1.49%
5.97%
-4.77%
11.82%
27.25%
76.45%
177.12%
AI Spotlight on WSO
Company Description
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.
Market Data
| Last Price | 501.67 |
| Change Percentage | 1.49% |
| Open | 496.47 |
| Previous Close | 494.3 |
| Market Cap ( Millions) | 20271 |
| Volume | 337615 |
| Year High | 571.42 |
| Year Low | 389.08 |
| M A 50 | 486.23 |
| M A 200 | 489.3 |
Financial Ratios
| FCF Yield | 3.67% |
| Dividend Yield | 2.15% |
| ROE | 17.42% |
| Debt / Equity | 7.18% |
| Net Debt / EBIDTA | -26.03% |
| Price To Book | 4.23 |
| Price Earnings Ratio | 35.3 |
| Price To FCF | 27.28 |
| Price To sales | 2.66 |
| EV / EBITDA | 25.53 |
News
- Feb -24 - Watsco (WSO) Upgraded to Buy: What Does It Mean for the Stock?
- Feb -19 - Watsco's Q4 Earnings & Revenues Beat, HVAC Equipment Sales Up Y/Y
- Feb -18 - Watsco (WSO) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
- Feb -18 - Watsco (WSO) Q4 Earnings and Revenues Surpass Estimates
- Feb -18 - Watsco: Q4 Earnings Beat Expectations
- Feb -18 - Watsco Boosts Annual Dividend 11% to $12.00 Per Share
- Feb -18 - Watsco Reports Record Fourth Quarter Sales, Expanded Margins and Record Cash Flow
- Feb -17 - What's in Store For These 5 Construction Stocks This Earnings Season?
- Feb -13 - Watsco Gears Up to Report Q4 Earnings: Things to Keep in Mind
- Feb -11 - Watsco (WSO) Earnings Expected to Grow: Should You Buy?
- Feb -05 - 3 Rock-Solid Dividend Stocks to Buy, Even if There's a Stock Market Sell-Off in 2025
- Jan -30 - Watsco Schedules Conference Call to Review 2024 Fourth Quarter Performance and Annual Results
- Jan -02 - Watsco Declares $2.70 Quarterly Dividend
- Jan -01 - Dividends Matter - 3 Of My Favorite Stocks In An Overpriced Market
- Nov -15 - Watsco to Present at the Stephens Investment Conference on November 19, 2024 at 2:00 p.m. CT
- Nov -09 - Undervalued Dividend Opportunities - 3 Industrial Stocks Worth Considering
- Nov -04 - International Markets and Watsco (WSO): A Deep Dive for Investors
- Oct -31 - Watsco: Primed For Market-Beating Returns Following Q3 Earnings
- Oct -24 - Watsco Q3 Earnings & Revenues Lag Estimates, Stock Down
- Oct -23 - Watsco, Inc. (WSO) Q3 2024 Earnings Call Transcript
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> HVAC Equipment
Expected Growth : 6.5 %
What the company do ?
Watsco, Inc.'s HVAC equipment segment offers a wide range of heating, ventilation, and air conditioning products and solutions for residential, commercial, and industrial applications.
Why we expect these perspectives ?
Watsco's HVAC equipment segment growth of 6.5% is driven by increasing demand for energy-efficient systems, rising construction activities, and growing replacement demand from aging infrastructure. Additionally, the company's focus on e-commerce, digital marketing, and strategic acquisitions have expanded its customer base and improved operational efficiency.
Segment n°2 -> Other HVAC Products
Expected Growth : 6.2 %
What the company do ?
Watsco's Other HVAC Products include air purification systems, UV lights, and humidifiers, offering a comprehensive range of indoor air quality solutions.
Why we expect these perspectives ?
Watsco's Other HVAC Products segment growth of 6.2% is driven by increasing demand for energy-efficient solutions, rising HVAC replacements, and growing construction activities. Additionally, the company's focus on e-commerce, digital marketing, and strategic acquisitions have expanded its customer base and improved product offerings, contributing to the segment's growth.
Segment n°3 -> Commercial Refrigeration Products
Expected Growth : 7.5 %
What the company do ?
Commercial Refrigeration Products from Watsco, Inc. offer a range of refrigeration solutions for supermarkets, convenience stores, and restaurants, including display cases, walk-in coolers, and refrigeration systems.
Why we expect these perspectives ?
Watsco's commercial refrigeration products segment growth is driven by increasing demand for energy-efficient solutions, rising adoption of natural refrigerants, and growing need for refrigeration in the foodservice and retail industries. Additionally, the company's strategic acquisitions, expanded product offerings, and strong distribution network contribute to its 7.5% growth.
Watsco, Inc. Products
| Product Range | What is it ? |
|---|---|
| HVAC (Heating, Ventilation, and Air Conditioning) equipment | Watsco, Inc. sells a wide range of HVAC equipment, including air conditioners, heat pumps, furnaces, and boilers, from top brands like Carrier, Rheem, and Trane. |
| Refrigeration solutions | Watsco offers refrigeration products, including walk-in coolers, refrigerated display cases, and ice machines, designed for supermarkets, restaurants, and convenience stores. |
| HVAC parts and supplies | Watsco distributes a broad range of HVAC parts and supplies, including compressors, coils, and thermostats, from leading manufacturers. |
| Air purification and indoor air quality solutions | Watsco offers air purification systems and indoor air quality solutions, designed to improve indoor air quality and reduce airborne contaminants. |
Watsco, Inc.'s Porter Forces
Threat Of Substitutes
Watsco, Inc. operates in the HVAC industry, which has a moderate threat of substitutes. While there are alternative heating and cooling systems available, they are not always suitable substitutes for Watsco's products.
Bargaining Power Of Customers
Watsco, Inc. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often essential for its customers' operations, making it difficult for customers to negotiate prices.
Bargaining Power Of Suppliers
Watsco, Inc. relies on a few large suppliers for its raw materials, which gives them some bargaining power. However, the company's large scale of operations and long-term contracts help to mitigate this risk.
Threat Of New Entrants
The HVAC industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with established players like Watsco, Inc.
Intensity Of Rivalry
The HVAC industry is highly competitive, with several large players competing for market share. Watsco, Inc. faces intense competition from companies like Carrier Global Corporation and Lennox International Inc.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 4.93% |
| Debt Cost | 3.95% |
| Equity Weight | 95.07% |
| Equity Cost | 8.16% |
| WACC | 7.95% |
| Leverage | 5.19% |
Watsco, Inc. : Quality Control
Watsco, Inc. passed 8 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| POOL | Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and … |
| CNM | Core & Main, Inc. distributes water, wastewater, storm drainage, and fire protection products and related services to municipalities, private water companies, and professional contractors in the municipal, non-residential, and residential … |
| MSM | MSC Industrial Direct Co., Inc., together with its subsidiaries, distributes metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, and the United Kingdom. … |
| WCC | WESCO International, Inc. provides business-to-business distribution, logistics services, and supply chain solutions in the United States, Canada, and internationally. It operates through three segments: Electrical & Electronic Solutions (EES), Communications … |
| AIT | Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates through two segments, Service Center Based Distribution, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Watsco
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MSC Industrial Direct Co
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Applied Industrial Technologies
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4
WESCO
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5
Core & Main
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6
