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Watsco (Watsco) Profitability Rank : 8 (As of Mar. 2024)


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What is Watsco Profitability Rank?

Watsco has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Watsco's Operating Margin % for the quarter that ended in Mar. 2024 was 7.74%. As of today, Watsco's Piotroski F-Score is 4.


Competitive Comparison of Watsco's Profitability Rank

For the Industrial Distribution subindustry, Watsco's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Watsco's Profitability Rank Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Watsco's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Watsco's Profitability Rank falls into.



Watsco Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Watsco has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Watsco's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=121.077 / 1564.991
=7.74 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Watsco has an F-score of 4 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Watsco Inc operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank


Watsco Profitability Rank Related Terms

Thank you for viewing the detailed overview of Watsco's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Watsco (Watsco) Business Description

Traded in Other Exchanges
Address
2665 South Bayshore Drive, Suite 901, Miami, FL, USA, 33133
Watsco is the largest heating, ventilation, air-conditioning, and refrigeration products distributor in North America. The company primarily operates in the United States (91% of 2022 revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada (5% of sales) and Latin America and the Caribbean (4% of sales). The company's customer base consists of more than 120,000 dealers and contractors that serve the replacement and new construction HVACR markets for residential and light commercial applications.
Executives
Ana Lopez-blazquez director 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Valerie Schimel director 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
John Alexander Macdonald director 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Stephen F. Rush officer: EVP and COO 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
John Michael Custer director 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Brian E. Keeley director 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Steven Rubin director 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Barry S Logan officer: Senior Vice President
Watsco Inc director 2665 SOUTH BAYSHORE DR, STE 901, COCONUT GROVE FL 33133
Jason Epstein director % COLUMBUS ACQUISITION CORP, 153 EAST 53RD STREET 58TH FLOOR, NEW YORK NY 10022
United Technologies Corp /de/ 10 percent owner 1000 WILSON BLVD, ARLINGTON VA 22209
David C. Darnell director 100 NORTH TRYON STREET, CHARLOTTE NC 28255
Paul F Manley director C/O GENTA INC., TWO VANWAY, BERKELEY HEIGHTS NJ 07922
Bob L Moss director
Denise Dickins director 1867 TRAVIS CIRCLE, WEST PALM BEACH FL 33406