WSO (WSO) Stock Analysis
Verdict: HOLD
High valuation and deteriorating growth make WSO a 'falling knife' until the 27x P/E multiple aligns with its flat-to-negative EPS trend.
Investment score: 44/100
Watsco is experiencing a fundamental re-rating as the post-pandemic HVAC boom fades into a replacement-only market. With three misses in the last four quarters and EPS trending downward since 2022, the 'quality' premium is evaporating. The model sees better entry points near $250.
Peers
| Peer | P/E | P/B | P/S | EV/EBITDA | ROIC % | Net margin % |
|---|---|---|---|---|---|---|
| GWW | 36.66 | 16.46 | 3.51 | 23.12 | — | 0.10 |
| FAST | 40.28 | 13.41 | 6.23 | 28.66 | — | 0.15 |
| FERG | 21.28 | 7.45 | 1.38 | 14.71 | — | 0.07 |
| SUNB | 23.34 | 4.10 | 2.68 | 9.52 | — | 0.12 |
| WCC | 22.33 | 3.09 | 0.64 | 14.01 | — | 0.03 |