Watsco, Inc. (WSO) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Industrial - Distribution
EV/EBITDA
↑
23.29
↑+35% vs avg
5yr avg: 17.22
30Y Low6.9·High21.5
P/FCF
↓
31.94
↑+24% vs avg
5yr avg: 25.66
30Y Low7.0·High58.2
P/B Ratio
↓
4.95
-2% vs avg
5yr avg: 5.05
30Y Low1.1·High6.0
ROE
↓
15.8%
↑-26% vs avg
5yr avg: 21.4%
30Y Low6%·High28%
Debt/EBITDA
↓
0.65
+10% vs avg
5yr avg: 0.59
30Y Low0.1·High3.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
WSO Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Watsco, Inc. trades at 34.3x earnings, 23% above its 5-year average of 27.9x, sitting at the 93rd percentile of its historical range. Compared to the Industrials sector median P/E of 25.7x, the stock trades at a premium of 34%. On a free-cash-flow basis, the stock trades at 31.9x P/FCF, 24% above the 5-year average of 25.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $17.1B | $12.8B | $17.8B | $15.7B | $8.9B | $11.1B | $8.0B | $6.2B | $5.2B | $6.3B | $5.3B |
| Enterprise Value | $17.1B | $12.8B | $17.7B | $15.9B | $9.1B | $11.4B | $8.0B | $6.6B | $5.3B | $6.3B | $5.4B |
| P/E Ratio → | 34.34 | 27.51 | 35.63 | 31.34 | 16.18 | 29.02 | 32.32 | 27.72 | 21.47 | 33.21 | 31.32 |
| P/S Ratio | 2.36 | 1.76 | 2.33 | 2.15 | 1.22 | 1.76 | 1.58 | 1.31 | 1.15 | 1.46 | 1.25 |
| P/B Ratio | 4.95 | 3.96 | 5.80 | 5.98 | 3.96 | 5.55 | 4.47 | 3.64 | 3.25 | 4.08 | 4.20 |
| P/FCF | 31.94 | 23.85 | 23.92 | 29.73 | 16.59 | 34.20 | 15.37 | 19.65 | 33.98 | 21.93 | 22.10 |
| P/OCF | 30.03 | 22.42 | 22.99 | 27.85 | 15.56 | 31.71 | 14.90 | 18.60 | 30.56 | 20.65 | 18.68 |
P/E links to full P/E history page with 30-year chart
WSO EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Watsco, Inc.'s enterprise value stands at 23.3x EBITDA, 35% above its 5-year average of 17.2x. The Industrials sector median is 13.7x, placing the stock at a 71% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.77 | 2.32 | 2.19 | 1.26 | 1.82 | 1.59 | 1.37 | 1.16 | 1.44 | 1.29 |
| EV / EBITDA | 23.29 | 17.40 | 21.51 | 19.22 | 10.59 | 17.39 | 18.82 | 16.74 | 13.36 | 16.69 | 14.88 |
| EV / EBIT | 24.76 | 17.37 | 23.56 | 20.75 | 11.30 | 18.17 | 20.03 | 17.86 | 14.15 | 17.72 | 15.75 |
| EV / FCF | — | 23.93 | 23.82 | 30.29 | 17.05 | 35.23 | 15.51 | 20.61 | 34.32 | 21.73 | 22.85 |
WSO Profitability
Margins and return-on-capital ratios measuring operating efficiency
Watsco, Inc. earns an operating margin of 9.6%, above the Industrials sector average of 4.7%. Operating margins have compressed from 10.9% to 9.6% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 15.8% indicates solid capital efficiency, compared to the sector median of 8.2%. ROIC of 16.6% represents solid returns on invested capital versus a sector median of 6.3%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.0% | 28.0% | 26.8% | 27.4% | 27.9% | 26.6% | 24.2% | 24.3% | 24.6% | 24.5% | 24.5% |
| Operating Margin | 9.6% | 9.6% | 10.3% | 10.9% | 11.4% | 10.0% | 7.9% | 7.7% | 8.2% | 8.2% | 8.2% |
| Net Profit Margin | 6.9% | 6.9% | 7.0% | 7.4% | 8.3% | 6.7% | 5.3% | 5.2% | 5.3% | 4.8% | 4.3% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.8% | 15.8% | 18.9% | 22.1% | 28.3% | 22.2% | 15.4% | 14.8% | 15.4% | 14.9% | 14.9% |
| ROA | 11.1% | 11.1% | 13.0% | 14.9% | 18.3% | 15.0% | 10.7% | 10.4% | 11.5% | 10.6% | 10.0% |
| ROIC | 16.6% | 16.6% | 19.9% | 22.1% | 25.9% | 22.5% | 15.5% | 15.0% | 17.7% | 18.2% | 18.2% |
| ROCE | 19.0% | 19.0% | 23.8% | 28.4% | 33.7% | 28.9% | 19.6% | 18.8% | 21.7% | 22.2% | 22.5% |
WSO Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Watsco, Inc. carries a Debt/EBITDA ratio of 0.7x, which is very conservative (79% below the sector average of 3.1x). Net debt stands at $46M ($479M total debt minus $433M cash).
