WSO

Based on Watsco, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

What does Watsco do?

Watsco distributes air conditioning, heating, and refrigeration equipment along with a wide range of replacement parts and supplies. It serves contractors and dealers who install and service HVAC systems in residential and light commercial buildings across the United States, Canada, Mexico, Puerto Rico, and export markets in Latin America.

Does WSO pay dividends?

Yes, Watsco pays a regular dividend. The company's recurring cash flows from HVAC replacement demand support consistent distributions to shareholders. For current yield and payout details, check Watsco's investor relations page or your brokerage platform.

When does WSO report earnings?

Watsco reports on a quarterly cadence, as is standard for US-listed companies. Exact dates vary each quarter. For upcoming earnings schedules, refer to Watsco's investor relations page or financial calendar services.

Is WSO a good stock to buy?

UQS Score rates WSO as Below Average overall. While the Quality and Risk pillars show relative strength, the Moat and Growth pillars are Weak and the Valuation pillar is Elevated. Investors should weigh these factors carefully. The full pillar breakdown is available to Pro members at UQS Score.

Is WSO overvalued?

The UQS Valuation pillar for WSO is rated Elevated, suggesting the current market price may not offer a wide margin of safety relative to the company's underlying fundamentals. This does not guarantee near-term price decline but indicates limited valuation cushion.

How does WSO compare to its competitors?

Watsco is a specialist HVAC distributor, which differentiates it from broader industrial distributors like WESCO International. Compared to QXO's technology-forward approach and Toromont's heavy-equipment focus, Watsco's strength lies in its deep branch network and long-standing contractor relationships across North America.

What is WSO's market cap bracket?

Watsco is classified as a large-cap stock. This places it among the more established, widely followed companies in the industrial distribution sector, typically associated with greater liquidity and analyst coverage than smaller peers.

Who founded Watsco?

Watsco was founded in 1984 and is headquartered in Miami, Florida. The company has grown significantly over the decades through acquisitions of regional HVAC distributors, becoming one of the largest in North America. Detailed founding history is available through public company records.

Is WSO a long-term quality investment?

From a long-term quality perspective, WSO's Good scores on Quality and Risk suggest operational stability and manageable downside. However, the Weak Moat and Growth pillars raise questions about durable competitive advantage and earnings expansion over time. Pro members can access the full analysis to assess long-term fit.

What is the main competitive advantage of Watsco?

Watsco's primary advantage is its scale and geographic reach — operating from hundreds of locations gives it logistical efficiency and proximity to contractors. However, the UQS Moat pillar rates this advantage as Weak, indicating that distribution businesses in this sector face meaningful competitive pressure.

What sector does WSO belong to?

Watsco is classified in the Industrials sector, specifically within the distribution sub-industry. Its business is closely tied to construction activity and HVAC replacement cycles, making it sensitive to housing market trends and broader economic conditions.

Is WSO a growth stock or value stock?

Based on UQS pillar labels, WSO leans toward neither category cleanly. The Growth pillar is Weak and the Valuation pillar is Elevated — a combination that suggests the stock is not priced as a deep value opportunity, nor does it exhibit strong near-term growth characteristics.

Watsco, Inc. shows solid profitability with healthy returns on capital and reasonable margins.

Watsco, Inc. faces growth headwinds with declining or stagnant revenue trends.

Watsco, Inc. maintains a reasonable risk profile with manageable debt levels.

Watsco, Inc. has a mixed valuation — some metrics suggest fair value while others appear stretched.

Watsco, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for WSO.

The UQS (Unified Quality Score) for Watsco, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Watsco, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Watsco, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.