Watsco Inc Stock Five Year Return

WSO Stock

USD 546.24 12.84 2.41%

Watsco Inc fundamentals help investors to digest information that contributes to Watsco's financial success or failures. It also enables traders to predict the movement of Watsco Stock. The fundamental analysis module provides a way to measure Watsco's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Watsco stock.

Short Long Term Debt Total Total Assets

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

Watsco Inc Company Five Year Return Analysis

Watsco's Five Year Return is considered one of the best measures to evaluate fund performance, especially from the mid and long term perspective. It shows the total annualized return generated from holding equity for the last five years and represents capital appreciation of the investment, including all dividends, losses, and capital gains distributions.

Five Year Return

(Mean of Monthly Returns - 1)

X

100%

More About Five Year Return | All Equity Analysis

Current Watsco Five Year Return

3.20 %

Most of Watsco's fundamental indicators, such as Five Year Return, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Watsco Inc is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Watsco Five Year Return Driver Correlations

Understanding the fundamental principles of building solid financial models for Watsco is extremely important. It helps to project a fair market value of Watsco Stock properly, considering its historical fundamentals such as Five Year Return. Since Watsco's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Watsco's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Watsco's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Common Stock	Long Term Debt	Good Will	Treasury Stock	Property Plant Equipment	Short Term Investments	Current Deferred Revenue	Net Tangible Assets	Long Term Debt Total	Capital Surpluse	Deferred Long Term Liab	Long Term Investments	Short Long Term Debt	Cash And Equivalents	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.99	0.45	0.96	0.99	0.97	1.0	0.83	0.56	0.96	0.77	-0.14	0.68	-0.04	0.82	0.81	0.54	0.72	0.37	0.85	0.63	0.8	0.77	0.79	0.84	0.82	0.74
Total Stockholder Equity	0.99		0.3	0.98	0.97	0.91	0.98	0.81	0.46	0.93	0.73	-0.29	0.62	0.04	0.84	0.84	0.51	0.73	0.27	0.87	0.6	0.8	0.74	0.81	0.84	0.83	0.76
Net Debt	0.45	0.3		0.29	0.46	0.63	0.43	0.33	0.64	0.41	0.45	0.67	0.51	-0.41	0.27	0.21	0.27	0.09	0.73	0.17	0.28	0.25	0.35	0.1	0.34	0.31	0.25
Retained Earnings	0.96	0.98	0.29		0.96	0.89	0.97	0.82	0.37	0.92	0.66	-0.34	0.54	0.07	0.9	0.8	0.45	0.69	0.25	0.81	0.57	0.77	0.73	0.79	0.87	0.86	0.78
Net Receivables	0.99	0.97	0.46	0.96		0.95	0.99	0.77	0.59	0.95	0.81	-0.13	0.72	-0.13	0.79	0.76	0.61	0.68	0.39	0.82	0.61	0.75	0.71	0.74	0.8	0.78	0.71
Total Liab	0.97	0.91	0.63	0.89	0.95		0.96	0.83	0.61	0.95	0.73	0.08	0.68	-0.07	0.79	0.76	0.48	0.68	0.46	0.78	0.63	0.77	0.8	0.74	0.83	0.8	0.7
Total Current Assets	1.0	0.98	0.43	0.97	0.99	0.96		0.82	0.54	0.96	0.76	-0.16	0.67	-0.04	0.84	0.8	0.54	0.71	0.35	0.84	0.62	0.79	0.76	0.78	0.85	0.83	0.74
Short Term Debt	0.83	0.81	0.33	0.82	0.77	0.83	0.82		0.21	0.88	0.43	-0.13	0.37	0.29	0.81	0.83	0.11	0.77	0.29	0.8	0.52	0.87	0.96	0.85	0.88	0.83	0.71
Intangible Assets	0.56	0.46	0.64	0.37	0.59	0.61	0.54	0.21		0.5	0.83	0.39	0.91	-0.56	0.19	0.23	0.77	0.29	0.5	0.45	0.52	0.31	0.3	0.31	0.3	0.29	0.04
Accounts Payable	0.96	0.93	0.41	0.92	0.95	0.95	0.96	0.88	0.5		0.7	-0.09	0.64	0.04	0.81	0.78	0.47	0.76	0.31	0.85	0.61	0.81	0.85	0.82	0.85	0.82	0.68
Common Stock	0.77	0.73	0.45	0.66	0.81	0.73	0.76	0.43	0.83	0.7		0.11	0.97	-0.54	0.35	0.49	0.89	0.49	0.51	0.67	0.51	0.52	0.46	0.49	0.43	0.42	0.24
Long Term Debt	-0.14	-0.29	0.67	-0.34	-0.13	0.08	-0.16	-0.13	0.39	-0.09	0.11		0.24	-0.31	-0.4	-0.16	0.02	-0.11	0.37	-0.18	0.07	-0.08	0.02	-0.3	-0.24	-0.28	-0.38
Good Will	0.68	0.62	0.51	0.54	0.72	0.68	0.67	0.37	0.91	0.64	0.97	0.24		-0.55	0.26	0.41	0.85	0.47	0.54	0.64	0.54	0.5	0.46	0.46	0.41	0.4	0.08
Treasury Stock	-0.04	0.04	-0.41	0.07	-0.13	-0.07	-0.04	0.29	-0.56	0.04	-0.54	-0.31	-0.55		0.25	0.36	-0.7	0.39	-0.62	0.23	0.14	0.35	0.29	0.34	0.32	0.32	0.26
Property Plant Equipment	0.82	0.84	0.27	0.9	0.79	0.79	0.84	0.81	0.19	0.81	0.35	-0.4	0.26	0.25		0.68	0.16	0.52	0.16	0.63	0.51	0.67	0.7	0.75	0.89	0.89	0.82
Short Term Investments	0.81	0.84	0.21	0.8	0.76	0.76	0.8	0.83	0.23	0.78	0.49	-0.16	0.41	0.36	0.68		0.1	0.82	0.16	0.88	0.57	0.94	0.79	0.82	0.81	0.79	0.68
Current Deferred Revenue	0.54	0.51	0.27	0.45	0.61	0.48	0.54	0.11	0.77	0.47	0.89	0.02	0.85	-0.7	0.16	0.1		0.2	0.35	0.38	0.31	0.13	0.13	0.21	0.13	0.13	0.06
Net Tangible Assets	0.72	0.73	0.09	0.69	0.68	0.68	0.71	0.77	0.29	0.76	0.49	-0.11	0.47	0.39	0.52	0.82	0.2		-0.02	0.92	0.65	0.9	0.83	0.9	0.76	0.72	0.43
Long Term Debt Total	0.37	0.27	0.73	0.25	0.39	0.46	0.35	0.29	0.5	0.31	0.51	0.37	0.54	-0.62	0.16	0.16	0.35	-0.02		0.16	0.08	0.21	0.27	0.05	0.28	0.26	0.13
Capital Surpluse	0.85	0.87	0.17	0.81	0.82	0.78	0.84	0.8	0.45	0.85	0.67	-0.18	0.64	0.23	0.63	0.88	0.38	0.92	0.16		0.66	0.94	0.84	0.9	0.83	0.81	0.49
Deferred Long Term Liab	0.63	0.6	0.28	0.57	0.61	0.63	0.62	0.52	0.52	0.61	0.51	0.07	0.54	0.14	0.51	0.57	0.31	0.65	0.08	0.66		0.65	0.6	0.64	0.61	0.61	0.3
Long Term Investments	0.8	0.8	0.25	0.77	0.75	0.77	0.79	0.87	0.31	0.81	0.52	-0.08	0.5	0.35	0.67	0.94	0.13	0.9	0.21	0.94	0.65		0.91	0.9	0.88	0.86	0.52
Short Long Term Debt	0.77	0.74	0.35	0.73	0.71	0.8	0.76	0.96	0.3	0.85	0.46	0.02	0.46	0.29	0.7	0.79	0.13	0.83	0.27	0.84	0.6	0.91		0.87	0.86	0.81	0.5
Cash And Equivalents	0.79	0.81	0.1	0.79	0.74	0.74	0.78	0.85	0.31	0.82	0.49	-0.3	0.46	0.34	0.75	0.82	0.21	0.9	0.05	0.9	0.64	0.9	0.87		0.87	0.85	0.56
Net Invested Capital	0.84	0.84	0.34	0.87	0.8	0.83	0.85	0.88	0.3	0.85	0.43	-0.24	0.41	0.32	0.89	0.81	0.13	0.76	0.28	0.83	0.61	0.88	0.86	0.87		0.99	0.67
Net Working Capital	0.82	0.83	0.31	0.86	0.78	0.8	0.83	0.83	0.29	0.82	0.42	-0.28	0.4	0.32	0.89	0.79	0.13	0.72	0.26	0.81	0.61	0.86	0.81	0.85	0.99		0.65
Capital Stock	0.74	0.76	0.25	0.78	0.71	0.7	0.74	0.71	0.04	0.68	0.24	-0.38	0.08	0.26	0.82	0.68	0.06	0.43	0.13	0.49	0.3	0.52	0.5	0.56	0.67	0.65

Click cells to compare fundamentals

Although Five Year Returns can give a sense of overall investment potential, it is recommended to compare equity performance with similar assets for the same five year time interval. Similarly, comparing overall investment performance over the last five years with the appropriate market index is a great way to determine how this equity instrument will perform during unforeseen market fluctuations.

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Watsco Return On Tangible Assets

Return On Tangible Assets

0.22

At this time, Watsco's Return On Tangible Assets are very stable compared to the past year.

According to the company disclosure, Watsco Inc has a Five Year Return of 3.2%. This is much higher than that of the Trading Companies & Distributors sector and significantly higher than that of the Industrials industry. The five year return for all United States stocks is notably lower than that of the firm.

Watsco Five Year Return Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Watsco's direct or indirect competition against its Five Year Return to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Watsco could also be used in its relative valuation, which is a method of valuing Watsco by comparing valuation metrics of similar companies.

Watsco is currently under evaluation in five year return category among its peers.

Watsco ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Watsco's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Watsco's managers, analysts, and investors.

Environmental

Governance

Social

Watsco Fundamentals

	Return On Equity	0.21
	Return On Asset	0.11
	Profit Margin	0.07 %
	Operating Margin	0.11 %
	Current Valuation	21.34 B
	Shares Outstanding	34.83 M
	Shares Owned By Insiders	0.62 %
	Shares Owned By Institutions	99.38 %
	Number Of Shares Shorted	2.64 M
	Price To Earning	36.34 X
	Price To Book	7.99 X
	Price To Sales	2.95 X
	Revenue	7.28 B
	Gross Profit	2.03 B
	EBITDA	806.51 M
	Net Income	536.34 M
	Cash And Equivalents	147.5 M
	Cash Per Share	3.66 X
	Total Debt	404.79 M
	Debt To Equity	0.14 %
	Current Ratio	2.57 X
	Book Value Per Share	71.63 X
	Cash Flow From Operations	561.95 M
	Short Ratio	11.26 X
	Earnings Per Share	13.00 X
	Price To Earnings To Growth	4.71 X
	Target Price	474.56
	Number Of Employees	7.35 K
	Beta	0.87
	Market Capitalization	22 B
	Total Asset	3.73 B
	Retained Earnings	1.18 B
	Working Capital	1.68 B
	Current Asset	1.18 B
	Current Liabilities	270.3 M
	Annual Yield	0.02 %
	Five Year Return	3.20 %
	Net Asset	3.73 B
	Last Dividend Paid	10.3

About Watsco Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Watsco Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Watsco using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Watsco Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

Pair Trading with Watsco

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Watsco position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Watsco will appreciate offsetting losses from the drop in the long position's value.

Moving together with Watsco Stock

0.84	DXPE	DXP Enterprises	Pair Corr
0.79	FAST	Fastenal Fiscal Year End 16th of January 2025	Pair Corr
0.9	AIT	Applied Industrial	Pair Corr

Moving against Watsco Stock

0.67	BA	Boeing Fiscal Year End 29th of January 2025	Pair Corr
0.4	GIC	Global Industrial	Pair Corr
0.35	TRNS	Transcat	Pair Corr

The ability to find closely correlated positions to Watsco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Watsco when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Watsco - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Watsco Inc to buy it.

The correlation of Watsco is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Watsco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Watsco Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Watsco can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

When determining whether Watsco Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Watsco's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Watsco Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Watsco Inc Stock:

How To Invest In Watsco

Details

Is Watsco Stock a good investment?

Details

What is Watsco's Net Worth?

Details

Largest Trading Companies & Distributors Companies

View

Largest Industrial Distribution Companies

View

Check out Watsco Piotroski F Score and Watsco Altman Z Score analysis.

You can also try the CEOs Directory module to screen CEOs from public companies around the world.

Is Trading Companies & Distributors space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Watsco. If investors know Watsco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Watsco listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

(0.03)

Dividend Share

10.3

Earnings Share

Revenue Per Share

200.984

Quarterly Revenue Growth

0.016

The market value of Watsco Inc is measured differently than its book value, which is the value of Watsco that is recorded on the company's balance sheet. Investors also form their own opinion of Watsco's value that differs from its market value or its book value, called intrinsic value, which is Watsco's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Watsco's market value can be influenced by many factors that don't directly affect Watsco's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Watsco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Watsco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Watsco's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

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Watsco Inc Stock Five Year Return

Watsco Inc Company Five Year Return Analysis

Five Year Return

(Mean of Monthly Returns - 1)

X

100%

Current Watsco Five Year Return

Watsco Five Year Return Driver Correlations

Watsco Return On Tangible Assets

Return On Tangible Assets

0.22

Watsco Five Year Return Peer Comparison

Watsco ESG Sustainability

Watsco Fundamentals

About Watsco Fundamental Analysis

Pair Trading with Watsco

Moving together with Watsco Stock

Moving against Watsco Stock

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