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.15 | 0.15 | 0.15 | 0.19 | 0.17 | 0.23 | 0.12 | 0.22 | 0.08 | 0.01 | 0.19 |
| Debt / EBITDA | 0.65 | 0.65 | 0.54 | 0.61 | 0.45 | 0.69 | 0.51 | 0.97 | 0.35 | 0.06 | 0.64 |
| Net Debt / Equity | — | 0.01 | -0.03 | 0.11 | 0.11 | 0.17 | 0.04 | 0.18 | 0.03 | -0.04 | 0.14 |
| Net Debt / EBITDA | 0.06 | 0.06 | -0.10 | 0.36 | 0.28 | 0.51 | 0.16 | 0.78 | 0.13 | -0.15 | 0.49 |
| Debt / FCF | — | 0.08 | -0.11 | 0.56 | 0.45 | 1.04 | 0.14 | 0.97 | 0.35 | -0.20 | 0.76 |
| Interest Coverage | — | — | 36.00 | 156.23 | 373.63 | 631.05 | 323.68 | 90.99 | 135.80 | 55.61 | 93.09 |
WSO Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Watsco, Inc.'s current ratio of 4.12x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 2.18x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 3.36x to 4.12x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.12 | 4.12 | 3.13 | 3.36 | 2.54 | 2.70 | 3.05 | 3.35 | 4.03 | 3.21 | 3.94 |
| Quick Ratio | 2.18 | 2.18 | 1.72 | 1.47 | 1.02 | 1.16 | 1.44 | 1.36 | 1.69 | 1.38 | 1.76 |
| Cash Ratio | 1.02 | 1.02 | 0.79 | 0.30 | 0.16 | 0.16 | 0.30 | 0.16 | 0.23 | 0.19 | 0.18 |
| Asset Turnover | — | 1.62 | 1.68 | 1.95 | 2.09 | 2.04 | 2.03 | 1.87 | 2.10 | 2.12 | 2.25 |
| Inventory Turnover | 3.76 | 3.76 | 4.02 | 3.93 | 3.83 | 4.14 | 4.90 | 3.92 | 4.09 | 4.30 | 4.65 |
| Days Sales Outstanding | — | 40.14 | 42.06 | 39.98 | 37.49 | 40.59 | 38.65 | 40.84 | 40.29 | 40.19 | 41.16 |
WSO Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Watsco, Inc. returns 3.0% to shareholders annually — split between a 3.0% dividend yield and 0.0% buyback yield. The payout ratio of 95.3% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 2.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.0% | 3.7% | 2.4% | 2.4% | 3.7% | 2.7% | 3.3% | 3.9% | 4.0% | 2.6% | 2.4% |
| Payout Ratio | 95.3% | 95.3% | 79.0% | 71.3% | 55.3% | 70.3% | 98.6% | 98.2% | 86.1% | 78.8% | 69.8% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.9% | 3.6% | 2.8% | 3.2% | 6.2% | 3.4% | 3.1% | 3.6% | 4.7% | 3.0% | 3.2% |
| FCF Yield | 3.1% | 4.2% | 4.2% | 3.4% | 6.0% | 2.9% | 6.5% | 5.1% | 2.9% | 4.6% | 4.5% |
| Buyback Yield | 0.0% | 0.0% | 0.2% | 0.0% | 1.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.1% | 0.1% |
| Total Shareholder Yield | 3.0% | 3.7% | 2.6% | 2.5% | 4.7% | 2.7% | 3.4% | 3.9% | 4.1% | 2.7% | 2.5% |
| Shares Outstanding | — | $38M | $38M | $37M | $36M | $35M | $35M | $35M | $37M | $37M | $36M |
Peer Comparison
