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Watsco

DB:WC3
Snowflake Description

Flawless balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WC3
DB
$6B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. The last earnings update was 12 days ago. More info.


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WC3 Share Price and Events
7 Day Returns
0.6%
DB:WC3
7%
DE Trade Distributors
0.8%
DE Market
1 Year Returns
26%
DB:WC3
6.9%
DE Trade Distributors
9%
DE Market
WC3 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Watsco (WC3) 0.6% 5.9% 15.2% 26% 19.3% 104.8%
DE Trade Distributors 7% 8.4% 16.8% 6.9% -1.2% 8.4%
DE Market 0.8% 6.3% 14.4% 9% 14.5% 21.8%
1 Year Return vs Industry and Market
  • WC3 outperformed the Trade Distributors industry which returned 6.9% over the past year.
  • WC3 outperformed the Market in Germany which returned 9% over the past year.
Price Volatility
WC3
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Watsco undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Watsco to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Watsco.

DB:WC3 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:WC3
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.951 (1 + (1- 21%) (6.37%))
0.999
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.999 * 5.96%)
6.18%

Discounted Cash Flow Calculation for DB:WC3 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Watsco is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:WC3 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.18%)
2020 285.08 Analyst x4 268.48
2021 322.00 Analyst x2 285.60
2022 342.00 Analyst x1 285.67
2023 355.51 Est @ 3.95% 279.67
2024 365.58 Est @ 2.83% 270.85
2025 373.08 Est @ 2.05% 260.31
2026 378.70 Est @ 1.5% 248.85
2027 382.95 Est @ 1.12% 236.99
2028 386.22 Est @ 0.85% 225.09
2029 388.79 Est @ 0.67% 213.40
Present value of next 10 years cash flows $2,574.00
DB:WC3 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $388.79 × (1 + 0.23%) ÷ (6.18% – 0.23%)
$6,544.44
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,544.44 ÷ (1 + 6.18%)10
$3,592.14
DB:WC3 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,574.00 + $3,592.14
$6,166.14
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,166.14 / 35.04
$175.98
DB:WC3 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:WC3 represents 0.91258x of NYSE:WSO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.91258x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 175.98 x 0.91258
€160.60
Value per share (EUR) From above. €160.60
Current discount Discount to share price of €162.00
= -1 x (€162.00 - €160.60) / €160.60
-0.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Watsco is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Watsco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Watsco's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:WC3 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $6.60
NYSE:WSO Share Price ** NYSE (2019-11-13) in USD $177.52
Germany Trade Distributors Industry PE Ratio Median Figure of 7 Publicly-Listed Trade Distributors Companies 16.14x
Germany Market PE Ratio Median Figure of 403 Publicly-Listed Companies 19.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Watsco.

DB:WC3 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WSO Share Price ÷ EPS (both in USD)

= 177.52 ÷ 6.60

26.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Watsco is overvalued based on earnings compared to the DE Trade Distributors industry average.
  • Watsco is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Watsco's expected growth come at a high price?
Raw Data
DB:WC3 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
5.7%per year
Europe Trade Distributors Industry PEG Ratio Median Figure of 32 Publicly-Listed Trade Distributors Companies 1.82x
Germany Market PEG Ratio Median Figure of 255 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

DB:WC3 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.89x ÷ 5.7%

4.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Watsco is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Watsco's assets?
Raw Data
DB:WC3 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $41.19
NYSE:WSO Share Price * NYSE (2019-11-13) in USD $177.52
Germany Trade Distributors Industry PB Ratio Median Figure of 10 Publicly-Listed Trade Distributors Companies 1.19x
Germany Market PB Ratio Median Figure of 577 Publicly-Listed Companies 1.83x
DB:WC3 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WSO Share Price ÷ Book Value per Share (both in USD)

