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Watsco Inc (WSO) stock

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NYSE: WSO NYSE Trading Companies & Distributors Next results ~February 16, 2027

B Fundamentals grade

Watsco Inc is a US-listed company in the trading companies & distributors industry. Its financial year ends in December.

Stock price today

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Third-party market data · may be delayed

Fair value per share

~$260

Cash-flow model

Base case. Range ~$190–$350 across our lower- and higher-growth cases (-3%–7% a year).

Price vs value

Modestly overvalued

The price is inside our value range, 19% above our base value.

Price used: $309.78, November 3, 2026

Watsco Inc valuation: adjust assumptions and compare models →

Who’s trading

What company insiders, investment funds and members of Congress have been doing with the stock, from their own filings.

  • Funds333 adding, 372 cuttingOf 61 active managers that changed their stake, 24 added; quarter to June 30, 2026Fund buyers and sellers

Value diary

Our note on each quarter Watsco files

Where Watsco stands after its latest 10-Q

Revenue for the twelve months to June 2026 was $7.28bn, down 3.0% on a year earlier, faster than -4.5% a quarter earlier. That puts it 884 of 931 for growth among all the companies we cover. Free-cash-flow margin rose to 9.6% from 5.3% a year earlier. Against its peers on growth, profitability, cash generation and balance sheet, it grades C. It passes 1 of our 1 financial-health checks. Our cash-flow model value is $256 a share, against a share price of $301. At that price, our model says the market is pricing in about 4.9% a year of cash-flow growth for five years, close to the 3.0% a year revenue growth it has delivered.

Source: 10-Q filed August 7, 2026 on SEC EDGAR · Financials · Valuation

Written from the company's filings and our models when each quarter's report arrives. Figures in older notes are as published at the time. Not investment advice.

The Fundamentalytics view

Next results ~February 16, 2027 (estimated)

Watsco Inc's trailing-twelve-month revenue fell 3.0% year on year, with a free-cash-flow margin of 9.6%. Where it stands out: long-term debt as % of assets of 7.9% ranks 6 of 29 trading companies & distributors companies we cover. Where it lags: revenue growth of -3.0% ranks 28 of 32 trading companies & distributors companies we cover.

Our discounted-cash-flow model values the business at ~$260 per share in the base case (~$190–$350 across growth scenarios) — model values under stated assumptions, not a price target.

Current signal Free cash flow diverging from earnings: TTM free cash flow grew 76.8% while net income fell 10.5%: a 87pp divergence.

Assembled from SEC-filed figures — the full workings are on this page and in our methodology. Observations, not recommendations.

Highlights

How we pick these

Strengths

Nothing in Watsco Inc's latest figures clears our strength thresholds.

Things to watch

  • Revenue shrinking. Revenue fell 3.0% over the last 12 months.
  • Missing expectations. Earnings per share fell short of the consensus estimate in 3 of the last four quarters.

Latest results: FY2026 Q2

Filed August 7, 2026
Earnings per share
$3.77 against an average estimate of $4.09: missed by 7.9%
Revenue
$2.10bn, up 2.1% on a year earlier
Share reaction
-4.7% in the first session after the results on October 27, 2026, against +0.9% for the S&P 500
Next report
October 27, 2026; average EPS estimate $1.90

Watsco's figures from its SEC filings and results release; estimates are the analysts' average. Not a recommendation.

Price chart

  • 1 day-2.2%
  • 1 week+2.9%
  • 1 month+5.3%
  • This year-2.6%
  • 1 year-11.2%
  • 5 years+20.2%
  • S&P 500 this year+11.2%

Closing prices to 2026-11-02. Price change only, dividends excluded.

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Third-party market data · may be delayed

At a glance

Trailing twelve months, from SEC filings

Profitability

Revenue (TTM)
$7.3B
Operating margin
9.4%
Net margin
6.5%
EPS (TTM, diluted)
$12.52

Growth

Revenue growth
−3.0%
Change in growth rate
+1.5 pts

Cash

Free cash flow (TTM)
$697M
FCF margin
9.6%
Stock pay % of revenue
0.5%

Earnings

Last results
October 27, 2026
Next results (est.)
February 16, 2027

News & updates

Updated October 31, 2026

Company announcements, filed results and changes that matter to shareholders.

  1. Agreement
  2. Results
  3. Our research
  4. Share issue
  5. Results

Refreshed hourly when new source data is available. Summaries are checked against company releases and SEC filings. Company announcement headlines are labelled when a checked summary is unavailable.

Valuation

Watsco Inc valuation models and calculator

What the price is pricing in

The share price implies about 6.3% a year of cash-flow growth for five years.That is close to the 3.0% a year revenue growth Watsco has delivered.

