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WatscoMEX:WSO 57 Equity-to-Asset is 0.59 as of Jun. 2026, which is 5% above its 10-year median of 0.56. 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 69.18% on this metric.
Equity to Asset ratio is calculated as total stockholders equity divided by total asset. Watsco's Total Stockholders Equity for the quarter that ended in Jun. 2026 was MXN52,250 Mil. Watsco's Total Assets for the quarter that ended in Jun. 2026 was MXN88,723 Mil.
Therefore, Watsco's Equity to Asset Ratio for the quarter that ended in Jun. 2026 was 0.59.
The historical rank and industry rank for Watsco's Equity-to-Asset or its related term are showing as below:
MEX:WSO'
s Equity-to-Asset Range Over the Past 10 Years
Min: 0.47 Med: 0.56 Max: 0.63
Current: 0.59
During the past 13 years, the highest Equity to Asset Ratio of Watsco was 0.63. The lowest was 0.47. And the median was 0.56.
MEX:WSO's Equity-to-Asset is ranked better than 69.18% of 159
companies
in the Industrial Distribution industry
Industry Median: 0.49
vs MEX:WSO: 0.59
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Watsco Equity-to-Asset Related Terms
Watsco Equity-to-Asset Historical Data
* Premium members only.
The historical data trend for Watsco's Equity-to-Asset 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 Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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 Equity-to-Asset vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Watsco's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Watsco's Equity-to-Asset falls into.
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
Watsco's Equity to Asset Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Equity-to-Asset of 0.59 as of Jun. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Watsco and its competitors. This is near median its historical median of 0.56. Over the past decade, Watsco's Equity-to-Asset has ranged from 0.47 to 0.63. According to the industry distribution chart, Watsco ranks #49 out of 159 companies in the Industrial Distribution industry, placing it in the top 30.8%.
Is Watsco's Equity-to-Asset too high?
Watsco's current Equity-to-Asset of 0.59 is near median its 10-year median of 0.56. Over the past 10 years, this metric has ranged from a low of 0.47 to a high of 0.63. The Industrial Distribution industry median Equity-to-Asset is 0.49. Watsco's value of 0.59 is 20.4% above this industry median. Based on the distribution chart, Watsco ranks #49 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 Equity-to-Asset compare to ?
According to the Industrial Distribution industry distribution chart, Watsco ranks #49 out of 159 companies for Equity-to-Asset. This puts Watsco in the upper half of its industry. The industry median Equity-to-Asset is 0.49. Watsco's value of 0.59 is 20.4% above this benchmark. Historically, Watsco's own Equity-to-Asset has ranged from 0.47 to 0.63 over the past decade. While the company's 10-year median is 0.56 vs. the industry median of 0.49, 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 Equity-to-Asset for an Industrial Distribution company?
The median Equity-to-Asset among Industrial Distribution companies is 0.49, based on 159 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watsco's current Equity-to-Asset of 0.59 is 20.4% 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 Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Watsco and its competitors. For the Industrial Distribution industry, the median Equity-to-Asset is 0.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watsco's current Equity-to-Asset is 0.59, which is near median its own 10-year median of 0.56. 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 Equity-to-Asset is 0.59, which is near median its 10-year median of 0.56 and 20.4% above the Industrial Distribution industry median of 0.49. 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 Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Watsco (MEX:WSO), the current Equity-to-Asset is 0.59 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:
Equity-to-Asset: 0.59 (near median its 10-year median of 0.56)
GF Value™: MXN7,335.95 vs. price of MXN5,527.80 (24.6% below fair value)
Industry Position: 20.4% above the Industrial Distribution median (#49 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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