Stocks · Industrials · Industrial - Distribution
Watsco, Inc. WSO
$292.15 -1.79% Close, Oct 5, 2026 · NYSE · Market cap $12.25B
Weak trend
Next earnings report: Nov 4, 2026
Scroll or pinch to zoom, drag to move. Daily prices adjusted for splits. Markers: E = earnings (green beat, red miss), S = split, D = dividend.
Three things to know
- The stock is in a downtrend: below its 200-day average, with the 50-day average below the 200-day.
- Over the past year the stock returned -28.9%, behind the S&P 500 by 44.7 percentage points.
- The stock is 36% below its highest close of the past year.
PromtFinance scores
Each score is a percentile within the Industrials sector (0–100). Under each score: how the stock ranks in its sector on every component. As of Oct 6, 2026.
Growth31Weak
How fast revenue, earnings and cash flow are growing.
- Revenue growth (TTM, YoY)Bottom 14%
- EPS growth (TTM, YoY)Bottom 32%
- FCF growth (TTM, YoY)Top 18%
- Revenue growth, 3-year CAGRBottom 28%
- Revenue growth accelerationTop 47%
Quality79Positive
Returns on capital, margins, earnings quality and balance-sheet strength.
- Return on invested capitalTop 17%
- Gross marginBottom 49%
- Operating marginTop 42%
- Cash conversion (OCF / net income)Top 48%
- Accruals (lower is better)Top 41%
- Net debt / EBITDA (lower is better)Top 24%
Value74Positive
How cheap the shares are relative to earnings, cash flow and their own history.
- Earnings yieldTop 31%
- Free-cash-flow yieldTop 26%
- EBITDA / enterprise valueBottom 50%
- Sales / enterprise valueTop 40%
- P/E vs own 5-year history (lower is better)Top 28%
Momentum16Very weak
Strength and persistence of the price trend, including versus the S&P 500.
- 12-month return excluding last monthBottom 18%
- 6-month returnBottom 16%
- 1-year return vs S&P 500Bottom 18%
- Distance from 52-week highBottom 32%
- Trend checklist (0–4)Bottom 16%
Revisions10Very weak
Earnings surprises and analyst sentiment (estimate-revision history is being collected).
- Average EPS surprise, last 4 quartersBottom 26%
- Consecutive EPS beatsBottom 16%
- Share of analysts rating BuyBottom 13%
- Upside to consensus price targetTop 41%
Stability69Positive
Low volatility, shallow drawdowns, low market sensitivity and modest leverage.
- Volatility, 60 days (lower is better)Top 45%
- Maximum drawdown, 3 yearsTop 47%
- Beta vs S&P 500 (lower is better)Top 35%
- Net debt / EBITDA (lower is better)Top 24%
What changed
Latest four quarters versus the same period a year earlier (growth: versus one quarter earlier).
| Measure | Before | Now | |
|---|---|---|---|
| Revenue growth (YoY) | -4.5% | -3.0% | ↑ |
| EPS growth (YoY) | -7.5% | -11.3% | ↓ |
| Gross margin | 27.5% | 27.9% | ↑ |
| Operating margin | 10.3% | 9.3% | ↓ |
| FCF margin | 5.3% | 9.6% | ↑ |
Fundamental momentum
| Measure | Now (TTM) | Year / quarter before | Sector rank | |
|---|---|---|---|---|
| Revenue growth (TTM, YoY) | -3.0% | -4.5% | ↑ | Bottom 14% |
| EPS growth (TTM, YoY) | -11.3% | -7.5% | ↓ | Bottom 32% |
| Gross margin | 27.9% | 27.5% | ↑ | Bottom 49% |
| Operating margin | 9.3% | 10.3% | ↓ | Top 42% |
| Net margin | 6.5% | 7.1% | ↓ | — |
| Free-cash-flow margin | 9.6% | 5.3% | ↑ | — |
| Return on invested capital | 13.1% | — | Top 17% | |
| Revenue growth, 3-year CAGR | -0.2% | — | Bottom 28% |
Quality of earnings and balance sheet
- Cash conversion (OCF / net income)Above 1× means profits are backed by cash.
- 1.54×
- Accruals (net income − OCF) / assetsLower is better; high accruals can signal weaker earnings quality.
- -5.1%
- Stock-based compensation / revenueA cost to shareholders through dilution.
- 0.4%
- Receivables growth vs revenue growthReceivables growing much faster than sales can be a warning.
