Watsco, Inc. (WSO) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Industrial - Distribution
EV/EBITDA
↑
22.20
↑+29% vs avg
5yr avg: 17.22
30Y Low6.9·High21.5
P/FCF
↓
30.45
+19% vs avg
5yr avg: 25.66
30Y Low7.0·High58.2
P/B Ratio
↓
4.72
-7% 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 32.7x earnings, 17% above its 5-year average of 27.9x, sitting at the 90th percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a premium of 28%. On a free-cash-flow basis, the stock trades at 30.4x P/FCF, 19% 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 | $16.3B | $12.8B | $17.8B | $15.7B | $8.9B | $11.1B | $8.0B | $6.2B | $5.2B | $6.3B | $5.3B |
| Enterprise Value | $16.3B | $12.8B | $17.7B | $15.9B | $9.1B | $11.4B | $8.0B | $6.6B | $5.3B | $6.3B | $5.4B |
| P/E Ratio → | 32.74 | 27.51 | 35.63 | 31.34 | 16.18 | 29.02 | 32.32 | 27.72 | 21.47 | 33.21 | 31.32 |
| P/S Ratio | 2.25 | 1.76 | 2.33 | 2.15 | 1.22 | 1.76 | 1.58 | 1.31 | 1.15 | 1.46 | 1.25 |
| P/B Ratio | 4.72 | 3.96 | 5.80 | 5.98 | 3.96 | 5.55 | 4.47 | 3.64 | 3.25 | 4.08 | 4.20 |
| P/FCF | 30.45 | 23.85 | 23.92 | 29.73 | 16.59 | 34.20 | 15.37 | 19.65 | 33.98 | 21.93 | 22.10 |
| P/OCF | 28.62 | 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 22.2x EBITDA, 29% above its 5-year average of 17.2x. The Industrials sector median is 13.8x, placing the stock at a 60% 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 | 22.20 | 17.40 | 21.51 | 19.22 | 10.59 | 17.39 | 18.82 | 16.74 | 13.36 | 16.69 | 14.88 |
| EV / EBIT | 23.61 | 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 4.3%. 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 6.1%.
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 (80% below the sector average of 3.2x). 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 3.1% to shareholders annually — split between a 3.1% 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 3.1% (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 | 3.1% | 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 | 3.1% | 3.6% | 2.8% | 3.2% | 6.2% | 3.4% | 3.1% | 3.6% | 4.7% | 3.0% | 3.2% |
| FCF Yield | 3.3% | 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 | 3.1% | 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 | $16B | 32.7 | 22.2 | 30.4 | 28.0% | 9.6% | 15.8% | 16.6% | 0.7 |
 GWW | $64B | 38.6 | 22.8 | 48.4 | 39.1% | 15.0% | 43.5% | 32.1% | 1.1 |
 MSM | $7B | 33.2 | 17.6 | 27.5 | 40.8% | 8.3% | 14.2% | 12.3% | 1.3 |
 FAST | $53B | 42.1 | 31.9 | 50.1 | 45.0% | 20.2% | 33.3% | 31.2% | 0.3 |
 IBP | $6B | 22.5 | 13.5 | 19.5 | 34.0% | 13.0% | 37.5% | 20.7% | 2.1 |
 BLDR | $9B | 20.7 | 10.4 | 10.4 | 29.0% | 5.2% | 10.1% | 6.4% | 4.1 |
 POOL | $7B | 18.3 | 11.9 | 23.6 | 29.7% | 11.0% | 33.1% | 22.3% | 0.6 |
 CARR | $60B | 42.2 | 23.0 | 35.4 | 25.9% | 9.9% | 10.5% | 6.7% | 4.1 |
 TT | $107B | 37.2 | 26.0 | 38.1 | 36.2% | 18.6% | 36.3% | 26.2% | 1.1 |
 LII | $19B | 24.0 | 18.3 | 29.0 | 33.0% | 19.5% | 78.1% | 29.8% | 1.8 |
 DKNG | $13B | -3258.0 | 51.7 | 20.2 | 41.3% | -0.3% | 0.5% | -0.9% | 7.4 |
| Industrials Median | — | 25.6 | 13.8 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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WSO — 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 32.7x. The historical average is 24.2x. This places it at the 90th percentile of its historical range.
What is Watsco, Inc.'s EV/EBITDA?
Watsco, Inc.'s current EV/EBITDA is 22.2x. 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 32.7x. This is at the 90th 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 3.12% 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.