Watsco, Inc. WSO

IndustrialsMachinery, Tools, Heavy Vehicles, Trains & ShipsUnited States of America

Last close 311.69 USD on Nov 3, 2026, −4.2% year to date

Quant rating

Quant rating C Rank 319 of 486 in Industrials

Growth C 318 of 486
Valuation D 432 of 486
Quality A 49 of 486
Revisions D 360 of 486
Momentum C 334 of 486

Wall Street consensus Hold (2.93)Average target 350.21 USD +12.4%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 12.9B
Enterprise value: 12.8B
52-week range: 277.44 – 459.00
3-year range: 277.44 – 568.78
Dividend yield: 4.17%
Beta (5 years): 1.03
Shares outstanding: 41.6M
Next earnings: Feb 15, 2027

About the company

Watsco, Inc. is a distributor of air conditioning, heating and refrigeration equipment and related parts and supplies. It sells air conditioning and heating equipment to the replacement and new construction markets for both residential and commercial applications. It also sells a variety of non-equipment products including parts, supplies, ductwork, air movement products, insulation, tools, installation supplies, thermostats, and air quality products. It provides condensing units, compressors, evaporators, valves, refrigerants, walk-in coolers, and ice machines for industrial and commercial applications. Its business units include Carrier Enterprise, Baker Distributing Company, Gemaire Distributors, East Coast Metal Distributors, Heating and Cooling Supply, Homans Associates, Pierce Phelps, N&S Supply, Acme Refrigeration, Alert Labs Inc., Tradewinds, Boreal International, Watsco Ventures, and Gateway Supply Co.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	7,239	7,618	7,284	7,274	6,280	–
Revenue growth	−5.0%	4.6%	0.1%	15.8%	24.2%	7.4%
EPS (basic, normalized)	12.25	13.30	13.67	15.41	10.78	–
EPS growth	−7.9%	−2.7%	−11.3%	42.9%	–	–
Gross margin	28.0%	26.8%	27.4%	27.9%	26.6%	27.3%
Net margin	6.4%	6.5%	6.9%	7.6%	6.1%	6.7%
ROE	18.3%	21.9%	26.0%	33.8%	26.6%	25.3%

Balance sheet, last quarter
Cash & short-term investments (mil)	649
Current ratio	3.15x
Long-term debt (mil)	9.1
Net debt (mil)	−142
Total equity (mil)	3,029
Net debt / equity	−0.05x
Net debt / EBITDA	−0.19x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	7,239	−5.0%	1.8x	764	−5.7%	16.7x	12.25	−7.9%	25.4x
2026	7,644	+5.6%	1.7x	737	−3.5%	17.4x	11.48	−6.3%	27.2x
2027	8,405	+10.0%	1.5x	839	+13.7%	15.3x	12.90	+12.4%	24.2x
2028	8,843	+5.2%	1.4x	947	+12.9%	13.5x	14.64	+13.5%	21.3x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	7,644	+1.2%	+1.3%	+1.3%	11.48	−5.5%	−5.5%	−9.6%
2027	8,405	+5.6%	+5.7%	+6.0%	12.90	−3.8%	−3.9%	−6.8%
2028	8,843	+5.3%	+5.2%	+6.8%	14.64	−2.1%	−2.1%	−2.9%

Earnings surprises EPS beat in 1 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	1,565	2,139	2,160	1,754	1,531	2,062	2,067	1,579	1,533	2,105
Sales mean (mil)	1,594	2,183	2,244	1,664	1,655	2,234	2,146	1,621	1,486	2,147
Surprise	−1.8%	−2.0%	−3.7%	+5.4%	−7.5%	−7.7%	−3.7%	−2.6%	+3.2%	−2.0%
EPS reported	2.17	4.49	4.22	2.37	1.93	4.52	3.98	1.68	1.87	4.00
EPS mean	2.28	4.69	4.73	2.14	2.26	4.80	4.20	1.88	1.69	4.44
Surprise	−4.7%	−4.2%	−10.8%	+10.9%	−14.5%	−5.7%	−5.2%	−10.7%	+10.4%	−9.8%

Peer comparison Machinery, Tools, Heavy Vehicles, Trains & Ships

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
WSO Watsco, Inc.	12.9B	−0.19x	6.4%	4.28x	27.2x	24.2x	17.4x	15.3x
ETN Eaton Corporation PLC	152.1B	2.82x	14.9%	7.51x	28.7x	24.0x	22.7x	19.2x
PH Parker-Hannifin Corporation	119.2B	1.43x	17.0%	7.73x	26.6x	23.9x	18.7x	17.1x
TT Trane Technologies PLC	91.4B	0.70x	13.9%	10.04x	27.3x	23.6x	19.5x	17.0x
JCI Johnson Controls International PLC	90.8B	1.83x	7.3%	6.67x	23.7x	20.0x	17.7x	15.6x
EMR Emerson Electric Co	92.8B	2.13x	12.7%	4.55x	25.4x	22.9x	18.9x	17.6x
Mean		1.46x	12.0%	6.80x	26.5x	23.1x	19.1x	17.0x
Median		1.63x	13.3%	7.09x	26.9x	23.8x	18.8x	17.1x

