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WSO

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Watsco, Inc. · Industrials · United States · $12.8B · Avg Vol: $173M/d

50
StockRank
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Q
78
V
40
M
27
P/E (TTM)
27.0x
ROE
16.7%
D/E
0.2x
Dividend %
3.9%

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%7.3B7.6B8.0B4.9%
EPS14.1712.6512.3611.44-6.9%11.6711.3712.363.9%
Shares38.8M39.5M40.4M40.6M+4.6%35.6M
Debt390.5M404.8M447.5M478.8M7.0%535.3M
Equity1.9B2.2B2.7B2.8B13.8%
Op CF572.0M562.0M773.1M569.6M-0.1%733.3M
Inv CF-33.8M-41.3M-290.7M-98.1M
Fin CF-504.0M-460.1M-158.5M-568.1M
Loading 1Y...
PRICE (1Y)-1.3%
302310319327335Jul 29Aug 19Sep 9
SMA 50SMA 200

Close
$315.76
RSI (14)
46.3
52W High
$455.09
From 52W High
0.7%

SCORE BREAKDOWN

Quality
78
ROIC
18.7%85.3
ROE
16.7%79.7
GP/Assets
45.4%90.9
Op. Margin
10.9%63.5
FCF/Assets
11.9%89.2
Piotroski
534.1
Int. Cover
50.0x88.3
D/E Ratio
0.15x68.0
Current Ratio
3.20x84.0
Value
40
P/E (TTM)
27.0x36.1
EV/EBITDA
18.1x31.5
P/FCF
24.5x44.4
P/B
4.1x24.7
P/S
1.8x44.5
Div Yield
3.9%78.0
Momentum
27
52W High %
69%39.5
RS 6M
-29%23.7
SMA 50/200
0.92x30.5
EPS Rev 4W
-0.9%11.9
EPS Rev 12W
-4.4%13.0
EPS Improve
+14%28.0
Q Growth
-11%27.4

FUNDAMENTALS

Market Cap
$12.8B
P/E (Forward)
23.7x
Gross Margin
27.5%

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)$12.8B50Hold
WCCWESCO International, Inc.$16.4B58Hold
POOLPool Corporation$6.8B45Hold
CNMCore & Main, Inc.$8.3B63Hold
FERGFerguson Enterprises Inc.$44.2B46Hold
AITApplied Industrial Technologies, Inc.$11.8B80Strong Buy
DNOWDNOW Inc.$2.9B47Hold
SITESiteOne Landscape Supply, Inc.$4.2B39Hold
XMTRXometry, Inc.$5.4B32Sell
MSMMSC Industrial Direct Co., Inc.$7.0B80Buy

Peer medians: ROE 8.8% · P/E 27.6x · Gross margin 29.4%

Watsco, Inc. (WSO): Stock Score Summary

Watsco, Inc. (WSO) has a MoatMap StockRank of 50/100 based on Quality (78/100), Value (40/100), and Momentum (27/100) factor scores. The current signal is HOLD.

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$315.76
Market Cap$12.8B
P/E (TTM)27.00
P/E (Forward)23.74
Price/Book4.06
Return on Equity16.7%
Return on Invested Capital18.7%
Debt/Equity0.15x
Gross Margin27.5%
Operating Margin10.9%
Revenue Growth2.1%
Dividend Yield3.9%
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 50/100, with a Hold signal. It is a composite of Quality (78), Value (40), and Momentum (27) factor ranks across MoatMap’s universe of 25,000+ stocks.
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 Hold, based on a StockRank of 50/100. 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).