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WSO

BUY

Watsco, Inc. · Industrials · United States · $16.9B · Avg Vol: $128M/d

72
StockRank
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Q
78
V
34
M
55
P/E (TTM)
31.1x
ROE
18.6%
D/E
0.2x
Dividend %
3.2%

COMPANY DESCRIPTION

Watsco, Inc. is the largest distributor of heating, ventilation, air conditioning, and refrigeration (HVAC/R) products in North America, serving independent contractors. The company's competitive moat is its vast scale, extensive distribution network of over 600 locations, and proprietary technology platform that enhances efficiency for its customers. Watsco benefits from recurring demand for replacement parts and units, positioning it as a critical intermediary in the HVAC/R supply chain.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue7.3B7.3B7.6B7.2B-0.2%7.2B7.6B8.1B5.6%
EPS14.1712.6512.3611.44-6.9%12.1311.8212.825.8%
Shares38.8M39.5M40.4M40.6M+4.6%35.5M
Debt390.5M404.8M447.5M478.8M7.0%486.2M
Equity1.9B2.2B2.7B2.8B13.8%
Op CF572.0M562.0M773.1M569.6M-0.1%728.4M
Inv CF-33.8M-41.3M-290.7M-98.1M
Fin CF-504.0M-460.1M-158.5M-568.1M
Loading 1Y...
PRICE (1Y)+0.8%
369381393405417Jun 4Jun 26Jul 17
SMA 50SMA 200
Close
$371.91
RSI (14)
29.2
52W High
$478.96
From 52W High
0.8%

SCORE BREAKDOWN

Quality
78
ROIC
18.7%87.9
ROE
18.6%84.2
GP/Assets
45.9%92.1
Op. Margin
6.8%47.0
FCF/Assets
11.9%89.2
Piotroski
532.8
Int. Cover
50.0x87.0
D/E Ratio
0.15x69.5
Current Ratio
3.34x85.0
Value
34
P/E (TTM)
31.1x32.9
EV/EBITDA
21.3x25.4
P/FCF
32.3x39.3
P/B
5.6x16.3
P/S
2.1x38.2
Div Yield
3.2%66.3
Momentum
55
52W High %
78%57.1
RS 6M
-6%62.4
SMA 50/200
1.03x57.1
EPS Rev 4W
+0.2%87.5
EPS Rev 12W
+9.2%52.4
EPS Improve
+15%26.9
Q Growth
-1%38.1

FUNDAMENTALS

Market Cap
$16.9B
P/E (Forward)
27.1x
Gross Margin
28.0%

SECTOR PEERS

Closest peers in Industrials, ranked by industry match, size, and score similarity. Cross-listings of WSO are excluded.

TickerCompanyMkt CapStockRankSignal
WSOWatsco, Inc.(you)$16.9B72BUY
WCCWESCO International, Inc.$16.9B64HOLD
AITApplied Industrial Technologies, Inc.$12.5B81STRONG BUY
CNMCore & Main, Inc.$9.5B69BUY
FASTFastenal Company$54.1B82STRONG BUY
MSMMSC Industrial Direct Co., Inc.$6.6B92STRONG BUY
GWWW.W. Grainger, Inc.$63.9B84STRONG BUY
POOLPool Corporation$7.7B49HOLD
DXPEDXP Enterprises, Inc.$2.5B75BUY
FERGFerguson Enterprises Inc.$46.3B48HOLD

Peer medians: ROE 11.2% · P/E 29.9x · Gross margin 28.6%

Watsco, Inc. (WSO) — Stock Score Summary

Watsco, Inc. (WSO) has a MoatMap StockRank of 72/100 based on Quality (78/100), Value (34/100), and Momentum (55/100) factor scores. The current signal is BUY.

Watsco, Inc. is the largest distributor of heating, ventilation, air conditioning, and refrigeration (HVAC/R) products in North America, serving independent contractors. The company's competitive moat is its vast scale, extensive distribution network of over 600 locations, and proprietary technology platform that enhances efficiency for its customers. Watsco benefits from recurring demand for replacement parts and units, positioning it as a critical intermediary in the HVAC/R supply chain.

Key Financial Metrics

Price$371.91
Market Cap$16.9B
P/E (TTM)31.14
P/E (Forward)27.15
Price/Book5.56
Return on Equity18.6%
Return on Invested Capital18.7%
Debt/Equity0.15x
Gross Margin28.0%
Operating Margin6.8%
Revenue Growth0.1%
Dividend Yield3.2%
Free Cash Flow$524M

Watsco, Inc. operates in the Industrial Distribution industry, part of the Industrials sector (United States).

Frequently Asked Questions

What is Watsco, Inc.’s (WSO) StockRank?
MoatMap’s StockRank for Watsco, Inc. (WSO) is 72/100, with a Buy signal. It is a composite of Quality (78), Value (34), and Momentum (55) factor ranks across MoatMap’s 20,000+ stock universe.
Does Watsco, Inc. have an economic moat?
Watsco, Inc. (WSO) has a Quality factor score of 78/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Watsco, Inc. a buy, hold, or sell?
MoatMap’s current signal for Watsco, Inc. (WSO) is Buy, based on a StockRank of 72/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Watsco, Inc. in?
Watsco, Inc. (WSO) operates in the Industrials sector, specifically the Industrial Distribution industry (United States).