Watsco, Inc. (WSO) is a publicly traded company in the Industrials — Industrial - Distribution industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. It distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.
Is Watsco, Inc. stock overvalued or undervalued in 2026?
As of October 2, 2026, Watsco, Inc. (WSO) trades at 25.2× earnings (P/E), against a median of 26.1× across the 274 industrials companies above $2bn in Kaplio's universe. Kaplio's verdict: fairly priced. At the decade median (29.2×) $338 (+16 %); at its sector median (26.1×) $302 (+3 %).
Kaplio overview: Watsco, Inc.
Market cap $12B · 52 weeks $292 – $457 (36 % below the high) · P/E 25.2× · 2027 expected P/E 22.2× · Dividend 4.3 % · 11 years rising · Next earnings November 4, 2026 · expected EPS $4.13 · Price as of Oct 2 · accounts published Jul 29.
- Valuation: P/E 25.2× (fairly priced).
- Business: ROIC 13 % (fair).
- Balance sheet: Net debt/EBITDA 0.1× (solid).
- Earnings: 2 of 8 (disappointing).
What would it be worth at its usual multiples?
At the decade median (29.2×) $338 (+16 %); at its sector median (26.1×) $302 (+3 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in industrials: 6 of 10 pass
- Operating margin 9.6 %, fails.
- ROIC 13.1 %, fails.
- Capex / Revenue 0.5 %, fails.
- 5y revenue growth 5.8 %, borderline.
- FCF conversion 107.7 %, passes.
- Net debt / EBITDA 0.1×, passes.
- Altman Z-Score 9.4, passes.
- Piotroski F-Score 5 de 9, passes.
- P/E vs own 10y history 25.2×, passes.
- Cycle-adjusted EV/EBITDA 16.5×, passes.
Against its peers (reference peers) — Watsco, Inc.: P/E 25.2×; EV/EBITDA 16.6×; ROIC 13.1 %; $12.0B. Applied Industrial Technologies, Inc. (P/E 31.0×; EV/EBITDA 23.8×; ROIC 17.1 %; $12.4B), WESCO International, Inc. (P/E 25.7×; EV/EBITDA 15.2×; ROIC 8.1 %; $18.4B), Pool Corporation (P/E 14.8×; EV/EBITDA 15.7×; ROIC 15.4 %; $5.8B).
Expensive or cheap against its last ten years?
P/E at each close: today 25.2× · median 29.2× · minimum 17.5× · maximum 40.7× · cheap below 25.5× · expensive above 33.5×. It has been cheaper than today only 28% of the time over its last ten years.
Dividend
tight · Yield 4.31 % ($12.50 per share in 2025) · Years raising it ≥ 11 · 5-year growth +10 % a year · Free cash flow coverage 1.4× · With $1,000 invested today you'd collect $43.10 a year ($3.59 a month).
Profitability
| Return on Equity | 16.76% |
| Return on Invested Capital | 13.10% |
| Return on Assets | 9.36% |
| Gross Margin | 27.87% |
| Operating Margin | 9.32% |
| Net Margin | 6.53% |
Financial Health
| Debt / Equity | 0.18 |
| Current Ratio | 3.20 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 9.37 |
Price Performance
| 1 month | -7.29% |
| 3 months | -23.16% |
| Year-to-date | -13.30% |
| 1 year | -28.74% |
| 3 years | -24.69% |
| 5 years | +5.89% |
Dividend History
Paid in the last 12 months: $12.6000 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-10-16 | $3.3000 |
| 2026-07-16 | $3.3000 |
| 2026-04-16 | $3.3000 |
| 2026-01-16 | $3.0000 |
| 2025-10-16 | $3.0000 |
| 2025-07-16 | $3.0000 |
| 2025-04-15 | $3.0000 |
| 2025-01-17 | $2.7000 |
| 2024-10-16 | $2.7000 |
| 2024-07-16 | $2.7000 |
Amounts adjusted for stock splits.
Related companies: AIT · ALLE · CSL · GGG · IEX · ITT · NDSN
Explore sector: Industrials · Industrial - Distribution
More sections of WSO: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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