Watsco, Inc.

Valuation Analysis

About the Company

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 r

Watsco, Inc. Stock at a Glance

Watsco, Inc. (WSO) is currently trading at $380.46 with a market capitalization of $15.7B. The trailing P/E ratio stands at 31.26x, with a forward P/E of 27.39x. The 52-week range spans from $323.05 to $494.94; the current price is 23.1% below the yearly high. Year-over-year revenue growth stands at +0.1%. The net profit margin stands at 6.85%.

💰 Dividend

Watsco, Inc. pays an annual dividend of $13.20 per share, representing a yield of 3.47%. The payout ratio stands at 98.44%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

9 analysts rate Watsco, Inc. (WSO) on consensus: None. The average price target is $424.67, implying +11.62% from the current price. Analyst price targets range from $370.00 to $485.00.

Watsco, Inc.: The Investment Case in Detail

Watsco, Inc. (WSO) operates in the Industrials — specifically Industrial Distribution — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bear Case

Revenue growth has slowed to just 0.1%, which is below nominal GDP — the business is no longer outgrowing the broader economy.

What to Watch Next

• The forward P/E of 27.39x is meaningfully below the trailing 31.26x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to market-like volatility.

Trading Data

💵 Dividend Info

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