Watsco (WSO)
Industrials · HVAC/R equipment and parts distribution
North America's largest HVAC/R distributor serving 130,000+ contractors across 695 locations with equipment, parts, and supplies from major manufacturers.
What Watsco does
Watsco is the largest HVAC/R (air conditioning, heating, and refrigeration) equipment and parts distributor in North America, operating 695 locations across the US, Canada, Mexico, and Puerto Rico. The company serves more than 130,000 active contractors in both residential replacement and new construction markets, as well as commercial refrigeration. Watsco distributes products from major manufacturers including Carrier, Daikin, Rheem, Trane, Lennox, and others, along with complementary parts and supplies.
Themes: ["HVAC/R distribution","Residential heating and cooling replacement market","Commercial refrigeration","Contractor supply","Building systems distribution"]
Fundamentals
- Price$377.11 as of 2026-07-09 close
- Market cap$15.5B as of 2026-07-09
- 1-year return-17.2% as of 2026-07-09 close
- P/E31.29 as of 2026-07-09
- Net margin+6.8% as of 2026-07-09
- Gross margin+28.0% as of 2026-07-09
- ROE+17.8% as of 2026-07-09
- Debt / equity0.00 as of 2026-07-09
- Revenue growth (YoY)-4.5% as of 2026-07-09
- Revenue CAGR (3y)-0.2% SEC XBRL
- Beta1.03 as of 2026-07-09
Dividend: yield +3.2%; 5-year non-decreasing per-share dividend streak (SEC XBRL).
Key risks (from latest filing)
["Revenue decline of -4.53% YoY indicates contraction in HVAC/R distribution market demand, likely driven by reduced construction activity and contractor spending","Highly fragmented distribution industry with 2,100+ competitors; concentrated equipment manufacturing (8 major OEMs account for ~90% of units) creates pricing pressure and dependence on large manufacturers","Significant inventory buildup ($1.7 billion as of Q1 2026 vs $1.4 billion year-end 2025) and negative stock price performance (-17.2% YoY) suggest challenges in demand forecasting and market conditions"]
Competitors & peers
- Watsco's main direct competitors in HVAC/R distribution include regional and independent distributors, though not all are public; closest public peers include companies in specialized distribution such as Ferguson Enterprises (diversified plumbing/HVAC distributor), Anixter/Tech Data (distribution), and HD Supply (industrial/construction distribution)
Fundamentals: Finnhub, as of 2026-07-09. Filings: SEC EDGAR. Prices are delayed daily-close data.
Last updated 2026-07-09.
Informational only — NOT financial advice. All figures are delayed daily-close data from SEC EDGAR & Finnhub, shown with their as-of date.