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Watsco, Inc. WSO R3K

Industrials · Industrial Distribution · United States
https://www.watsco.com
Company Profile ↓
$304.20
-21.76% 1Y
Mkt Cap$10.81B
P/E27.06
P/B4.21
Div. Yield4.11%
52W High$452.97
52W Low$302.29
Book Value$78.40
EPS (TTM)$11.24

Company Overview

Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. It distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. The company also offers parts comprising 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. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.

Why Investors Should Care

Strong Return on Equity

Generates a return on equity of 16.7%, reflecting efficient use of shareholder capital.

Healthy Capital Returns

Return on capital employed stands at 18.7%.

Consistent Profit Growth

Net profit has compounded at 14.1% per year over the last five years.

Conservative Balance Sheet

Carries low leverage with a debt-to-equity ratio of 0.15.

Dividend Income

Offers a dividend yield of 4.11%.

Positive Free Cash Flow

Generates positive free cash flow, funding growth and shareholder returns internally.

Recent Developments

  • Dec 2025 Revenue of $7.24B (-5.0% YoY); net profit $496.99M.
  • Trailing 12 Months Year-on-year growth — revenue +2.1%, earnings -11.7%.
  • 5-Year Trend Long-term compounding — revenue CAGR 9.5%, profit CAGR 14.1%.

Growth & Price Performance

Compounded Sales Growth

5 Years:9.48%
1 Year:2.10%

Compounded Profit Growth

5 Years:14.08%
1 Year:-11.70%

Stock Price Performance

1 Year:-21.76%
6 Months:-19.02%
3 Months:-21.16%
1 Month:-2.46%

Highlights auto-generated from reported financials and price data; not investment advice. Verify with official filings before acting.

Technical Snapshot Bearish
52-Week Range 1% of range
$302.29 $452.97
Trend Signals
  • Price vs 50-DMABelow
  • Price vs 200-DMABelow
  • RSI (14)39.11 · Neutral
Price Performance
1M-2.46%
3M-21.16%
6M-19.02%
1Y-21.76%
Valuation vs Sector

P/E of 27.06 is above the sector median of 26.00 — pricier than peers.

Auto-generated from price history and fundamentals; not investment advice.

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Price Chart

Robinhood TradingView

Fundamental Growth Charts

Interactive charts for Revenue, Net Income, EBITDA, Free Cash Flow, EPS, ROE, ROCE, Gross/Net/Operating Margin and more — switch metric and period using the dropdowns above. CAGR is computed across the displayed window (quarterly CAGR is annualised). Visual growth charts make it easy to spot multi-year compounding trends at a glance — far faster than reading raw numbers in a table.

PROS

  • Profit CAGR of 14.1% over 5 years.
  • Attractive dividend yield of 4.11%.
  • Generates positive free cash flow.

CONS

  • Trading 32.8% below its 52-week high.
  • In a downtrend (50-DMA below 200-DMA).

* The pros and cons are auto-generated from financial metrics.

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Valuation

Stock P/E
27.06
Industry PE
26.00
Forward P/E
22.72
PEG Ratio
1.40
Book Value
$78.40
Price to Book
4.21
P/S
1.87
EV/EBITDA
18.75
Dividend Yield
4.11%

Growth (CAGR)

Revenue 5Y
9.48%
Profit 5Y
14.08%
Revenue (YoY)
2.10%
Earnings (YoY)
-11.70%

Profitability & Returns

ROCE
18.73%
ROE
16.74%
ROA
8.37%
Profit Margin
6.53%
Op Margin
11.32%
Gross Margin
27.51%
EPS (Latest Qtr)
$3.71
EPS (TTM)
$11.24

Balance Sheet & Liquidity

Debt/Equity
0.15
Quick Ratio
1.41
Current Ratio
3.20
Debt
$526.20M
Total Assets
$5.08B
Current Assets
$3.18B
Working Capital
$2.24B

Ownership

Promoter Holding
0.38%
Chg in Prom Hold
-0.01%
FII / Inst Holding
110.07%
Chg in FII Hold
-0.02%

Financial Snapshot

Enterprise Value
$10.81B
Total Revenue (TTM)
$7.28B
EBITDA
$701.27M
Free Cash Flow
$483.48M
Operating Cash Flow
$733.26M
Shares Outstanding
35.53M
Gross Margin
27.51%
Payout Ratio
109.57%

Peer comparison

Peer companies in the same sector (Industrials).

