Sunday 11 October 2026
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Watsco, Inc.
WSO Industrials Industrial Distribution
Watsco, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $7.2 billion, down 4.98% from fiscal 2024. In the quarter to June 2026, revenue grew 2.06%, EPS fell 11.5%, free cash flow grew 17.6% and total debt rose 815.5%, each against the same quarter a year earlier. Dividend growth for ten consecutive years.
279.90
2.33
−0.83%
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Target Price Range
Analyst price targets
Free accountTen years at a glance Fiscal years to December
| Group | Line | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Trend | 2026e | 2027e | 2028e |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Price, $ | |||||||||||||||
| Price, $ | Low | 106.58 | 134.08 | 131.88 | 136.35 | 132.97 | 224.25 | 220.68 | 251.49 | 373.33 | 323.05 |
Analyst estimates 2026–2028 Powerpack |
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| High | 159.55 | 172.00 | 192.94 | 183.00 | 249.30 | 318.98 | 316.05 | 433.19 | 571.42 | 535.40 | |||||
| People | |||||||||||||||
| People | Employees | 5,050 | 5,200 | 5,200 | 5,800 | 5,800 | 6,900 | 7,275 | 7,425 | 7,295 | 7,050 | ||||
| Revenue/emp, $m | 0.84 | 0.83 | 0.87 | 0.82 | 0.87 | 0.91 | 1.00 | 0.98 | 1.04 | 1.03 | |||||
| Income, $m | |||||||||||||||
| Income, $m | Revenue | 4,221 | 4,342 | 4,547 | 4,770 | 5,055 | 6,280 | 7,274 | 7,284 | 7,618 | 7,239 | ||||
| Gross margin, % | 24.51 | 24.54 | 24.64 | 24.25 | 24.19 | 26.55 | 27.91 | 27.35 | 26.84 | 28.05 | |||||
| EBT | 342 | 348 | 369 | 363 | 400 | 628 | 829 | 790 | 803 | 738 | |||||
| EBT margin, % | 8.10 | 8.00 | 8.12 | 7.61 | 7.91 | 9.99 | 11.40 | 10.84 | 10.54 | 10.19 | |||||
| Net income | 236 | 257 | 297 | 296 | 323 | 499 | 704 | 634 | 636 | 588 | |||||
| Depreciation | 20 | 22 | 22 | 25 | 26 | 28 | 32 | 35 | 41 | 44 | |||||
| Per share, $ | |||||||||||||||
| Per share, $ | Revenue | 129.54 | 132.28 | 132.48 | 137.69 | 144.14 | 178.19 | 204.54 | 200.07 | 203.75 | 191.34 | ||||
| Earnings | 5.15 | 5.81 | 6.49 | 6.50 | 7.01 | 10.78 | 15.41 | 13.67 | 13.30 | 12.25 | |||||
| Cash flow | 8.65 | 9.34 | 4.97 | 9.69 | 15.24 | 9.92 | 16.08 | 15.44 | 20.68 | 15.06 | |||||
| Capex | (1.31) | (0.54) | (0.49) | (0.47) | (0.47) | (0.68) | (0.95) | (0.94) | (0.80) | (0.90) | |||||
| Free cash flow | 7.33 | 8.80 | 4.48 | 9.22 | 14.77 | 9.23 | 15.13 | 14.50 | 19.88 | 14.15 | |||||
| Book value | 38.42 | 47.25 | 46.67 | 49.50 | 50.75 | 56.67 | 63.22 | 71.86 | 81.95 | 85.16 | |||||
| Shares, m | 33 | 33 | 34 | 35 | 35 | 35 | 36 | 36 | 37 | 38 | |||||
| Valuation, × | |||||||||||||||
| Valuation, × | P/E | 29.07 | 29.34 | 21.67 | 28.15 | 32.93 | 29.13 | 16.57 | 29.43 | 33.94 | 27.82 | ||||
| P/S | 1.15 | 1.28 | 1.05 | 1.31 | 1.57 | 1.76 | 1.25 | 2.10 | 2.33 | 1.76 | |||||
| P/B | 3.87 | 3.60 | 2.98 | 3.64 | 4.46 | 5.52 | 4.04 | 5.84 | 5.78 | 3.96 | |||||
| EV/Sales | 1.19 | 1.27 | 1.06 | 1.34 | 1.56 | 1.77 | 1.25 | 2.08 | 2.24 | 1.68 | |||||
| EV/FCF | 21.05 | 19.11 | 31.43 | 20.02 | 15.20 | 34.08 | 16.90 | 28.77 | 22.95 | 22.68 | |||||
| Cash, $m | |||||||||||||||
| Cash, $m | Operating cash flow | 282 | 307 | 171 | 336 | 534 | 350 | 572 | 562 | 773 | 570 | ||||
| Capex | (43) | (18) | (17) | (16) | (16) | (24) | (34) | (34) | (30) | (34) | |||||
| Free cash flow | 239 | 289 | 154 | 319 | 518 | 325 | 538 | 528 | 743 | 536 | |||||
| Balance, $m | |||||||||||||||
| Balance, $m | Working capital | 925 | 921 | 1,084 | 1,085 | 997 | 1,235 | 1,392 | 1,680 | 2,096 | 2,237 | ||||
| Total debt | 236 | 22 | 136 | 227 | 77 | 183 | 158 | 28 | 15 | 11 | |||||
| Net debt | 180 | (58) | 53 | 153 | (69) | 64 | 11 | (182) | (766) | (722) | |||||
| Shareholders’ equity | 1,252 | 1,551 | 1,602 | 1,715 | 1,780 | 1,997 | 2,248 | 2,616 | 3,064 | 3,222 | |||||
| Returns, % | |||||||||||||||
| Returns, % | ROA | 9.17 | 9.73 | 10.61 | 9.56 | 9.78 | 13.70 | 16.73 | 14.86 | 13.07 | 11.18 | ||||
| ROIC | 15.09 | 14.82 | 14.05 | 12.28 | 14.66 | 19.05 | 23.01 | 20.41 | 21.26 | 18.01 | |||||
| ROE | 13.68 | 13.61 | 14.16 | 13.60 | 14.10 | 20.21 | 25.90 | 22.05 | 18.88 | 15.81 | |||||
Negative figures in brackets.