= 177.52 ÷ 41.19

4.31x

* Primary Listing of Watsco.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Watsco is overvalued based on assets compared to the DE Trade Distributors industry average.
X
Value checks
We assess Watsco's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Watsco has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Watsco expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Watsco expected to grow at an attractive rate?
  • Watsco's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Watsco's earnings growth is positive but not above the Germany market average.
  • Watsco's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:WC3 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:WC3 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 5.7%
DB:WC3 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 4%
Germany Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 13.6%
Europe Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 3.6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:WC3 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:WC3 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 5,271 367 266 1
2021-12-31 5,174 347 254 4
2020-12-31 5,075 292 246 10
2019-12-31 4,779 337 225 10
2019-11-13
DB:WC3 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 4,689 298 228
2019-06-30 4,590 258 224
2019-03-31 4,551 265 224
2018-12-31 4,547 171 223
2018-09-30 4,520 187 226
2018-06-30 4,453 252 213
2018-03-31 4,396 231 199
2017-12-31 4,342 307 191
2017-09-30 4,291 325 178
2017-06-30 4,303 275 177
2017-03-31 4,241 274 168
2016-12-31 4,221 282 168

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Watsco's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
  • Watsco's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:WC3 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Watsco Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:WC3 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 7.30 7.30 7.30 1.00
2021-12-31 7.14 7.25 7.06 3.00
2020-12-31 7.01 7.15 6.83 8.00
2019-12-31 6.54 6.62 6.40 8.00
2019-11-13
DB:WC3 Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 6.60
2019-06-30 6.51
2019-03-31 6.52
2018-12-31 6.50
2018-09-30 6.65
2018-06-30 6.34
2018-03-31 5.99
2017-12-31 5.81
2017-09-30 5.46
2017-06-30 5.41
2017-03-31 5.15
2016-12-31 5.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Watsco is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Watsco's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Watsco has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Watsco performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Watsco's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Watsco's year on year earnings growth rate has been positive over the past 5 years.
  • Watsco's 1-year earnings growth is less than its 5-year average (0.6% vs 10.8%)
  • Watsco's earnings growth has not exceeded the DE Trade Distributors industry average in the past year (0.6% vs 8.4%).
Earnings and Revenue History
Watsco's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Watsco Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:WC3 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 4,689.37 227.75 759.61
2019-06-30 4,590.47 223.95 746.88
2019-03-31 4,551.35 223.88 737.28
2018-12-31 4,546.65 223.14 735.49
2018-09-30 4,519.67 226.41 724.43
2018-06-30 4,453.26 213.26 707.35
2018-03-31 4,396.44 199.18 701.70
2017-12-31 4,341.96 190.79 692.81
2017-09-30 4,291.22 178.26 683.62
2017-06-30 4,302.86 176.71 683.37
2017-03-31 4,241.37 167.94 676.51
2016-12-31 4,220.70 168.00 668.58
2016-09-30 4,210.91 165.24 667.59
2016-06-30 4,146.69 160.60 660.73
2016-03-31 4,155.69 161.24 658.18
2015-12-31 4,113.24 159.30 654.04
2015-09-30 4,086.21 157.20 648.98
2015-06-30 4,044.20 154.17 642.96
2015-03-31 3,990.94 145.61 637.57
2014-12-31 3,944.54 139.94 632.87
2014-09-30 3,895.11 133.74 629.62
2014-06-30 3,842.00 125.84 621.13
2014-03-31 3,792.27 121.72 617.94
2013-12-31 3,743.33 118.66 610.65
2013-09-30 3,681.52 105.81 603.01
2013-06-30 3,620.48 101.54 597.82
2013-03-31 3,511.83 91.07 586.38
2012-12-31 3,431.71 85.68 572.38

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Watsco has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Watsco used its assets more efficiently than the DE Trade Distributors industry average last year based on Return on Assets.
  • Watsco's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Watsco's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Watsco has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Watsco's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Watsco's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Watsco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Watsco's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Watsco's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 10x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Watsco Company Filings, last reported 1 month ago.

