# Watsco Inc. (WSO-B) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials. Price $316.05, market value $13.0 billion.

## Valuation
- **P/E (trailing): 27.1×** (5-yr avg 26.7×, 3-yr avg 31.3×). Watsco Inc. trades at 27.1× trailing earnings, close to its own five-year average of 26.7×. The Industrials median in the September 2026 study was 25.7×.
- **Price / sales: 1.8×**. Each dollar of revenue is priced at 1.8×.
- **Price / book: 4.1×**. The shares trade at 4.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 18.0×**. Enterprise value is 18.0× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.3%** (5-yr avg 3.8%). Free cash flow equals 5.3% of the market value, above its five-year average of 3.8%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.7%**. The inverse of the P/E: 3.7% of the price is earned each year.

## Profitability
- **Gross margin: 27.5%**. Watsco Inc. keeps 27.5% of revenue after the direct cost of what it sells.
- **Operating margin: 9.4%**. 9.4% of revenue is left after running the business.
- **Net margin: 6.9%**. 6.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 17.9%**. 17.9% on shareholders' equity is solid.
- **Return on invested capital: 19.3%**. Return on all capital, debt included, is 19.3%: comfortably above what that capital costs.
- **Return on assets: 10.8%**. Each dollar of assets produces 10.8% of profit.

## Growth
- **Revenue growth (1 yr): -5.0%** (3-yr -0.2%/yr, 5-yr 7.4%/yr). Revenue fell 5.0% over the last year, against 7.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -7.9%** (3-yr -7.4%/yr, 5-yr 11.8%/yr). Earnings per share fell 7.9%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): -0.1%/yr**. Free cash flow has compounded at -0.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.17**. Debt is 0.17 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.1×**. It would take 0.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 4.12** (quick 4.12). Current assets cover the next year's liabilities 4.12 times.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 4.18%** ($12.30 per share, trailing). Watsco Inc. yields 4.18%, an income-level yield.
- **Payout ratio: 95%** (72% of free cash flow). 95% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 11**. 11 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 11.1%/yr** (1-yr 10.9%). The dividend has compounded at 11.1% a year over five years, doubling roughly every 7 years at that pace.

## Price and momentum
- **Total return (1 yr): -24.9%** (YTD -4.3%, 3-mo -8.9%). The shares are down 24.9% over twelve months including dividends.
- **From 52-week high: -30.3%** (3.0% above the low). Trading 30% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 37**. An RSI of 37 is neutral.
- **Beta (1 yr): 0.13** (volatility 40%). Beta of 0.13 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=WSO-B · Page: https://foliofundamentals.com/stocks/wso-b

Not investment advice.