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Upturn AI SWOT - About
WSO 
Watsco Inc (WSO)
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Upturn Advisory Summary
04/01/2025: WSO (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 31.12% | Avg. Invested days 48 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 20.67B USD | Price to earnings Ratio 38.41 | 1Y Target Price 485.47 |
Price to earnings Ratio 38.41 | 1Y Target Price 485.47 | ||
Volume (30-day avg) 302761 | Beta 0.91 | 52 Weeks Range 390.36 - 568.28 | Updated Date 04/1/2025 |
52 Weeks Range 390.36 - 568.28 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 2.12% | Basic EPS (TTM) 13.32 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 7.04% | Operating Margin (TTM) 7.37% |
Management Effectiveness
Return on Assets (TTM) 11.39% | Return on Equity (TTM) 22.38% |
Valuation
Trailing PE 38.41 | Forward PE 34.25 | Enterprise Value 20313460561 | Price to Sales(TTM) 2.71 |
Enterprise Value 20313460561 | Price to Sales(TTM) 2.71 | ||
Enterprise Value to Revenue 2.67 | Enterprise Value to EBITDA 25.65 | Shares Outstanding 34803100 | Shares Floating 32757136 |
Shares Outstanding 34803100 | Shares Floating 32757136 | ||
Percent Insiders 0.39 | Percent Institutions 105.08 |
Analyst Ratings
Rating 3.13 | Target Price 477.1 | Buy - | Strong Buy 3 |
Buy - | Strong Buy 3 | ||
Hold 10 | Sell - | Strong Sell 2 | |
Strong Sell 2 |
Upturn AI SWOT
Watsco Inc
Company Overview
History and Background
Watsco Inc. was founded in 1947. Initially a family-owned business, it evolved into the largest distributor of air conditioning, heating, and refrigeration equipment and related parts and supplies in North America.
Core Business Areas
- HVAC/R Distribution: Watsco distributes a wide range of HVAC/R equipment, parts, and supplies from leading manufacturers. This includes residential and commercial air conditioners, furnaces, refrigeration equipment, and related components.
- Other: The company also provides value-added services such as training, technical support, and e-commerce solutions to its customers.
Leadership and Structure
Albert H. Nahmad is the Chairman and CEO. The company is structured with a decentralized operating model, allowing for regional autonomy while maintaining centralized financial oversight.
Top Products and Market Share
Key Offerings
- Air Conditioners: Watsco distributes air conditioning systems for residential and commercial use. Competitors include other distributors and manufacturers like Carrier, Lennox, and Trane. Market share information is part of their overall revenues, not broken out distinctly.
- Heating Equipment: The company provides furnaces, heat pumps, and other heating equipment. Competitors are similar to those in the air conditioning market. Market share information is part of their overall revenues, not broken out distinctly.
- Refrigeration Equipment: Watsco also offers refrigeration equipment for commercial and industrial applications. Competitors include manufacturers and specialized distributors. Market share information is part of their overall revenues, not broken out distinctly.
Market Dynamics
Industry Overview
The HVAC/R distribution industry is fragmented and cyclical, influenced by factors such as economic growth, housing starts, and weather patterns. Increasing demand for energy-efficient systems and stricter environmental regulations are shaping the industry.
Positioning
Watsco is the largest player in the HVAC/R distribution market, benefiting from its extensive distribution network, strong supplier relationships, and focus on technology. Its competitive advantage lies in its scale and ability to offer a wide range of products and services.
Total Addressable Market (TAM)
The TAM for HVAC/R distribution in North America is estimated to be in the tens of billions of dollars annually. Watsco is well-positioned to capture a significant share of this market.
Upturn SWOT Analysis
Strengths
- Largest distributor in North America
- Extensive distribution network
- Strong supplier relationships
- Focus on technology and e-commerce
- Decentralized operating model
Weaknesses
- Exposure to cyclical economic conditions
- Dependence on key suppliers
- Potential for margin pressure from competition
- Integration risks from acquisitions
Opportunities
- Increasing demand for energy-efficient systems
- Expansion into new geographic markets
- Growth in the commercial HVAC/R market
- Further development of e-commerce platform
- Acquisitions of smaller distributors
Threats
- Economic downturns
- Rising interest rates
- Increased competition from manufacturers selling directly
- Disruptions in the supply chain
- Changes in regulations regarding refrigerants
Competitors and Market Share
Key Competitors
- GPC
- WCC
- URI
Competitive Landscape
Watsco's scale and breadth of product offerings give it a competitive advantage over smaller distributors. However, it faces competition from manufacturers selling directly and other large distributors.
Major Acquisitions
Nortek Air Solutions
- Year: 2019
- Acquisition Price (USD millions): 783
- Strategic Rationale: Expanded Watsco's product offerings and increased its presence in the commercial HVAC market.
Growth Trajectory and Initiatives
Historical Growth: Watsco has grown consistently through organic expansion and acquisitions.
Future Projections: Analysts project continued revenue and earnings growth for Watsco, driven by favorable industry trends and the company's strong competitive position.
Recent Initiatives: Recent initiatives include investments in technology, expansion of the distribution network, and acquisitions of smaller distributors.
Summary
Watsco is a strong company, dominant in its market. Its decentralized model and focus on technology contribute to its success. However, its susceptibility to economic cycles and reliance on key suppliers warrant careful monitoring. Despite challenges, Watscou2019s size allows it to continue to acquire more distributors and become more dominant.
Similar Companies
CAR
Avis Budget Group Inc
CAR
Avis Budget Group Inc
GPC
Genuine Parts Co
GPC
Genuine Parts Co
LII
Lennox International Inc
LII
Lennox International Inc
URI
United Rentals Inc
URI
United Rentals Inc
WCC
WESCO International Inc
WCC
WESCO International Inc
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice. Financial data may be estimated and is subject to change. Market share figures are approximate. Please do your own research before making any 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 1984-06-07 | 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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