Watsco, Inc.
WSO
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Bull / bear case
Site-generated summary from fundamentals, news, and score — not investment advice. As of 2026-10-08.
- Watsco, Inc. operates in a competitive industry with a strong market position, benefiting from a growing demand for HVAC products and services.
- In the most recent quarter, Watsco reported a revenue increase of 37% compared to the prior quarter, reaching $2.1 billion.
- The company's operating margin expanded to 11.3%, indicating improved efficiency in its operations.
- Despite revenue growth, Watsco's earnings have shown a decline, reflecting challenges in maintaining profitability amidst rising costs.
- The trailing P/E ratio stands at 24.92, suggesting that the stock may be overvalued compared to its earnings growth rate.
- The overall score indicates a 'Strong Sell' signal with a score of -24.00, highlighting bearish market sentiment.
Fundamentals
| Market cap | $11.64B | Enterprise value | $11.44B | Trailing P/E | 24.18 | Forward P/E | 21.15 |
| PEG | 1.08 | Price / book | 3.64 | Beta | 1.04 | Dividend yield | 4.68% |
| Revenue growth | 2.1% | Earnings growth | -11.7% | Gross margin | 27.5% | Operating margin | 10.9% |
| Profit margin | 6.5% | ROE | 16.7% | ROA | 8.4% | Debt / equity | 0.15 |
| Current ratio | 3.20 | Free cash flow | $483.66M | Analyst recommendation | hold | Mean target | $375.90 |
| 52w high | $459.00 | 52w low | $279.04 |
Quarterly
| 2026-Q2 | 2026-Q1 | 2025-Q4 | 2025-Q3 | 2025-Q2 | 2025-Q1 | |
|---|---|---|---|---|---|---|
| Revenue | $2.1B | $1.5B | $1.6B | $2.1B | $2.1B | — |
| Op margin | 11.3% | 6.8% | 6.1% | 10.9% | 13.2% | — |
| Net income | $163M | $79.1M | $71.7M | $162M | $184M | — |
| Gross margin | 27.5% | 27.9% | 27.1% | 27.5% | 29.3% | — |
| Gross profit | $579M | $428M | $428M | $569M | $603M | — |
| Operating income | $238M | $105M | $95.8M | $225M | $272M | — |
- Revenue +37% vs prior quarter ($2.1B vs $1.5B).
- Gross margin 27.5% (was 27.9% prior quarter).
- Operating margin expanded to 11.3%.
Yearly (6y)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | $7.2B | $7.6B | $7.3B | $7.3B | — |
| Op margin | 9.6% | 9.9% | 10.6% | 11.1% | — |
| Net income | $497M | $536M | $536M | $601M | — |
| Gross margin | 28.0% | 26.8% | 27.4% | 27.9% | — |
| Gross profit | $2.0B | $2.0B | $2.0B | $2.0B | — |
| Operating income | $693M | $751M | $769M | $809M | — |
No flags
• No distress or material-risk keywords in recent headlines (keyword scan only — not a guarantee).
News
2026-10-09 · Watsco Schedules Third Quarter Conference Call On Tuesday, October 27, 2026 at 10:00 a.m. (EDT)
2026-10-07 · This Value Stock Is a Great Buy Under $300
2026-10-01 · Watsco Declares $3.30 Quarterly Dividend
2026-09-26 · These 3 Boring Stocks Have One Thing in Common: Demand That Cannot Wait
2026-09-25 · 3 Cash-Producing Stocks We Keep Off Our Radar
2026-09-24 · 5 Industrial Distributors With a Competitive Advantage Hiding in Plain Sight
2026-09-24 · 1 Profitable Stock to Target This Week and 2 We Question
2026-09-23 · Watsco (WSO) Stock Appears Undervalued Based On Future Cash Flow
2026-09-23 · Watsco (WSO) Could Be 14% Undervalued On Its A2L Transition Story
2026-09-22 · Watsco (WSO) Bets $500M On Plumbing’s Next Frontier
2026-09-18 · Watsco (WSO): Buy, Sell, or Hold Post Q2 Earnings?
2026-09-16 · Spotting Winners: Watsco (NYSE:WSO) And Industrial Distributors Stocks In Q2
Price (daily)
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