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Upturn AI SWOT - About
WSO-B 
Watsco Inc (WSO-B)
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Upturn Advisory Summary
04/21/2025: WSO-B (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
Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $
1 Year Target Price $
| 0 | Strong Buy |
| 0 | Buy |
| 0 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -31.09% | Avg. Invested days 44 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/21/2025 |
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 |
Analyst Ratings
Rating - | Target Price - | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Watsco Inc
Company Overview
History and Background
Watsco, Inc. was founded in 1947 and is headquartered in Coconut Grove, Florida. It is the largest distributor of air conditioning, heating, and refrigeration equipment and related parts and supplies in North America.
Core Business Areas
- HVAC/R Distribution: Distribution of heating, ventilation, air conditioning, and refrigeration (HVAC/R) equipment, parts, and supplies.
Leadership and Structure
Albert H. Nahmad serves as the Chairman and CEO. The company operates with a decentralized organizational structure.
Top Products and Market Share
Key Offerings
- HVAC/R Equipment: Distribution of air conditioning, heating, and refrigeration equipment. This constitutes a significant portion of Watsco's revenue. Competitors include Carrier, Trane Technologies, and Lennox International.
- Market Share (%): 25
- Parts and Supplies: Distribution of a wide range of parts and supplies needed for HVAC/R systems. Competitors include independent distributors and smaller regional players.
Market Dynamics
Industry Overview
The HVAC/R distribution industry is fragmented but growing, driven by new construction, replacement of aging systems, and increasing demand for energy-efficient solutions.
Positioning
Watsco is the largest player in the HVAC/R distribution market, with a wide geographic reach and a strong focus on customer service and technology.
Total Addressable Market (TAM)
The North American HVAC/R market is estimated to be worth over $40 billion. Watsco's positioning as the largest distributor allows it to capture a significant share of this TAM.
Upturn SWOT Analysis
Strengths
- Largest distributor in North America
- Extensive distribution network
- Strong relationships with leading manufacturers
- Focus on technology and e-commerce
Weaknesses
- Dependence on the cyclical nature of the construction and renovation markets
- Vulnerability to supply chain disruptions
- Exposure to fluctuations in raw material prices
Opportunities
- Expanding into new geographic markets
- Acquiring smaller distributors
- Increasing sales of higher-margin products and services
- Leveraging technology to improve efficiency and customer service
Threats
- Increased competition from other distributors and manufacturers
- Economic downturns that reduce demand for HVAC/R equipment
- Changes in government regulations related to energy efficiency and refrigerants
- Rising interest rates
Competitors and Market Share
Key Competitors
- CAR
- TT
- LII
Competitive Landscape
Watsco's advantage lies in its scale and distribution network. Competitors may focus on specific niches or geographies.
Major Acquisitions
Northeast Supply Corporation
- Year: 2023
- Acquisition Price (USD millions): 70
- Strategic Rationale: Expands Watsco's presence in the Northeast market.
Growth Trajectory and Initiatives
Historical Growth: Watsco has grown through acquisitions and organic growth in the past.
Future Projections: Refer to analyst estimates for future growth. Look at revenue growth and profit margins.
Recent Initiatives: Review the company's press releases and investor presentations for recent initiatives.
Summary
Watsco is a strong company and the leading HVAC/R distributor, benefiting from its scale and extensive network. Its growth is tied to the cyclical construction market and faces supply chain risks. Strategic acquisitions and technology investments should contribute to future growth. Monitoring competition and economic trends is crucial.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Watsco Inc. SEC Filings (10-K, 10-Q)
- Company Website
- Industry Reports
- Financial News Outlets
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Market conditions and company performance can change, so consult with a financial professional 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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