WatscoStock Price and Value Analysis

Should you buy Watsco stock? (NYSE:WSO). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company has fluctuating growth.
  • This company has a high dividend yield.
  • This company is solid.
  • This company is making money at a modest rate.
  • This stock looks overpriced.

WSO Free Cash Flow Trend

Based on historical returns, we believe that Watsco can grow its free cash at a rate of about 5%. That's positive!

Free Cash Flow trendline for WSO
Free Cash Flow trendline for Watsco

Inside the WSO Numbers

WSO Price
(Watsco stock price per share)
$169.48
[?] WSO Fair Price
(based on intrinsic value)
$92.26
[?] WSO Safety Price (based on a variable margin of safety) $59.97
[?] PE Ratio versus Sector 51% higher than other Services stocks
[?] PE Ratio versus Industry 170% higher than other Electronics Wholesale stocks
[?] Cash Yield 3.89%
[?] Free Cash Flow Jitter 26%
[?] Dividend Yield 3%

Is Watsco Stock on Sale?

We believe that Watsco may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Watsco looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy WSO Stock?

Does Watsco have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.