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Watsco Inc Class A WSO

Morningstar Rating
$502.47 −17.42 (3.35%)
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Company Report

Price vs Fair Value

WSO is trading at a 482% premium.
Price
$519.89
Fair Value
$764.00
Uncertainty
Medium
1-Star Price
$318.13
5-Star Price
$142.50
Economic Moat
Kjptyb
Capital Allocation
Wnptsqhlx

Bulls Say, Bears Say

Bulls

Watsco will continue to effectively employ its "buy and build" strategy to consolidate the HVAC distribution market and compound cash flow.

Bears

Watsco's revenue growth could slow amid a maturing residential HVAC replacement cycle and greater economic uncertainty.

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News

Trading Information

Previous Close Price
$519.89
Day Range
$502.41517.17
52-Week Range
$337.58520.41
Bid/Ask
$395.30 / $515.01
Market Cap
$20.25 Bil
Volume/Avg
296,639 / 288,236

Key Statistics

Price/Earnings (Normalized)
39.99
Price/Sales
2.61
Dividend Yield (Trailing)
1.98%
Dividend Yield (Forward)
2.08%
Total Yield
1.98%

Company Profile

Watsco is the largest heating, ventilation, air conditioning, and refrigeration products distributor in North America. The company primarily operates in the United States (90% of 2023 revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada (5% of sales) and Latin America (5% of sales). The company's customer base consists of more than 125,000 contractors that serve the replacement and new construction HVACR markets for residential and light commercial applications.
Sector
Industrials
Industry
Industrial Distribution
Stock Style Box
Mid Core
Total Number of Employees
7,425

Competitors

Valuation

Metric
WSO
FERG
CARR
Price/Earnings (Normalized)
39.9922.7724.69
Price/Book Value
8.137.915.45
Price/Sales
2.611.492.64
Price/Cash Flow
29.0619.6328.17
Price/Earnings
WSO
FERG
CARR

Financial Strength

Metric
WSO
FERG
CARR
Quick Ratio
1.280.760.55
Current Ratio
2.921.681.36
Interest Coverage
412.3214.534.76
Quick Ratio
WSO
FERG
CARR

Profitability

Metric
WSO
FERG
CARR
Return on Assets (Normalized)
15.81%12.12%8.02%
Return on Equity (Normalized)
28.93%37.05%27.54%
Return on Invested Capital (Normalized)
20.47%19.85%12.64%
Return on Assets
WSO
FERG
CARR
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Watsco Inc Shs -B- Conv.at any time
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