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WatscoMEX:WSO 57 EBITDA Margin % is 11.84% as of Jun. 2026, which is 26% above its 10-year median of 9.42. GuruFocus rates MEX:WSO with a GF Score™ of 57/100 and a GF Value™ of MXN7,335.95 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 159 Industrial Distribution companies, Watsco ranks better than 62.26% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. Watsco's EBITDA for the
three
months ended in Jun. 2026 was MXN4,350 Mil. Watsco's Revenue for the
three
months ended in Jun. 2026 was MXN36,728 Mil. Therefore, Watsco's EBITDA margin for the quarter that ended in Jun. 2026 was 11.84%.
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Watsco EBITDA Margin % Related Terms
Watsco EBITDA Margin % Historical Data
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The historical data trend for Watsco's EBITDA Margin % can be seen below:
* 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.
For the Industrial Distribution subindustry, Watsco's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Watsco's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Watsco's EBITDA Margin % falls into.
* 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.
Watsco (MEX:WSO) has a EBITDA Margin % of 11.84% as of Jun. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Watsco and its competitors. This is 26% above median its historical median of 9.42. Over the past decade, Watsco's EBITDA Margin % has ranged from 8.20 to 11.56. According to the industry distribution chart, Watsco ranks #60 out of 159 companies in the Industrial Distribution industry, placing it in the top 37.7%.
Is Watsco's EBITDA Margin % too high?
Watsco's current EBITDA Margin % of 11.84% is 26% above median its 10-year median of 9.42. Over the past 10 years, this metric has ranged from a low of 8.20 to a high of 11.56. The Industrial Distribution industry median EBITDA Margin % is 7.49. Watsco's value of 11.84% is 58.1% above this industry median. Based on the distribution chart, Watsco ranks #60 out of 159 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, Watsco has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Watsco's EBITDA Margin % compare to ?
According to the Industrial Distribution industry distribution chart, Watsco ranks #60 out of 159 companies for EBITDA Margin %. This puts Watsco in the upper half of its industry. The industry median EBITDA Margin % is 7.49. Watsco's value of 11.84% is 58.1% above this benchmark. Historically, Watsco's own EBITDA Margin % has ranged from 8.20 to 11.56 over the past decade. While the company's 10-year median is 9.42 vs. the industry median of 7.49, Watsco has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBITDA Margin % for an Industrial Distribution company?
The median EBITDA Margin % among Industrial Distribution companies is 7.49, based on 159 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watsco's current EBITDA Margin % of 11.84% is 58.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Watsco and its competitors. For the Industrial Distribution industry, the median EBITDA Margin % is 7.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watsco's current EBITDA Margin % is 11.84%, which is 26% above median its own 10-year median of 9.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watsco stock overvalued right now?
Based on GuruFocus' analysis, Watsco (MEX:WSO) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN7,335.95, compared to a current price of MXN5,527.80 — trading 24.6% below its estimated fair value. The current EBITDA Margin % is 11.84%, which is 26% above median its 10-year median of 9.42 and 58.1% above the Industrial Distribution industry median of 7.49. Watsco's overall GF Score™ is 57/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Watsco (MEX:WSO), the current EBITDA Margin % is 11.84% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Watsco (MEX:WSO) Overvalued in 2026?
Based on GuruFocus' analysis, Watsco stock appears to be undervalued.
The current stock price of MXN5,527.80 is trading 24.6% below its estimated GF Value™ of MXN7,335.95.
GuruFocus considers Watsco to be Modestly Undervalued.
Key valuation signals for MEX:WSO:
EBITDA Margin %: 11.84% (26% above median its 10-year median of 9.42)
GF Value™: MXN7,335.95 vs. price of MXN5,527.80 (24.6% below fair value)
Industry Position: 58.1% above the Industrial Distribution median (#60 of 159)
No single metric tells the full story. See the MEX:WSO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watsco is the largest HVAC and refrigeration products distributor in North America with approximately 13% market share. The company primarily operates in the United States (90% of revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada, Latin America, and the Caribbean. The company's customer base comprises more than 120,000 dealers and contractors serving the replacement and new-construction HVAC/R markets for residential and light-commercial applications. As much as 20% of residential HVAC units are distributed through Watsco in any given year. Revenue is approximately 75%-80% residential HVAC and 20%-25% commercial, with relatively small exposure to more complex "applied" solutions.
57GF Score
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EBITDA Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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