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Earnings transcript
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WSO
Watsco, Inc.
$386.11
14.27
(3.84%)
| Exchange: | NYSE |
| Market Cap: | 15.903B |
| Shares Outstanding: | 7.143M |
Delayed data
About The Company
| Sector: | Industrials | |||||
| Industry: | Industrial – Distribution | |||||
| CEO: | Albert H. Nahmad | |||||
| Full Time Employees: | 7220 | |||||
| Address: |
| |||||
| Website: | https://www.watsco.com |
Watsco, Inc., and its various operational units, specialize in the distribution of essential equipment for air conditioning, heating, and refrigeration (HVACR) systems, alongside a comprehensive selection of related components and materials. Their product catalog for equipment encompasses both residential and light commercial applications. This includes ducted and ductless air conditioning units, various furnace types (gas, electric, and oil), as well as more specialized commercial HVAC solutions. Beyond full systems, they provide critical spare parts such as replacement compressors, evaporator coils, motors, and other vital components. Their extensive inventory of supplies ranges from fundamental items like thermostats, insulation, refrigerants, and ductwork, to specific fixtures like grills, registers, and sheet metals. The offering further extends to tools, copper tubing, concrete pads, adhesives, tapes, other ancillary provisions, and even products for plumbing and bathroom remodeling. Watsco primarily caters to a diverse clientele of contractors and dealers. These professionals serve both the replacement and new construction segments for central air conditioning, heating, and refrigeration systems in residential and light commercial settings. By the end of 2021, the company maintained a substantial operational footprint, with 671 distinct locations spread across the United States, Canada, Mexico, and Puerto Rico. Furthermore, their products are exported to markets throughout Latin America and the Caribbean Basin. Established in 1945, Watsco, Inc. is headquartered in Miami, Florida.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 7,283,767 | 7,618,317 | 7,239,290 |
| Gross Profit | 1,992,140 | 2,044,713 | 2,030,464 |
| EBITDA | 803,723 | 792,096 | 781,428 |
| Operating Income | 794,810 | 781,775 | 692,582 |
| Net Income | 536,337 | 536,286 | 496,994 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 3,729,182 | 4,479,523 | 4,414,805 |
| Total Liabilities | 1,112,992 | 1,415,285 | 1,192,744 |
| Total Stockholders Equity | 2,229,839 | 2,656,990 | 3,222,061 |
| Total Debt | 505,057 | 447,463 | 350,616 |
| Cash and Cash Equivalents | 210,112 | 526,271 | 433,283 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 561,954 | 773,102 | 569,613 |
| Capital Expenditure | -35,478 | -30,090 | 0 |
| Free Cash Flow | 526,476 | 743,012 | 569,613 |
| Net Income | 634,139 | 635,740 | 496,994 |
| Net Change in Cash | 62,607 | 316,158.999 | -92,988 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2030 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 9,360,988.481 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 9,772,467.950 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 9,527,000 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 1,015,432.761 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 1,060,067.976 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 1,033,440.852 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 866,766.766 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 916,562.255 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 886,856.724 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 1,598,952.085 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 1,669,236.965 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 1,627,308.541 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 23.400 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 24.180 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 22.870 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 2 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 1 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeForward P/E Ratios
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Login — it's freeSWOT Analysis
Strengths (preview)
- Stable Financial Performance: Watsco demonstrates consistent revenue generation as evidenced by historical income statements, with positive net income and operating cash flow trends over recent years. Key metrics such as return on equity (ROE TTM) and return on invested capital (ROIC TTM) indicate efficient use of capital compared to industry benchmarks.
- Strong Market Position: As a leading player in the HVAC/R distribution industry within the Industrials sector, Watsco benefits from a robust market cap and a significant operational footprint, supported by a large employee base and extensive geographic revenue segments.
- Dividend Consistency: The company maintains a reliable dividend yield (dividendYieldTTM), with consistent payouts as reflected in cash flow statements (netDividendsPaid), appealing to income-focused investors.
- Operational Efficiency: High gross profit margins (grossProfitMarginTTM) and net profit margins (netProfitMarginTTM) suggest effective cost management and pricing power within its product categories.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates WSO intrinsic value between $291.46 – $362.56 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
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Common questions about WSO valuation
Is Watsco, Inc. (WSO) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for Watsco, Inc. (WSO) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is WSO a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether WSO trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is WSO’s P/E ratio?
You can see WSO’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for WSO?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is WSO a good long-term investment?
Whether WSO fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
WSO
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Daily snapshot
3.84
Trading Metrics:
| Open: | 376.12 | Previous Close: | 371.84 | |
| Day Low: | 375 | Day High: | 390.12 | |
| Year Low: | 323.05 | Year High: | 494.94 | |
| Price Avg 50: | 401.19 | Price Avg 200: | 383.17 | |
| Volume: | 526385 | Average Volume: | 464687 |
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Login — it's freeWSO full analysis
Welcome to MARKETSNAP’s SWOT analysis for Watsco, a major player in the distribution of heating, air conditioning, and refrigeration equipment. If you’re a long-term investor looking to build wealth through smart stock picks, you’re in the right place. Today, we’re diving deep into Watsco—breaking down their strengths, weaknesses, opportunities, and threats—to help you figure out if this stock deserves a spot in your portfolio. Let’s get started with a quick overview of who Watsco is and what’s been happening with…
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