  • Priced in6.3%
  • Last 12 months-3.0%
  • 3 years a year0.5%
  • 5 years a year3.0%

Our cash-flow model with every input fixed except growth over the next five years, solved for the growth at which the model value equals the share price ($309.50, Nov 3, 2026). Cash-flow growth then fades to 2.5% a year; discount rate 8.5%. Delivered figures are revenue growth from SEC filings. This is a model exercise, not investment advice or a forecast of the share price. All companies

Fundamentalytics rating

model v1.6 · 2026-11-03
Hold12-month view
12-month price target
~$260
Price used
$309.50close November 3, 2026
Implied change
▼ 16%
Uncertainty
Medium

How we got here: a discounted-cash-flow model of Watsco Inc's free cash flow after stock-based pay with after-tax interest added back ($580M, FY2026 Q2 TTM), growing 6.7% and 4.1% in the next two years (forecasts, guidance and its record), then back to 2% by year five, and fading to 2.5%, discounted at 8.5%. Lower and higher growth cases span ~$190–~$350 ; that spread sets a 25% margin before we rate Buy or Sell.

Produced by Fundamentalytics' automated valuation model on November 3, 2026, using delayed market prices. Rating meanings, methodology and conflicts: recommendations disclosure and research disclaimer. General research, not personal advice — it does not consider your circumstances. Prices can fall as well as rise.

Our value per share comes from a discounted-cash-flow model of Watsco Inc's free cash flow after stock-based pay ( $580M, FY2026 Q2 TTM, with after-tax interest added back): growth for five years as below (the first two years from forecasts, guidance and the company's record), fading to 2.5%, discounted at 8.5%, then cash added and debt and other claims subtracted. These are model values under stated assumptions, not price targets or recommendations.

Valuation models

We value Watsco Inc as an operating company, with every model that fits that kind of business. Cost of equity 9.4%: the 10-year Treasury yield (4.9%) plus a beta of 0.98 times a 4.5% equity risk premium.

Value per share by model
Model Value per share In the combined value?
Cash-flow model (DCF) Free cash flow to the firm (after stock pay, with after-tax interest added back), grown then faded to 2.5%, discounted at 8.5% as the firm rate, less debt and other claims. ~$260 ~$190–$350 Primary model, counts double
Forward price-to-earnings vs peers Next year's consensus earnings per share times peers' typical (harmonic-mean) forward price-to-earnings. Uses analysts' consensus estimates (third-party data), not our forecasts. ~$240 ~$210–$280 Included
Residual income Book value plus the present value of returns above the cost of equity, fading over ten years. ~$190 ~$150–$240 Included
Justified price-to-book Book value times (return on equity - growth) / (cost of equity - growth): steady-state returns. ~$250 ~$220–$300 Included
Combined value Weighted average of the models that apply: the primary model (cash-flow model (dcf)) counts double. Models more than 5x or less than 0.2x the share price, or more than 3x away from the other models' median, are left out. ~$240 ~$190–$260 4 models

Different models fail in different ways, so where several apply we average them rather than trust one. Peer-based models compare Watsco Inc with Trading Companies & Distributors in our coverage, using third-party market data. Model values are estimates under stated assumptions, updated as new filings arrive; not price targets or investment advice. How each model works.

What moves the value

  • Revenue growth 5 points lower ▼ −26%
  • Revenue growth 5 points higher ▲ +35%
  • Free-cash-flow margin 1 point lower ▼ −11%
  • Last year's free-cash-flow margin change, if it persists ▲ +89%
  • Discount rate 1 point higher ▼ −15%
Value per share under different assumptions
Discount rate ↓ / growth → −5% growth0% growth5% growth10% growth15% growth20% growth
7% $206$284$388$525$703$933
8.5% $154$211$286$384$511$675
10% $123$167$225$300$397$521

Valuation multiples over time Market data may be delayed

At fiscal year end 2015201620172018201920202021202320242025Now
Share price$83.05$107.94$127.76$107.91$145.67$190.21$270.27$393.53$445.57$325.19$316.71
Market value$2.7bn$3.5bn$4.2bn$3.7bn$5.1bn$6.7bn$9.6bn$14.4bn$16.7bn$12.3bn$12.0bn
+ Net debt (− = net cash)$211m$180m−$58m$53m$307m$70m$251m$195m−$79m$46m$124m
Enterprise value$2.9bn$3.7bn$4.1bn$3.8bn$5.4bn$6.8bn$9.8bn$14.6bn$16.6bn$12.4bn$12.2bn
Multiples
Price / sales 0.7x0.8x1.0x0.8x1.1x1.3x1.5x2.0x2.2x1.7x1.7x
Price / earnings 15.6x19.3x20.2x15.3x20.5x24.8x22.9x26.8x31.2x24.8x25.3x
Price / free cash flow 13.5x14.8x14.5x24.2x15.9x12.9x29.5x27.3x22.5x23.0x17.3x
EV / EBITDA 8.2x10.1x11.0x9.5x13.7x15.8x15.0x17.6x20.2x16.2x16.7x

Market value uses the period's diluted share count; figures for each fiscal year use that year's results and the price at year end. "Now" uses today's price and the last twelve months.

Moat

56 /100

Moderate moat

How hard Watsco's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 16 / 20

    Cash operating profit has been a median 12.5% of total assets over 10 years.

