WATSCO INC(WSO)Stock Analysis
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Rank #959 of 2,879 stocksTOP 50%
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Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
WSO Stock Analysis & AI Quality Score
AI stock analysis and institutional research for WATSCO INC (WSO), a Consumer Discretionary sector company. 13F Pro's AI-powered ranking engine scores WSO at 58.9/100 on a 32-signal composite quality model, placing it at rank #959 of 2,879 stocks — the top half of the AI-ranked universe. WSO scores in the top quartile across balance sheet strength (89.1), revenue scale (83.0). Areas of concern include revenue growth (31.0) and earnings quality (33.9), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q1 2026), WATSCO INC reports quarterly revenue of $1.5B, net income of $79.1M, an operating margin of 7.2%. Top institutional holders of WSO by reported 13-F value include BlackRock,, Capital International Investors, Capital Research Global Investors, based on the most recent SEC filings. WSO trades on the NYSE exchange and files with the SEC under CIK 105016. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate WSO daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for WATSCO INC directly from SEC EDGAR. WATSCO INC's 13F Pro composite quality score has ranged between 57 and 70 since 2021, currently 58.9 — a stable long-term trajectory across 28 quarterly and live scoring snapshots.
Revenue
Q1 2026
$1.5B
Net Income
Q1 2026
$79.1M
Free Cash Flow
Q1 2026
$-25.9M
Operating Margin
Q1 2026
7.2%
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
-5.0% YoYNet Income
-7.6% YoYOperating Income
-7.9% YoYEPS (Diluted)
-7.9% YoYTotal Assets
-1.4% YoYTotal Debt
+7.0% YoYOp. Cash Flow
-26.3% YoY| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2021 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|
| Revenue | $7.24B -5.0% | $7.62B +4.6% | $7.28B +16.0% | $6.28B +31.7% | $4.77B +4.9% | $4.55B |
| Net Income | $587.6M -7.6% | $635.7M +18.5% | $536.3M +7.5% | $498.7M +102.8% | $245.9M +1.2% | $242.9M |
| Operating Income | $720.3M -7.9% | $781.8M -1.6% | $794.8M +26.5% | $628.5M +71.3% | $366.9M -1.4% | $372.1M |
| EPS (Diluted) | $12.25 -7.9% | $13.30 -2.7% | $13.67 +26.8% | $10.78 +65.8% | $6.50 +0.2% | $6.49 |
| Total Assets | $4.41B -1.4% | $4.48B +20.1% | $3.73B +20.8% | $3.09B +20.7% | $2.56B +18.3% | $2.16B |
| Total Debt | $478.8M +7.0% | $447.5M +10.5% | $404.8M +9.5% | $369.7M -3.1% | $381.4M +180.4% | $136.0M |
| Operating Cash Flow | $569.6M -26.3% | $773.1M +37.6% | $562.0M +60.8% | $349.6M +4.1% | $335.8M +96.9% | $170.6M |
AI Insight: WSO Financial Trends
WSO faces persistent seasonal weakness in Q1 with flat YoY revenue and margin compression amid rising leverage.
• Q1 2026 revenue of $1,533M matches Q1 2025 ($1,531M); operating margin at 7.2% versus 7.3% prior year.
• Total debt increased from $460M in Q1 2025 to $486M in Q1 2026; debt-to-equity ratio rose to 0.176 from 0.172.
• Operating cash flow turned negative $19M in Q1 2026 versus negative $178M in Q1 2025; working capital seasonal headwind persists.
⚠ Q1 2026 net income declined to $79M from $184M in Q2 2025; two consecutive quarters of sub-$80M profitability.
⚠ Equity grew only 3.6% year-over-year to $2,762M while debt up 5.7%; leverage drift warrants monitoring.
AI Insight: WSO Ratio Trends
WSO faces structural margin compression: operating margin halved from 12.6% (Q2 2024) to 7.2% (Q1 2026), with ROIC collapsing 62% over the same period.
• Operating margin deteriorated from 12.6% in Q2 2024 to 7.2% in Q1 2026, a 440 basis point decline. ROIC fell from 35.6% to 13.6%.
• Q4 quarters consistently underperform: OpMargin 6.4%–7.8%, ROIC 12.5%–17.5%, suggesting seasonal weakness or structural Q4 headwinds.
• Leverage stable at 0.16–0.18 D/E; TTM ROA of 10.7% and ROE of 18.0% remain reasonable but well below 2024 peaks of 16.5% and 27.8%.
⚠ Persistent margin and ROIC compression across all metrics suggests demand softness or cost pressures, not seasonal noise alone. Pattern unbroken since Q2 2024.
⚠ Q1 2026 NPM of 5.2% and ROA of 6.8% are near lowest levels in dataset; monitor whether Q2 2026 rebounds toward 8.9%–8.5% range or deteriorates further.
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Available Research
13F Pro tracks comprehensive data for WATSCO INC including:
Top Institutional Holders of WSO
BlackRock, Inc.
$1.5B4,090,055 shCapital International Investors
$1.3B3,477,231 shCapital Research Global Investors
$690.7M1,898,603 shFMR LLC
$687.7M1,890,322 shVANGUARD PORTFOLIO MANAGEMENT LLC
$637.0M1,751,054 shVANGUARD CAPITAL MANAGEMENT LLC
$570.2M1,567,499 shCHARLES SCHWAB INVESTMENT MANAGEMENT INC
$487.2M1,340,401 shKAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC
$483.6M1,329,205 shSTATE STREET CORP
$463.4M1,273,941 shBAILLIE GIFFORD & CO
$413.7M1,137,258 sh
| Fund | Value | Shares |
|---|---|---|
| BlackRock, Inc. | $1.5B | 4,090,055 |
| Capital International Investors | $1.3B | 3,477,231 |
| Capital Research Global Investors | $690.7M | 1,898,603 |
| FMR LLC | $687.7M | 1,890,322 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $637.0M | 1,751,054 |
| VANGUARD CAPITAL MANAGEMENT LLC | $570.2M | 1,567,499 |
| CHARLES SCHWAB INVESTMENT MANAGEMENT INC | $487.2M | 1,340,401 |
| KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC | $483.6M | 1,329,205 |
| STATE STREET CORP | $463.4M | 1,273,941 |
| BAILLIE GIFFORD & CO | $413.7M | 1,137,258 |
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Popular Research
Is WSO a good stock to buy?
13F Pro's AI-powered analysis of WATSCO INC (WSO) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Consumer Discretionary sector (listed on NYSE). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for WSO are available on the WSO stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own WSO?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling WSO. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of WATSCO INC's investment landscape.