📊 WSO-B Key Takeaways
Is Watsco Inc. (WSO-B) a Good Investment?
Watsco demonstrates fortress-like financial health with exceptional liquidity (4.12x current ratio), minimal leverage (0.13x D/E), and strong cash generation ($535M FCF), making it fundamentally sound despite concerning EPS dilution. The company's solid profitability (10% operating margin, 17.9% ROE) and conservative capital structure position it well for economic resilience, though shareholder value is being eroded by significant share dilution despite net income growth.
Why Buy Watsco Inc. Stock? WSO-B Key Strengths
- Fortress balance sheet with $433M cash exceeding $362M debt and negligible leverage risk
- Exceptional liquidity with 4.12x current ratio and 2.18x quick ratio; immediate obligations easily covered
- Strong cash flow generation with $535M FCF and 7.4% FCF margin, supporting capital returns and financial flexibility
- Solid profitability with 10% operating margin and healthy 17.9% ROE, well-suited for wholesale distribution sector
- Minimal financial risk with 362.3x interest coverage; debt service is trivial relative to operating earnings
WSO-B Stock Risks: Watsco Inc. Investment Risks
- Significant shareholder dilution evidenced by 7.9% EPS decline despite 7.1% net income growth, destroying per-share value
- Thin net margin of 6.9% leaves limited cushion for operational disruption or pricing pressure in competitive wholesale markets
- Revenue data anomaly (+41,675% YoY) suggests undisclosed material acquisition or data quality issue requiring urgent clarification; integration risk if material
- Low net margin dependent on operational efficiency; vulnerability to input cost inflation or competitive margin compression
Key Metrics to Watch
- Share dilution rate and weighted average shares outstanding trend to determine if EPS decline represents fundamental weakness
- Revenue growth sustainability and organic vs. acquired revenue breakdown to validate business trajectory
- Net margin stability relative to cost of goods sold and operating expenses to assess pricing power
- Free cash flow conversion and capital allocation policy to ensure cash generation benefits shareholders
Watsco Inc. (WSO-B) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.12x current ratio provides a solid financial cushion.
WSO-B Profit Margin, ROE & Profitability Analysis
WSO-B vs Consumer Sector: How Watsco Inc. Compares
How Watsco Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Watsco Inc. Stock Overvalued? WSO-B Valuation Analysis 2026
Based on fundamental analysis, Watsco Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Watsco Inc. Balance Sheet: WSO-B Debt, Cash & Liquidity
WSO-B Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Watsco Inc.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $13.67 reflects profitable operations.
WSO-B Revenue Growth, EPS Growth & YoY Performance
WSO-B Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.1B | $161.6M | $3.98 |
| Q2 2025 | $2.1B | $181.4M | $4.49 |
| Q1 2025 | $1.5B | $80.1M | $1.93 |
| Q3 2024 | $2.1B | $171.0M | $4.22 |
| Q2 2024 | $2.0B | $172.8M | $4.42 |
| Q1 2024 | $1.6B | $87.0M | $2.17 |
| Q3 2023 | $2.0B | $157.6M | $4.03 |
| Q2 2023 | $2.0B | $172.8M | $4.42 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Watsco Inc. Dividends, Buybacks & Capital Allocation
WSO-B SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Watsco Inc. (CIK: 0000105016)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WSO-B
What is the AI rating for WSO-B?
Watsco Inc. (WSO-B) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WSO-B's key strengths?
Claude: Fortress balance sheet with $433M cash exceeding $362M debt and negligible leverage risk. Exceptional liquidity with 4.12x current ratio and 2.18x quick ratio; immediate obligations easily covered.
What are the risks of investing in WSO-B?
Claude: Significant shareholder dilution evidenced by 7.9% EPS decline despite 7.1% net income growth, destroying per-share value. Thin net margin of 6.9% leaves limited cushion for operational disruption or pricing pressure in competitive wholesale markets.
What is WSO-B's revenue and growth?
Watsco Inc. reported revenue of $7.2B.
Does WSO-B pay dividends?
Watsco Inc. pays dividends, with $473.8M distributed to shareholders in the trailing twelve months.
Where can I find WSO-B SEC filings?
Official SEC filings for Watsco Inc. (CIK: 0000105016) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WSO-B's EPS?
Watsco Inc. has a diluted EPS of $12.25.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WSO-B a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Watsco Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is WSO-B stock overvalued or undervalued?
Valuation metrics for WSO-B: ROE of 17.9% (sector avg: 18%), net margin of 6.9% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy WSO-B stock in 2026?
Our dual AI analysis gives Watsco Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WSO-B's free cash flow?
Watsco Inc.'s operating cash flow is $569.6M, with capital expenditures of $34.6M. FCF margin is 7.4%.
How does WSO-B compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 6.9% (avg: 8%), ROE 17.9% (avg: 18%), current ratio 4.12 (avg: 1.5).