  • Pricing power 10 / 20

    Gross margin has been a median 26.0%, moving by 1.5 percentage points (standard deviation) across 10 years.

  • Durability 12 / 20

    Operating margin has been a median 9.3%; its worst year was 7.3%.

  • Cash conversion 13 / 20

    Free cash flow was positive in 10 of 10 years, at a median 5.3% of revenue.

  • Discipline 11 / 20

    The diluted share count rose 16.4% over five years; stock-based pay has been a median 0.4% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (62 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Forecasts and guidance

Analysts' consensus

Fiscal yearEPSGrowthRevenueGrowth
Current $11.73 −4% $7.6bn +5%
Next $13.10 +12% $8.3bn +8%

Next year's EPS estimate has moved −2.7% in 90 days, across 10 analysts.

How the EPS forecast has moved

The consensus EPS forecast for the current fiscal year is −5.0% on 90 days ago. In the last 30 days, 0 analysts raised Watsco Inc's forecast and 4 cut it.

Consensus EPS forecast Watsco Inc, last 90 days
$11.50 $12.00 $12.50 $13.00 $13.50 90 days ago 60 days ago 30 days ago 7 days ago Now Current fiscal year, 90 days ago: $12.36 Current fiscal year, 60 days ago: $12.19 Current fiscal year, 30 days ago: $12.18 Current fiscal year, 7 days ago: $12.16 Current fiscal year, Now: $11.73 $11.73 Next fiscal year, 90 days ago: $13.46 Next fiscal year, 60 days ago: $13.23 Next fiscal year, 30 days ago: $13.23 Next fiscal year, 7 days ago: $13.26 Next fiscal year, Now: $13.10 $13.10

Average of analysts' published estimates (third-party data).

View chart data
Period Current fiscal yearNext fiscal year
90 days ago $12.36$13.46
60 days ago $12.19$13.23
30 days ago $12.18$13.23
7 days ago $12.16$13.26
Now $11.73$13.10

Earnings against estimates

Quarter toEstimateActualSurprise
Sept 2026 $4.09 $3.77 −7.9%
Jun 2026 $4.39 $4.00 −8.8%
Mar 2026 $1.68 $1.87 +11.4%
Dec 2025 $1.89 $1.68 −11.0%

Adjusted EPS as companies report it, against the average analyst estimate.

Management guidance

Earnings release, July 29, 2026

No numeric guidance in Watsco Inc's latest earnings release (filed July 29, 2026). Some companies give their outlook only on the earnings call.

How our valuation uses these forecasts

Our cash-flow model grows Watsco Inc's revenue by +6.7% next year and +4.1% the year after, then fades back toward its own record by year five. Next year's rate weighs analysts' consensus (+9.0%, weight 68%) and the company's own record (+2.0%, weight 32%) . How the weights are set.

Analyst recommendations

14 analysts, Oct 2026
Buy321%
Hold1071%
Sell17%

Monthly trend

  1. Oct 2026310114
  2. Sep 20261210114
  3. Aug 20261210114
  4. Jul 20261210114

Counts of recommendations published by analysts covering Watsco Inc, by month. Source: Aggregated broker recommendations (third-party data). Aggregated counts only: we do not reproduce any firm's recommendation or price target, and these are not Fundamentalytics ratings.

Positioning

Short interest
0.0%
of tradable shares
Days to cover
0
at average volume
Short interest, 1 month
−100%
to October 15, 2026
Held by institutions
—
of shares
Held by insiders
0.4%
of shares
Employees
6,950
full time

Consensus figures average analysts' published estimates (third-party data); guidance is the company's own. Neither is our forecast. Short interest is reported twice a month and lags. Market data may be delayed.

This section is general information, not investment advice or a personal recommendation, and it does not take account of your objectives or circumstances. Forecasts and guidance are estimates, not promises: companies miss their own guidance and analysts' figures are often revised. Prices can fall as well as rise, and you can lose money. See our disclaimer.

Share-price performance

Market data may be delayed

Recent prices are available. Older price history and the statistics that need it are being loaded in the background.

What moved the share price

Last 12 months −10.8%

$355.17 on October 31, 2025 to $316.71

ThenNowEffect
Revenue (last 12 months) $7.5bn $7.3bn −3.0%
Net margin 7.1% 6.5% −7.7%
P/E multiple 24.9x 25.3x +1.7%
Share count 37m 38m −2.1%

Biggest factor: net margin.

Last 3 years −6.3%

$338.05 on November 3, 2023 to $316.71

ThenNowEffect
Revenue (last 12 months) $7.2bn $7.3bn +1.6%
Net margin 8.1% 6.5% −19.0%
P/E multiple 20.7x 25.3x +22.5%
Share count 35m 38m −7.1%

Biggest factor: net margin.

The effects multiply back to the price change exactly. Results are the last 12 months as known on each date (filings assumed public 45 days after quarter end).

