WSONYSEWholesale-Hardware & Plumbing & Heating Equipment & SuppliesFiscal year ends December 31Also trades as WSO.B
WATSCO INC
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 7, 2026
$294.00−1.91 (-0.65%)
Close on Oct 19, 2026
- Market cap
- $11.23B
- P/E (TTM)
- 25.3
- Dividend yield
- 3.98%
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
28.0%+3.9 pts over 5 years
Operating margin
10.0%+2.0 pts over 5 years
Net margin
6.9%+1.5 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -5.0% | -0.2% | +7.4% | +5.8% | |
| Gross profit | -0.7% | +0.0% | +10.7% | +7.3% | |
| Operating income | -7.9% | -4.7% | +12.4% | +7.9% | |
| Net income | -7.3% | -6.1% | +13.0% | +11.1% | |
| EPS, diluted | -7.9% | -7.4% | +11.8% | +9.6% | |
| Free cash flow | -28.0% | -0.1% | +0.7% | +10.4% | |
| Dividend per share | +10.9% | +11.0% | +11.1% | +15.4% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 18.6% | 18.5% | 18.3% | |
| Return on assets | 10.0% | 10.7% | 11.2% | |
| Current ratio | 3.94 | 3.05 | 4.12 | |
| Debt to equity | 0.23 | 0.15 | 0.17 | |
| Net debt to EBITDA | 0.49× | 0.16× | 0.06× | |
| Inventory turnover | 4.7× | 4.5× | 3.8× | |
| Capex to revenue | 1.0% | 0.3% | 0.5% | |
| Diluted shares | 33M | 35M | 38M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Watsco generated $2.83B from operations and spent $2.07B on capital expenditure, dividends and share buybacks. 8% of that went back into the business.
Generated
$2.83B
Used
$2.07B
Capital expenditure$161.23M8%Dividends$1.91B92%Share buybacks$00%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin6.9%
×Asset turnover1.63×
×Equity multiplier1.64×
=Return on equity, FY202518.3%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 6.9% | 1.63× | 1.64× | 18.3% |
| FY2024 | 7.0% | 1.86× | 1.68× | 21.9% |
| FY2023 | 7.4% | 2.02× | 1.75× | 26.0% |
| FY2022 | 8.3% | 2.21× | 1.85× | 33.8% |
| FY2021 | 6.7% | 2.25× | 1.77× | 26.6% |
| FY2020 | 5.3% | 2.01× | 1.72× | 18.5% |
| FY2019 | 5.2% | 2.02× | 1.69× | 17.7% |
| FY2018 | 5.3% | 2.16× | 1.59× | 18.4% |
| FY2017 | 4.8% | 2.21× | 1.70× | 18.1% |
| FY2016 | 4.3% | 2.30× | 1.87× | 18.6% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
5of 9 tests passed in fiscal 2025. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero$496.99M
- Cash generatingOperating cash flow above zero$569.61M
- Return on assets improvedROA up on the prior year14.4% → 11.1%
- Earnings backed by cashOperating cash flow above net income$569.61M vs $496.99M
- Less leverageLong-term debt to assets fell7.5% → 8.2%
- Better liquidityCurrent ratio rose3.13 → 4.12
- No dilutionShare count did not rise38M → 38M
- Gross margin improvedGross margin up on the prior year26.84% → 28.05%
- More efficientAsset turnover rose2.04 → 1.62