Watsco Inc (WSO) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Watsco Inc stock (WSO) is currently trading at $367.15. Watsco Inc PE ratio is 29.67. Watsco Inc PS ratio (Price-to-Sales) is 2.04. Analyst consensus price target for WSO is $415.17. WallStSmart rates WSO as Underperform.
- WSO PE ratio analysis and historical PE chart
- WSO PS ratio (Price-to-Sales) history and trend
- WSO intrinsic value — DCF, Graham Number, EPV models
- WSO stock price prediction 2025 2026 2027 2028 2029 2030
- WSO fair value vs current price
- WSO insider transactions and insider buying
- Is WSO undervalued or overvalued?
- Watsco Inc financial analysis — revenue, earnings, cash flow
- WSO Piotroski F-Score and Altman Z-Score
- WSO analyst price target and Smart Rating
Watsco Inc
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WSO Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Watsco Inc (WSO)
WSO trades 413% above its Graham fair value of $83.30, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Watsco Inc (WSO) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, institutional own.. Concerns around operating margin and price/book. Mixed signals suggest waiting for clearer direction before acting.
Watsco Inc (WSO) Key Strengths (4)
110.90% of shares held by major funds and institutions
Large-cap company with substantial market presence
Good growth relative to its price
Solid profitability: $19 profit per $100 equity
Supporting Valuation Data
Watsco Inc (WSO) Areas to Watch (6)
Revenue declining -10.00%, a shrinking business
Earnings declining -26.00%, profits shrinking
Very thin margins with limited operational efficiency
Very expensive at 5.5x book value
Thin profit margins with limited profitability
Revenue is fairly priced at 2.04x sales
Supporting Valuation Data
Watsco Inc (WSO) Detailed Analysis Report
Overall Assessment
This company scores 45/100 in our Smart Analysis, earning a D+ grade. Out of 10 metrics analyzed, 4 register as strengths (avg 8.5/10) while 6 fall into concern territory (avg 2.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Market Cap, PEG Ratio. Valuation metrics including PEG Ratio (1.48) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 18.70%.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Operating Margin. Some valuation metrics including Price/Sales (2.04), Price/Book (5.45) suggest expensive pricing. Growth concerns include Revenue Growth at -10.00%, EPS Growth at -26.00%, which may limit upside. Profitability pressure is visible in Operating Margin at 6.09%, Profit Margin at 6.87%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 18.70% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at -10.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Revenue Growth and EPS Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
WSO Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
WSO's Price-to-Sales ratio of 2.04x trades 93% above its historical average of 1.06x (96th percentile), historically expensive. The current valuation is 13% below its historical high of 2.35x set in Mar 2026, and 224% above its historical low of 0.63x in Sep 2011. Over the past 12 months, the PS ratio has compressed from ~2.3x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Watsco Inc (WSO) · INDUSTRIALS › INDUSTRIAL DISTRIBUTION
The Big Picture
Watsco Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 7.2B with 10% decline year-over-year. Profit margins are thin at 6.9%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 1870.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 389M in free cash flow and 400M in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 10% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Margin expansion: can Watsco Inc push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 3.0%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor INDUSTRIAL DISTRIBUTION industry trends, competitive moves, and regulatory changes that could impact Watsco Inc.
Bottom Line
Watsco Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Watsco Inc(WSO)
NYSE
INDUSTRIALS
INDUSTRIAL DISTRIBUTION
USA
Watsco, Inc. distributes air conditioning, heating and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico and Puerto Rico. The company is headquartered in Miami, Florida.