How to buy Watsco stock (WSO)

Watsco is an industrial distribution business based in the US. Watsco shares (WSO) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was $509.72 – a decrease of 3.24% over the previous week. Watsco employs 7,350 staff and has a trailing 12-month revenue of around $7.5 billion.

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Watsco stock price (NYSE: WSO)

Use our graph to track the performance of WSO stocks over time.

Watsco shares at a glance

• Key figures

Information last updated 2024-12-11.

Latest market close	$509.72
52-week range	$366.88 - $571.42
50-day moving average more info button	$510.11
200-day moving average more info button	$472.38
Wall St. target price	$474.56
PE ratio more info button	39.5158
Dividend yield more info button	$10.3 (2.1%)
Earnings per share (TTM) more info button	$13.01

Is it a good time to buy Watsco stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Watsco price performance over time

Historical closes compared with the close of $509.72 from 2024-12-13

1 week (2024-12-06)	-3.24%
1 month (2024-11-15)	-2.12%
3 months (2024-09-13)	6.92%
6 months (2024-06-14)	6.64%

1 year (2023-12-15)	21.03%
2 years (2022-12-15)	108.22%
3 years (2021-12-15)	75.60%
5 years (2019-12-13)	231.54%

Is Watsco stock undervalued or overvalued?

Valuing Watsco stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Watsco's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Watsco's P/E ratio

Watsco's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 40x. In other words, Watsco shares trade at around 40x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Watsco's PEG ratio

Watsco's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.5403. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Watsco's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Watsco's EBITDA

Watsco's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $761.1 million.

The EBITDA is a measure of a Watsco's overall financial performance and is widely used to measure a its profitability.

Watsco financials

Revenue TTM	$7.5 billion
Operating margin TTM	11.04%
Gross profit TTM	$2 billion
Return on assets TTM	10.53%
Return on equity TTM	21.22%
Profit margin	6.99%
Book value	$71.63
Market Capitalization more info button	$20.9 billion

TTM: trailing 12 months

Watsco share dividends

Dividend payout ratio: 81.53% of net profits

Recently Watsco has paid out, on average, around 100% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Watsco shareholders could enjoy a 0% return on their shares, in the form of dividend payments. In Watsco's case, that would currently equate to about $10.3 per share.

Watsco's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Watsco's most recent dividend payout was on 30 October 2024. The latest dividend was paid out to all shareholders who bought their shares by 15 October 2024 (the "ex-dividend date").

Have Watsco's shares ever split?

Watsco's shares were split on a 3:2 basis on 16 August 1998 . So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Watsco shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for Watsco shares which in turn could have impacted Watsco's share price.

Watsco share price volatility

Over the last 12 months, Watsco's shares have ranged in value from as little as $366.883 up to $571.415. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Watsco's is 0.874. This would suggest that Watsco's shares are less volatile than average (for this exchange).

Watsco overview

Watsco, Inc. , together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. It also offers parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. The company serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.

Frequently asked questions

What percentage of Watsco is owned by insiders or institutions?
Currently 0.627% of Watsco shares are held by insiders and 106.65% by institutions. How many people work for Watsco?
Latest data suggests 7,350 work at Watsco. When does the fiscal year end for Watsco?
Watsco's fiscal year ends in December. Where is Watsco based?
Watsco's address is: 2665 South Bayshore Drive, Miami, FL, United States, 33133 What is Watsco's ISIN number?
Watsco's international securities identification number is: US9426222009 What is Watsco's CUSIP number?
Watsco's Committee on Uniform Securities Identification Procedures number is: 942622200