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Watsco (WSO): financial analysis & fundamentals

Industrials Β· price $303 Β· market cap $12.6 B
In short β€” Watsco trades at 24.2Γ— earnings (P/E), 22.8Γ— expected earnings, for a PEG of β€” and a net margin of 6%. Revenue growth 7%. Quick verdict: valuation to review.

πŸ“ˆ See the interactive version (live chart) β†’

πŸ”— Related pages on Watsco β€” Are analysts right?  Β·  If I had invested  Β·  Dividend

Valuation & profitability

MetricValueWhat it means
P/E (price / earnings)24.2The higher, the more growth the market expects.
Forward P/E22.8On next year's expected earnings. Lower than current P/E = rising earnings.
PEG (P/E Γ· growth)β€”Below 1 = cheap given growth; above 2 = expensive.
Net margin6%Share of revenue that ends up as profit.
Revenue growth7%Pace of revenue growth.
Price-to-book3.9Price relative to book value.
Market cap$12.6 BTotal market value of the company.
Dividend yield3.02%Annual dividend ~$12.30/share relative to price.

Income statement (by year)

YearRevenueNet incomeNet margin
2022$7.3 B$550 M8%
2023$7.3 B$499 M7%
2024$7.6 B$499 M7%
2025$7.2 B$464 M6%

πŸ“Š Open the interactive Watsco page (charts, live news) β†’

Frequently asked questions

Is Watsco stock expensive?

Watsco has a P/E of 24.2 (forward P/E 22.8) and a PEG of β€”. A PEG below 1 is rather cheap given growth, above 2 is expensive. Verdict: valuation to review.

What is Watsco's net margin?

Watsco's net margin is about 6% β€” the share of revenue that ends up as net profit.

What is Watsco's revenue?

Latest known revenue: $7.2 B for net income of $464 M. The year-by-year breakdown is in the income statement above.

What is Watsco's market cap?

Watsco (WSO) has a market cap of about $12.6 B.

Does Watsco pay a dividend?

Yes: Watsco pays about $12.30/share per year, i.e. roughly a 3.02% yield at the current price.

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⚠️ Educational information, not investment advice. Data: Yahoo Finance, recomputed by JPI Invest. A stock can be « cheap » for a bad reason.