Watsco, Inc. WSO
Composite 46/100; the shares have moved about 39% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Momentum ranks 17/100 — a strong mark against it.
Balance-sheet strength ranks 78/100 — a strong point in its favour. Income ranks 58/100 — a slight point in its favour. Quality ranks 55/100 — a slight point in its favour.
Momentum ranks 17/100 — a strong mark against it. Growth ranks 20/100 — a strong mark against it. Valuation ranks 40/100 — a slight mark against it.
What the company does Watsco distributes HVAC/R equipment, parts, and supplies to contractors and dealers in the U.S., Canada, Latin America, and the Caribbean, serving replacement and new construction markets.
Key financials WSO posts ROE 18.6%, ROA 9.5%, ROCE 19.9%, gross margin 28.0%, operating margin 6.9%, net margin 6.9%, revenue growth 0.1%, EPS growth -3.1%, debt/equity 0.15, and current ratio 3.20.
Stock health Momentum is weak: -26.86% over 3m, -17.98% over 6m, -30.92% over 12m, and -31.72% below its 52w high; RSI(14) is 22.70. Sidera’s overall score is 54.7 (average quality, richly valued, weak momentum).
Price vs fair value WSO trades at a PREMIUM of 44.60% to our fair-value estimate of 172.03 and at a discount of 36.68% to the 12-month target of 424.70. - Q2 2026 sales and earnings lagged estimates (Zacks, StockStory) - Shares fell on weak Q2 results and outlook (Motley Fool) - Analysts highlight cash position but flag margin pressures (GuruFocus.com)
Looking forward Forward P/E is 27.47x and EV/EBITDA is 20.34x, with a PEG of 3.43. Dividend yield is 3.3% but payout ratio is 98.4%.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-03, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.