Professional
Added to YB: 2024-08-28
Pitch date: 2024-08-26
WSO [neutral]
Watsco, Inc.
-23.55%
current return
Author Info
Seeking Winners is a senior financial controller investing for the long-term. Sign up for the newsletter.
Company Info
Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean.
Market Cap
$12.8B
Pitch Price
$463.85
Price Target
N/A
Dividend
3.57%
EV/EBITDA
14.00
P/E
26.09
EV/Sales
1.79
Sector
Trading Companies and Distributors
Category
growth
Watsco's Strategic Expansion
WSO (waiting for price drop): Leader in HVAC distribution, 18% market share. High ROIC (20%), cash generative. Recession-proof, long growth runway. Widening tech advantage. Founder-led (55% voting rights). Consistent value delivery (19% CAGR over 34 yrs). M&A strategy, 69 acquisitions. 10% revenue CAGR, expanding margins. Risks: seasonality, weather, OEM dependence.
Read full article (21 min)