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Watsco is an industrial distribution business based in the US. Watsco stocks (WSO.US) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was $288.78 – a decrease of 1.31% over the previous week. Watsco employs 6,850 staff and has a trailing 12-month revenue of around $6.7 billion.
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| Latest market close | $244.01 |
|---|---|
| 52-week range | $239.62 - $314.53 |
| 50-day moving average | $284.06 |
| 200-day moving average | $285.80 |
| Wall St. target price | $321.88 |
| PE ratio | 20.1319 |
| Dividend yield | $7.8 (3.33%) |
| Earnings per share (TTM) | $12.28 |
Note: The dollar amounts in the table below are in Canadian dollars.
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.
Historical closes compared with the close of $244.01 from 2022-05-25
| 1 week (2022-05-20) | -1.08% |
|---|---|
| 1 month (2022-04-27) | -13.27% |
| 3 months (2022-02-23) | -4.79% |
| 6 months (2021-11-26) | -18.73% |
| 1 year (2021-05-27) | -15.51% |
|---|---|
| 2 years (2020-05-27) | 39.83% |
| 3 years (2019-05-24) | 55.72% |
| 5 years (2017-05-26) | 73.54% |
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 20x. In other words, Watsco shares trade at around 20x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Watsco's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 6.484. 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 $728.4 million.
The EBITDA is a measure of a Watsco's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | $6.7 billion |
|---|---|
| Operating margin TTM | 10.49% |
| Gross profit TTM | $1.7 billion |
| Return on assets TTM | 14.18% |
| Return on equity TTM | 29.27% |
| Profit margin | 7.16% |
| Book value | $48.59 |
| Market capitalisation | $9.6 billion |
TTM: trailing 12 months
Dividend payout ratio: 65.71% of net profits
Recently Watsco has paid out, on average, around 65.71% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.33% 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 3.33% return on their shares, in the form of dividend payments. In Watsco's case, that would currently equate to about $7.8 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 29 April 2022. The latest dividend was paid out to all shareholders who bought their shares by 13 April 2022 (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 $239.62 up to $314.5256. 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 0.8688. 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, refrigeration equipment, and related parts and supplies. The company distributes equipment comprising 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, including 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. As of December 31, 2021, it operated from 671 locations in the United States, Canada, Mexico, and Puerto Rico, as well as exports its products to Latin America and the Caribbean Basin. Watsco, Inc.
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