Return and risk by year

Calendar year 202120222023202420252026 to date
Return
WSO+42%−18%+77%+13%−27%−3%
Industry peers (median)+34%−10%+28%−7%+6%+14%
S&P 500+29%−18%+26%+25%+18%+11%
Months that ended higher
WSO58%25%67%58%42%64%
S&P 50075%42%67%75%75%46%
Largest fall from a high during the year
WSO−13%−26%−15%−17%−38%−38%
S&P 500−5%−25%−10%−8%−19%−9%

Worst fall since October 29, 2015: 48% from November 25, 2024 to October 9, 2026. Getting back needed a 93% gain, and the shares have not yet recovered.

Price behaviour

52-week range
$276.82 – $447.98
From 52-week high
−29.3%
vs 50-day average
+4.4%
vs 200-day average
−11.8%
Volatility (1 year)
35%
Beta vs S&P 500
0.92

Volatility is the annualised standard deviation of daily returns. Beta 1.5 means the shares typically moved 1.5% for each 1% move in the S&P 500 over the past year. Prices to November 2, 2026.

Share price after results

Next day
3 up, 9 down
typical move ±5.2%
After a week
2 up, 9 down
typical move ±6.1%
After a month
3 up, 8 down
typical move ±10.3%
Results releasedNext dayS&P 500 next day5 days21 days
October 27, 2026 −4.7% +0.9% — —
July 29, 2026 −15.4% +0.1% −9.4% −14.8%
April 28, 2026 −6.2% −0.5% −7.9% −20.0%
February 17, 2026 +0.3% +0.7% −1.4% −9.6%
October 29, 2025 0.0% −1.1% −0.1% −3.3%
July 30, 2025 −3.0% −0.5% −10.1% −13.6%
April 23, 2025 −10.0% +3.7% −8.6% −9.4%
February 18, 2025 +5.8% +0.5% +3.1% +5.0%
October 23, 2024 −1.3% −0.7% −2.1% +12.7%
July 30, 2024 −2.8% +1.1% −8.0% −6.2%
April 24, 2024 +7.4% −0.4% +9.0% +15.8%
February 13, 2024 −5.5% −0.5% −7.4% −3.2%

From the close before the release date to the close 1, 5 and 21 trading days after it, so releases before the open and after the close are both captured. Past moves don't predict future ones.

Options strategies

All options ideas

How Watsco Inc’s listed options are priced, and three ways to use them that follow from our valuation. Quotes are delayed, read November 2, 2026. Check the live chain at your broker before trading.

Cash-secured put

Not offered: fundamentals grade B (needs B+ or better).

We suggest selling a put only on well-rated companies, at a strike where the price you would pay if assigned (strike less premium) is at or below our fair value.

Covered call

Not offered: no liquid call at or above our price target — the model says the upside is worth more than any listed strike.

For holders: sell a call at a strike at or above our fair value, so the shares are only sold at a price the model calls full value.

Collar

Not offered: no liquid put and call pair for the same expiry.

For holders of a stock trading at or above our fair value: buy a put for a floor and sell a call to pay for it.

General research, not personal advice. Options can lose you more than you expect and are not suitable for everyone: put sellers can be made to buy shares that keep falling, call sellers give up gains above the strike, and results or news can move prices sharply. Chances shown are approximations from each option’s delta. Spreads, fees and early assignment are not modelled.

Watsco Inc in five measures

Fundamentals grade B
Growth Profitability Cash Balance sheet Value

Growth, profitability, cash generation and balance sheet are percentiles against the companies we cover in the same industry, from SEC filings (100 = best). Value compares the share price with our modelled value range (50 = at our base value; higher = cheaper). A description of reported data and our model — not a quality score or advice.

Fundamentals

Revenue (TTM) Watsco Inc
$7.2B $7.3B $7.4B $7.5B $7.6B $7.7B FY23 Q3 FY24 Q2 FY25 Q1 FY26 Q2 Revenue (TTM), FY23 Q3: $7.3B Revenue (TTM), FY23 Q4: $7.3B Revenue (TTM), FY24 Q1: $7.3B Revenue (TTM), FY24 Q2: $7.4B Revenue (TTM), FY24 Q3: $7.5B Revenue (TTM), FY24 Q4: $7.6B Revenue (TTM), FY25 Q1: $7.6B Revenue (TTM), FY25 Q2: $7.5B Revenue (TTM), FY25 Q3: $7.4B Revenue (TTM), FY25 Q4: $7.2B Revenue (TTM), FY26 Q1: $7.2B Revenue (TTM), FY26 Q2: $7.3B $7.3B

Source: SEC EDGAR filings. Retrieved October 20, 2026.

