Watsco, Inc.

Wholesale-Hardware & Plumbing & Heating Equipment & Supplies

WSOStrong9 of 11 basics passed

$280.00

-0.79%

Market cap $11.6B

$280.00

-0.79%

Market cap $11.6B

Watsco is the largest HVAC and refrigeration products distributor in North America with approximately 13% market share. The company primarily operates in the United States (90% of revenue) with significant exposure in the Sunbelt states.

It is a $11.6B industrial company. Revenue shrank 3.0% over the last year, it keeps 7¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 24.1× earnings — in the cheapest third of its own history.

Website: watsco.com
Location: Coconut Grove, FL
Employees: 7 050
Sector: Industrials
Founded: 1947
Next earnings: Oct 15, 2026 · in 3d

Share price · 3 years

$399.23 → $280.00-29.9%

price only — dividends excluded

Key facts · TTM

Revenue: total sales; $7.28B
Profit: keeps 7¢ of every $1 sold; $476M
Free cash flow: cash left after running the business; $697M
Net cash: more cash than debt; $254M
P/E: years of profit in the price; 24.1
EPS: earnings per share, TTM; $11.73
Dividend: pays out 105% of profit · 72% of FCF; 4.35%
Shares: up 11% since 2016 — dilution; 40.6M
Volatility: beta vs the market — under 1 swings less; 1.02

Revenue, last 10 years

52-week range

Low $279.90$280.00High $456.86

Today's price is 0% of the way from the year's low to its high.

P/E vs its history5y

25.2×median 29.0×

Higher than 25% of past days — in the cheapest third of its own history.

Valuation vs own history

P/E

25.2×

75%

P/S

1.6×

87%

EV/EBITDA

17.3×

79%

P/B

3.3×

100%

FCF yield

6.0%

100%

Share of the last ~5 years that was pricier than today (unusually cheap vs its own history). Based on the daily valuation record.

Earnings

Next report Oct 15, 2026

Standing in Industrials

Size$11.6Btop 76%
Revenue growth-0%top 72%
Net margin7%top 71%
Return on equity17%top 57%
P/E24.1×top 40%
Dividend yield4.35%top 6%

Ranked against 130 Industrials companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Strong valuation, health and quality; Growth lags behind.

Valuation77

P/E vs own history25th pct · 20/25
FCF yield6.0% · 20/25
P/S1.6x · 25/25
EV/EBITDA15.3x · 12/25

Growth32

Revenue CAGR3.6% · 6/25
Net income CAGR4.4% · 6/25
EPS CAGR ~5Y11.8% · 20/25
Fwd implied growth-3.3% · 0/25

Profitability65

ROIC19.7% · 20/25
ROE16.8% · 20/25
Net margin6.5% · 13/25
Operating margin9.4% · 12/25

Health100

Altman Z6.13 · 25/25
Current ratio3.20 · 25/25
Interest coverage141.3x · 25/25
Net cash / debtNet cash · 25/25

Quality90

Piotroski F6/9 · 15/25
Beneish M-2.63 · 25/25
FCF conversion147% · 25/25
Margin stabilityσ 2.1% · 25/25

Moat68

ROIC >12% years10/10 yrs · 25/25
Median gross margin25.6% · 6/25
FCF-positive years10/10 yrs · 25/25
Worst-year net marginworst 4.3% · 12/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

FY2022Financial
Best year on record
$601M net income
2022Acquisition
Revenues reach US$6 billion 2022: The company's revenues reach US$7 billion and the company was named to the Fortune…
FY2017Financial
Became debt-free
cash now exceeds total debt
FY2016Financial
Profitable every year on record
10 consecutive profitable years in our data
FY2016Financial
Revenue already above $1B
$4.22B in first reported year
FY2016Financial
Positive free cash flow every year since
10-year streak
1947Founded
1947: The company, Wagner Tool & Supply Corp., is founded in New York 1956: Watsco, Inc

Achievements

Verifiable track record, straight from the reported numbers.

