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Upturn AI SWOT - About
WSO-B 
Watsco Inc (WSO-B)
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Upturn Advisory Summary
08/14/2025: 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.
Number of Analysts
0 Analysts rated it
Very few follow this stock; limited insights, higher-risk early 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 08/14/2025 |
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. Initially a family-owned business distributing air conditioning and refrigeration parts, it grew through strategic acquisitions and expansion of its product lines, becoming the largest distributor of HVAC/R equipment and related parts and supplies in North America.
Core Business Areas
- HVAC/R Distribution: Distributes air conditioning, heating, and refrigeration equipment and related parts and supplies.
Leadership and Structure
Albert H. Nahmad is the Chairman and CEO. The company has a hierarchical structure with regional and local management teams overseeing distribution operations.
Top Products and Market Share
Key Offerings
- Air Conditioners: Watsco distributes a wide range of air conditioning units from leading manufacturers like Carrier (CARR) and Rheem. Market share varies by region, but Watsco is a major distributor for these brands. Competitors include Ferguson (FERG) and SiteOne Landscape Supply (SITE).
- Heating Equipment: Watsco distributes furnaces, boilers, and other heating systems. Again, brands like Carrier and Rheem are prominent. Market share is substantial in the distribution market, varying regionally. Competitors include Ferguson and SiteOne Landscape Supply.
- Refrigeration Equipment: Watsco offers refrigeration equipment for commercial and industrial applications. Details on specific market share are harder to pinpoint as it is more niche, but they are a significant player in this sector. Competitors include Ferguson and SiteOne Landscape Supply.
- Parts and Supplies: Watsco provides a large portfolio of parts and supplies for HVAC/R systems. This constitutes a significant portion of their revenue. They face competition from independent parts suppliers, Amazon and dedicated online retailers.
Market Dynamics
Industry Overview
The HVAC/R distribution industry is fragmented but consolidating. Demand is driven by new construction, replacement of existing systems, and regulatory changes regarding energy efficiency and refrigerants.
Positioning
Watsco is the largest distributor in North America, providing it with significant scale advantages, extensive product offerings, and strong relationships with manufacturers.
Total Addressable Market (TAM)
The North American HVAC/R market is estimated to be worth over $50 billion annually. Watsco is well-positioned to capture a significant portion of this market through its distribution network and product range.
Upturn SWOT Analysis
Strengths
- Largest distributor in North America
- Extensive distribution network
- Strong relationships with leading manufacturers
- Wide product portfolio
- Tech-forward with strong e-commerce presence
- Decentralized, entrepreneurial culture
Weaknesses
- Dependence on manufacturers
- Sensitivity to economic cycles (housing market, construction)
- Potential for margin pressure from large customers
- Acquisition integration risks
Opportunities
- Further consolidation of the market through acquisitions
- Expansion into new geographies
- Increased demand for energy-efficient HVAC/R systems
- Growth in the replacement market
- Expansion of e-commerce platform
Threats
- Economic downturns
- Rising interest rates
- Increased competition from online retailers and direct sales by manufacturers
- Fluctuations in raw material prices
- Changes in environmental regulations
Competitors and Market Share
Key Competitors
- FERG (Ferguson)
- SITE (SiteOne Landscape Supply)
- POOL (Pool Corp)
Competitive Landscape
Watsco's advantage lies in its size and scale. Competitors may focus on specific regions or product segments. Watsco is increasingly investing in digital capabilities.
Major Acquisitions
Gemaire Distributors
- Year: 2006
- Acquisition Price (USD millions): 375
- Strategic Rationale: Expanded Watsco's presence in Florida and the Southeast.
Growth Trajectory and Initiatives
Historical Growth: Watsco has grown significantly through acquisitions and organic growth.
Future Projections: Analysts expect Watsco to continue growing revenue and earnings through a combination of acquisitions and organic expansion.
Recent Initiatives: Recent initiatives include investments in technology to improve its e-commerce platform and distribution efficiency and acquisitions of regional distributors.
Summary
Watsco is a strong player in the HVAC/R distribution market, benefiting from its scale and relationships. While sensitive to economic cycles, its consistent acquisition strategy and investments in technology position it well for continued growth. Threats include increased competition and regulatory changes, but management seems well equipped to handle it.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Watsco Investor Relations
- SEC Filings
- Market Research Reports
- Financial News Articles
Disclaimers:
This analysis is based on available public information and is not financial advice. Market conditions and company performance can change, so conduct thorough research before making 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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