Compare WSO with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 WSOYou | $17B | 34.3 | 23.3 | 31.9 | 28.0% | 9.6% | 15.8% | 16.6% | 0.7 |
 GWW | $54B | 32.1 | 19.2 | 40.5 | 39.1% | 15.0% | 43.5% | 32.1% | 1.1 |
 MSM | $6B | 28.9 | 15.4 | 23.9 | 40.8% | 8.3% | 14.2% | 12.3% | 1.3 |
 FAST | $51B | 40.7 | 30.8 | 48.4 | 45.0% | 20.2% | 33.3% | 31.2% | 0.3 |
 IBP | $8B | 29.1 | 17.0 | 25.3 | 34.0% | 13.0% | 37.5% | 20.7% | 2.1 |
 BLDR | $8B | 19.2 | 10.0 | 9.7 | 29.0% | 5.2% | 10.1% | 6.4% | 4.1 |
 POOL | $7B | 17.2 | 11.3 | 22.2 | 29.7% | 11.0% | 33.1% | 22.3% | 0.6 |
 CARR | $54B | 37.8 | 20.9 | 31.6 | 25.9% | 9.9% | 10.5% | 6.7% | 4.1 |
 TT | $106B | 36.8 | 25.7 | 37.6 | 36.2% | 18.6% | 36.3% | 26.2% | 1.1 |
 LII | $18B | 23.5 | 18.0 | 28.4 | 33.0% | 19.5% | 78.1% | 29.8% | 1.8 |
 DKNG | $12B | -2984.0 | 47.4 | 18.5 | 41.3% | -0.3% | 0.5% | -0.9% | 7.4 |
| Industrials Median | — | 25.7 | 13.7 | 21.2 | 33.0% | 4.7% | 8.2% | 6.3% | 3.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
Full WSO Stock Analysis
Analyst consensus, bull case, AI-generated risk factors, and peer comparison — all in one place.
See WSO's True Return
Price is only half the story. See total return with reinvested dividends.
Launch CalculatorIs WSO Undervalued?
DCF intrinsic value, peer multiples, and analyst estimates — see what the stock is really worth.
View ValuationCompare WSO vs GWW
Side-by-side business, growth, and profitability comparison vs W.W. Grainger, Inc..
Start ComparisonWSO — Frequently Asked Questions
Quick answers to the most common questions about buying WSO stock.
What is Watsco, Inc.'s P/E ratio?
Watsco, Inc.'s current P/E ratio is 34.3x. The historical average is 24.2x. This places it at the 93th percentile of its historical range.
What is Watsco, Inc.'s EV/EBITDA?
Watsco, Inc.'s current EV/EBITDA is 23.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.9x.
What is Watsco, Inc.'s ROE?
Watsco, Inc.'s return on equity (ROE) is 15.8%. The historical average is 13.5%.
Is WSO stock overvalued?
Based on historical data, Watsco, Inc. is trading at a P/E of 34.3x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Watsco, Inc.'s dividend yield?
Watsco, Inc.'s current dividend yield is 2.97% with a payout ratio of 95.3%.
What are Watsco, Inc.'s profit margins?
Watsco, Inc. has 28.0% gross margin and 9.6% operating margin.
How much debt does Watsco, Inc. have?
Watsco, Inc.'s Debt/EBITDA ratio is 0.7x, indicating low leverage. A ratio below 2x is generally considered financially healthy.