#NameCMP $P/E Mkt CapDiv Yld % ROCE %ROE % Rev CAGR 5Y %Profit CAGR 5Y %
1 WSO Watsco, Inc. R3K 304.20 27.06 $10.81B 4.11% 18.73% 16.74% 9.48% 14.08%
2 SPCX Space Exploration Technologies Corp. R3KAIDEFENCE 143.49 -130.45 $1.09T 0.00% -3.22% -11.95% 34.08% -3.34%
3 CAT Caterpillar Inc. SPXR3K 782.72 33.75 $359.80B 0.79% 17.98% 56.97% 2.29% 5.24%
4 GE GE Aerospace SPXR3KDEFENCE 312.90 36.99 $324.65B 0.50% 9.52% 48.23% -7.42% -5.36%
5 RTX RTX Corporation SPXR3KDEFENCE 196.83 34.71 $265.28B 1.31% 8.28% 12.27% 2.61% 2.62%
6 GEV GE Vernova Inc. SPXR3KAI 882.81 25.29 $235.12B 0.20% 6.30% 82.58% 8.68% -
7 DE Deere & Company SPXR3K 669.47 37.25 $180.51B 0.95% 12.53% 18.24% 3.43% 5.10%
8 UNP Union Pacific Corporation SPXR3K 280.92 22.93 $166.89B 1.92% 15.22% 39.70% 2.30% 7.77%
9 BA The Boeing Company SPXR3KDEFENCE 201.96 72.65 $159.51B 0.00% -9.01% - 1.67% -3.28%
Financial Statements Quarterly Results · Profit & Loss · Balance Sheet · Cash Flows · Ratios

Quarterly Results

Figures in USD.

Metric Dec 2015Mar 2016Jun 2016Sep 2016Dec 2016Mar 2017Jun 2017Sep 2017Dec 2017Mar 2018Jun 2018Sep 2018Dec 2018Mar 2019Jun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021Mar 2022Jun 2022Sep 2022Mar 2023Jun 2023Sep 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue 903.82M851.42M1.21B1.24B913.61M872.10M1.28B1.23B964.35M926.58M1.33B1.30B991.33M931.28M1.37B1.39B1.07B1.01B1.36B1.54B1.15B1.14B1.85B1.78B1.52B2.13B2.04B1.55B2.00B2.13B1.56B2.14B2.16B-1.53B2.06B2.07B1.58B1.53B-
Cost of Revenue ----------------------------------1.10B1.46B1.50B1.15B1.11B-
Gross Profit 222.04M212.45M291.86M302.20M228.07M218.56M310.28M295.89M240.93M230.83M320.77M319.01M249.64M233.76M327.98M334.69M260.52M247.62M319.20M373.76M282.24M294.82M477.94M482.66M450.36M595.53M550.85M448.16M562.62M566.95M430.62M579.76M566.24M-429.62M603.49M568.91M428.44M427.56M-
Operating Expenses ----------------------------------322.58M331.62M343.65M332.64M322.85M-
Operating Income -50.67M117.59M119.30M-48.70M129.35M114.46M-53.94M137.35M122.30M-55.13M134.40M125.32M-45.24M129.25M156.78M-81.88M216.78M206.80M171.05M287.10M236.25M164.74M265.70M256.62M126.54M268.80M250.25M-107.04M271.87M225.26M95.79M104.70M-
EBITDA ----------------------------------117.82M282.78M236.25M106.86M115.72M-
Interest Expense ----------------------------------------
Pretax Income ----------------------------------117.61M274.20M238.50M107.38M116.64M-
Tax Provision ----------------------------------23.07M57.43M49.27M20.33M23.70M-
Net Income 26.49M25.54M64.62M63.10M29.55M26.18M73.76M65.03M43.26M34.22M89.96M79.16M39.59M35.04M90.16M83.48M37.28M30.50M86.58M106.49M46.01M55.09M144.10M140.87M113.30M192.56M157.64M110.07M172.76M170.95M87.00M181.41M171.03M-80.06M183.61M161.57M71.75M79.07M-
Diluted EPS 0.750.711.821.780.810.712.071.821.190.892.402.111.020.882.402.200.920.722.262.761.141.393.713.622.904.934.032.834.424.352.174.494.22--4.233.721.571.753.71

Profit & Loss (Annual)

Figures in USD.

