Watsco Financials

WSO-B Stock  USD 535.00  15.30  2.94%   
Based on the analysis of Watsco's profitability, liquidity, and operating efficiency, Watsco Inc is performing exceptionally good at this time. It has a great probability to report excellent financial results in December. At present, Watsco's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Short and Long Term Debt Total is expected to grow to about 425 M, whereas Non Currrent Assets Other are forecasted to decline to about 5.2 M. Key indicators impacting Watsco's financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.07730.0736
Sufficiently Up
Slightly volatile
Return On Assets0.150.1438
Sufficiently Up
Slightly volatile
Return On Equity0.250.2405
Sufficiently Up
Slightly volatile
Debt Equity Ratio0.04930.0519
Notably Down
Slightly volatile
Operating Income810 M771.4 M
Sufficiently Up
Slightly volatile
Current Ratio4.523.3594
Significantly Up
Slightly volatile
Investors should never underestimate Watsco's ability to pay suppliers on time, ensure interest payments are not accumulating, and correctly time where and how to reinvest extra cash. Individual investors need to monitor Watsco's cash flow, debt, and profitability to make informed and accurate decisions about investing in Watsco Inc.

Net Income

563.15 Million

  
Understanding current and past Watsco Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Watsco's financial statements are interrelated, with each one affecting the others. For example, an increase in Watsco's assets may result in an increase in income on the income statement.
Please note, the presentation of Watsco's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Watsco's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Watsco's management manipulating its earnings.

Watsco Stock Summary

Watsco competes with Global Industrial, WESCO International, and MSC Industrial. Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida. Watsco operates under Industrial Distribution classification in USA and is traded on New York Stock Exchange. It employs 5200 people.
Specialization
Industrials, Industrial Distribution
InstrumentUSA Stock View All
ExchangeNew York Stock Exchange
ISINUS9426221019
Business Address2665 South Bayshore
SectorTrading Companies & Distributors
IndustryIndustrials
BenchmarkDow Jones Industrial
Websitewww.watsco.com
Phone305 714 4100
CurrencyUSD - US Dollar

Watsco Key Financial Ratios

Watsco Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets2.6B2.5B3.1B3.5B3.7B3.9B
Other Current Liab69.4M71.8M278.0M303.4M242.4M254.5M
Net Debt235.5M65.3M242.3M231.6M194.7M204.4M
Retained Earnings632.5M636.4M760.8M1.0B1.2B1.2B
Cash74.5M146.1M118.3M147.5M210.1M220.6M
Net Receivables533.8M535.3M698.5M747.1M797.8M837.7M
Inventory920.8M793.9M1.1B1.4B1.3B1.4B
Other Current Assets17.7M21.8M29.2M34.0M36.7M38.5M
Total Liab841.4M717.2M1.1B1.2B1.2B1.2B
Total Current Assets1.5B1.5B2.0B2.3B2.4B2.5B
Short Term Debt69.4M71.8M84.5M147.0M100.3M105.3M
Intangible Assets172.0M169.9M186.9M175.2M218.1M117.6M
Accounts Payable239.7M251.6M364.2M456.1M369.4M387.9M
Common Stock21.5M21.7M21.8M21.8M22.1M20.8M
Good Will411.2M412.5M434.0M430.7M457.1M378.8M
Other Liab67.7M73.1M85.7M89.9M80.9M61.0M
Net Tangible Assets852.2M1.5B1.7B1.3B1.5B1.0B
Other Assets6.6M6.2M6.4M6.4M5.7M11.4M
Long Term Debt157.7M144.3M285.2M243.5M15.4M14.6M
Short Long Term Debt69.4M71.8M84.5M147.0M100.3M52.2M

Watsco Key Income Statement Accounts

201920202021202220232024 (projected)
Interest Expense4.0M1.2M996K2.2M4.9M5.4M
Total Revenue4.8B5.1B6.3B7.3B7.3B7.6B
Gross Profit1.2B1.2B1.7B2.0B2.0B2.1B
Operating Income366.9M401.0M628.5M831.6M771.4M810.0M
Ebit366.9M401.0M628.5M831.6M771.4M810.0M
Ebitda391.4M426.9M656.7M863.3M806.5M846.8M
Cost Of Revenue3.6B3.8B4.6B5.2B5.3B5.6B
Income Before Tax362.9M399.8M627.5M829.4M789.9M829.4M
Net Income246.0M269.6M418.9M601.2M536.3M563.2M
Income Tax Expense67.1M76.6M128.8M125.7M155.8M163.5M
Minority Interest279.3M53.6M79.8M(102.5M)(97.8M)(92.9M)
Tax Provision67.1M76.6M128.8M125.7M155.8M113.2M
Net Interest Income(4.0M)(1.2M)(996K)(2.2M)(4.9M)(5.2M)

Watsco Key Cash Accounts

201920202021202220232024 (projected)
Change To Inventory(15.5M)139.9M(243.7M)(259.9M)64.6M67.9M
Change In Cash(8.4M)71.6M(27.8M)29.2M62.6M65.7M
Free Cash Flow319.3M518.0M325.5M538.2M526.5M552.8M
Depreciation24.5M25.9M28.1M31.7M35.1M36.8M
Other Non Cash Items(2.6M)(4.0M)(6.9M)(9.0M)87.5M91.9M
Dividends Paid241.4M265.7M294.5M332.4M382.6M401.8M
Capital Expenditures16.4M16.3M24.1M33.8M35.5M18.9M
Net Income295.8M323.2M498.7M703.7M536.3M563.2M
End Period Cash Flow74.5M146.1M118.3M147.5M210.1M220.6M
Investments(4.9M)(16.3M)(148.6M)(33.8M)(35.5M)(37.3M)
Net Borrowings20.5M(157.3M)89.0M(35.6M)(32.1M)(30.5M)
Change To Netincome59.6M18.2M24.4M33.3M29.9M45.5M

Watsco Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Watsco's current stock value. Our valuation model uses many indicators to compare Watsco value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Watsco competition to find correlations between indicators driving Watsco's intrinsic value. More Info.
Watsco Inc is rated first in return on equity category among its peers. It is rated first in return on asset category among its peers reporting about  0.50  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Watsco Inc is roughly  2.02 . At present, Watsco's Return On Equity is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Watsco's earnings, one of the primary drivers of an investment's value.

Watsco Inc Systematic Risk

Watsco's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Watsco volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was twelve with a total number of output elements of fourty-nine. The Beta measures systematic risk based on how returns on Watsco Inc correlated with the market. If Beta is less than 0 Watsco generally moves in the opposite direction as compared to the market. If Watsco Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Watsco Inc is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Watsco is generally in the same direction as the market. If Beta > 1 Watsco moves generally in the same direction as, but more than the movement of the benchmark.
Today, most investors in Watsco Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Watsco's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Watsco growth as a starting point in their analysis.

Price Earnings To Growth Ratio

(2.39)

At present, Watsco's Price Earnings To Growth Ratio is projected to increase slightly based on the last few years of reporting.

Watsco November 25, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Watsco help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Watsco Inc. We use our internally-developed statistical techniques to arrive at the intrinsic value of Watsco Inc based on widely used predictive technical indicators. In general, we focus on analyzing Watsco Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Watsco's daily price indicators and compare them against related drivers.

Complementary Tools for Watsco Stock analysis

When running Watsco's price analysis, check to measure Watsco's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Watsco is operating at the current time. Most of Watsco's value examination focuses on studying past and present price action to predict the probability of Watsco's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Watsco's price. Additionally, you may evaluate how the addition of Watsco to your portfolios can decrease your overall portfolio volatility.
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon