Watsco Shares Outstanding vs. Return On Asset
| WSO Stock | USD 554.67 4.17 0.76% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.28 | 0.2735 |
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| Net Profit Margin | 0.0773 | 0.0736 |
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| Operating Profit Margin | 0.11 | 0.1059 |
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| Pretax Profit Margin | 0.11 | 0.1084 |
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| Return On Assets | 0.15 | 0.1438 |
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| Return On Equity | 0.25 | 0.2405 |
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For Watsco profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Watsco to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Watsco Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Watsco's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Watsco Inc over time as well as its relative position and ranking within its peers.
Watsco |
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 12.98 | 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.
Watsco Inc Return On Asset vs. Shares Outstanding Fundamental Analysis
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. Watsco Inc is rated below average in shares outstanding category among its peers. It is rated fifth in return on asset category among its peers . The ratio of Shares Outstanding to Return On Asset for Watsco Inc is about 330,765,432 . As of the 29th of November 2024, Return On Assets is likely to grow to 0.15. 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's Earnings Breakdown by Geography
Watsco Return On Asset vs. Shares Outstanding
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.
Watsco |
| = | 34.83 M |
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Watsco |
| = | 0.11 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Watsco Return On Asset Comparison
Watsco is currently under evaluation in return on asset category among its peers.
Watsco Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Watsco, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Watsco will eventually generate negative long term returns. The profitability progress is the general direction of Watsco's change in net profit over the period of time. It can combine multiple indicators of Watsco, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -42.3 M | -40.2 M | |
| Operating Income | 771.4 M | 810 M | |
| Income Before Tax | 789.9 M | 829.4 M | |
| Total Other Income Expense Net | 18.5 M | 19.4 M | |
| Net Income | 634.1 M | 665.8 M | |
| Income Tax Expense | 155.8 M | 163.5 M | |
| Net Income Applicable To Common Shares | 632.4 M | 664 M | |
| Net Income From Continuing Ops | 693.5 M | 355.1 M | |
| Interest Income | 1.9 M | 2.7 M | |
| Net Interest Income | -5.9 M | -6.2 M | |
| Change To Netincome | 29.9 M | 18.6 M | |
| Net Income Per Share | 14.68 | 15.42 | |
| Income Quality | 0.89 | 0.82 | |
| Net Income Per E B T | 0.68 | 0.67 |
Watsco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Watsco. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Watsco position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Watsco's important profitability drivers and their relationship over time.
Use Watsco in pair-trading
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.Watsco Pair Trading
Watsco Inc Pair Trading Analysis
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.Use Investing Themes to Complement your Watsco position
In addition to having Watsco in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Watsco's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Watsco Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Watsco's income statement, its balance sheet, and the statement of cash flows.