- +7.4 pp
- Net debt / EBITDABelow 1× is conservative; above 3× is high leverage.
- 0.23×
Shareholder returns
- Dividend yield (dividends paid, TTM)
- 4.07%
- Net buyback yield (TTM)
- 0.26%
- Shareholder yield
- 4.33%
- Share count change, 1 year
- +0.5%
- Share count change, 3-year CAGR
- +1.5%
Shareholder yield = dividends + net buybacks over the last four quarters, divided by market cap.
Based on the four quarters through Jun 30, 2026 (filed Aug 7, 2026).
Earnings and expectations
Earnings momentum
- Consecutive EPS beats
- 0
- Beats in the last 8 reports
- 2 of 8
- Average EPS surprise, last 4
- -5.6%
- Average 2-day reaction, last 8
- -2.9%
- Positive 20 days after report
- 2 of 8
Analysts
- Consensus price target
- $405.00
- Target vs current price
- +38.6%
- Analysts with a rating
- 27
- Share rating Buy or Strong Buy
- 30%
- Consensus rating
- Hold
How the stock reacted to recent reports
| Report date | EPS surprise | 2 days | 5 days | 20 days | 60 days |
|---|---|---|---|---|---|
| Jul 29, 2026 | -9.3% | -12.9% | -8.8% | -17.7% | — |
| Apr 28, 2026 | +8.1% | -4.0% | -9.2% | -16.4% | -21.2% |
| Feb 17, 2026 | -10.6% | +1.2% | -1.5% | -10.4% | -0.2% |
| Oct 29, 2025 | -10.4% | +2.8% | -0.0% | -4.5% | +8.0% |
| Jul 30, 2025 | -5.4% | -4.8% | -7.9% | -12.4% | -24.2% |
| Apr 23, 2025 | -15.7% | -11.3% | -9.5% | -6.6% | -6.4% |
| Feb 18, 2025 | +10.2% | +9.7% | +3.6% | +5.6% | -0.5% |
| Oct 23, 2024 | -10.8% | -3.8% | -2.3% | +10.0% | +4.2% |
Returns from the close before each report. Past reactions do not determine future ones.
Earnings history
| Report date | EPS | Estimate | Surprise | Revenue |
|---|---|---|---|---|
| Jul 29, 2026 | $4.00 | $4.41 | -9.3% | $2.10B |
| Apr 28, 2026 | $1.87 | $1.73 | +8.1% | $1.53B |
| Feb 17, 2026 | $1.68 | $1.88 | -10.6% | $1.58B |
| Oct 29, 2025 | $3.98 | $4.44 | -10.4% | $2.07B |
| Jul 30, 2025 | $4.52 | $4.78 | -5.4% | $2.06B |
| Apr 23, 2025 | $1.93 | $2.29 | -15.7% | $1.53B |
| Feb 18, 2025 | $2.37 | $2.15 | +10.2% | $1.75B |
| Oct 23, 2024 | $4.22 | $4.73 | -10.8% | $2.16B |
Valuation in context
| Multiple | Now | 5-year median | 5-year percentile | Sector rank (cheapness) |
|---|---|---|---|---|
| P/E (trailing) | 25.2× | 28.5× | 33th | Top 31% |
| P/E (forward) | 24.2× | — | — | — |
| EV / EBITDA | 16.8× | — | — | Bottom 50% |
| EV / Sales | 1.71× | — | — | Top 40% |
| Free-cash-flow yield | 5.70% | — | — | Top 26% |
| Earnings yield | 3.96% | — | — | Top 31% |
P/E over the past five years
Range 19.0× – 38.0× since Jun 30, 2021. Each point: price on the filing date divided by trailing-twelve-month EPS known then.
What moved the stock over the past year
- Price return, 1 year
- -28.9%
- Earnings per share growth (TTM)
- -11.3%
- Change in P/E multiple
- -9.4%
Most of the move came from earnings growth.
