Watsco Inc

WSOIndustrials

Sentinellis Health Score

8.4/10

Financially healthy

Market Cap

$15.7B

Revenue

$7.2B

P/E Ratio

31.8x

AI Summary

Watsco distributes HVAC equipment (furnaces, air conditioners, heat pumps) and replacement parts to contractors who install and service residential and light commercial climate control systems [Company Overview]. They operate as a middleman between manufacturers and the thousands of small contractors who need reliable supply chains and credit terms [Company Overview].

Watsco is a Miami-based distributor of air conditioning, heating, and refrigeration equipment serving contractors across the Americas [Company Overview]. The company posted $7.2B in revenue but saw a 5% year-over-year decline, and recent news highlights earnings weakness and share dilution concerns [Yahoo Finance]. Two major institutional holders — Capital Research Division 3 and FMR — cut their stakes by 25% and 35% respectively in the most recent quarter [EODHD].

The company is financially stable with strong cash generation but faces cyclical headwinds that are pressuring margins.

Confidence7/10