Want to see WSO full AI Analyst Report?
WSO Stock Chart & Stats
$362.01
$2.36(0.65%)
At close: 4:00 PM EDT
$362.01
$2.36(0.65%)
Day’s Range― - ―
52-Week Range$300.66 - $459.00
Previous Close$364.37
Volume241.65K
Average Volume (3M)340.15K
Market Cap
$12.65B
Enterprise Value$16.46K
Total Cash (Recent Filing)$464.19M
Total Debt (Recent Filing)$526.20M
Price to Earnings (P/E)26.7
Beta0.93
Next Earnings
Oct 15, 2026EPS Estimate
4.15Next Dividend Ex-DateN/A
Dividend Yield4.07%
Share Statistics
EPS (TTM)11.58
Shares Outstanding35,016,650
10 Day Avg. Volume378,850
30 Day Avg. Volume340,155
Financial Highlights & Ratios
PEG Ratio-3.37
Price to Book (P/B)4.59
Price to Sales (P/S)1.76
P/FCF Ratio23.87
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$371.00Price Target Upside2.48% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)12.2
Revenue Forecast (FY)$7.57B
Bulls Say, Bears Say
Bulls Say
Conservative Balance Sheet / Low LeverageWSO's low leverage and effectively debt-free posture provide durable financial flexibility. With total debt roughly $406M versus ~$3.47B equity and management emphasizing no net leverage, the company can fund technology, acquisitions, dividends and seasonal inventory without borrowing stress, supporting long-term capital allocation through cyclical HVAC demand.
Strong Cash Generation / High FCF ConversionConsistently high free cash flow conversion (FCF ≈95% of net income, operating cash flow ~$733M TTM) indicates solid earnings quality for a distributor. Persistent cash generation funds the dividend, M&A and tech investments that drive scale and margin improvements, and provides a buffer against working-capital swings typical in distribution models.
Scale And Momentum In Digital PlatformsRapid e-commerce and OnCallAir growth (e-commerce +16%, OnCallAir +20% with GMV guidance >$2B) represent a structural shift toward higher-penetration, lower cost-to-serve sales. Digital scale increases customer stickiness, raises effective margins on transactions, and creates a durable competitive advantage versus less digitized local distributors.
Bears Say
Volatile Revenue GrowthTop-line growth has been inconsistent across recent years—strong in 2021–22, flattened in 2023, rebounded in 2024, dipped in 2025—which reflects demand cyclicality and product-transition effects. For a working-capital-intensive distributor, unreliable revenue trends complicate capacity planning, margin leverage and multi-period forecasting.
Inventory Build And Working-capital PressureManagement disclosed a notable Q1 inventory build tied to product transitions and seasonal stocking. Elevated inventory raises working-capital needs, can depress near-term cash flow and increases carrying/obsolescence risk—especially important for distributors where turns and cash conversion drive sustainable returns.
OEM Price/tariff Uncertainty And Unit-volume RiskAnticipated OEM price actions and tariffs introduce structural uncertainty into both demand and margins. If higher OEM pricing reduces installer orders or cannot be promptly passed through, unit volumes and margin targets could be pressured. Limited visibility into downstream channel inventories further complicates sell-through forecasting.
Watsco News
WSO FAQ
What was Watsco Inc’s price range in the past 12 months?
Watsco Inc lowest stock price was $300.66 and its highest was $459.00 in the past 12 months.
What is Watsco Inc’s market cap?
Watsco Inc’s market cap is $12.65B.
When is Watsco Inc’s upcoming earnings report date?
Watsco Inc’s upcoming earnings report date is Oct 15, 2026 which is in 70 days.
How were Watsco Inc’s earnings last quarter?
Watsco Inc released its earnings results on Jul 29, 2026. The company reported $4 earnings per share for the quarter, missing the consensus estimate of $4.41 by -$0.41.
Is Watsco Inc overvalued?
According to Wall Street analysts Watsco Inc’s price is currently Undervalued.
Does Watsco Inc pay dividends?
Watsco Inc pays a Quarterly dividend of $3.3 which represents an annual dividend yield of 4.07%. See more information on Watsco Inc dividends here
What is Watsco Inc’s EPS estimate?
Watsco Inc’s EPS estimate is 4.15.
How many shares outstanding does Watsco Inc have?
Watsco Inc has 35,016,650 shares outstanding.
What happened to Watsco Inc’s price movement after its last earnings report?
Watsco Inc reported an EPS of $4 in its last earnings report, missing expectations of $4.41. Following the earnings report the stock price went down -12.922%.
Which hedge fund is a major shareholder of Watsco Inc?
Currently, no hedge funds are holding shares in WSO
What is the TipRanks Smart Score and how is it calculated?
Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology
Watsco Stock Smart Score
Neutral
1
2
3
4
5
6
7
8
9
10
Analyst Consensus
Hold
Average Price Target:
$371.00 (2.48% Upside)
$371.00 (2.48% Upside)
Blogger Sentiment
Bullish
WSO Sentiment 86%
Sector Average 60%
Sector Average 60%
Hedge Fund Trend
Decreased
By 843.0 Shares
Last Quarter.
Last Quarter.
Crowd Wisdom
Positive
Last 7 Days ▼ 1.2%
Last 30 Days ▲ 4.2%
Last 30 Days ▲ 4.2%
News Sentiment
Very Bearish
Bullish news 0%
Bearish news 100%
Bearish news 100%
Technicals
SMA
Positive
20 days / 200 days
Momentum
-22.81%
12-Months-Change
Fundamentals
Return on Equity
4.07%
Trailing 12-Months
Asset Growth
7.51%
Trailing 12-Months
Company Description
Watsco Inc
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. The company also offers parts comprising 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. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.
WSO Earnings Call
Q2 2026
0:00 / 0:00
Earnings Call Sentiment|Positive
The call presented a predominately constructive tone: management highlighted stability returning after the A2L transition, modest top-line growth (2%), strong e-commerce and OnCallAir momentum (16% and 20% growth respectively, with GMV > $2B expected), a strategic acquisition (Jackson Supply, $230M, +25 locations), intact gross margins, flat SG&A and a debt-free balance sheet. Offsetting items were ongoing unit-volume pressure (though stabilizing), a notable Q1 inventory build, and uncertainty around forthcoming OEM price increases and seasonal comps. Overall the positive drivers (digital growth, acquisition, margin programs, strong balance sheet and improving seasonal momentum) outweigh the transitory operational uncertainties.View all WSO earnings summariesWSO Stock 12 Month Forecast
Average Price Target
$371.00
▲(2.48% Upside)
Technical Analysis
Ownership Overview
0.36% Insiders
34.93% Mutual Funds
8.49% Other Institutional Investors
27.52% Public Companies and
Individual Investors