Technical state
Trend checklist
- ✗ Price above 20-day average
- ✗ Price above 50-day average
- ✗ Price above 200-day average
- ✗ 50-day average above 200-day
- ✗ MACD histogram positive
Trend quality
- Days above the 50-day average
- 0
- Days above the 200-day average
- 0
- 50-day average slope (20 days)
- -8.9%
- 200-day average slope (20 days)
- -0.9%
- Distance from 50-day average
- -7.4%
- Distance from 200-day average
- -21.4%
- RSI (14)
- 33.5
- Relative volume
- 1.62×
Risk and drawdowns
- Volatility, 60 days (annualized)
- 41.0%
- Volatility vs own 5-year history
- 92th percentile · High for this stock
- Beta vs S&P 500 (2 years, weekly)
- 0.90
- Correlation with S&P 500
- 0.41
- Current drawdown from 1-year high
- -36.1%
- Maximum drawdown, 3 years
- -48.6%
Largest declines in the past six years
| From peak | To low | Decline | Length | Recovery |
|---|---|---|---|---|
| Nov 25, 2024 | Oct 5, 2026 | -48.6% | 464 days | Not yet recovered |
| Dec 15, 2021 | Jun 22, 2022 | -28.2% | 129 days | 155 days (Feb 2, 2023) |
| Oct 11, 2023 | Oct 25, 2023 | -15.4% | 10 days | 30 days (Dec 7, 2023) |
| Jul 16, 2024 | Sep 6, 2024 | -13.7% | 37 days | 44 days (Nov 7, 2024) |
| May 10, 2021 | Sep 30, 2021 | -13.4% | 100 days | 37 days (Nov 22, 2021) |
Declines of 10% or more from a closing high, measured on daily closes.
Financial statements
- Market cap
- $12.25B
- P/E (TTM)
- 25.2
- EPS, diluted (TTM)
- $11.58
- Revenue (TTM)
- $7.28B
- Dividend yield
- 5.44%
- 52-week range
- $285.62 – $459.00
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|---|---|
| Revenue | $6.28B | $7.27B | $7.28B | $7.62B | $7.24B |
| Gross profit | $1.67B | $2.03B | $1.99B | $2.04B | $2.03B |
| Operating income | $628.5M | $831.6M | $794.8M | $781.8M | $692.6M |
| Net income | $418.9M | $601.2M | $536.3M | $536.3M | $497.0M |
| EPS (diluted) | $10.78 | $15.41 | $13.67 | $13.30 | $12.25 |
| Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | $2.16B | $1.75B | $1.53B | $2.06B | $2.07B | $1.58B | $1.53B | $2.10B |
| Net income | $171.0M | $96.8M | $80.1M | $183.6M | $161.6M | $71.7M | $79.1M | $163.3M |
| EPS (diluted) | $4.22 | $2.39 | $1.93 | $4.52 | $3.98 | $1.68 | $1.87 | $4.05 |
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|---|---|
| Operating cash flow | $349.6M | $572.0M | $562.0M | $773.1M | $569.6M |
| Capital expenditure | -$25.5M | -$35.7M | -$35.5M | -$30.1M | -$34.5M |
| Free cash flow | $324.1M | $536.3M | $526.5M | $743.0M | $535.1M |
| Dividends paid | -$294.5M | -$332.4M | -$382.6M | -$423.5M | -$473.8M |
| Net share buybacks | $19.9M | -$66.7M | $12.4M | $242.1M | $42.8M |
Cash outflows are shown as negative numbers.
- Cash and short-term investments
- $464.2M
- Total assets
- $5.08B
- Total liabilities
- $1.61B
- Total debt
- $535.3M
- Net debt
- $171.1M
- Shareholders’ equity
- $2.99B
As of Jun 30, 2026 (filed Aug 7, 2026).
Dividends
| Ex-date | Amount | Paid |
|---|---|---|
| Oct 16, 2026 | $3.30 | Oct 30, 2026 |
| Jul 16, 2026 | $3.30 | Jul 31, 2026 |
| Apr 16, 2026 | $3.30 | Apr 30, 2026 |
| Jan 16, 2026 | $3.00 | Jan 30, 2026 |
| Oct 16, 2025 | $3.00 | Oct 31, 2025 |
| Jul 16, 2025 | $3.00 | Jul 31, 2025 |
| Apr 15, 2025 | $3.00 | Apr 30, 2025 |
| Jan 17, 2025 | $2.70 | Jan 31, 2025 |
Short interest
- Shares sold short
- 4,002,277
- Days to cover
- 9.57
- Change vs previous report
- +1.5%
FINRA short interest, settlement date Sep 15, 2026.
Stock splits
- Aug 17, 1998
- 3-for-2
- Jun 17, 1996
- 3-for-2
- May 16, 1995
- 3-for-2
- Apr 9, 1992
- 21-for-20