$10 000 invested in 2021 would be worth ~$10 116 today — price return only

$7.2B revenue in FY2025

Profitable 10 years in a row

Positive free cash flow 10 years in a row

7 050 employees

ROIC of 19.7%

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

Net cash position after subtracting debt from cash
Could repay net debt from ~0.1 years of free cash flow
Interest covered 141.3× by operating earnings
High returns on invested capital (ROIC 19.7%)
Altman Z-Score 6.13 — low bankruptcy-risk zone

Watch-outs

Revenue shrinking 3.0% year over year

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

9 of 11 checks passed

Revenue growing — the company sells more than a year ago-3.0% YoY
Profitable — makes more than it spends$476M TTM
Profit growing — earnings are higher than last year-8.0% YoY
Generates cash — cash left after running and investing$697M TTM
Debt under control — could handle its obligationsmore cash than debt
Established company — not a micro-cap — lower blow-up risk$11.6B market cap
Not printing shares — share count not ballooning — you keep your slice+5.5% shares over ~5y
Proven track record — years of profitability behind it10/10 profitable years
Financially stable — balance sheet not near distressAltman Z 6.1 — safe
Pays a dividend — returns cash to shareholdersyield 4.35%
Valuation not extreme — price not wildly above earningsP/E 24.1

Peer comparisonWatsco, Inc. vs 6 largest industrials peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
WSO this company	$11.6B	24.1	-3.0%	6.5%	Strong
LRCX Lam Research Corp	$399.2B	54.9	+26.0%	31.3%	Strong
CAT Caterpillar Inc.	$368.0B	33.9	+18.4%	14.5%	Solid
RTX RTX Corporation	$251.3B	32.4	+11.8%	8.3%	Strained
DE Deere & Company	$167.7B	34.4	+8.3%	10.2%	Solid
ETN Eaton Corporation, plc	$167.2B	43.6	+15.5%	12.8%	Mixed
UNP Union Pacific Corp.	$166.8B	22.6	+4.2%	28.8%	Strained

Head-to-head: WSO vs LRCX · WSO vs CAT · WSO vs RTX

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 2Hold 14Sell 5Strong sell 2

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Profit & lossRevenue $7.28B · net income $476M (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2025 revenue flows to profit

RevenueNet income

Revenue (TTM)

$7.28B

YoY -3.0%

Net income (TTM)

$476M

Margin 6.5%

Gross margin

27.5%

Operating margin

9.4%

P/E ratio

24.1

Dividend yield

4.35%

Income statement — full detail

Figures in USD billions · EPS in USD

	2020	2021	2022	2023	2024	2025
Revenue	5.1	6.3	7.3	7.3	7.6	7.2
Gross profit	1.2	1.7	2.0	2.0	2.0	2.0
Operating income (EBIT)	0.4	0.6	0.8	0.8	0.8	0.7
Net income	0.3	0.4	0.6	0.5	0.5	0.5
EPS (diluted)	7.01	10.78	15.00	13.00	13.00	12.25

Cash flowFree cash flow $697M · operating cash flow $733M (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

$697M

Margin 9.6%

Operating cash flow (TTM)

$733M

FCF margin

9.6%

Cash flow statement — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Operating cash flow	0.5	0.3	0.6	0.6	0.8	0.6
Capital expenditure	-0.0	-0.0	-0.0	-0.0	-0.0	-0.0
Free cash flow	0.5	0.3	0.5	0.5	0.7	0.5
FCF margin	10.2%	5.2%	7.4%	7.2%	9.8%	7.4%

Balance sheetAssets $4.41B · net cash $254M (FY2025)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $4.41B of assets is financed

37%

63%

Liabilities $1.63B — borrowed moneyEquity $2.78B — owners' stake

Cash vs debt

Total debt $479M − cash $733M = net cash $254M

Cash on hand covers all debt.

Altman Z-Score

6.13

Safe zone

Debt repayment

Not needed

Cash already covers all debt

Interest coverage

141.3x

EBIT ÷ interest expense

ROE

16.8%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Cash & equivalents	0.1	0.1	0.1	0.2	0.8	0.7
Total assets	2.5	3.1	3.5	3.7	4.5	4.4
Total liabilities	1.0	1.4	1.6	1.5	1.8	1.6
Total debt	0.2	0.4	0.3	0.4	0.4	0.5
Equity	1.5	1.7	1.9	2.2	2.7	2.8
Net debt	0.1	0.3	0.2	0.2	-0.3	-0.3

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of WSO on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $280.00 · market cap $11.6B.