WSO Share Price | Watsco, Inc. Stock Analysis & Recommendation

Q: How big is Watsco, Inc.?

Market Cap: As of Jun 18, Watsco, Inc. has a market capitalization of 19,026.22 million, classifying it as a Mid Cap company.Recent Quarterly Performance: For the latest four quarters, Watsco, Inc. reported net sales of 7,584.42 million and a net profit of 587.65 million.Balance Sheet Snapshot: As of Dec 24, the company reported shareholder's funds of 2,656.99 million and total assets of 4,532.27 million.

Q: What does Watsco, Inc. do?

Overview:Watsco, Inc. is a distributor of air conditioning, heating, and refrigeration equipment and related parts and supplies in the Building Products industry, categorized as a mid-cap company.Financial Snapshot:- Most recent Net Sales: 1,531 Million (Quarterly Results - Mar 2025)- Most recent Net Profit: 87 Million (Quarterly Results - Mar 2025)- Market-cap: USD 19,026.22 Million (Mid Cap)Key Metrics:- P/E: 34.00- Dividend Yield: 2.28%- Debt Equity: -0.12- Return on Equity: 21.95%- Price to Book: 7.14Contact Details:- Address: 2665 S Bayshore Dr Ste 901, COCONUT GROVE FL: 33133-5462- Tel: 1 305 7144100- Website: https://www.watsco.com/

Q: Who are in the management team of Watsco, Inc.?

As of March 2022, the management team of Watsco, Inc. includes:- Mr. Albert Nahmad, who serves as the Chairman of the Board and Chief Executive Officer.- Mr. Aaron Nahmad, who is the President and a Director.- Mr. Cesar Alvarez, who holds the position of Independent Co-Vice Chairman of the Board.- Mr. Bob Moss, also serving as Independent Co-Vice Chairman of the Board.- Dr. Denise Dickins, who is the Lead Independent Director.- Mr. J Custer, an Independent Director.- Mr. Brian Keeley, an Independent Director.- Mr. Steven Rubin, an Independent Director.- Mr. George Sape, an Independent Director.This team is responsible for overseeing the company's operations and strategic direction.

Q: Is Watsco, Inc. technically bullish or bearish?

As of 3 October 2025, the technical trend for Watsco, Inc. has changed from bearish to mildly bearish. The current stance is mildly bearish, with key indicators supporting this view including a bearish MACD on the weekly timeframe and mildly bearish signals from both Bollinger Bands and moving averages. The weekly RSI is bullish, which indicates some strength, but the overall monthly indicators lean towards a bearish outlook. In terms of performance, Watsco has underperformed the S&P 500 year-to-date, with a return of -13.48% compared to the S&P 500's 14.18%, and over the past year, it has declined by -14.71% against the S&P 500's 17.82%.

Q: Is Watsco, Inc. overvalued or undervalued?

As of 24 October 2025, Watsco, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation grade. The company appears to be overvalued based on its current metrics, with a P/E ratio of 34, a Price to Book Value of 7.49, and an EV to EBITDA of 25.34. In comparison, peers such as Otis Worldwide Corp. and Masco Corp. have P/E ratios of 21.12 and 18.57, respectively, highlighting Watsco's premium valuation relative to its industry.Despite a strong ROCE of 31.28% and ROE of 21.95%, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -23.55% compared to the index's 15.47%. This underperformance reinforces the notion that Watsco, Inc. is overvalued in the current market environment.

Price Point

High/Low

1Day

52 Week

Valuation

Technical

Day's Volume

CASH

125.19 k

Shareholding (Dec 2025)

FII

13.58%

Held by 301 FIIs

DII

33.8%

Held by 59 DIIs

Promoter

0.02%

How big is Watsco, Inc.?

22-Jun-2025

As of Jun 18, Watsco, Inc. has a market capitalization of $19.03 billion, with net sales of $7.58 billion and a net profit of $587.65 million over the latest four quarters.

View full answer

What does Watsco, Inc. do?

22-Jun-2025

Watsco, Inc. is a distributor of air conditioning, heating, and refrigeration equipment and supplies, with recent net sales of $1.53 billion and a market cap of $19.03 billion. Key metrics include a P/E ratio of 34.00 and a dividend yield of 2.28%.

View full answer

Who are in the management team of Watsco, Inc.?

22-Jun-2025

As of March 2022, Watsco, Inc.'s management team includes Chairman and CEO Albert Nahmad, President Aaron Nahmad, Independent Co-Vice Chairmen Cesar Alvarez and Bob Moss, Lead Independent Director Denise Dickins, and several Independent Directors. They oversee the company's operations and strategic direction.

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Is Watsco, Inc. technically bullish or bearish?

07-Oct-2025

As of October 3, 2025, Watsco, Inc. shows a mildly bearish trend with key indicators like a bearish MACD and moving averages, underperforming the S&P 500 with a year-to-date return of -13.48% compared to the S&P's 14.18%.

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Is Watsco, Inc. overvalued or undervalued?