View chart data
Period Revenue (TTM)
FY23 Q3 $7.3B
FY23 Q4 $7.3B
FY24 Q1 $7.3B
FY24 Q2 $7.4B
FY24 Q3 $7.5B
FY24 Q4 $7.6B
FY25 Q1 $7.6B
FY25 Q2 $7.5B
FY25 Q3 $7.4B
FY25 Q4 $7.2B
FY26 Q1 $7.2B
FY26 Q2 $7.3B
Revenue growth, TTM YoY Watsco Inc
-5% 0% 5% FY23 Q3 FY24 Q2 FY25 Q1 FY26 Q2 Revenue growth, TTM YoY, FY23 Q3: 0.8% Revenue growth, TTM YoY, FY23 Q4: 0.1% Revenue growth, TTM YoY, FY24 Q1: -0.0% Revenue growth, TTM YoY, FY24 Q2: 3.7% Revenue growth, TTM YoY, FY24 Q3: 2.8% Revenue growth, TTM YoY, FY24 Q4: 4.6% Revenue growth, TTM YoY, FY25 Q1: 3.9% Revenue growth, TTM YoY, FY25 Q2: 1.0% Revenue growth, TTM YoY, FY25 Q3: -0.7% Revenue growth, TTM YoY, FY25 Q4: -5.0% Revenue growth, TTM YoY, FY26 Q1: -4.5% Revenue growth, TTM YoY, FY26 Q2: -3.0% -3.0%

Source: SEC EDGAR filings. Retrieved October 20, 2026.

View chart data
Period Revenue growth, TTM YoY
FY23 Q3 0.8%
FY23 Q4 0.1%
FY24 Q1 -0.0%
FY24 Q2 3.7%
FY24 Q3 2.8%
FY24 Q4 4.6%
FY25 Q1 3.9%
FY25 Q2 1.0%
FY25 Q3 -0.7%
FY25 Q4 -5.0%
FY26 Q1 -4.5%
FY26 Q2 -3.0%
Operating margin (TTM) Watsco Inc
9% 9.5% 10% 10.5% 11% 11.5% FY23 Q3 FY24 Q2 FY25 Q1 FY26 Q2 Operating margin (TTM), FY23 Q3: 11.4% Operating margin (TTM), FY23 Q4: 10.9% Operating margin (TTM), FY24 Q1: 10.4% Operating margin (TTM), FY24 Q2: 10.2% Operating margin (TTM), FY24 Q3: 10.1% Operating margin (TTM), FY24 Q4: 10.3% Operating margin (TTM), FY25 Q1: 10.1% Operating margin (TTM), FY25 Q2: 10.3% Operating margin (TTM), FY25 Q3: 10.2% Operating margin (TTM), FY25 Q4: 10.0% Operating margin (TTM), FY26 Q1: 9.9% Operating margin (TTM), FY26 Q2: 9.4% 9.4%

Source: SEC EDGAR filings. Retrieved October 20, 2026.

View chart data
Period Operating margin (TTM)
FY23 Q3 11.4%
FY23 Q4 10.9%
FY24 Q1 10.4%
FY24 Q2 10.2%
FY24 Q3 10.1%
FY24 Q4 10.3%
FY25 Q1 10.1%
FY25 Q2 10.3%
FY25 Q3 10.2%
FY25 Q4 10.0%
FY26 Q1 9.9%
FY26 Q2 9.4%
FCF margin (TTM) Watsco Inc
4% 6% 8% 10% 12% FY23 Q3 FY24 Q2 FY25 Q1 FY26 Q2 FCF margin (TTM), FY23 Q3: 6.1% FCF margin (TTM), FY23 Q4: 7.2% FCF margin (TTM), FY24 Q1: 9.3% FCF margin (TTM), FY24 Q2: 10.5% FCF margin (TTM), FY24 Q3: 8.8% FCF margin (TTM), FY24 Q4: 9.8% FCF margin (TTM), FY25 Q1: 6.1% FCF margin (TTM), FY25 Q2: 5.3% FCF margin (TTM), FY25 Q3: 7.0% FCF margin (TTM), FY25 Q4: 7.4% FCF margin (TTM), FY26 Q1: 9.6% FCF margin (TTM), FY26 Q2: 9.6% 9.6%

Source: SEC EDGAR filings. Retrieved October 20, 2026.

View chart data
Period FCF margin (TTM)
FY23 Q3 6.1%
FY23 Q4 7.2%
FY24 Q1 9.3%
FY24 Q2 10.5%
FY24 Q3 8.8%
FY24 Q4 9.8%
FY25 Q1 6.1%
FY25 Q2 5.3%
FY25 Q3 7.0%
FY25 Q4 7.4%
FY26 Q1 9.6%
FY26 Q2 9.6%

Data: SEC EDGAR XBRL company facts (as filed in 10-K/10-Q); forms 10-K, 10-Q. Generated November 3, 2026. Definitions in our methodology.

Where the money goes

FY2025, from the 10-K

Each dollar Watsco took in during FY2025, followed through to profit: what it cost to make, what went on running the business, and what was left after tax.

  1. Revenue $7.2B
  2. Cost of revenue $5.2B · 72.0%
  3. Gross profit $2B · 28.0%
  4. Selling, general and admin $1.3B · 18.5%
  5. Operating income $720M · 10.0%
  6. Income tax $150M · 2.1%
  7. Interest and other $73.3M · 1.0%
  8. Net income $497M · 6.9%

Shares of revenue. Source: Watsco's 10-K for FY2025, as filed with the SEC. "Other" lines are what the reported lines leave unexplained.

