Watsco is the largest player in the fragmented heating, ventilation, air conditioning, and refrigeration distribution industry with a mid- to high-teens percentage market share. The company mostly operates in the United States (about 90% of sales) with an outsize presence in the Sunbelt states.
Watsco will continue to effectively employ its "buy and build" strategy to consolidate the HVAC distribution market and compound cash flow.
Watsco's revenue growth could slow amid a maturing residential HVAC replacement cycle and greater economic uncertainty.
|
Metric
|
WSO
|
CARR
|
FERG
|
|---|---|---|---|
Price/Earnings (Normalized) | 29.42 | 20.06 | 21.94 |
Price/Book Value | 7.12 | 5.30 | 7.85 |
Price/Sales | 2.02 | 2.11 | 1.46 |
Price/Cash Flow | 21.54 | 23.46 | 19.01 |
|
Metric
|
WSO
|
CARR
|
FERG
|
|---|---|---|---|
Quick Ratio | 1.42 | 1.86 | 0.78 |
Current Ratio | 3.36 | 2.73 | 1.80 |
Interest Coverage | 161.55 | 6.34 | 13.44 |
|
Metric
|
WSO
|
CARR
|
FERG
|
|---|---|---|---|
Return on Assets (Normalized) | 17.17% | 8.43% | 12.20% |
Return on Equity (Normalized) | 31.92% | 28.60% | 37.79% |
Return on Invested Capital (Normalized) | 22.35% | 13.13% | 19.98% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
GWW
| W.W. Grainger Inc | Cvyyxwndq | Mstzf | $46.1 Bil | |
FERG
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FAST
| Fastenal Co | Mbnmggckq | Rlbq | $39.2 Bil | |
WSO.B
| Watsco Inc Shs -B- Conv.at any time | — | Fwqyqkp | $16.0 Bil | |
POOL
| Pool Corp | — | Pwsvkxg | $14.0 Bil | |
CNM
| Core & Main Inc Class A | — | Qgkkpv | $10.5 Bil | |
IDDWF
| Indutrade AB | — | Xwygf | $9.1 Bil | |
WCC
| WESCO International Inc | Cmgbqcwn | Ycwqcq | $7.8 Bil | |
MSM
| MSC Industrial Direct Co Inc Class A | Vckdpdd | Ytpnd | $5.1 Bil |