Metric Dec 2008Dec 2009Dec 2010Dec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Revenue 1.70B2.00B2.84B2.98B3.43B3.74B3.94B4.11B4.22B4.34B4.55B4.77B5.05B-7.27B7.28B7.62B7.24B
Cost of Revenue --------------5.24B5.29B5.57B5.21B
Gross Profit 441.99M480.83M673.24M728.29M814.39M899.25M956.40M1.01B1.03B1.07B1.12B1.16B1.22B-2.03B1.99B2.04B2.03B
Operating Expenses --------------1.22B1.22B1.29B1.34B
Operating Income 98.61M81.06M165.57M199.05M224.91M271.21M305.75M336.75M345.63M353.87M372.08M366.88M401.03M-808.91M768.63M751.27M692.58M
EBITDA --------------840.59M803.72M792.10M736.33M
Interest Expense -------------996.00K2.17M4.92M--
Pretax Income --------------829.41M789.89M802.64M737.68M
Tax Provision --------------125.72M155.75M166.90M150.09M
Net Income 60.37M43.31M80.76M90.45M103.33M127.72M151.39M172.93M182.81M208.22M242.93M245.95M269.58M-601.17M536.34M536.29M496.99M
Diluted EPS 2.091.402.492.742.703.684.324.905.155.816.496.507.01-14.1712.6512.3611.44

Balance Sheet (Annual)

Figures in USD.

Metric Dec 2007Dec 2008Dec 2009Dec 2010Dec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Total Assets --1.16B1.24B1.27B1.68B1.67B1.79B1.79B1.87B2.05B2.16B2.56B2.48B-3.49B3.73B4.48B4.41B
Current Assets ---------------2.30B2.39B3.08B2.95B
Cash & Equivalents 9.40M41.44M58.09M126.50M15.67M73.77M19.48M24.45M35.23M56.01M80.50M82.89M74.45M146.07M-147.50M210.11M526.27M433.28M
Inventory ---------------1.37B1.35B1.39B1.39B
Receivables ---------------747.11M797.83M877.93M796.18M
Total Liabilities ---------------1.24B1.11B1.42B1.19B
Current Liabilities --223.93M266.00M223.04M282.36M243.51M287.02M270.30M314.89M416.48M357.57M461.72M487.14M-906.52M712.01M983.90M717.74M
Long Term Debt --13.43M10.02M-316.20M230.56M303.88M245.81M-----89.00M-15.40M--
Total Debt ---------------390.53M404.79M447.46M478.79M
Total Equity 549.96M570.66M738.03M764.46M802.79M748.21M840.40M883.96M957.31M1.01B1.30B1.35B1.44B1.49B-1.89B2.23B2.66B2.78B
Shares Outstanding ---------------43.67M44.32M44.44M44.64M

Cash Flows (Annual)

Figures in USD.

Metric Dec 2008Dec 2009Dec 2010Dec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Operating Cash Flow 113.47M88.29M152.80M61.45M173.34M150.27M--281.73M306.52M170.56M335.77M534.38M-571.96M561.95M773.10M569.61M
Investing Cash Flow -3.67M-15.50M-10.13M-56.64M-92.29M-14.26M---42.83M-81.31M-26.31M-81.04M-16.34M--33.84M-41.34M-290.67M-98.12M
Financing Cash Flow -77.76M-56.13M-74.26M-115.63M-23.08M-189.05M---217.89M-202.15M-139.60M-264.02M-448.49M--503.96M-460.08M-158.53M-568.12M
Capital Expenditure -3.97M-5.91M-8.42M-13.93M-12.32M-14.58M-21.51M-23.70M-43.58M-17.88M-17.15M-17.80M-16.44M--35.65M-35.48M-30.09M-34.55M
Free Cash Flow 109.50M82.38M144.38M47.53M161.03M135.69M--238.15M288.64M153.40M317.97M517.94M-536.31M526.48M743.01M535.06M
Net Change in Cash --------------34.17M60.53M323.90M-96.62M
Share Buybacks 4.82M-----------------

Ratios (Annual)

Figures in %.

