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

2.59 / 10

Underperform

Fundamental analysis reveals a weak structure with a score of 2.6/10. Key concerns include negative Asset-MV and declining Net cash flow from operating activities, although strong Net profit attributable to parent company shareholders / Net profit ratio and Shareholders’ equity growth offer some relief. Overall, the fundamental picture is challenging.

Analysis Checks(4/10)

Revenue-MV

Value0.30

Score2/3

Weight17.10%

1M Return3.33%

Annualized return on equity (%)

Value20.72

Score1/3

Weight14.35%

1M Return2.61%

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

Value84.96

Score2/3

Weight22.84%

1M Return4.16%

Profit-MV

Value0.51

Score0/3

Weight-4.88%

1M Return-1.17%

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

Value-56.91

Score0/3

Weight-1.80%

1M Return-0.38%

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

Value5.94

Score2/3

Weight15.26%

1M Return2.84%

Cash-UP

Value-0.06

Score2/3

Weight14.90%

1M Return2.72%

Asset-MV

Value-0.50

Score0/3

Weight-6.22%

1M Return-1.57%

ROE (%)

Value15.54

Score1/3

Weight14.35%

1M Return2.61%

Cash-MV

Value0.04

Score1/3

Weight14.11%

1M Return2.75%

Is WSO fundamentally strong?

WSO scores 2.59/10 on fundamentals and holds a Premium valuation at present. Backed by its 13.36% ROE, 8.30% net margin, 32.62 P/E ratio, 5.16 P/B ratio, and -1.07% earnings growth, these metrics solidify its Underperform investment rating.