Brief Commentary On Watsco, Inc.'s (NYSE:WSO) Fundamentals
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I've been keeping an eye on Watsco, Inc. (NYSE:WSO) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe WSO has a lot to offer. Basically, it is a financially-robust , dividend-paying company with a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Watsco here.
Flawless balance sheet with proven track record and pays a dividend
WSO delivered a bottom-line expansion of 12% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, WSO also outperformed its industry, which delivered a growth of -7.0%. This is an notable feat for the company. WSO's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that WSO manages its cash and cost levels well, which is an important determinant of the company’s health. WSO's has produced operating cash levels of 1.86x total debt over the past year, which implies that WSO's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
WSO’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 3.9%.
Next Steps:
For Watsco, I've compiled three key aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for WSO’s future growth? Take a look at our free research report of analyst consensus for WSO’s outlook.
Valuation: What is WSO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WSO is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WSO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