Metric Dec 2008Dec 2009Dec 2010Dec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Gross Margin % 26.0%24.0%23.7%24.5%23.7%24.0%24.2%24.5%24.5%24.5%24.6%24.3%24.2%-27.9%27.4%26.8%28.0%
Operating Margin % 5.8%4.0%5.8%6.7%6.6%7.2%7.8%8.2%8.2%8.2%8.2%7.7%7.9%-11.1%10.6%9.9%9.6%
Net Margin % 3.6%2.2%2.8%3.0%3.0%3.4%3.8%4.2%4.3%4.8%5.3%5.2%5.3%-8.3%7.4%7.0%6.9%
ROE % 10.6%5.9%10.6%11.3%13.8%15.2%17.1%18.1%18.2%16.0%18.0%17.1%18.1%-31.8%24.1%20.2%17.9%
ROCE % -8.7%17.0%19.0%16.1%19.0%20.3%22.2%22.2%21.7%20.6%17.5%20.1%-31.3%25.5%21.5%18.7%

Shareholding Pattern

Insiders
0.38%
Institutions
110.07%
Public Float
110.50%

Top Institutional Holders

#Holder% HeldSharesValue
1 Blackrock Inc. 11.78% 4.19M $1.30B
2 Capital International Investors 9.79% 3.49M $1.08B
3 Capital Research Global Investors 5.35% 1.90M $591.14M
4 Vanguard Portfolio Management LLC 4.97% 1.77M $550.21M
5 FMR, LLC 4.79% 1.71M $529.93M
6 Vanguard Capital Management LLC 4.44% 1.58M $490.76M
7 Charles Schwab Investment Management, Inc. 4.10% 1.46M $453.64M
8 State Street Corporation 3.72% 1.32M $411.14M
9 Kayne Anderson Rudnick Investment Management LLC 3.19% 1.13M $352.51M
10 BAILLIE GIFFORD & CO 3.17% 1.13M $351.01M

Analyst View

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Latest News

Recent headlines for WSO

Google News Wed, 16 Sep 2026

Spotting Winners: Watsco (NYSE:WSO) And Industrial Distributors Stocks In Q2 - Yahoo Finance

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Google News Wed, 16 Sep 2026

Is Watsco (WSO) Undervalued On Its Granite Group Deal? - simplywall.st

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Google News Mon, 14 Sep 2026

A plumbing supplier with about $500 million in sales is expected to be acquired by Watsco. - Stock Titan

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Google News ue, 15 Sep 2026

Will Watsco's Granite Group Deal Strengthen Its Plumbing Market Reach? - TradingView

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Google News Sun, 13 Sep 2026

Q2 Earnings Highlights: Core & Main (NYSE:CNM) Vs The Rest Of The Industrial Distributors Stocks - StockStory

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Google News Wed, 09 Sep 2026

Why (WSO) Price Action Is Critical for Tactical Trading - Stock Traders Daily

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WSO — Frequently Asked Questions

What is the current share price of Watsco, Inc. (WSO)?

As of 2026-09-16 18:39 PDT, Watsco, Inc. (WSO) trades at $304.20 on NYSE. Its 52-week range is $302.29 to $452.97.

What is the market capitalisation of WSO?

Watsco, Inc. (WSO) has a market capitalisation of $10.81B on NYSE.

What is the P/E ratio of WSO?

WSO trades at a trailing price-to-earnings (P/E) ratio of 27.06. The industry average P/E is 26.00. Its price-to-book (P/B) ratio is 4.21.

Does WSO pay a dividend?

Watsco, Inc. (WSO) currently offers a dividend yield of 4.11%.

What is the return on equity (ROE) of WSO?

WSO has a return on equity (ROE) of 16.74%. Its return on capital employed (ROCE) is 18.73%.

Is WSO a good stock to buy?

This page provides a data-driven analysis of Watsco, Inc. (WSO), including valuation ratios, profitability, growth trends, auto-generated pros and cons, peer comparison and AI exposure. Review these fundamentals alongside your own research and risk tolerance. This is informational content, not investment advice.

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