Watsco, Inc. (WSO) Stock

Watsco, Inc. (WSO) is a Consumer Discretionary stock trading at $362.06 (as of 2026-07-24), with a market capitalization of $13.75B and a trailing P/E of 24.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Watsco, Inc. distributes air conditioning, heating, and refrigeration equipment, along with related parts and supplies. It supplies residential and commercial HVAC equipment and component parts, serving contractors and dealers for replacement and new construction markets, through locations in the United States, Canada, Mexico, Puerto Rico, and exports to Latin America and the Caribbean Basin.

Understand Watsco, Inc.: how it makes money

Watsco distributes air conditioning, heating, refrigeration equipment, and related parts and supplies, and it also supports contractor and technician engagement (including contractor quotes and e-commerce users) as part of how it sells product to customers.

Watsco's profit model is built on distributing a broad HVAC and related product mix through a large local footprint, with operating performance likely influenced by (1) HVAC equipment versus other product mix and (2) inventory actions, as reflected by the inventory reduction goal and the tracked equipment mix of sales.

Business quality (Weak): Clear business description and several customer and product mix metrics are provided, but no official reportable segment revenue breakdown is included in the provided facts.

Valuation: At 30× earnings, WSO trades 25% above the Wholesale average (24×). Note: one-time items can distort reported P/E.

Bull case

Product mix skewed toward HVAC equipment: HVAC equipment is the majority of sales (HVAC Equipment Share of Sales is 67%), which aligns with the company distributing residential ducted and ductless air conditioners and furnaces, plus commercial air conditioning and heating equipment.
Inventory discipline appears to be a management focus: Inventory Reduction Goal Met is shown as 0.5 USD_B, indicating active inventory management that can support working capital and supply availability.

Bear case

HVAC demand risk: HVAC Product Sales Decline is 2.0 percent, and because HVAC equipment makes up a large share of sales, continued declines could pressure results.
Limited diversification versus HVAC: Commercial refrigeration products are a smaller portion of sales (4.0 percent), so performance may be more sensitive to HVAC-related market conditions than to other product categories.

Valuation — source: SEC EDGAR (first-party)
Price	$362.06
Market Cap	$13.75B
P/E Ratio	24.9
EV / EBITDA	16.6
Price / Book	4.28
Price / Sales	1.91
FCF Yield	-1.9%
DCF Value (model)	$254.31
DCF Upside vs Price	-29.8%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$7.24B
Net Margin	6.9%
Revenue Growth (YoY)	-5.0%
EPS Growth (YoY)	-8.0%
FCF Growth (YoY)	-28.0%

Financial Health — source: SEC EDGAR
Altman Z-Score	10.11 (safe)

Valuation vs Sector & Industry
Stock P/E	24.9
Sector P/E (Consumer Discretionary)	21.6
Industry P/E (Wholesale)	24.8
vs Sector	15.5%
vs Industry	0.2%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($1.49B)
Institutional Holders Tracked	10
Congressional Trades (recent)	7

Company
Sector	Consumer Discretionary
Industry	Wholesale
CEO	Albert H. Nahmad
Employees	7,220
Country	US
IPO Date	1984-06-07

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Data as of 2026-07-24.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.