DB:WC3 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 1,753.02 169.30 60.15
2019-06-30 1,633.36 219.60 55.92
2019-03-31 1,599.26 139.84 77.27
2018-12-31 1,601.71 136.00 82.89
2018-09-30 1,660.55 116.75 67.61
2018-06-30 1,601.99 143.52 72.00
2018-03-31 1,549.63 91.47 58.07
2017-12-31 1,550.98 22.33 80.50
2017-09-30 1,332.04 285.29 66.67
2017-06-30 1,280.36 381.42 51.03
2017-03-31 1,208.22 282.40 47.42
2016-12-31 1,251.75 235.84 56.01
2016-09-30 1,306.33 219.99 35.91
2016-06-30 1,273.24 268.78 30.54
2016-03-31 1,220.70 238.55 32.86
2015-12-31 1,203.72 246.00 35.23
2015-09-30 1,221.57 308.04 28.51
2015-06-30 1,190.70 436.75 21.85
2015-03-31 1,124.41 341.47 16.25
2014-12-31 1,132.04 304.05 24.45
2014-09-30 1,139.56 352.90 16.69
2014-06-30 1,185.53 349.73 16.87
2014-03-31 1,128.05 227.34 19.46
2013-12-31 1,127.39 230.66 19.48
2013-09-30 1,156.52 285.45 29.23
2013-06-30 1,090.07 398.29 25.53
2013-03-31 1,034.16 322.02 22.03
2012-12-31 1,022.04 316.20 73.77
  • Watsco's level of debt (9.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (30.9% vs 9.7% today).
  • Debt is well covered by operating cash flow (176%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 96.2x coverage).
X
Financial health checks
We assess Watsco's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Watsco has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Watsco's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.61%
Current annual income from Watsco dividends. Estimated to be 3.8% next year.
If you bought €2,000 of Watsco shares you are expected to receive €72 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Watsco's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.39%).
  • Watsco's dividend is below the markets top 25% of dividend payers in Germany (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:WC3 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Germany Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 2.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 334 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:WC3 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 6.40 1.00
2020-12-31 6.91 4.00
2019-12-31 6.68 4.00
2019-11-13
DB:WC3 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-10-01 6.400 3.720
2019-07-01 6.400 3.948
2019-04-01 6.400 4.079
2019-01-02 6.400 4.461
2018-10-01 5.800 3.829
2018-07-02 5.800 3.286
2018-04-02 5.800 3.193
2018-03-01 5.800 3.297
2018-02-08 5.800 3.478
2017-10-02 5.000 2.980
2017-07-03 5.000 3.308
2017-04-03 4.200 2.940
2017-01-03 4.200 2.809
2016-10-03 4.200 2.903
2016-07-01 3.400 2.375
2016-04-01 3.400 2.532
2015-10-27 3.400 2.803
2015-10-01 2.800 2.223
2015-07-01 2.800 2.249
2015-04-01 2.800 2.251
2015-01-06 2.800 2.437
2014-10-01 2.400 2.421
2014-05-01 2.400 2.510
2014-04-17 2.400 2.333
2014-02-27 1.150 1.161
2014-02-13 1.150 1.186
2013-08-09 1.000 1.066
2013-02-28 1.000 1.169
2013-02-14 1.000 1.285
2012-10-01 2.480 3.386
2012-07-02 2.480 3.315
2012-04-02 2.480 3.422
2011-10-20 2.480 3.701
2011-10-03 2.280 3.990
2011-07-01 2.280 3.922
2011-02-15 2.280 3.412
2011-01-03 2.080 3.313
2010-10-01 2.080 3.490
2010-07-01 2.080 3.768
2010-02-17 2.080 3.588
2010-01-04 1.920 3.836
2009-10-01 1.920 3.739
2009-07-01 1.920 3.700
2009-02-17 1.920 4.728
2009-01-05 1.800 5.085

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Watsco's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess Watsco's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Watsco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Watsco has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Watsco's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Albert Nahmad
COMPENSATION $7,117,698
AGE 78
TENURE AS CEO 46.9 years
CEO Bio

Mr. Albert H. Nahmad has been the Chief Executive Officer of Watsco Inc. since December 1972. Mr. Nahmad is a General Partner of Alna Capital Associates. Mr. Nahmad served as President of Watsco Inc. from December 1972 to January 22, 2016. He has been the Chairman of Watsco Inc since December 1972. He served as a Director of American Bankers Insurance Group, Inc. since 1993. He is a co-owner of Albert Capital LP. He serves as a Member of board of Advisor at Panama Canal Authority. He has been the Chairman of the Board of the Miami Children's Hospital Foundation since 1990. Mr. Nahmad has been a Director of the Panama Canal Commission since 1995.