Financial statements

US$ millions unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year 2009 Dec 2009 2010 Dec 2010 2011 Dec 2011 2012 Dec 2012 2013 Dec 2013 2014 Dec 2014 2015 Dec 2015 2016 Dec 2016 2017 Dec 2017 2018 Dec 2018 2019 Dec 2019 2020 Dec 2020 2021 Dec 2021 2022 Dec 2022 2023 Dec 2023 2024 Dec 2024 2025 Dec 2025 LTM Jun 2026
Income
Revenue 2,002 2,845 2,978 3,432 3,743 3,945 4,113 4,221 4,342 4,547 4,770 5,055 6,280 7,274 7,284 7,618 7,239 7,284
Gross profit 481 673 728 814 899 956 1,007 1,035 1,066 1,120 1,157 1,223 1,668 2,030 1,992 2,045 2,030 2,004
EBITDA 90 176 211 241 289 324 356 366 376 394 391 427 657 863 830 823 764 729
Operating income 81 166 199 225 271 306 337 346 354 372 367 401 629 832 795 782 720 685
Net income 43 81 90 103 128 151 173 183 208 243 246 270 419 601 536 536 497 476
Diluted EPS $1.40 $2.49 $2.74 $2.70 $3.68 $4.32 $4.90 $5.15 $5.81 $6.49 $6.50 $7.01 $10.78 $15.41 $13.67 $13.30 $12.25 $12.52
Growth (year on year)
Revenue +17.7% +42.1% +4.7% +15.2% +9.1% +5.4% +4.3% +2.6% +2.9% +4.7% +4.9% +6.0% +24.2% +15.8% +0.1% +4.6% −5.0% −3.0%
EBITDA −15.2% +96.8% +19.5% +14.3% +20.0% +12.0% +9.9% +2.8% +2.8% +4.9% −0.7% +9.1% +53.8% +31.5% −3.9% −0.9% −7.1% −10.4%
Operating income −17.8% +104.3% +20.2% +13.0% +20.6% +12.7% +10.1% +2.6% +2.4% +5.1% −1.4% +9.3% +56.7% +32.3% −4.4% −1.6% −7.9% −11.1%
Net income −28.3% +86.5% +12.0% +14.2% +23.6% +18.5% +14.2% +5.7% +13.9% +16.7% +1.2% +9.6% +55.4% +43.5% −10.8% −0.0% −7.3% −10.5%
Diluted EPS −33.0% +77.9% +10.0% −1.5% +36.3% +17.4% +13.4% +5.1% +12.8% +11.7% +0.2% +7.8% +53.8% +42.9% −11.3% −2.7% −7.9% —
Margins
Gross margin 24.0% 23.7% 24.5% 23.7% 24.0% 24.2% 24.5% 24.5% 24.5% 24.6% 24.3% 24.2% 26.6% 27.9% 27.4% 26.8% 28.0% 27.5%
EBITDA margin 4.5% 6.2% 7.1% 7.0% 7.7% 8.2% 8.7% 8.7% 8.7% 8.7% 8.2% 8.4% 10.5% 11.9% 11.4% 10.8% 10.6% 10.0%
Operating margin 4.0% 5.8% 6.7% 6.6% 7.2% 7.8% 8.2% 8.2% 8.2% 8.2% 7.7% 7.9% 10.0% 11.4% 10.9% 10.3% 10.0% 9.4%
Net margin 2.2% 2.8% 3.0% 3.0% 3.4% 3.8% 4.2% 4.3% 4.8% 5.3% 5.2% 5.3% 6.7% 8.3% 7.4% 7.0% 6.9% 6.5%
Free-cash-flow margin 4.1% 5.1% 1.6% 4.7% 3.6% 3.1% 4.8% 5.6% 6.6% 3.4% 6.7% 10.2% 5.2% 7.4% 7.2% 9.8% 7.4% 9.6%
Cash flow
Cash from operations 88 153 61 173 150 145 223 282 307 171 336 534 350 572 562 773 570 733
Capital spending 6 8 14 12 15 22 24 44 18 17 18 16 25 36 35 30 35 36
Free cash flow 82 144 48 161 136 123 199 238 289 153 318 518 324 536 526 743 535 697
Stock-based pay 5 5 7 8 10 11 13 12 13 16 17 22 25 29 30 35 35 34
Free cash flow after stock pay 77 139 41 153 126 112 187 226 275 138 301 496 299 507 496 708 500 663
Balance sheet
Cash 58 126 16 74 19 24 35 56 80 83 74 146 118 148 210 526 433 364
Total debt 14 10 20 316 231 304 246 236 22 136 381 216 370 391 405 447 479 488
Net debt (negative = net cash) −45 −116 4 242 211 280 211 180 −58 53 307 70 251 243 195 −79 46 124
Diluted shares 29m 31m 31m 32m 32m 32m 32m 33m 33m 34m 35m 35m 35m — 37m 38m 38m 38m
Returned to shareholders
Dividends 57 66 73 256 40 70 99 128 164 209 241 266 295 332 383 424 474 499
Total returned 57 66 73 256 40 70 99 128 164 209 241 266 295 332 383 424 474 499

Source: SEC EDGAR XBRL company facts (US and foreign periodic filings); column headings link to the filing. EBITDA is operating income plus depreciation and amortisation. Free cash flow is cash from operations minus capital spending. Growth is left blank when last year's figure was a loss or under 2% of revenue. Share counts and EPS are restated for stock splits. A dash means the company didn't report the figure.

