Stock AnalizWatsco Inc. WSO
Industrial Machinery/Components · data as of November 13, 2026
Watsco Inc. (WSO) is a consumer discretionary company listed in the US with a market value of about $12.8B. In the twelve months to September 30, 2026 it had revenue of $7.4B and net income of $439M, a net margin of 5.9%.
Its overall Stock Analiz score is 3.0 out of 5 (average). The strongest part is financial health (5/5); the weakest is future growth (0/5).
Key numbers: a P/E of 27.0, a price to free cash flow of 19.1, 5-year revenue growth of 7% a year, a 5-year average ROIC of 21%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 9% below the current price.
Score: 3.0 / 5
Checks passed
- P/FCF below 20
- 5-year EPS growth above 10% a year
- 5-year average ROIC above 12%
- Profitable 5 years in a row
- ROE above 15%
- More cash than debt, or low debt to equity
- Positive free cash flow
- Interest covered more than 5 times
Checks not passed
- P/E below 25
- P/E below the industry median
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $7.4B | $7.2B | $7.6B | $7.3B | $7.3B | $6.3B | $5.1B | $4.8B | $4.5B | $4.3B | $4.2B |
| Net income | $439M | $497M | $536M | $536M | $601M | $419M | $270M | $246M | $243M | $208M | $183M |
| Free cash flow | $666M | $535M | $743M | $526M | $536M | $324M | $518M | $318M | $153M | $289M | $238M |
| EPS (diluted) | $11.41 | $12.25 | $13.30 | $13.67 | $15.41 | $10.78 | $7.01 | $6.50 | $6.49 | $5.81 | $5.15 |
| Net margin | 5.9% | 6.9% | 7.0% | 7.4% | 8.3% | 6.7% | 5.3% | 5.2% | 5.3% | 4.8% | 4.3% |
| ROIC | — | 15.4% | 17.5% | 21.2% | 27.8% | 21.7% | 19.0% | 14.7% | 20.1% | 19.8% | 19.2% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 10 analysts is $347.70, 13% above the current price; targets range from $315.00 to $441.00; the consensus rating is “Hold”; expected EPS is $11.50 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Watsco’s P/E ratio?
About 27.0, based on the last twelve months of diluted earnings per share (forward P/E about 30.1).
Is Watsco stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 9% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Watsco pay a dividend?
Yes. The dividend yield is about 4.22%, and it has paid dividends for 10 years in our data.
Is Watsco a good stock to buy?
We do not give buy or sell advice. Watsco scores 3.0 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
Similar companies
Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.