Financials Watsco, Inc.

Equities

WSO

US9426222009

Electrical Components & Equipment

Market Closed - Nyse Other stock markets 04:00:01 2024-05-10 pm EDT			5-day change	1st Jan Change
479.3 ^USD	+1.53%		+3.17%	+11.85%

Apr. 25	Baird Adjusts Price Target on Watsco to $460 From $420, Keeps Outperform Rating	MT
Apr. 24	Transcript : Watsco, Inc., Q1 2024 Earnings Call, Apr 24, 2024

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	6,320	8,032	11,053	8,815	15,735	17,813	-	-
Enterprise Value (EV) ¹	6,472	7,886	11,108	8,758	15,540	17,168	17,156	17,090
P/E ratio	27.7 x	32.3 x	29 x	16.2 x	31.3 x	33.6 x	30.1 x	26.8 x
Yield	3.55%	3.06%	2.44%	3.43%	2.29%	2.21%	2.49%	2.72%
Capitalization / Revenue	1.32 x	1.59 x	1.76 x	1.21 x	2.16 x	2.32 x	2.17 x	2.02 x
EV / Revenue	1.36 x	1.56 x	1.77 x	1.2 x	2.13 x	2.24 x	2.09 x	1.94 x
EV / EBITDA	16.5 x	18.5 x	16.9 x	10.1 x	18.7 x	19.9 x	17.7 x	16.2 x
EV / FCF	20.4 x	15.2 x	34.1 x	16.3 x	29.4 x	27.7 x	25.1 x	22.2 x
FCF Yield	4.91%	6.57%	2.93%	6.14%	3.4%	3.61%	3.99%	4.5%
Price to Book	4.11 x	5.36 x	6.66 x	4.71 x	7.02 x	6.67 x	6.37 x	6.24 x
Nbr of stocks (in thousands)	35,039	35,290	35,438	35,277	36,805	37,563	-	-
Reference price ²	180.2	226.6	312.9	249.4	428.5	479.3	479.3	479.3
Announcement Date	2/13/20	2/11/21	2/10/22	2/16/23	2/13/24	-	-	-

¹USD in Million²USD

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	4,770	5,055	6,280	7,274	7,284	7,681	8,222	8,810
EBITDA ¹	391.4	426.9	656.7	866.9	829.9	863.2	967.5	1,056
EBIT ¹	366.9	401	628.5	835.2	794.8	831.5	925.4	1,022
Operating Margin	7.69%	7.93%	10.01%	11.48%	10.91%	10.83%	11.25%	11.6%
Earnings before Tax (EBT) ¹	362.9	399.8	627.5	829.4	789.9	837.3	934.9	1,030
Net income ¹	225.5	246.4	381.7	549.9	499.4	527.8	589	676.9
Net margin	4.73%	4.88%	6.08%	7.56%	6.86%	6.87%	7.16%	7.68%
EPS ²	6.500	7.010	10.78	15.41	13.67	14.25	15.95	17.87
Free Cash Flow ¹	318	518	325.5	538.2	527.8	619.8	684.3	769.5
FCF margin	6.67%	10.25%	5.18%	7.4%	7.25%	8.07%	8.32%	8.73%
FCF Conversion (EBITDA)	81.24%	121.34%	49.56%	62.08%	63.6%	71.79%	70.73%	72.87%
FCF Conversion (Net income)	140.98%	210.21%	85.26%	97.87%	105.68%	117.42%	116.18%	113.68%
Dividend per Share ²	6.400	6.925	7.625	8.550	9.800	10.60	11.94	13.02
Announcement Date	2/13/20	2/11/21	2/10/22	2/16/23	2/13/24	-	-	-

¹USD in Million²USD

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales ¹	1,512	1,524	2,134	2,036	1,581	1,551	2,003	2,127	1,603	1,565	2,181	2,243	1,688	1,676	2,368
EBITDA ¹	130.3	178.6	294.9	244.3	149.1	172.9	274.1	265.4	117.4	136.4	285.7	290.3	145.3	159.4	308.7
EBIT ¹	123.1	171	287.1	236.3	140.8	164.7	265.7	256.6	107.7	126.5	277	283	141.2	149.6	299.2
Operating Margin	8.14%	11.23%	13.46%	11.6%	8.91%	10.62%	13.26%	12.07%	6.72%	8.09%	12.7%	12.62%	8.37%	8.93%	12.64%
Earnings before Tax (EBT) ¹	122.8	170.5	286	235.8	137.2	164.1	262.3	254.7	108.7	129	278.3	285.1	144.1	149.6	300.4
Net income ¹	71.79	103	175	143.3	128.3	102.7	160.8	159	75.84	80.17	172.8	179.2	86.86	91	185.4
Net margin	4.75%	6.76%	8.2%	7.04%	8.11%	6.62%	8.03%	7.48%	4.73%	5.12%	7.92%	7.99%	5.15%	5.43%	7.83%
EPS ²	2.020	2.900	4.930	4.030	3.550	2.830	4.420	4.350	2.060	2.170	4.663	4.796	2.289	2.445	4.981
Dividend per Share ²	1.950	1.950	2.200	2.200	2.200	2.450	2.450	2.450	2.450	-	2.700	2.700	2.700	2.991	2.991
Announcement Date	2/10/22	4/21/22	7/26/22	10/20/22	2/16/23	4/20/23	8/1/23	10/19/23	2/13/24	4/24/24	-	-	-	-	-

¹USD in Million²USD

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	153	-	55.2	-	-	-	-	-
Net Cash position ¹	-	146	-	56.9	195	645	657	724
Leverage (Debt/EBITDA)	0.3901 x	-	0.0841 x	-	-	-	-	-
Free Cash Flow ¹	318	518	325	538	528	620	684	769
ROE (net income / shareholders' equity)	16.2%	16.9%	24.2%	28.5%	24.2%	20.9%	21.2%	21.2%
ROA (Net income/ Total Assets)	9.56%	9.75%	13.7%	15.4%	13.8%	12.5%	13%	14.9%
Assets ¹	2,359	2,527	2,785	3,567	3,609	4,216	4,514	4,543
Book Value Per Share ²	43.90	42.30	47.00	52.90	61.00	71.90	75.20	76.80
Cash Flow per Share	-	-	-	16.00	15.40	-	-	-
Capex ¹	17.8	16.3	24.1	33.8	34.2	34.2	35.7	36.3
Capex / Sales	0.37%	0.32%	0.38%	0.46%	0.47%	0.44%	0.43%	0.41%
Announcement Date	2/13/20	2/11/21	2/10/22	2/16/23	2/13/24	-	-	-

¹USD in Million²USD

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Watsco, Inc.

Trading Rating

Investor Rating

ESG Refinitiv

C-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

479.3 USD

Average target price

415.8 USD

Spread / Average Target

-13.24%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

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