CEO Compensation
  • Albert's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Albert's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Watsco management team in years:

5.7
Average Tenure
61
Average Age
  • The average tenure for the Watsco management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Albert Nahmad

TITLE
Chairman & CEO
COMPENSATION
$7M
AGE
78
TENURE
46.9 yrs

A. J. Nahmad

TITLE
President & Director
COMPENSATION
$4M
AGE
38
TENURE
3.8 yrs

Ana Menendez

TITLE
CFO, Treasurer & Assistant Secretary
COMPENSATION
$331K
AGE
54
TENURE
16 yrs

Barry Logan

TITLE
Executive VP of Planning & Strategy and Secretary
COMPENSATION
$410K
AGE
56
TENURE
0.2 yrs

Stephen Rush

TITLE
Executive VP & COO
AGE
69
TENURE
0.6 yrs

Steven Rupp

TITLE
Chief Technology Officer
TENURE
8.3 yrs

Paul Johnston

TITLE
Executive Vice President
COMPENSATION
$872K
AGE
66
TENURE
5.7 yrs

Rick Gomez

TITLE
Vice President of Corporate Development
Board of Directors Tenure

Average tenure and age of the Watsco board of directors in years:

2.8
Average Tenure
71
Average Age
  • The average tenure for the Watsco board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bob Moss

TITLE
Co-Vice Chairman of the Board
COMPENSATION
$85K
AGE
71

Albert Nahmad

TITLE
Chairman & CEO
COMPENSATION
$7M
AGE
78
TENURE
46.9 yrs

Cesar Alvarez

TITLE
Co-Vice Chairman of the Board
COMPENSATION
$85K
AGE
71

A. J. Nahmad

TITLE
President & Director
COMPENSATION
$4M
AGE
38
TENURE
8 yrs

Denise Dickins

TITLE
Lead Independent Director
COMPENSATION
$182K
AGE
57

George Sape

TITLE
Independent Director
COMPENSATION
$111K
AGE
75
TENURE
4 yrs

Slava Rubin

TITLE
Independent Director
COMPENSATION
$85K
AGE
40
TENURE
1.7 yrs

Brian Keeley

TITLE
Independent Director
COMPENSATION
$106K
AGE
74
TENURE
1.7 yrs

J. Custer

TITLE
Independent Director
AGE
56

Rachel Wilson

TITLE
Member of Advisory Board
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • Watsco individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
23. Oct 19 Sell George Sape Individual 21. Oct 19 21. Oct 19 -550 €156.96 €-86,330
21. Dec 18 Sell Barry Logan Individual 20. Dec 18 20. Dec 18 -2,500 €123.74 €-309,338
X
Management checks
We assess Watsco's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Watsco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. It offers residential ducted and ductless air conditioners; gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. The company also provides parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation material, refrigerants, ductwork, grills, registers, sheet metal, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. In addition, the company exports its products to Latin America and the Caribbean Basin. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida.

Details
Name: Watsco, Inc.
WC3
Exchange: DB
Founded: 1945
$5,652,973,038
35,038,546
Website: http://www.watsco.com
Address: Watsco, Inc.
2665 South Bayshore Drive,
Suite 901,
Miami,
Florida, 33133,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WSO Common Stock New York Stock Exchange US USD 07. Jun 1984
DB WC3 Common Stock Deutsche Boerse AG DE EUR 07. Jun 1984
NYSE WSO.B Class B Common Stock New York Stock Exchange US USD 10. Apr 1968
Number of employees
Current staff
Staff numbers
5,200
Watsco employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/13 20:52
End of day share price update: 2019/11/13 00:00
Last estimates confirmation: 2019/10/18
Last earnings filing: 2019/11/01
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.