Watsco, Inc. (WSO) Q4 2025 Earnings Call Transcript
Watsco, Inc. (WSO) Q4 2025 Earnings Call Transcript
Fiscal Year: January - December
Watsco, Inc. (WSO), listed on the NYSE, has a market capitalization of $. As of Feb 22, 2026, the stock is trading at $409.93 per share, offering investors a clear view of its current market value. Watsco, Inc. is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 33.47, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. Watsco, Inc. also offers a dividend yield of 2.93%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that Watsco, Inc. (WSO) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for Watsco, Inc. is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for Watsco, Inc., Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for Watsco, Inc. is 29.04, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, Watsco, Inc. (WSO) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether Watsco, Inc. (WSO) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of Watsco, Inc. (WSO) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of Watsco, Inc.. To access the full SS Score, consider upgrading your subscription.
Watsco, Inc. is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 33.47. Investors should compare these metrics with industry peers to gauge whether Watsco, Inc. is outperforming or underperforming within its sector.
Watsco, Inc. (WSO) Q4 2025 Earnings Call Transcript
MIAMI, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE:WSO) announced that its Board of Directors approved a 10% increase in its annual dividend to $13.20 per share on each outstanding share of i...
Boosts Annual Dividend 10% to $13.20 Per Share Entrepreneurial Culture, Transformational Technologies and Debt-Free Balance Sheet Positions Company for Growth MIAMI, Feb. 17, 2026 (GLOBE NEWSWIRE) -- ...
One profitable company whose shares we've held for years, and that demonstrates why a focus on shareholder value creation matters in the long run, is Old Republic International. A new mid-cap holding ...
January delivered a robust 2.47% monthly increase in forward dividend income, reaching $6,442.40 and positioning the portfolio ahead of 2026 growth targets. Initiated a new position in Agree Realty fo...
MIAMI, Jan. 30, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today that it has scheduled a conference call to discuss its 2025 fourth quarter performance and annual results on Tuesday, ...
MIAMI, Jan. 02, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc.'s (NYSE: WSO) Board of Directors has declared a regular quarterly cash dividend of $3.00 on each outstanding share of its Common and Class B commo...
The market appears expensive, with historical precedent for long periods of low returns after peaks. Consensus expects 15% S&P 500 earnings growth and rising margins, driven by AI innovation, supporti...
I am rotating from Big Tech to cyclical value, energy, and high-quality dividend growth stocks amid complex market interconnections. AI is the dominant disruptor, impacting macroeconomics, labor, ener...
Watsco, Inc. (WSO) Analyst/Investor Day Transcript
Watsco remains a high-quality business with strong industry positioning and improving margins, but current valuation limits upside potential. WSO faces near-term headwinds, including disappointing rec...
Watsco, Inc. ( WSO) Q3 2025 Earnings Call October 29, 2025 10:00 AM EDT Company Participants Albert Nahmad - Chairman & CEO Paul Johnston - Executive Vice President Barry S. Logan - Executive VP of P...
Strong Balance Sheet and Market-Leading Technologies Enable Continued Investments in Growth Strong Balance Sheet and Market-Leading Technologies Enable Continued Investments in Growth
Watsco is a steady compounder, benefiting from secular HVAC trends, a durable moat, and a proven buy-and-build strategy; I reiterate a Buy rating. WSO's long-term growth is driven by expanding margins...
MIAMI, Oct. 16, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today it will hold a meeting for institutional investors and analysts on Thursday December 11, 2025 in Coral Gables, Florida...
MIAMI, Oct. 13, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today that it will host its third quarter 2025 conference call on Wednesday, October 29, 2025 at 10:00 a.m. (EDT). Prepared ...
I track a universe of 50 high-quality dividend growth stocks to identify opportune investments based on valuation and future return potential. As of October 2, 2025, 22 stocks offer attractive future ...
The October 2025 high-yield dividend watchlist highlights 10 stocks with an average forward yield of 3.95% and a projected 19.02% return. This month's selection process lowered the yield threshold to ...
Watsco, Inc. (NYSE:WSO) Morgan Stanley's 13th Annual Laguna Conference September 11, 2025 7:50 PM EDT Company Participants Barry S. Logan - Executive VP of Planning & Strategy, Secretary and Director...
MIAMI, Sept. 11, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today that Barry S. Logan, Executive Vice President, is scheduled to present at the 13th Annual Morgan Stanley Laguna Confe...
I track a universe of 50 high-quality dividend growth stocks to identify attractive investment opportunities based on valuation and future return potential. My custom valuation model highlights 23 sto...
My watchlist outperformed SPY and VYM since July 1st, offering higher yield and competitive total returns, despite trailing benchmarks year-to-date. The strategy focuses on high-quality, attractively ...
Watsco is a defensive business with a strong moat from scale and network effects. The stock is trading at fair value. Despite the temporary headwinds, the company has proven me wrong and keeps expandi...
My investable universe of 50 high-quality dividend growth stocks aims to identify attractive opportunities based on valuation and future return potential. Currently, 20 stocks offer an estimated futur...
Watsco, Inc. (NYSE:WSO) Q2 2025 Earnings Conference Call July 30, 2025 10:00 AM ET Company Participants Aaron J. Nahmad - Co-Vice Chairman & President Albert H.
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
| Year | FCF Estimate | % | # Analysts |
|---|---|---|---|
| 2026 | 541.83M | Analyst x6 | |
| 2027 | 663.41M | 22.44% | Analyst x7 |
| 2028 | 694.61M | 4.70% | Analyst x3 |
| 2029 | 844.54M | 21.59% | Analyst x2 |
| 2030 | 1,014.74M | 20.15% | Analyst x1 |
| 2031 | 1,102.26M | 8.62% | Est @8.6% |
| 2032 | 1,177.24M | 6.80% | Est @6.8% |
| 2033 | 1,242.32M | 5.53% | Est @5.5% |
| 2034 | 1,296.06M | 4.33% | Est @4.3% |
| 2035 | 1,344.60M | 3.75% | Est @3.7% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
| Year | FCF | Discount Factor | PV of Future FCF |
|---|---|---|---|
| 2024A | 743.01M | 1.00 | 743.01M |
| 2025A | 535.52M | 1.00 | 535.52M |
| 2026E | 541.83M | 1.09 | 497.49M |
| 2027E | 663.41M | 1.19 | 559.28M |
| 2028E | 694.61M | 1.29 | 537.66M |
| 2029E | 844.54M | 1.41 | 600.22M |
| 2030E | 1.01B | 1.53 | 662.17M |
| 2031E | 1.10B | 1.67 | 660.42M |
| 2032E | 1.18B | 1.82 | 647.62M |
| 2033E | 1.24B | 1.98 | 627.49M |
| 2034E | 1.30B | 2.16 | 601.07M |
| 2035E | 1.34B | 2.35 | 572.55M |
| Terminal | 21.49B | 2.35 | 9.15B |
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