Fiscal years to Dec 2025 · latest quarter Jun 2026
Charts ten years each
Watsco, Inc. vs peers in Industrial Distribution (Q) = latest quarter vs a year earlier
| Company | Market cap | P/E | Fwd P/E | Revenue growth (Q) | EPS growth (Q) | FCF growth (Q) | Gross margin (Q) | EBIT margin (Q) | Compare |
|---|---|---|---|---|---|---|---|---|---|
| WCC WESCO International, Inc. | $17.4B | 25.2× | 22.4× | +12.98% (above 0%: growing) | +10.44% (above 0%: growing) | −70.35% (below 0%: shrinking) | 21.85% | 5.73% | Compare |
| WSO.B Watsco, Inc. | $16.0B | 27.0× | — | +2.06% (above 0%: growing) | −11.50% (below 0%: shrinking) | +17.57% (above 0%: growing) | 27.50% | 11.32% | Compare |
| AIT Applied Industrial Technologies, Inc. | $12.2B | 30.2× | 26.7× | +10.45% (above 0%: growing) | +13.03% (above 0%: growing) | +15.02% (above 0%: growing) | 30.40% | 11.78% | Compare |
| WSO Watsco, Inc. | $11.6B | 24.4× | 28.8× | +2.06% (above 0%: growing) | −11.50% (below 0%: shrinking) | +17.57% (above 0%: growing) | 27.50% | 11.32% | |
| QXO QXO, Inc. | $11.5B | — (loss-making) | — (loss-making) | +70.30% (above 0%: growing) | n/m | −27.62% (below 0%: shrinking) | 24.74% | (1.29%) | Compare |
| CNM Core & Main, Inc. | $7.7B | 16.6× | 19.2× | +2.48% (above 0%: growing) | +8.45% (above 0%: growing) | +83.33% (above 0%: growing) | 26.71% | 10.58% | Compare |
| MSM MSC Industrial Direct Company, Inc. | $7.2B | 31.3× | 27.6× | +7.82% (above 0%: growing) | +41.18% (above 0%: growing) | −23.88% (below 0%: shrinking) | 41.11% | 10.19% | Compare |
| XMTR Xometry, Inc. | $6.1B | — (loss-making) | — (loss-making) | +41.05% (above 0%: growing) | n/m | −41.54% (below 0%: shrinking) | 38.01% | (2.42%) | Compare |
| POOL Pool Corporation | $5.8B | 14.6× | 16.7× | +2.15% (above 0%: growing) | −0.19% (below 0%: shrinking) | −27.07% (below 0%: shrinking) | 29.66% | 14.68% | Compare |
| Median of peers | $9.6B | 26.1× | 22.4× | +9.14% | +9.45% | −25.48% | 28.58% | 10.39% |
Watsco, Inc. (WSO) key facts
- Concern: Watsco, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $7.2 billion, down 4.98% from fiscal 2024.
- Watsco, Inc. (WSO) is an Industrial Distribution company in the Industrials sector, listed on the New York Stock Exchange.
- As of October 9, 2026, WSO traded at $279.90, a market capitalization of $11.6 billion.
- Watsco, Inc. pays an annual dividend of $15.90 per share, a yield of 5.65%, with a payout ratio of 137.9%.
- Return on equity was 15.8% and debt-to-equity 0.04.
- Its Piotroski F-score is 6 out of 9 and its Altman Z-score is 9.62 (safe zone) for fiscal 2025.