Watsco, Inc.
Wholesale-Hardware & Plumbing & Heating Equipment & Supplies
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
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
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2022FinancialBest year on record$601M net income
- 2022AcquisitionRevenues reach US$6 billion 2022: The company's revenues reach US$7 billion and the company was named to the Fortune…
- FY2017FinancialBecame debt-freecash now exceeds total debt
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$4.22B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 1947Founded1947: The company, Wagner Tool & Supply Corp., is founded in New York 1956: Watsco, Inc
Achievements
Verifiable track record, straight from the reported numbers.
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.
- 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 ▾Close ▴
| 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.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/WSO
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of WSO on PreMarketPriceFigures 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.