Watsco Inc (WSO)
Fair ValueFundamental
74
Price
$322.98
Market Cap
$12.58B
Part 1 · What the company is worth
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.
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Direct competitors
Who this company fights with for the same customers
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No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$7.28B
Trailing 12 months (through 6/30/2026)
Net Income
$476M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$535M
Total Equity
$2.78B
Total Liabilities
$1.19B
Current Ratio
3.20
Interest Coverage
35.05
Debt/EBITDA
0.70
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$350.97
Current Price
$322.98
Margin of Safety
+8.0%
Fair Value Range
$265.37 - $436.58
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
27.68
ROE
17.9%
P/B Ratio
3.74
P/FCF
16.07
Gross Margin
27.5%
ROIC
13.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
13.5%
WACC
9.8%
ROIC − WACC
+3.7 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (18)
- EPS shows upward trend
- EPS CAGR 10.96%
- Price CAGR 7.14%
- ROIC 13.5%
- P/FCF 16.07
- Debt/equity ratio
- Operating margin 9.4%
- Positive free cash flow
- CapEx intensity
- Current ratio
- Interest coverage
- Debt/EBITDA
- Return on tangible assets
- ROE 16.8%
- Revenue growth 5Y 7.5%
- Earnings quality (operating cash flow / net income) 1.54
- Share dilution 0.6%
- Piotroski F-Score 7/9
Failed (8)
- Gross margin 27.5%
- P/B ratio 3.74
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings surprise, average -4.8%
- PEG ratio 2.23
- Net margin trend 6.5% vs 7.1%
Unavailable (1)
- Dividend payout –
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Albert H. Nahmad | Chairman & CEO | 84 |
| Mr. Aaron J. Nahmad | Co-Vice Chairman & President | 44 |
| Ms. Ana M. Menendez CPA | CFO & Treasurer | 60 |
| Mr. Barry S. Logan CPA | Executive VP of Planning & Strategy, Secretary and Director | 62 |
| Mr. Steven Rupp | Chief Technology Officer | - |
| Mr. Rick Gomez | Vice President of Corporate Development | - |
| Mr. Paul W. Johnston | Executive Vice President | 72 |
Audit Risk
3
Board Risk
8
Compensation Risk
4
Shareholder Rights Risk
10
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-27
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-07
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-10-14
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much WSO moves, measured on its daily prices.
More volatile than 59% of the tracked stocks (90-day volatility).
- Volatility 30d
- 33.8%
- Volatility 90d
- 39.6%
- Beta vs S&P 500 (1y)
- 1.05Correlation 0.38
- Max drawdown (12m)
- -38.7%
- ATR (14d, % of price)
- 3.07%
Earnings reactions
How WSO moved around its past quarterly results.
Next earnings release
Oct 27, 2026 · In 3 days · Before the open
EPS estimate: 4.18Revenue estimate: $2.2B
What usually happens
- Over the last 12 releases the stock moved a median of 4.6% the next day, up or down.
- Next-day moves: up 4, down 8 (out of 12).
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Jul 29, 2026 | Before the open | 4.48 | 4.00 | -10.7% | -6.6% | -12.9% | -8.8% |
| Apr 28, 2026 | Before the open | 1.71 | 1.87 | +9.3% | +0.5% | -4.0% | -9.2% |
| Feb 17, 2026 | Before the open | 1.90 | 1.68 | -11.6% | -0.1% | +1.2% | -1.5% |
| Oct 29, 2025 | Before the open | 4.24 | 3.98 | -6.1% | +0.9% | +2.8% | 0.0% |
| Jul 30, 2025 | Before the open | n/a | n/a | n/a | -1.3% | -4.8% | -7.9% |
| Apr 23, 2025 | Before the open | n/a | n/a | n/a | -6.1% | -11.3% | -9.5% |
| Feb 18, 2025 | Before the open | n/a | n/a | n/a | +7.5% | +9.7% | +3.6% |
| Oct 23, 2024 | Before the open | n/a | n/a | n/a | -6.2% | -3.8% | -2.3% |
| Jul 30, 2024 | Before the open | n/a | n/a | n/a | -3.0% | -4.5% | -8.4% |
| Apr 24, 2024 | Before the open | n/a | n/a | n/a | +2.2% | +6.5% | +8.3% |
| Feb 13, 2024 | Before the open | n/a | n/a | n/a | -8.1% | -6.4% | -7.9% |
| Oct 19, 2023 | Before the open | n/a | n/a | n/a | -2.2% | -3.9% | -7.5% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on WSO and what the price did next.
- 4/16/2026PositiveWall Street's Most Accurate Analysts Weigh In On 3 Industrials Stocks With Over 3% Dividend Yields
- +1 day
- +1.2%
- +3 days
- +4.1%
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for WSO.
- 4/16/2026POSITIVEWall Street's Most Accurate Analysts Weigh In On 3 Industrials Stocks With Over 3% Dividend Yields
In volatile market conditions, investors are increasingly seeking dividend-yielding stocks from companies demonstrating robust cash flow. Benzinga's analyst team has identified three industrial stocks with dividend yields exceeding 3%. These include The Warner & Swasey Company (WSO) at 3.17%, Koppers Inc. (KFY) at 3.42%, and Automatic Data Processing, Inc. (ADP) at 3.45%. This focus on dividend yield suggests a defensive strategy, potentially attracting income-focused investors and signaling stability in these companies' operations.