28-Oct-2025

As of October 24, 2025, Watsco, Inc. is considered very expensive and overvalued with a P/E ratio of 34, significantly higher than its peers, despite strong returns on capital and equity, while underperforming the S&P 500 year-to-date.

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Compare Watsco, Inc. with Similar Stocks

Otis Worldwide Corp.Carlisle Cos., Inc.Masco Corp.

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Dashboard

High Management Efficiency with a high ROCE of 33.49%

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 9.22% and Operating profit at 16.80%

Flat results in Jun 25

With ROCE of 31.28%, it has a very expensive valuation with a 8.38 Enterprise value to Capital Employed

Below par performance in long term as well as near term

Mojo Parameters

Stock DNA

Industry

Building Products

Market cap

USD 16,710 Million (Mid Cap)

P/E

30.00

Industry P/E

Dividend Yield

2.73%

Debt Equity

-0.22

Return on Equity

19.79%

Price to Book

6.01

Revenue and Profits:

Net Sales:

1,579 Million

(Quarterly Results - Dec 2025)

Net Profit:

82 Million

Total Returns

Total Returns (Price + Dividend)

TimePeriod

Price Return

Dividend Return

Total Return

3 Months

9.99%

6 Months

-0.29%

1 Year

-24.79%

2 Years

-6.57%

3 Years

29.52%

4 Years

24.07%

5 Years

48.87%

Watsco, Inc. for the last several years.

Risk Adjusted Returns v/s

News & Corporate Actions

News

No Recent News for the Company

Announcements

No announcement available

Corporate Actions

No corporate action available

Key Factors

Quality key factors

Factor

Value

Sales Growth (5y)

7.45%

EBIT Growth (5y)

12.23%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.11

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

2.74

Tax Ratio

20.88%

Dividend Payout Ratio

97.98%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

33.49%

ROE (avg)

26.16%

Valuation key factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.01

EV to EBIT

23.20

EV to EBITDA

22.15

EV to Capital Employed

7.43

EV to Sales

2.22

PEG Ratio

Dividend Yield

2.73%

ROCE (Latest)

32.04%

ROE (Latest)

19.79%

Technicals key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Shareholding

Shareholding Snapshot : Dec 2025

Shareholding Compare (%holding)

Majority shareholders

Domestic Funds

Held in 128 Schemes (52.57%)

Foreign Institutions

Held by 301 Foreign Institutions (13.58%)

Strategic Entities with highest holding

Highest Public shareholder

Financial

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Quarterly Results Snapshot (Consolidated) - Dec'25 - QoQ

Dec'25

Sep'25

Change(%)

Net Sales

1,578.80

2,067.00

-23.62%

Operating Profit (PBDIT) excl Other Income

107.20

236.80

-54.73%

Interest

0.00

Exceptional Items

-0.30

-0.50

40.00%

Consolidate Net Profit

82.40

178.50

-53.84%

Operating Profit Margin (Excl OI)

60.90%

109.20%

-4.83%

USD in Million.

Compare with Peers

Net Sales

QoQ Growth in quarter ended Dec 2025 is -23.62% vs 0.22% in Sep 2025

Consolidated Net Profit

QoQ Growth in quarter ended Dec 2025 is -53.84% vs -12.76% in Sep 2025

All Quarterly Results

Annual Results Snapshot (Consolidated) - Dec'25

Dec'25

Dec'24

Change(%)

Net Sales

7,239.30

7,618.30

-4.97%

Operating Profit (PBDIT) excl Other Income

737.90

788.90

-6.46%

Interest

0.00

Exceptional Items

-1.60

3.20

-150.00%

Consolidate Net Profit

554.80

598.30

-7.27%

Operating Profit Margin (Excl OI)

95.90%

98.20%

-0.23%

USD in Million.

Compare with Peers

Net Sales

YoY Growth in year ended Dec 2025 is -4.97% vs 4.59% in Dec 2024

Consolidated Net Profit

YoY Growth in year ended Dec 2025 is -7.27% vs 0.18% in Dec 2024

All Annual Results

Company CV

About Watsco, Inc.

Watsco, Inc.

Building Products

Watsco, Inc. is a distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies (HVAC/R) in the HVAC/R distribution industry in North America. As of December 31, 2016, the Company sold a range of non-equipment products, representing more than 300,000 stock keeping units, including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats and air quality products. It distributes products consisting of equipment, including residential ducted and ductless air conditioners ranging from 1 to 5 tons, gas, electric and oil furnaces ranging from 50,000 to 150,000 British Thermal Units, commercial air conditioning and heating equipment and systems ranging from 1.5 to 25 tons and other specialized equipment; parts, including replacement compressors and motors, and supplies, including ductwork, grills, registers, sheet metal, adhesives and other ancillary supplies. It also sells products to the refrigeration market.

Company Coordinates

Company Details

2665 S Bayshore Dr Ste 901 , COCONUT GROVE FL : 33133-5462

Tel: 1 305 7144100

https://www.watsco.com/

Registrar Details