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Upturn AI SWOT - About
WSO 
Watsco Inc (WSO)
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Upturn Advisory Summary
09/12/2025: 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 $464.45
1 Year Target Price $464.45
| 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 09/12/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 15.78B USD | Price to earnings Ratio 29.16 | 1Y Target Price 464.45 |
Price to earnings Ratio 29.16 | 1Y Target Price 464.45 | ||
Volume (30-day avg) 15 | Beta 0.95 | 52 Weeks Range 378.35 - 561.38 | Updated Date 09/15/2025 |
52 Weeks Range 378.35 - 561.38 | Updated Date 09/15/2025 | ||
Dividends yield (FY) 2.79% | Basic EPS (TTM) 13.1 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 7.08% | Operating Margin (TTM) 12.85% |
Management Effectiveness
Return on Assets (TTM) 10.14% | Return on Equity (TTM) 20.05% |
Valuation
Trailing PE 29.16 | Forward PE 24.39 | Enterprise Value 15945917823 | Price to Sales(TTM) 2.1 |
Enterprise Value 15945917823 | Price to Sales(TTM) 2.1 | ||
Enterprise Value to Revenue 2.12 | Enterprise Value to EBITDA 20.38 | Shares Outstanding 34902800 | Shares Floating 32898837 |
Shares Outstanding 34902800 | Shares Floating 32898837 | ||
Percent Insiders 0.4 | Percent Institutions 104.34 |
Upturn AI SWOT
Watsco Inc
Company Overview
History and Background
Watsco Inc. was founded in 1947 as a wholesale distributor of air conditioning, heating, and refrigeration equipment (HVAC/R). Over time, it has grown through acquisitions and organic growth to become the largest distributor in North America.
Core Business Areas
- HVAC/R Distribution: Watsco's primary business involves the distribution of HVAC/R equipment, parts, and supplies. They serve contractors, technicians, and dealers in the replacement and new construction markets.
Leadership and Structure
Albert H. Nahmad serves as Chairman and CEO. The company operates with a decentralized organizational structure, allowing local business units to maintain autonomy and responsiveness to regional market conditions.
Top Products and Market Share
Key Offerings
- HVAC Equipment: Watsco distributes a wide range of HVAC equipment, including air conditioners, furnaces, heat pumps, and related components. They partner with major manufacturers such as Carrier, Rheem, and Trane. Competitors: Ferguson, Hajoca, and various regional distributors. Market Share (combined with parts/supplies): ~25% (estimated, varies by region).
- Parts and Supplies: Watsco offers a comprehensive selection of HVAC/R parts and supplies, including refrigerants, compressors, motors, and electrical components. This segment supports the maintenance, repair, and replacement needs of HVAC/R contractors. Competitors: Johnstone Supply, Grainger, and various online retailers. Market Share (combined with equipment): ~25% (estimated, varies by region).
Market Dynamics
Industry Overview
The HVAC/R distribution industry is fragmented and competitive, with a mix of national, regional, and local distributors. Demand is driven by factors such as new construction, replacement cycles, weather patterns, and energy efficiency regulations.
Positioning
Watsco is the largest distributor in North America, with a strong network of locations and a wide range of products and services. They differentiate themselves through their scale, technology platform, and focus on customer service.
Total Addressable Market (TAM)
The North American HVAC/R market is estimated to be worth over $70 billion annually. Watsco's ~25% market share indicates substantial growth potential within this TAM.
Upturn SWOT Analysis
Strengths
- Largest distributor in North America
- Extensive branch network
- Strong relationships with major manufacturers
- Proprietary technology platform (e.g., Watsco Ventures)
- Decentralized organizational structure
Weaknesses
- Exposure to cyclicality of construction and renovation markets
- Dependence on key manufacturers
- Potential integration challenges from acquisitions
Opportunities
- Further market share gains through acquisitions
- Expansion into new geographic markets
- Growth in the replacement market
- Adoption of higher-efficiency HVAC systems
- Increased demand for smart home and connected HVAC solutions
Threats
- Economic downturns
- Increased competition from online retailers
- Fluctuations in raw material prices
- Changes in regulations regarding refrigerants and energy efficiency
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- GPC
- WCC
- FAST
Competitive Landscape
Watsco's scale and distribution network provide a competitive advantage. However, regional players often have strong local relationships. E-commerce poses a potential disruption.
Major Acquisitions
Nortek Air Solutions
- Year: 2021
- Acquisition Price (USD millions): 762
- Strategic Rationale: This acquisition provided Watsco with a leading manufacturer of custom air handling equipment and expanded its product offerings.
Growth Trajectory and Initiatives
Historical Growth: Watsco has experienced strong growth over the past decade, driven by acquisitions and organic growth. They have consistently increased revenue and earnings, while expanding their market share.
Future Projections: Analyst estimates project continued growth for Watsco, driven by the factors listed as opportunities. Future growth is highly dependent on broader economic trends.
Recent Initiatives: Watsco has recently invested in its technology platform, Watsco Ventures, to improve customer service and streamline operations. They have also continued to pursue strategic acquisitions to expand their geographic reach and product offerings.
Summary
Watsco is a strong company dominating the HVAC/R distribution market in North America. Their robust network and technology are working well, fostering growth. The company should monitor economic conditions and competitive pressures, particularly from e-commerce. Watsco's acquisition strategy is likely to continue.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company reports
- Analyst reports
- Industry publications
- Third-party market research
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly.
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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