Our top pick for
Watsco, Inc 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. Watsco employs 5,700 staff and has a trailing 12-month revenue of around USD$5 billion.
|Latest market close||USD$235.81|
|52-week range||USD$129.2355 - USD$248.98|
|50-day moving average||USD$231.7332|
|200-day moving average||USD$214.9085|
|Wall St. target price||USD$213.67|
|Dividend yield||USD$7.1 (3.18%)|
|Earnings per share (TTM)||USD$6.801|
The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
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.
|1 week (2020-11-20)||N/A|
|1 month (2020-10-28)||N/A|
|3 months (2020-08-28)||N/A|
|6 months (2020-05-28)||N/A|
|1 year (2019-11-27)||N/A|
|2 years (2018-11-27)||N/A|
|3 years (2017-11-27)||N/A|
|5 years (2015-11-27)||N/A|
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 current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 33x. In other words, Watsco shares trade at around 33x 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 "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.87. 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 (earnings before interest, taxes, depreciation and amortisation) is USD$398 million.
The EBITDA is a measure of a Watsco's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||USD$5 billion|
|Operating margin TTM||7.48%|
|Gross profit TTM||USD$1.2 billion|
|Return on assets TTM||8.71%|
|Return on equity TTM||17.46%|
|Market capitalisation||USD$8.8 billion|
TTM: trailing 12 months
There are currently 2.1 million Watsco shares held short by investors – that's known as Watsco's "short interest". This figure is 4.1% down from 2.2 million last month.
There are a few different ways that this level of interest in shorting Watsco shares can be evaluated.
Watsco's "short interest ratio" (SIR) is the quantity of Watsco shares currently shorted divided by the average quantity of Watsco shares traded daily (recently around 168401.69628433). Watsco's SIR currently stands at 12.38. In other words for every 100,000 Watsco shares traded daily on the market, roughly 12380 shares are currently held short.
However Watsco's short interest can also be evaluated against the total number of Watsco shares, or, against the total number of tradable Watsco shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Watsco's short interest could be expressed as 0.05% of the outstanding shares (for every 100,000 Watsco shares in existence, roughly 50 shares are currently held short) or 0.0723% of the tradable shares (for every 100,000 tradable Watsco shares, roughly 72 shares are currently held short).
A SIR above 10% would generally be considered pretty high, pointing to a potentially pessimistic outlook for the share price and a discouraging interest in betting against Watsco.
Find out more about how you can short Watsco stock.
Dividend payout ratio: 103.98% of net profits
Recently Watsco has paid out, on average, around 103.98% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.18% 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 3.18% return on their shares, in the form of dividend payments. In Watsco's case, that would currently equate to about $7.1 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 2020. The latest dividend was paid out to all shareholders who bought their shares by 14 October 2020 (the "ex-dividend date").
Watsco's shares were split on a 3:2 basis on 17 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.
Over the last 12 months, Watsco's shares have ranged in value from as little as $129.2355 up to $248.98. 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 0.792. This would suggest that Watsco's shares are less volatile than average (for this exchange).
Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. It offers residential ducted and ductless air conditioners; gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. The company also provides parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation material, refrigerants, ductwork, grills, registers, sheet metal, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. In addition, the company exports its products to Latin America and the Caribbean Basin. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida.
Everything we know about the Sabic IPO, plus information on how to buy in.
Everything we know about the Compass IPO, plus information on how to buy in.
Everything we know about the Marqeta IPO, plus information on how to buy in.
Everything we know about the Pharming Group N.V. IPO, plus information on how to buy in.
Everything we know about the Metromile IPO, plus information on how to buy in.
Everything we know about the CN Energy Group IPO, plus information on how to buy in.
Everything we know about the Huadi International Group IPO, plus information on how to buy in.
Everything we know about the 908 Devices IPO, plus information on how to buy in.
Steps to owning and managing LEGH, with 24-hour and historical pricing before you buy.
Steps to owning and managing LAKE, with 24-hour and historical pricing before you buy.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.