Watsco Stock 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 a large dividend yield!
  • This company has amazingly consistent growth!
  • This company is solid.
  • This company is making money at a modest rate.
  • This stock looks overpriced.

Inside the WSO Numbers

WSO Price
(Watsco stock price per share)
$258.19
[?] WSO Fair Price
(based on intrinsic value)
$84.54
[?] WSO Safety Price (based on a variable margin of safety) $54.95
[?] PE Ratio versus Sector 156% higher than other Industrial Goods stocks
[?] PE Ratio versus Industry 151% higher than other Industrial Distribution stocks
[?] Cash Yield 2.16%
[?] Free Cash Flow Jitter 9%
[?] Dividend Yield 3%
Shares Shorted 2,564,769

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 2,564,769 shares shorted. With 30,634,064 shares available for purchase and an average trading volume over the past 10 trading days of 260,630, it would take at least 9.841 days for all of the short holders to cover their shorts.

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.