazquez Ana Filed | Lopez-Blazquez Ana | Option exercise | +1.0K |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
68BROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)25.6%D
Grade D: WeakMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor4.3%C
Grade C: ModerateWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$11.53
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$11.25
Cash & short-term investments per share (Finnhub)
Book Value / Share$72.59
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$535.27M
Total debt obligations (short + long term)
Cash & Equiv.$464.19M
Cash and short-term investments
Net Debt$71.08M
Total Debt minus Cash. Negative = Net Cash position
Total Equity$3.47B
Shareholders' equity (book value)
Asset / Liability3.16xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$12.17B
Current Market Capitalization
Beta1.03B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
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 Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Watsco, Inc. (WSO)
WSO is down 1.20% at the last close. Piotroski F-Score of 6/9 indicates mixed fundamentals for Watsco, Inc.. Altman Z-Score of 6.36 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.
- Takes ~0.1 years to repay net debt from free cash flow.
- At a valuation score of 77/100, WSO trades near the cheapest end of its own historical range (P/E 25.6).
- The stock currently yields 4.2% in dividends.
See how WSO ranks on the Capex Tracker — top 50 capital spenders compared.
Earnings
View earnings calendar →Recent Earnings Results
| Date | Time | EPS Est. | EPS Actual | Surprise | Rev Est. | Rev Actual |
|---|---|---|---|---|---|---|
| Oct 15, 2026 | TBD | $4.18 | — | — | $2.2B | — |
Recent Market Moves
See all WSO moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Sep 29 | Regular | 300.25 | -4.14% | -2.81 |
Frequently Asked Questions about WSO
What is the current Watsco, Inc. (WSO) stock price?
WSO is trading at $295.91 at the last market close, down 1.20% 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 95/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is WSO stock overvalued?
Watsco, Inc. trades at a trailing P/E of 25.6 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 $295.91, down 1.20% on the day with a market capitalization of $12.2 billion. The financial health score for WSO is 95/100, 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.
- Earnings calendar: Upcoming and past earnings reports for WSO, including EPS estimates, actual results, and surprise percentages.
- 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 95/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for WSO.
- Sector peers: Compare WSO against 5 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 95/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average. Earnings data reveals whether the company is meeting or beating analyst expectations.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.