WSO-B
WATSCO INC
Next earnings Jul 28, 2026 · consensus $4.45 EPS, $2.16B rev
Last earnings +0.0% on 2026-04-28
$350.00
▲ 0.00%$350.00▼ -19.74%
over 1Y
L $333.14EODHDH $453.37
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+0.0%
1W+0.0%
1M-13.3%
3M-4.1%
YTD+5.1%
1Y-19.7%
Hold
Conviction
Horizon
Long (>12mo)
12-mo target
$•••
Street · 22 analysts
Hold
Best-in-class HVAC distributor with 17.9% ROE and a fat dividend, but declining revenue and a 28.6x P/E say hold.
Revenue $7.24B · FY2025
The read
Middling fundamentals and a rich price (~70% above fair value) leave little margin of safety — a wait-and-see.
Watsco is the leading distributor of HVAC equipment and supplies in North America, and the franchise quality shows in the ratios: a 17.9% return on equity, 28.0% gross margin and an asset-light model that needs only $34.5M of capex on $7.24B of revenue. The balance sheet is pristine — current assets of $2.95B dwarf current liabilities of $718M, and equity grew 4.7% to $2.78B. This is a steady cash machine that returns most of it to shareholders: dividends rose 11.9% to $474M in FY2025, nearly matching net income.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $6.28B | $7.27B | $7.28B | $7.62B | $7.24B |
| Gross profit | $1.67B | $2.03B | $1.99B | $2.04B | $2.03B |
| Operating income | $629M | $832M | $795M | $782M | $720M |
| Net income | $419M | $601M | $536M | $536M | $497M |
| Diluted EPS | $10.78 | $15.41 | $13.67 | $13.30 | $12.25 |
| Net margin | 6.7% | 8.3% | 7.4% | 7.0% | 6.9% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value—
EV / EBITDA—
EV / Sales—
EV / FCF—
P / FCF—
PEG (trailing)—
Earnings yield—
FCF yield—
Quality & risk
ROIC (est.)18.8%
Free cash flow$535M
Total debt$246M
Net cash$187M
Piotroski F-Score6/8
Capital returns
Buyback yield—
Dividend yield (est.)—
Shareholder yield—
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsSome governance/structural items recently, but no outright red flags.
Recent filings
all on EDGAR ↗8-K/APeriod ending 2026-04-232026-06-04open ↗8-KPeriod ending 2026-06-042026-06-04open ↗424B7Filing2026-06-04open ↗8-KPeriod ending 2026-06-012026-06-03open ↗SCHEDULE 13G/AFiling2026-05-14open ↗SCHEDULE 13GFiling2026-05-14open ↗10-QPeriod ending 2026-03-312026-05-08open ↗SCHEDULE 13GFiling2026-04-30open ↗8-KPeriod ending 2026-04-232026-04-29open ↗SCHEDULE 13GFiling2026-04-29open ↗8-KPeriod ending 2026-04-282026-04-28open ↗DEF 14APeriod ending 2026-06-012026-04-24open ↗
Frequently asked
- Is WATSCO INC (WSO-B) a buy?
- WSO-B currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Best-in-class HVAC distributor with 17.9% ROE and a fat dividend, but declining revenue and a 28.6x P/E say hold.
- What is WSO-B's fair value?
- A Modified-Graham model based on WSO-B's SEC fundamentals estimates a fair value of about $104.13. It is an estimate from reported earnings, not a price target.
- Is WSO-B overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, WSO-B currently appears overvalued relative to its SEC-grounded earnings power.
- What is WATSCO INC's quality score?
- WSO-B scores 60.509803921568626/100 (grade C+) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0000105016, latest 10-Q filed 2026-05-08) · EODHD · analysis by claude-code · as of 6/21/2026, 8:45:09 PM.
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