Watsco Inc. (WSO) intrinsic value & 10-year financials
Watsco Inc. (WSO) has a Graham intrinsic value of $258.93 per share. At $295.91 on Oct 17, 2026, the stock trades 14% above that value. Over the last 10 fiscal years revenue grew 6.2% a year to $7.2B, with an average return on invested capital of 23.9%.
- Graham intrinsic value
- $258.93
- Share price (Oct 17, 2026)
- $295.91
- Price vs Graham value
- 14% above
- Market cap
- $11.2B
- Revenue (FY2025)
- $7.2B
- Revenue growth (10-yr CAGR)
- 6.2%
- ROIC (10-yr avg)
- 23.9%
- Free cash flow (FY2025)
- $535.1M
WSO 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $7.2B | $497.0M | $12.25 | $535.1M | 10.0% | 21.4% |
| FY2024 | $7.6B | $536.3M | $13.30 | $743.0M | 10.3% | 24.9% |
| FY2023 | $7.3B | $536.3M | $13.67 | $526.5M | 10.9% | 28.6% |
| FY2022 | $7.3B | $601.2M | $15.41 | $536.3M | 11.4% | 36.0% |
| FY2021 | $6.3B | $418.9M | $10.78 | $324.1M | 10.0% | 29.0% |
| FY2020 | $5.1B | $269.6M | $7.01 | $517.9M | 7.9% | 19.8% |
| FY2019 | $4.8B | $245.9M | $6.50 | $318.0M | 7.7% | 18.8% |
| FY2018 | $4.5B | $242.9M | $6.49 | $153.4M | 8.2% | 21.7% |
| FY2017 | $4.3B | $208.2M | $5.81 | $288.6M | 8.2% | 20.4% |
| FY2016 | $4.2B | $182.8M | $5.15 | $238.2M | 8.2% | 18.5% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
WATSCO INC has demonstrated mature, steady growth, with revenue compounding at 6.2% annually over the past decade.
WATSCO INC has earned high returns on invested capital, averaging 23.9% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.
WATSCO INC has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, WATSCO INC is modeled at 8.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $258.93 per share.