Watsco (WSO) Fundamental Analysis: Revenue, Earnings & Valuation

3.07 / 10

Netural

Fundamental analysis rates WSO neutral with a 3.1/10 score, indicating weak health. Positive points include shareholder‑equity growth (4.68%) and net‑income‑to‑revenue ratio, while profit‑to‑market, ROE and cash‑flow metrics lag, rendering the fundamentals challenging.

Analysis Checks(3/10)

Revenue-MV

Value0.19

Score2/3

Weight11.77%

1M Return2.82%

Annualized return on equity (%)

Value18.28

Score1/3

Weight8.28%

1M Return1.99%

Net profit attributable to parent company shareholders / Net profit (%)

Value84.58

Score1/3

Weight11.46%

1M Return2.96%

Profit-MV

Value0.78

Score0/3

Weight-0.31%

1M Return-0.09%

Net income-Revenue

Value-0.70

Score3/3

Weight39.11%

1M Return7.52%

Net cash flow from operating activities (YoY growth rate %)

Value-26.32

Score0/3

Weight1.50%

1M Return0.38%

Shareholders’ equity attributable to parent company (growth rate compared to beginning of year %)

Value4.68

Score2/3

Weight9.20%

1M Return2.15%

ROE (diluted) (%)

Value17.87

Score1/3

Weight10.17%

1M Return2.40%

Asset-MV

Value-0.55

Score0/3

Weight0.54%

1M Return0.14%

ROE (%)

Value18.28

Score1/3

Weight8.28%

1M Return1.99%

Is WSO undervalued or overvalued?

WSO scores 3.07/10 on fundamentals and holds a Fair valuation at present. Backed by its 15.81% ROE, 8.12% net margin, 28.37 P/E ratio, 4.38 P/B ratio, and -8.02% earnings growth, these metrics solidify its Netural investment rating.