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Upturn AI SWOT - About
WSO-B 
Watsco Inc (WSO-B)
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Upturn Advisory Summary
10/17/2025: WSO-B (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.
Analysis of Past Performance
Type Stock | Historic Profit -11.78% | Avg. Invested days 57 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/17/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 17.69B USD | Price to earnings Ratio 33.45 | 1Y Target Price - |
Price to earnings Ratio 33.45 | 1Y Target Price - | ||
Volume (30-day avg) - | Beta 1.05 | 52 Weeks Range 434.92 - 528.78 | Updated Date 06/29/2025 |
52 Weeks Range 434.92 - 528.78 | Updated Date 06/29/2025 | ||
Dividends yield (FY) 2.74% | Basic EPS (TTM) 13.08 |
Earnings Date
Report Date - | When - | Estimate - | 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 33.45 | Forward PE 29.24 | Enterprise Value 17716740893 | Price to Sales(TTM) 2.33 |
Enterprise Value 17716740893 | Price to Sales(TTM) 2.33 | ||
Enterprise Value to Revenue 2.34 | Enterprise Value to EBITDA 22.74 | Shares Outstanding 5626500 | Shares Floating 32864452 |
Shares Outstanding 5626500 | Shares Floating 32864452 | ||
Percent Insiders 92.51 | Percent Institutions 0.42 |
Upturn AI SWOT
Watsco Inc
Company Overview
History and Background
Watsco, Inc. was founded in 1947 as the Wagner Auto Parts Company. It has evolved into the largest distributor of air conditioning, heating, and refrigeration (HVAC/R) equipment and related parts and supplies in North America.
Core Business Areas
- HVAC/R Distribution: Distributes a wide array of HVAC/R equipment, parts, and supplies including air conditioners, furnaces, refrigerants, and related materials.
Leadership and Structure
Albert H. Nahmad serves as Chairman and CEO. The company operates through a decentralized network of subsidiaries and locations.
Top Products and Market Share
Key Offerings
- Air Conditioners & Heating Systems: Includes split-system air conditioners, heat pumps, furnaces, and packaged units. Market share is fragmented, with Watsco holding a significant distribution share, but the manufacturing market share is spread among brands such as Carrier (CARR), Trane Technologies (TT), and Lennox (LII). Watsco's revenue attributable to specific brands is not publicly disclosed.
- Competitors: Carrier Global (CARR),Trane Technologies (TT),Lennox International (LII)
- Competitors: Emerson Electric (EMR),Danfoss,Bitzer
- Refrigeration Equipment: Encompasses compressors, evaporators, condensers, and other components for commercial refrigeration systems. Again, Watsco is a major distributor but doesn't manufacture. Competitors vary by component type.
- Competitors: GPC (Genuine Parts Company),Pool Corp (POOL),Ferguson (FERG)
- Parts & Supplies: Covers a wide range of replacement parts, components, and supplies used in HVAC/R systems. Market is highly fragmented.
Market Dynamics
Industry Overview
The HVAC/R distribution industry is driven by factors such as construction activity, weather patterns, energy efficiency standards, and replacement demand. It's a mature market with cyclical tendencies.
Positioning
Watsco is the largest distributor in a fragmented market, providing it with significant scale and purchasing power. Its decentralized model allows for responsiveness to local market conditions.
Total Addressable Market (TAM)
The North American HVAC/R market is estimated to be ~$60 billion. Watsco, with ~$7.5 billion in sales, is positioned to continue to capture a large market share through strategic acquisitions and organic growth.
Upturn SWOT Analysis
Strengths
- Largest distributor in North America
- Decentralized business model
- Strong relationships with manufacturers
- Extensive distribution network
- Proven acquisition strategy
Weaknesses
- Sensitivity to economic cycles
- Dependence on weather patterns
- Exposure to commodity price fluctuations
- Integration risks with acquisitions
Opportunities
- Increasing demand for energy-efficient HVAC systems
- Growing adoption of smart HVAC technologies
- Expansion into new geographic markets
- Consolidation of the fragmented distribution industry
- Government incentives for energy efficiency
Threats
- Economic downturns
- Rising interest rates
- Changes in government regulations
- Competition from online retailers
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- GPC (GPC)
- POOL (POOL)
- FERG (FERG)
Competitive Landscape
Watsco's size and scale provide a competitive advantage. However, it faces competition from other large distributors, manufacturers selling directly to contractors, and online retailers.
Major Acquisitions
Nortek Air Solutions
- Year: 2019
- Acquisition Price (USD millions): 762.5
- Strategic Rationale: Expanded product offerings in the commercial HVAC market.
Growth Trajectory and Initiatives
Historical Growth: Watsco has grown consistently through both organic expansion and acquisitions. The company has successfully integrated acquired businesses and leveraged its scale to improve profitability.
Future Projections: Analysts project continued growth for Watsco, driven by the factors mentioned in the Opportunities section. Acquisition strategy will continue to drive growth
Recent Initiatives: Recent initiatives include investments in technology to improve inventory management and customer service, as well as acquisitions to expand its geographic footprint.
Summary
Watsco is the leading distributor of HVAC/R equipment in North America, benefiting from its scale, decentralized model, and proven acquisition strategy. Growth is fueled by the replacement cycle of HVAC equipment, favorable regulations, and the increased demand for energy-efficient systems. The company must navigate economic cycles, manage commodity price fluctuations, and effectively integrate acquisitions. Overall, Watsco is well-positioned for continued growth in the HVAC/R market.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q)
- Analyst reports
- Industry publications
- Watsco Investor Relations Website
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a financial advisor 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 1992-03-17 | 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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