Financial health

1 of 1 checks passed · June 30, 2026
What it owns · $5.1bn
Short-term assets $3.5bnLonger-term assets $1.6bn
What it owes, and who funded it · $4.1bn
Short-term liabilities $1.1bnShareholders' equity $3.0bn
  • Short-term assets cover short-term liabilities $3.5bn of assets due within a year against $1.1bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
  • More cash than debt Cash or debt not separately reported. Not assessable.
  • Debt below 40% of shareholders' equity Equity or debt not reported. Not assessable.
  • Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
  • A year's operating cash flow covers at least 20% of debt Cash flow or debt not reported. Not assessable.
  • Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Watsco Inc's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Dividends, buybacks and capital spending

Dividends (TTM)
$499M
Returned to shareholders
72%
of free cash flow
Total shareholder yield
4.1%
dividends 4.1% + buybacks 0.0% of market value
Dividend payout ratio
105%
of net income paid out
Sales & admin spending
18.5%
of revenue
Days sales outstanding
53 days
receivables vs revenue

Competitors: side by side with peers

Closest by revenue in trading companies & distributors
Last 12 months unless stated WSO RUSHA CNM AER FAST QXO Median
Revenue, last 12 months $7.3bn $7.2bn $7.7bn $8.5bn $9.1bn $9.9bn $2.2bn
Revenue growth, last 12 months −3.0% −5.9% −0.5% 6.5% 13.5% 408.3% 8.4%
Revenue growth, 3-year average 0.5% −1.9% 5.1% 100.9% 7.6% 484.0% 5.1%
Revenue growth, latest quarter 2.1% −1.6% 2.5% — 15.5% 70.3% 9.0%
Gross margin 27.5% 19.7% 27.0% 18.1% 44.6% 24.0% 28.3%
Operating margin 9.4% 5.1% 9.6% 27.0% 20.5% −3.4% 5.5%
Operating margin, 3-year average 10.0% 5.6% 9.7% — 20.4% −9.4% 6.4%
Net margin 6.5% 3.7% 6.0% 44.0% 15.6% −5.2% 3.5%
Cash from operations / revenue 10.1% 9.3% 8.9% 63.3% 15.8% 2.6% 4.9%
Free-cash-flow margin 9.6% 4.8% 8.2% 32.2% 13.0% 1.4% 2.4%
Free-cash-flow margin, 3-year average 8.4% 3.1% 8.7% 32.6% 13.0% −0.7% 3.1%
Stock pay / revenue 0.5% 0.4% 0.2% 2.0% 0.1% 1.3% 0.5%
Change in share count 1.0% −2.4% −1.8% −9.4% −0.7% 2.3% −0.5%

Median of all 32 companies we cover in trading companies & distributors. Shaded: best of the six on that line (lowest for stock pay and share-count growth). 3-year figures average the last three 12-month periods; 3-year growth is compound annual. Source: SEC filings.

Peer comparison

32 trading companies & distributors companies
Measure Company Peer median Rank
Revenue growth Growth -3.0% 8.5% 28 of 32
Change in growth rate Growth +1.5pp +0.8pp 8 of 32
Gross margin Profitability 27.5% 28.9% 15 of 26
Operating margin Profitability 9.4% 5.5% 7 of 28
Net margin Profitability 6.5% 3.5% 9 of 32
Free-cash-flow margin Cash generation 9.6% 2.8% 7 of 32
Stock pay as % of revenue Cash generation 0.5% 0.5% 11 of 29
Long-term debt as % of assets Balance sheet 7.9% 21.4% 6 of 29
Days sales outstanding Balance sheet 53 days 57 days 12 of 27

Rank 1 = best in the group (for spending, debt and dilution, lower ranks first).

Who owns it

Funds buying and selling
Reported value
$15.8B
Institutions reporting
780
Shares held vs prior quarter
▼ 1.0%
Positions opened / closed
86 / 70

Top buyers and sellers, Q2 2026: 333 institutions bought and 372 sold ; the biggest buyer was Findlay Park Partners LLP (+189K shares) and the biggest seller Goldman Sachs Group Inc (−227K). See which funds bought and sold →

