Stocktoria
WATSCO INC WSO
WATSCO INC (WSO) earns a Piotroski F-score of 5/9 (mixed financial health), with an Altman Z″ in the safe zone. It pays a dividend yielding 3.04% (safety: at-risk). FY2025 revenue was $7.2B at a 6.9% net margin.
Quality score trend · recomputed for each fiscal year
Each year's score is computed from that year's filing — a rising Piotroski F or Altman Z″ means improving financial health, a fall is worth a look.
Beneish M-score: -2.66 — low (below −2.22 — no manipulation red flag) . A statistical screen for earnings manipulation, not proof — and it doesn't apply to most banks/insurers.
Analyst price target
Recent analyst actions
| Date | Firm | Rating |
|---|---|---|
| 2026-07-30 | DA Davidson | Neutral (main) |
| 2026-07-28 | Baird | Outperform (main) |
| 2026-07-10 | Morgan Stanley | Equal-Weight (main) |
| 2026-06-16 | DA Davidson | Neutral (init) |
| 2026-04-29 | Stephens & Co. | Overweight (main) |
| 2026-02-19 | JP Morgan | Neutral (main) |
Wall Street analyst consensus — a sentiment gauge, not our scoring.
Forward estimates · earnings calendar →
Consensus analyst estimates and scheduled dates — forward-looking, may change.
How it ranks in Wholesale Trade · percentile among 112 companies
Percentile vs other Wholesale Trade companies we cover — e.g. “stronger than 90%” means only 10% score higher on that measure.
Piotroski F breakdown · 5/9 tests passed
- Positive return on assets
- Positive operating cash flow
- Rising ROA
- Cash flow exceeds net income
- Lower long-term debt
- Rising current ratio
- No share dilution
- Rising gross margin
- Rising asset turnover
Altman Z″ components · safe zone
| Component | Value |
|---|---|
| Working capital / assets | 0.507 |
| Retained earnings / assets | 0.299 |
| EBIT / assets | 0.163 |
| Equity / liabilities | 2.701 |
Sector peers · similar-size Wholesale Trade companies compare side by side →
| Ticker | Company | Piotroski F | Altman Z″ | P / E | Revenue growth |
|---|---|---|---|---|---|
| WSO | WATSCO INC | 5/9 | 8.23 | 31.4 | -5% |
| FERG | Ferguson Enterprises Inc. /DE/ | 6/9 | 4.27 | 24.9 | +3.8% |
| MCK | MCKESSON CORP | 6/9 | 0.58 | 18.8 | +12.4% |
| CAH | CARDINAL HEALTH INC | 6/9 | -0.03 | 32.5 | +14.2% |
| SYY | SYSCO CORP | 5/9 | — | 21.7 | +3.2% |
| PFGC | Performance Food Group Co | 4/9 | 1.92 | 48.3 | +7.2% |
| SNX | TD SYNNEX CORP | 6/9 | 1.78 | 25.9 | +6.9% |
All Wholesale Trade companies →
About WATSCO INC
Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. It 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. The company 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. 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. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.
FAQ
Is WSO financially healthy?
WATSCO INC's Piotroski F-score is 5/9 (8–9 is excellent, 0–3 weak), and its Altman Z″ distress score is in the safe zone.
Does WSO pay a dividend, and is it safe?
Yes. WATSCO INC pays a dividend yielding about 3.04% with a 95.3% payout ratio, rated “at-risk” for safety.
How profitable is WSO?
In FY2025, WATSCO INC had a net margin of 6.9% and a return on equity of 15.4%.
Is WSO overvalued or undervalued?
WATSCO INC trades at about 25.3× trailing earnings — below its 10-year norm (10-year range 18.6×–36.0×, median 29.7×). Stocktoria reports the data, not buy/sell advice.
What is the analyst price target for WSO?
The average Wall-Street price target for WATSCO INC is $382.20, about 23.5% above the recent price, from 10 analysts (consensus: hold).
Is WSO a good stock to buy?
Stocktoria doesn't give buy or sell advice, but here is the data on WATSCO INC: a Piotroski F-score of 5/9, an Altman Z″ in the safe zone, a P/E of about 31.4×, a dividend yield of 3.04%. Weigh these quality and valuation signals against your own goals.
Computed from company filings · US · as of 2025-12-31. Facts plus Stocktoria's own computed scores — not investment advice.