Technical analysis

1M+5.9%
3M−0.9%
1Y−10.6%
3Y−7.9%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Watsco, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	7,239	7,618	7,284	7,274	6,280	5,055
Cost of revenue	5,209	5,574	5,292	5,244	4,613	3,832
Gross profit	2,030	2,045	1,992	2,030	1,668	1,223
Selling, general & administrative expenses	1,294	1,253	1,188	1,190	1,030	807
Research & development	–	–	–	–	–	–
Depreciation/amortization	43.8	40.8	35.1	31.7	28.1	25.9
Interest expense (income), operating	−27.8	−30.5	−26.2	−22.7	−19.3	−11.3
Unusual expense (income)	–	–	–	–	–	–
Other operating expenses	0	0	0	0	0	0
Operating income	720	782	795	832	629	401
Net interest income (expense)	17.3	20.9	−4.9	−2.2	−1.0	−1.2
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	0	0	0	0	0	0
Net income before taxes	738	803	790	829	628	400
Provision for taxes	150	167	156	126	129	76.6
Minority interest	−90.6	−99.5	−97.8	−103	−79.8	−53.6
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	497	536	536	601	419	270
Extraordinary items	–	–	–	–	–	–
Net income	497	536	536	601	419	270
EBIT, normalized	693	751	769	809	609	390
EBITDA, normalized	736	792	804	841	637	416
Basic EPS, normalized	12.25	13.30	13.67	15.41	10.78	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Watsco, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	733	782	210	148	118	146
Receivables	796	878	798	747	698	535
Total inventory	1,386	1,385	1,347	1,370	1,115	781
Prepaid expenses	–	–	–	–	–	–
Other current assets	38.7	34.7	36.7	34.0	29.2	21.8
Total current assets	2,955	3,080	2,392	2,299	1,961	1,484
Property, plant & equipment	589	560	505	443	380	307
Goodwill	463	452	457	431	434	412
Intangibles	210	208	218	175	187	170
Long-term investments	185	169	146	133	115	97.8
Note receivable	–	–	–	–	–	–
Other long-term assets	13.6	10.9	10.7	8.0	9.2	12.2
Total assets	4,415	4,480	3,729	3,488	3,086	2,484
Liabilities
Accounts payable	350	491	369	456	364	252
Payable/accrued	–	–	–	–	–	–
Accrued expenses	362	487	338	391	360	234
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	4.9	6.3	4.7	59.9	2.6	1.6
Other current liabilities	0	0	0	0	0	0
Total current liabilities	718	984	712	907	727	487
Long-term debt	11.0	15.5	27.6	11.4	98.2	4.8
Minority interest	441	407	386	359	332	293
Other liabilities	464	416	373	322	264	213
Total liabilities	1,633	1,823	1,499	1,599	1,421	998
Shareholders' equity
Preferred stock	–	0	0	–	–	–
Common stock	22.3	22.2	22.1	21.8	21.8	21.7
Additional paid-in capital	1,563	1,472	1,153	973	1,004	951
Retained earnings (accumulated deficit)	1,319	1,296	1,183	1,030	761	636
Treasury stock	−73.2	−73.5	−86.6	−87.4	−87.4	−87.4
Other equity	−50.3	−59.9	−42.3	−47.7	−34.2	−34.9
Total equity	2,781	2,657	2,230	1,889	1,665	1,487
Total liabilities & shareholders' equity	4,415	4,480	3,729	3,488	3,086	2,484

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Watsco, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	588	636	634	704	499	323
Depreciation, depletion & amortization	43.8	40.8	35.1	31.7	28.1	25.9
Deferred taxes	18.4	0.2	−7.2	13.5	5.9	0
Non-cash items	21.9	18.1	19.7	19.8	18.5	18.1
Changes in working capital	−102	78.2	−120	−197	−202	167
Cash from operations	570	773	562	572	350	534
Investing activities
Capital expenditures	−34.5	−30.1	−35.5	−35.7	−25.5	−16.4
Other investing cash flows	−63.6	−261	−5.9	1.8	−123	0.1
Cash from investing	−98.1	−291	−41.3	−33.8	−149	−16.3
Financing activities
Financing cash flow items	−113	−26.4	−75.8	−156	−42.0	−44.7
Cash dividends paid	−474	−424	−383	−332	−295	−266
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	18.8	291	−1.6	−15.2	108	−138
Cash from financing	−568	−159	−460	−504	−229	−448
Foreign exchange effects	3.6	−7.7	2.1	−4.9	−0.2	2.1
Net change in cash	−93.0	316	62.6	29.2	−27.8	71.6
Free cash flow	535	743	526	536	324	518

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 3, 2026 after market close.