Largest reported holders, June 30, 2026
Manager Value Shares Share of 13F value Shares QoQ
Blackrock, Inc. $1.7B 4.2M 11.1% ▲ 2.5%
Capital International Investors $1.5B 3.5M 9.2% ▲ 0.2%
Capital Research Global Investors $793M 1.9M 5.0% ▲ 0.2%
Vanguard Portfolio Management LLC $738M 1.8M 4.7% ▲ 1.1%
FMR LLC $711M 1.7M 4.5% ▼ 9.8%
Vanguard Capital Management LLC $658M 1.6M 4.2% ▲ 0.7%
Charles Schwab Investment Management Inc $608M 1.5M 3.9% ▲ 8.9%
State Street Corp $551M 1.3M 3.5% ▲ 3.9%
Kayne Anderson Rudnick Investment Management LLC $473M 1.1M 3.0% ▼ 14.7%
Baillie Gifford & Co $471M 1.1M 3.0% ▼ 0.7%
Morgan Stanley $376M 902K 2.4% ▲ 1.3%
Geode Capital Management, LLC $274M 659K 1.7% ▲ 0.8%

From Form 13F filings with the SEC ( quarterly data sets), as reported by each manager for June 30, 2026 and filed up to 45 days later. 13F reports cover long US-listed positions of managers above $100M only, so this is not Watsco Inc's complete shareholder register. Values are as reported by the filers ; 1 inconsistently scaled filing rows were excluded.

Insider trading activity

Full insider history and chart
Insider purchases History → $0 0 trades by 0 insiders, last 12 months Insider sales History → $0 0 trades by 0 insiders
Net ▲ $0 net buying

No open-market insider trades reported in the last 12 months.

From insiders' Form 4 filings with the SEC. Excludes awards, option exercises and shares withheld for tax. "Pre-set plan" means the filing marks the trade as made under a Rule 10b5-1 plan. See every insider trade since five years ago, on a price chart.

Trades by members of Congress

All 13 trades and filings

No trades in Watsco Inc disclosed in the last 12 months; 13 earlier trades on record.

  • Val T. Hoyle(D-OR 4):Sale (full), $1,001 - $15,000, traded September 23, 2025, filed October 10, 2025
  • Lisa C. McClain(R-MI 9):Sale (full), $1,001 - $15,000, traded August 13, 2025, filed September 12, 2025
  • Lisa C. McClain(R-MI 9):Purchase, $1,001 - $15,000, traded June 17, 2025, filed August 13, 2025

Value ranges as filed; reports can arrive up to 45 days after a trade.

Earnings dates and SEC filings

Results announcements

Next expected around February 16, 2027 estimated from the company's past filing pattern, not announced

  • October 27, 2026
  • July 29, 2026
  • April 28, 2026
  • February 17, 2026
  • October 29, 2025
  • July 30, 2025

Recent SEC filings

Data status

When each part of this page on Watsco Inc was last updated.

DataLast updatedSource
Share priceExchange closing prices
Financial statementsSEC 10-K and 10-Q filings
News and updatesCompany releases and SEC 8-K filings
Analyst estimatesAggregated analyst estimates
Valuation and scoresOur models, from the filed figures

How we build and check these figures: methodology and data sources.

Watsco Inc in brief

What does Watsco Inc do?
Watsco Inc is a US-listed company in the trading companies & distributors industry. Its financial year ends in December.
What is Watsco Inc's stock ticker?
Watsco Inc trades under the ticker WSO on NYSE. This page brings together its financial statements, valuation models, ownership and recent company updates.
What is Watsco Inc's revenue, and how fast is it growing?
Over its most recent trailing twelve months, Watsco Inc reported revenue of $7.3B, 3.0% lower than a year earlier, according to its SEC filings.
What is Watsco Inc's free cash flow?
Watsco Inc's free-cash-flow margin is 9.6% of revenue over the trailing twelve months, ranking 7 of the 32 trading companies & distributors companies we cover.
What is Watsco Inc's fair value (intrinsic value) per share?
Our discounted-cash-flow model of Watsco Inc's free cash flow after stock-based pay gives ~$260 per share in the base case, and ~$190–$350 across growth scenarios. These are model values under stated assumptions — not a price target or a recommendation.
Who are Watsco Inc's largest institutional shareholders?
By value reported in 13F filings for June 30, 2026, the largest reported holders are Blackrock, Inc., Capital International Investors and Capital Research Global Investors. 13F reports cover long US-listed positions of managers above $100M, filed up to 45 days after quarter end.
What is Watsco Inc's market cap?
On November 2, 2026, Watsco Inc's market capitalisation was about $12B, with a price-to-earnings ratio of 25.3 and net debt of $124M. Market figures come from third-party market data and may be delayed.
Does Watsco Inc pay a dividend?
Yes: Watsco Inc paid $499M in dividends over the trailing twelve months, a dividend yield of 4.13% and a payout ratio of 104.9%.
Who are Watsco Inc's competitors?
In our Trading Companies & Distributors peer group, the companies closest to Watsco Inc are Rush Enterprises Inc \tx\, Core & Main, Inc., Aercap Holdings N.V., Fastenal and QXO, Inc. The side-by-side comparison below sets their revenue, margins and growth against Watsco Inc's.
When is Watsco Inc's next earnings date?
Around February 16, 2027, estimated from the spacing of its past results announcements (8-K filings). That is an estimate, not a confirmed date — Watsco Inc announces its own schedule.