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Upturn AI SWOT - About
WSO 
Watsco Inc (WSO)
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Upturn Advisory Summary
07/30/2025: WSO (1-star) has a low Upturn Star Rating. Not recommended to BUY.
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 $479.73
1 Year Target Price $479.73
| 3 | Strong Buy |
| 0 | Buy |
| 10 | Hold |
| 1 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 7.82% | Avg. Invested days 47 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 07/30/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 18.60B USD | Price to earnings Ratio 35.62 | 1Y Target Price 479.73 |
Price to earnings Ratio 35.62 | 1Y Target Price 479.73 | ||
Volume (30-day avg) 15 | Beta 1.04 | 52 Weeks Range 415.66 - 561.38 | Updated Date 07/30/2025 |
52 Weeks Range 415.66 - 561.38 | Updated Date 07/30/2025 | ||
Dividends yield (FY) 2.25% | Basic EPS (TTM) 13.05 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-07-30 | When - | Estimate 4.8 | Actual - |
Profitability
Profit Margin 6.98% | Operating Margin (TTM) 7% |
Management Effectiveness
Return on Assets (TTM) 10.41% | Return on Equity (TTM) 20.81% |
Valuation
Trailing PE 35.62 | Forward PE 32.05 | Enterprise Value 18704689785 | Price to Sales(TTM) 2.45 |
Enterprise Value 18704689785 | Price to Sales(TTM) 2.45 | ||
Enterprise Value to Revenue 2.54 | Enterprise Value to EBITDA 24.69 | Shares Outstanding 34885200 | Shares Floating 32864452 |
Shares Outstanding 34885200 | Shares Floating 32864452 | ||
Percent Insiders 0.4 | Percent Institutions 106.03 |
Upturn AI SWOT
Watsco Inc
Company Overview
History and Background
Watsco, Inc. was founded in 1947 and has evolved into the largest distributor of air conditioning, heating, and refrigeration equipment and related parts and supplies in North America. It has grown through acquisitions and organic expansion.
Core Business Areas
- HVAC/R Distribution: Distributes air conditioning, heating, and refrigeration equipment, parts, and supplies.
Leadership and Structure
Albert H. Nahmad serves as Chairman and CEO. The company has a traditional corporate structure with a board of directors and executive management team overseeing operations.
Top Products and Market Share
Key Offerings
- HVAC Equipment: Includes air conditioners, furnaces, heat pumps, and related systems. Market share is significant within the distribution channel; competitors include Ferguson (FERG), Hajoca, and various regional distributors. Hard to precisely pin point the market share.
- HVAC/R Parts and Supplies: Consists of replacement parts, components, and supplies for HVAC/R systems. Competitors are similar to those for HVAC equipment.
Market Dynamics
Industry Overview
The HVAC/R industry is driven by factors such as population growth, new construction, replacement demand, and regulatory changes related to energy efficiency. The industry experiences seasonality and is subject to economic cycles.
Positioning
Watsco is the largest distributor in its market, with a broad geographic reach and extensive product offering. Its competitive advantage lies in its scale, distribution network, and technology investments.
Total Addressable Market (TAM)
The North American HVAC/R distribution market is estimated to be approximately $50 billion annually. Watsco is positioned to capture a significant portion of this market through organic growth and acquisitions.
Upturn SWOT Analysis
Strengths
- Largest distributor in North America
- Extensive distribution network
- Strong relationships with manufacturers
- Focus on technology and digital solutions
- Proven acquisition strategy
Weaknesses
- Dependence on economic cycles
- Exposure to weather-related disruptions
- Intense competition
- Reliance on key suppliers
Opportunities
- Expansion into new geographic markets
- Increased focus on energy-efficient products
- Growth in the replacement market
- Acquisition of smaller distributors
- Leveraging e-commerce platform
Threats
- Economic downturns
- Increased competition from online retailers
- Fluctuations in raw material prices
- Changes in regulations
- Disruptive technologies
Competitors and Market Share
Key Competitors
- Ferguson (FERG)
- Hajoca Corporation
- Gexpro
Competitive Landscape
Watsco benefits from its scale and distribution network, but faces competition from other large distributors and online retailers.
Major Acquisitions
Nortek Air Solutions
- Year: 2019
- Acquisition Price (USD millions): 760
- Strategic Rationale: Expanded Watsco's product portfolio and increased its presence in the commercial HVAC market.
Growth Trajectory and Initiatives
Historical Growth: Watsco has grown significantly through acquisitions and organic expansion, demonstrating a consistent growth trajectory.
Future Projections: Analyst estimates suggest continued growth for Watsco, driven by industry trends and the company's strategic initiatives.
Recent Initiatives: Recent initiatives include investments in technology, expansion of the product offering, and acquisitions of smaller distributors.
Summary
Watsco is a strong company dominating the HVAC/R distribution market. Its scale, distribution network, and technology investments provide a competitive advantage. The company faces challenges from economic cycles and competition, but its growth strategy through acquisitions and innovation supports a positive outlook. Watsco must carefully monitor external threats and adapt to changing industry dynamics to maintain its leadership position.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Watsco Investor Relations
- SEC Filings (10-K, 10-Q)
- Market Research Reports
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It should not be considered financial advice. Market share estimates may vary based on different sources and methodologies. Please do your own research before making any investment decisions.
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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