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Watsco

NYQ:WSO · US9426222009
Trading Companies & DistributorsLarge

360

71
EV / EBIT25
Price / Owner Earnings23
Owner Earnings Yield47
Dividend Yield97
Price/Sales32
EV / Gross Profit40
Price/Book13
Return on Capital90
Cash Return on Capital86
Return on Equity82
EBIT Margin69
Gross Profitability83
Cash Conversion51
Accruals58
Owner Earnings Margin78
Sales growth31
Profit Growth65
Long-Term EPS Growth4
Owner Earnings Growth28
Reinvestment30
Price momentum27
Debt load85
Refinancing51
Debt Payback100
Liquidity95
Analyst ratings11
Opinion Changes35
Price Target Upside32
Market mood65
Value Creation10/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Watsco clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryUSA
IndustryTrading Companies & Distributors
SizeLarge
TypePublic Company
ExchangeNYSE
Founded1956
Employees151
Websitewatsco.com
ISINUS9426222009
Last UpdateApr 2, 2026
Indices
S&P MIDCAP (USA)
Themes
HVAC ServicesHome ImprovementCustomer ServiceElectronicsManufacturing

Description

Watsco, Inc. and its subsidiaries (Watsco) is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (‘HVAC/R’) in the HVAC/R distribution industry in North America. At December 31, 2025, the…

Analysis

Quality compounder

Watsco, Inc. earns the quality_compounder label: good underlying economics priced fairly, with no obvious bargain or excess.

On valuation, the picture is expensive. The owner-earnings multiple stands at 30.4×; owner earnings: the cash an owner could take out each year.

Growth is tepid; the safety picture is sturdy. The company scores 10/20 on our value-creation score: creating some value.

No flags apply to this company at this time: accounts, balance sheet, and cash quality all pass. A clean bill of health is meaningful, not just the absence of a warning. This analysis describes numbers; it is not investment advice.

360° rank · history

1007550250
73
2023202420252026

All-time high

83

Sep 2024

All-time low

24

Jan 2023

Average rank

62

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
32
10
17
30
Price/Earnings
14
7
11
13
Price/Book
13
13
18
21
Dividend Yield
97
88
73
95
Value (overall)
39
16
15
25

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →