Watsco Inc Net Income
| WSO Stock | USD 415.07 12.51 2.93% |
As of the 12th of February 2026, Watsco maintains the Mean Deviation of 1.47, market risk adjusted performance of 0.1942, and Downside Deviation of 1.48. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Watsco Inc, as well as the relationship between them.
Watsco Total Revenue |
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Gross Profit | Profit Margin | Market Capitalization | Enterprise Value Revenue 2.3009 | Revenue |
| Last Reported | Projected for Next Year | ||
| Net Income | 731.1 M | 767.7 M | |
| Net Income Applicable To Common Shares | 573.7 M | 602.4 M | |
| Net Income From Continuing Ops | 731.1 M | 379.7 M | |
| Net Income Per Share | 12.87 | 13.51 | |
| Net Income Per E B T | 0.77 | 0.67 |
Watsco | Net Income | Build AI portfolio with Watsco Stock |
Evaluating Watsco's Net Income across multiple reporting periods reveals the company's ability to sustain growth and manage resources effectively. This longitudinal analysis highlights inflection points, cyclical patterns, and structural changes that short-term snapshots might miss, offering deeper insight into Watsco Inc's fundamental strength.
Latest Watsco's Net Income Growth Pattern
Below is the plot of the Net Income of Watsco Inc over the last few years. Net income is one of the most important fundamental items in finance. It plays a large role in Watsco Inc financial statement analysis. It represents the amount of money remaining after all of Watsco Inc operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue. It is Watsco's Net Income historical data analysis aims to capture in quantitative terms the overall pattern of either growth or decline in Watsco's overall financial position and show how it may be relating to other accounts over time.
| View | Last Reported 635.74 M | 10 Years Trend |
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Net Income |
| Timeline |
Watsco Net Income Regression Statistics
| Arithmetic Mean | 303,137,897 | |
| Geometric Mean | 190,128,008 | |
| Coefficient Of Variation | 69.33 | |
| Mean Deviation | 180,964,925 | |
| Median | 242,932,000 | |
| Standard Deviation | 210,156,136 | |
| Sample Variance | 44165.6T | |
| Range | 646.6M | |
| R-Value | 0.96 | |
| Mean Square Error | 3985.4T | |
| R-Squared | 0.92 | |
| Slope | 39,817,873 | |
| Total Sum of Squares | 706649.6T |
Watsco Net Income History
Other Fundumenentals of Watsco Inc
| Net Income Applicable To Common Shares | ||
| Net Income From Continuing Ops | ||
| Net Income Per Share | ||
| Net Income Per E B T |
Watsco Net Income component correlations
Watsco Net Income 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 Net Income. 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.
Click cells to compare fundamentals
Will Trading Companies & Distributors sector continue expanding? Could Watsco diversify its offerings? Factors like these will boost the valuation of Watsco. Anticipated expansion of Watsco directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Watsco data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth (0.06) | Dividend Share 11.4 | Earnings Share 12.87 | Revenue Per Share | Quarterly Revenue Growth (0.04) |
Investors evaluate Watsco Inc using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Watsco's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Watsco's market price to deviate significantly 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. Conversely, Watsco's market price signifies the transaction level at which participants voluntarily complete trades.
Watsco 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Watsco's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Watsco.
| 11/14/2025 |
| 02/12/2026 |
If you would invest 0.00 in Watsco on November 14, 2025 and sell it all today you would earn a total of 0.00 from holding Watsco Inc or generate 0.0% return on investment in Watsco over 90 days. Watsco is related to or competes with IDEX, Nordson, Core Main, Builders FirstSource, Applied Industrial, Huntington Ingalls, and Lincoln Electric. Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, refrigeration equipment, and relate... More
Watsco Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Watsco's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Watsco Inc upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.48 | |||
| Information Ratio | 0.105 | |||
| Maximum Drawdown | 7.55 | |||
| Value At Risk | (2.21) | |||
| Potential Upside | 4.09 |
Watsco Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Watsco's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Watsco's standard deviation. In reality, there are many statistical measures that can use Watsco historical prices to predict the future Watsco's volatility.| Risk Adjusted Performance | 0.1253 | |||
| Jensen Alpha | 0.1672 | |||
| Total Risk Alpha | 0.1049 | |||
| Sortino Ratio | 0.1353 | |||
| Treynor Ratio | 0.1842 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Watsco's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Watsco February 12, 2026 Technical Indicators
| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
| Risk Adjusted Performance | 0.1253 | |||
| Market Risk Adjusted Performance | 0.1942 | |||
| Mean Deviation | 1.47 | |||
| Semi Deviation | 1.25 | |||
| Downside Deviation | 1.48 | |||
| Coefficient Of Variation | 679.19 | |||
| Standard Deviation | 1.91 | |||
| Variance | 3.65 | |||
| Information Ratio | 0.105 | |||
| Jensen Alpha | 0.1672 | |||
| Total Risk Alpha | 0.1049 | |||
| Sortino Ratio | 0.1353 | |||
| Treynor Ratio | 0.1842 | |||
| Maximum Drawdown | 7.55 | |||
| Value At Risk | (2.21) | |||
| Potential Upside | 4.09 | |||
| Downside Variance | 2.2 | |||
| Semi Variance | 1.57 | |||
| Expected Short fall | (1.78) | |||
| Skewness | 0.6249 | |||
| Kurtosis | 0.1419 |
Watsco Inc Backtested Returns
Watsco appears to be very steady, given 3 months investment horizon. Watsco Inc shows Sharpe Ratio of 0.18, which attests that the company had a 0.18 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Watsco Inc, which you can use to evaluate the volatility of the company. Please utilize Watsco's Downside Deviation of 1.48, mean deviation of 1.47, and Market Risk Adjusted Performance of 0.1942 to validate if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Watsco holds a performance score of 13. The firm maintains a market beta of 1.47, which attests to a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Watsco will likely underperform. Please check Watsco's sortino ratio, semi variance, as well as the relationship between the Semi Variance and rate of daily change , to make a quick decision on whether Watsco's historical returns will revert.
Auto-correlation | 0.58 |
Modest predictability
Watsco Inc has modest predictability. Overlapping area represents the amount of predictability between Watsco time series from 14th of November 2025 to 29th of December 2025 and 29th of December 2025 to 12th of February 2026. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Watsco Inc price movement. The serial correlation of 0.58 indicates that roughly 58.0% of current Watsco price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.58 | |
| Spearman Rank Test | 0.64 | |
| Residual Average | 0.0 | |
| Price Variance | 541.22 |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
| Competition |
Watsco Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income |
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Based on the recorded statements, Watsco Inc reported net income of 635.74 M. This is 145.04% higher than that of the Trading Companies & Distributors sector and 256.59% higher than that of the Industrials industry. The net income for all United States stocks is 11.34% lower than that of the firm.
Watsco Net Income 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 Net Income 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 net income 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 Institutional Holders
Institutional Holdings refers to the ownership stake in Watsco that is held by large financial organizations, pension funds or endowments. Institutions may hold large blocks of Watsco's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Watsco's value.| Shares | Markel Group Inc | 2025-06-30 | 565.2 K | Neuberger Berman Group Llc | 2025-06-30 | 524.8 K | Wells Fargo & Co | 2025-06-30 | 463.9 K | Captrust Financial Advisors | 2025-06-30 | 389.1 K | Hamlin Capital Management, Llc | 2025-06-30 | 357.8 K | Goldman Sachs Group Inc | 2025-06-30 | 344.9 K | Jpmorgan Chase & Co | 2025-06-30 | 343.4 K | Northern Trust Corp | 2025-06-30 | 324.9 K | Davenport & Company Llc | 2025-06-30 | 320.8 K | Blackrock Inc | 2025-06-30 | 3.8 M | Vanguard Group Inc | 2025-06-30 | 3.6 M |
Watsco Fundamentals
| Return On Equity | 0.19 | ||||
| Return On Asset | 0.1 | ||||
| Profit Margin | 0.07 % | ||||
| Operating Margin | 0.11 % | ||||
| Current Valuation | 17.06 B | ||||
| Shares Outstanding | 34.92 M | ||||
| Shares Owned By Insiders | 0.39 % | ||||
| Shares Owned By Institutions | 99.61 % | ||||
| Number Of Shares Shorted | 3.47 M | ||||
| Price To Earning | 36.34 X | ||||
| Price To Book | 6.16 X | ||||
| Price To Sales | 2.35 X | ||||
| Revenue | 7.62 B | ||||
| Gross Profit | 2.07 B | ||||
| EBITDA | 792.1 M | ||||
| Net Income | 635.74 M | ||||
| Cash And Equivalents | 526.27 M | ||||
| Cash Per Share | 3.66 X | ||||
| Total Debt | 447.46 M | ||||
| Debt To Equity | 0.14 % | ||||
| Current Ratio | 2.57 X | ||||
| Book Value Per Share | 74.21 X | ||||
| Cash Flow From Operations | 773.1 M | ||||
| Short Ratio | 8.56 X | ||||
| Earnings Per Share | 12.87 X | ||||
| Price To Earnings To Growth | 1.85 X | ||||
| Target Price | 395.58 | ||||
| Number Of Employees | 7.22 K | ||||
| Beta | 1.04 | ||||
| Market Capitalization | 17.39 B | ||||
| Total Asset | 4.53 B | ||||
| Retained Earnings | 1.3 B | ||||
| Working Capital | 2.1 B | ||||
| Current Asset | 1.18 B | ||||
| Current Liabilities | 270.3 M | ||||
| Annual Yield | 0.03 % | ||||
| Five Year Return | 3.20 % | ||||
| Net Asset | 4.53 B | ||||
| Last Dividend Paid | 11.4 |
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
| 0.8 | AL | Air Lease Sell-off Trend | PairCorr |
| 0.78 | DSGR | Distribution Solutions | PairCorr |
| 0.95 | WLFC | Willis Lease Finance | PairCorr |
| 0.86 | FTAI | FTAI Aviation Earnings Call This Week | PairCorr |
Moving against Watsco Stock
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.Check out You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Will Trading Companies & Distributors sector continue expanding? Could Watsco diversify its offerings? Factors like these will boost the valuation of Watsco. Anticipated expansion of Watsco directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Watsco data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth (0.06) | Dividend Share 11.4 | Earnings Share 12.87 | Revenue Per Share | Quarterly Revenue Growth (0.04) |
Investors evaluate Watsco Inc using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Watsco's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Watsco's market price to deviate significantly 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. Conversely, Watsco's market price signifies the transaction level at which participants voluntarily complete trades.