Watsco Inc (WSO)
NYSE:WSO
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WSO Stock Chart & Stats
$430.26
$0.22(0.05%)
At close: 4:00 PM EST
$430.26
$0.22(0.05%)
Day’s Range― - ―
52-Week Range$323.05 - $494.94
Previous CloseN/A
Volume45.13K
Average Volume (3M)426.25K
Market Cap
$14.72B
Enterprise Value$15.01B
Total Cash (Recent Filing)$592.68M
Total Debt (Recent Filing)$476.20M
Price to Earnings (P/E)28.2
Beta0.99
Next Earnings
Aug 04, 2026EPS Estimate
4.36Next Dividend Ex-DateN/A
Dividend Yield3.38%
Share Statistics
EPS (TTM)12.06
Shares Outstanding35,003,790
10 Day Avg. Volume396,349
30 Day Avg. Volume426,250
Financial Highlights & Ratios
PEG Ratio-3.14
Price to Book (P/B)4.59
Price to Sales (P/S)1.76
P/FCF Ratio23.85
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue2.07
Enterprise Value/Gross Profit7.31
Enterprise Value/Ebitda19.28
Forecast
1Y Price Target
$435.60Price Target Upside1.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)12.67
Revenue Forecast (FY)$7.53B
Bulls Say, Bears Say
Bulls Say
Conservative Balance SheetLow leverage (debt-to-equity ≈0.17) and a materially rebuilt equity base provide durable financial flexibility. With TTM returns on capital near 18%, Watsco can fund acquisitions, sustain its dividend and continue technology investments without stressing liquidity, supporting resilience across cycles.
Strong Free Cash FlowHigh, consistent free cash flow (TTM ≈$702M and ~94% of net income) underpins internal funding for dividends, strategic acquisitions and tech investments. Robust cash generation supports capital allocation discipline and reduces reliance on external financing for buy-and-build growth.
Digital & Platform MomentumAccelerating digital penetration (e‑commerce +16%, OnCallAir sales +20% with GMV >$2B expected) lowers cost-to-serve and raises customer stickiness. Scaling online and platform capabilities creates structural margin advantage and recurring revenue potential versus traditional branch-only distributors.
Bears Say
Inventory & Working CapitalA material Q1 inventory build (~25% QoQ) ties up cash and increases the risk of slower turns or markdowns if demand softens. Elevated inventory drives operating cash flow pressure and creates recurring working-capital volatility that can weigh on free cash flow timing across the next several quarters.
OEM Pricing And Tariff UncertaintyUncertain OEM price actions and tariff-driven cost shifts can compress gross margins or dampen unit demand. Because timing and magnitude are unknown, Watsco faces structural margin exposure and potential downstream sell-through volatility until supplier pricing and channel inventories normalize.
Normalized Margins & Slower GrowthMargins and growth have normalized from peak-cycle levels: gross margin ~28% and net margin ~6.9% with modest revenue trends. This points to a more mature, slower-growth profile that limits upside absent sustained margin expansion or material market share gains from M&A or digital penetration.
Watsco News
WSO FAQ
What was Watsco Inc’s price range in the past 12 months?
Watsco Inc lowest stock price was $323.05 and its highest was $494.94 in the past 12 months.
What is Watsco Inc’s market cap?
Watsco Inc’s market cap is $14.72B.
When is Watsco Inc’s upcoming earnings report date?
Watsco Inc’s upcoming earnings report date is Aug 04, 2026 which is in 60 days.
How were Watsco Inc’s earnings last quarter?
Watsco Inc released its earnings results on Apr 28, 2026. The company reported $1.87 earnings per share for the quarter, beating the consensus estimate of $1.693 by $0.177.
Is Watsco Inc overvalued?
According to Wall Street analysts Watsco Inc’s price is currently Undervalued.
Does Watsco Inc pay dividends?
Watsco Inc pays a Quarterly dividend of $3 which represents an annual dividend yield of 3.38%. See more information on Watsco Inc dividends here
What is Watsco Inc’s EPS estimate?
Watsco Inc’s EPS estimate is 4.36.
How many shares outstanding does Watsco Inc have?
Watsco Inc has 35,003,790 shares outstanding.
What happened to Watsco Inc’s price movement after its last earnings report?
Watsco Inc reported an EPS of $1.87 in its last earnings report, beating expectations of $1.693. Following the earnings report the stock price went down -4.025%.
Which hedge fund is a major shareholder of Watsco Inc?
Currently, no hedge funds are holding shares in WSO
What is the TipRanks Smart Score and how is it calculated?
Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology
Watsco Stock Smart Score
Neutral
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Analyst Consensus
Moderate Buy
Average Price Target:
$435.60 (1.24% Upside)
$435.60 (1.24% Upside)
Blogger Sentiment
Bullish
WSO Sentiment 83%
Sector Average ―
Sector Average ―
Hedge Fund Trend
Decreased
By 843.0 Shares
Last Quarter.
Last Quarter.
Crowd Wisdom
Very Negative
Last 7 Days ▼ 2.4%
Last 30 Days ▼ 3.7%
Last 30 Days ▼ 3.7%
News Sentiment
Very Bullish
Bullish news 100%
Bearish news 0%
Bearish news 0%
Technicals
SMA
Positive
20 days / 200 days
Momentum
-14.62%
12-Months-Change
Fundamentals
Return on Equity
17.84%
Trailing 12-Months
Asset Growth
4.38%
Trailing 12-Months
Company Description
Watsco Inc
Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, refrigeration equipment, and related parts and supplies. The company distributes equipment comprising residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. It also offers parts, including replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. The company serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. As of December 31, 2021, it operated from 671 locations in the United States, Canada, Mexico, and Puerto Rico, as well as exports its products to Latin America and the Caribbean Basin. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida.
WSO Earnings Call
Q1 2026
0:00 / 0:00
Earnings Call Sentiment|Positive
The call presented a predominately constructive tone: management highlighted stability returning after the A2L transition, modest top-line growth (2%), strong e-commerce and OnCallAir momentum (16% and 20% growth respectively, with GMV > $2B expected), a strategic acquisition (Jackson Supply, $230M, +25 locations), intact gross margins, flat SG&A and a debt-free balance sheet. Offsetting items were ongoing unit-volume pressure (though stabilizing), a notable Q1 inventory build, and uncertainty around forthcoming OEM price increases and seasonal comps. Overall the positive drivers (digital growth, acquisition, margin programs, strong balance sheet and improving seasonal momentum) outweigh the transitory operational uncertainties.View all WSO earnings summariesWSO Stock 12 Month Forecast
Average Price Target
$435.60
▲(1.24% Upside)
Technical Analysis
Ownership Overview
0.38% Insiders
36.76% Mutual Funds
19.10% Other Institutional Investors
15.98% Public Companies and
Individual Investors