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Upturn AI SWOT - About
WSO 
Watsco Inc (WSO)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
10/30/2025: WSO (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
15 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $430.8
1 Year Target Price $430.8
| 3 | Strong Buy |
| 0 | Buy |
| 10 | Hold |
| 1 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 1.83% | Avg. Invested days 48 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/30/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 14.57B USD | Price to earnings Ratio 30.21 | 1Y Target Price 430.8 |
Price to earnings Ratio 30.21 | 1Y Target Price 430.8 | ||
Volume (30-day avg) 15 | Beta 0.94 | 52 Weeks Range 347.08 - 556.70 | Updated Date 11/1/2025 |
52 Weeks Range 347.08 - 556.70 | Updated Date 11/1/2025 | ||
Dividends yield (FY) 3.18% | Basic EPS (TTM) 12.18 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-10-21 | When Before Market | Estimate 4.81 | Actual 3.98 |
Profitability
Profit Margin 7.04% | Operating Margin (TTM) 11.36% |
Management Effectiveness
Return on Assets (TTM) 9.96% | Return on Equity (TTM) 19.05% |
Valuation
Trailing PE 30.21 | Forward PE 26.88 | Enterprise Value 16966127427 | Price to Sales(TTM) 1.97 |
Enterprise Value 16966127427 | Price to Sales(TTM) 1.97 | ||
Enterprise Value to Revenue 2.26 | Enterprise Value to EBITDA 21.68 | Shares Outstanding 34902826 | Shares Floating 32897239 |
Shares Outstanding 34902826 | Shares Floating 32897239 | ||
Percent Insiders 0.4 | Percent Institutions 103.77 |
Upturn AI SWOT
Watsco Inc
Company Overview
History and Background
Watsco, Inc. was founded in 1947. It began as a supplier of air conditioning parts in South Florida. Over the years, it expanded through acquisitions to become the largest distributor of HVAC/R equipment and related parts and supplies in North America.
Core Business Areas
- HVAC/R Distribution: Distribution of heating, ventilation, air conditioning, and refrigeration equipment (HVAC/R), as well as related parts and supplies. This is their primary revenue driver.
Leadership and Structure
Albert H. Nahmad is the Chairman and CEO. The company has a traditional corporate structure with executive leadership overseeing various departments like sales, operations, finance, and marketing.
Top Products and Market Share
Key Offerings
- HVAC/R Equipment: Distribution of complete HVAC/R systems manufactured by leading brands like Carrier, Rheem, and Trane. Watsco does not publicize a specific market share breakdown for HVAC/R equipment. Competitors include Ferguson Enterprises, Hajoca, and other regional distributors.
- Parts and Supplies: Distribution of a wide range of parts and supplies necessary for HVAC/R systems installation, repair, and maintenance. This includes compressors, motors, refrigerants, and other components. Again, specific market share for this product segment is not released but Watsco is a leader in this field. Competitors include Johnstone Supply and other independent distributors.
- Refrigerants: Distribution of refrigerants used in air conditioning, heating, and refrigeration systems. Watsco is a significant player in the refrigerants distribution. Competitors include Hudson Technologies and others. Market share not specified.
Market Dynamics
Industry Overview
The HVAC/R industry is driven by new construction, replacement demand, and regulatory changes related to energy efficiency and refrigerants. The industry is also experiencing growth in the adoption of smart and connected HVAC systems.
Positioning
Watsco is the largest distributor in a fragmented market. Its competitive advantages include its extensive distribution network, strong relationships with leading manufacturers, and investments in technology.
Total Addressable Market (TAM)
The North American HVAC/R distribution market is estimated to be worth over $50 billion annually. Watsco, with its strong position, is capturing an increasing portion of this TAM through organic growth and acquisitions.
Upturn SWOT Analysis
Strengths
- Largest distributor in North America
- Extensive distribution network
- Strong relationships with manufacturers
- Investments in technology
- Experienced management team
Weaknesses
- Dependence on the housing market
- Exposure to commodity price fluctuations (refrigerants)
- Acquisition integration risks
- Seasonality of demand (HVAC)
- Debt Levels
Opportunities
- Further market share consolidation through acquisitions
- Expansion into new geographic markets
- Growth in demand for energy-efficient HVAC systems
- Increased adoption of smart and connected HVAC systems
- Expansion in the commercial refrigeration segment
Threats
- Economic downturns affecting construction and consumer spending
- Increased competition from online retailers
- Changes in regulations related to refrigerants
- Supply chain disruptions
- Rising interest rates impacting borrowing costs
Competitors and Market Share
Key Competitors
- Ferguson plc (FERG)
- GPC (Genuine Parts Company) (GPC)
- Rexel (RXE.PA)
Competitive Landscape
Watsco's advantages include its scale, distribution network, and technology investments. Competitors are focusing on regional presence and specialized services.
Major Acquisitions
NSI Holdings, Inc.
- Year: 2021
- Acquisition Price (USD millions):
- Strategic Rationale: Further enhances capabilities in the air distribution segment
Growth Trajectory and Initiatives
Historical Growth: Watsco has grown significantly through acquisitions and organic growth, driven by the increasing demand for HVAC/R products and services.
Future Projections: Analyst estimates project continued growth for Watsco, driven by market trends and the company's strategic initiatives.
Recent Initiatives: Recent initiatives include acquisitions, investments in technology, and expansion into new markets.
Summary
Watsco is a strong company that is the largest distributor of HVAC/R equipment in North America. Its growth is fueled by acquisitions, organic growth, and technology. However, it must manage debt levels, economic downturns, and regulatory changes to maintain its position. They are positioned well to capture market share from their TAM.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Watsco Inc. Investor Relations
- Company Filings (SEC)
- Market Research Reports
- Analyst Reports
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Financial data is based on available information and may be subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Watsco Inc
Exchange NYSE | Headquaters Miami, FL, United States | ||
IPO Launch date 1984-06-07 | Chairman & CEO Mr. Albert H. Nahmad | ||
Sector Industrials | Industry Industrial Distribution | Full time employees 7220 | Website https://www.watsco.com |
Full time employees 7220 | Website https://www.watsco.com | ||
Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. It also offers parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. The company serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.
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