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WatscoMIL:1WSO 86 FCF Yield % is 5.41 as of Jul. 31, 2026, which is 28% above its 10-year median of 4.24. GuruFocus rates MIL:1WSO with a GF Score™ of 86/100 and a GF Value™ of €474.76. The stock has 3 warning signs investors should review. Among 156 Industrial Distribution companies, Watsco ranks better than 51.28% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
As of today, Watsco's Trailing 12-Month Free Cash Flow is €594 Mil, and Market Cap is €11,195 Mil. Therefore, Watsco's FCF Yield % for today is 5.41%.
The historical rank and industry rank for Watsco's FCF Yield % or its related term are showing as below:
MIL:1WSO'
s FCF Yield % Range Over the Past 10 Years
Min: 2.12 Med: 4.24 Max: 8.13
Current: 5.41
During the past 13 years, the highest FCF Yield % of Watsco was 8.13%. The lowest was 2.12%. And the median was 4.24%.
MIL:1WSO's FCF Yield % is ranked better than 51.28% of 156
companies
in the Industrial Distribution industry
Industry Median: 4.955
vs MIL:1WSO: 5.41
Watsco's FCF Margin % for the quarter that ended in Jun. 2026 was -0.54%.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Watsco FCF Yield % Related Terms
Watsco FCF Yield % Historical Data
* Premium members only.
The historical data trend for Watsco's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Watsco's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Watsco's FCF Yield % 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 (MIL:1WSO) has a FCF Yield % of 5.41 as of Jul. 31, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Watsco and its competitors. This is 28% above median its historical median of 4.24. Over the past decade, Watsco's FCF Yield % has ranged from 2.12 to 8.13. According to the industry distribution chart, Watsco ranks #76 out of 156 companies in the Industrial Distribution industry, placing it in the top 48.7%.
Is Watsco's FCF Yield % too high?
Watsco's current FCF Yield % of 5.41 is 28% above median its 10-year median of 4.24. Over the past 10 years, this metric has ranged from a low of 2.12 to a high of 8.13. The Industrial Distribution industry median FCF Yield % is 4.96. Watsco's value of 5.41 is 9.2% above this industry median. Based on the distribution chart, Watsco ranks #76 out of 156 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, Watsco has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Watsco's FCF Yield % compare to QXO and WCC?
According to the Industrial Distribution industry distribution chart, Watsco ranks #76 out of 156 companies for FCF Yield %. This puts Watsco in the upper half of its industry. The industry median FCF Yield % is 4.96. Watsco's value of 5.41 is 9.2% above this benchmark. Historically, Watsco's own FCF Yield % has ranged from 2.12 to 8.13 over the past decade. While the company's 10-year median is 4.24 vs. the industry median of 4.96, 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 FCF Yield % for an Industrial Distribution company?
The median FCF Yield % among Industrial Distribution companies is 4.96, based on 156 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watsco's current FCF Yield % of 5.41 is 9.2% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Watsco and its competitors. For the Industrial Distribution industry, the median FCF Yield % is 4.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watsco's current FCF Yield % is 5.41, which is 28% above median its own 10-year median of 4.24. 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?
Watsco (MIL:1WSO) has a current FCF Yield % of 5.41. The stock's GF Value™ is €474.76, compared to a current price of €354.60 — trading 25.3% below its estimated fair value. The current FCF Yield % is 5.41, which is 28% above median its 10-year median of 4.24 and 9.2% above the Industrial Distribution industry median of 4.96. Watsco's overall GF Score™ is 86/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Watsco (MIL:1WSO), the current FCF Yield % is 5.41 as of Jul. 31, 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 (MIL:1WSO) Overvalued in 2026?
Based on GuruFocus' analysis, Watsco stock appears to be undervalued.
The current stock price of €354.60 is trading 25.3% below its estimated GF Value™ of €474.76.
Key valuation signals for MIL:1WSO:
FCF Yield %: 5.41 (28% above median its 10-year median of 4.24)
GF Value™: €474.76 vs. price of €354.60 (25.3% below fair value)
Industry Position: 9.2% above the Industrial Distribution median (#76 of 156)
No single metric tells the full story. See the MIL:1WSO 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.
86GF Score
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FCF Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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