Watsco has the GF Score of 85, which implies that the company
might have
Good outperformance potential.
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with lower GF Scores. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
GF Score takes following five key aspects into consideration:
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. The Profitability Rank and the Growth Rank are weighted fully, while other parameters have less weight.
Based on research and backtesting result, GuruFocus believes Watsco
might have
Good outperformance potential.
Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.
Watsco (STU:WC3) GF Score Explanation
Based on the historical long-term performances among five valuation aspects, the GF Score is found to be closely correlated to the long-term performances of stocks. It ranges from 0 to 100, with 100 as the highest. GuruFocus divided GF Score into following 5 categories:
GF Score
Performance Potential and All-in-One Screener Examples (1)
(1) These are some simple examples. You can access our GF Score filter under All-in-One Screener’s Fundamental tab.
Watsco GF Score Related Terms
STU:WC3 vs WCC, QXO, AIT: GF Score Comparison
For the Industrial Distribution subindustry, Watsco's GF Score, along with its competitors' market caps and GF Score 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 GF Score vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Watsco's GF Score distribution charts can be found below:
* The bar in red indicates where Watsco's GF Score falls into.
Watsco (STU:WC3) has a GF Score of 85 as of Jul. 09, 2026. GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation. View historical data on Watsco and its competitors. This is near median its historical median of 87.00. Over the past decade, Watsco's GF Score has ranged from 32.00 to 98.00.
Is Watsco's GF Score too high?
Watsco's current GF Score of 85 is near median its 10-year median of 87.00. Over the past 10 years, this metric has ranged from a low of 32.00 to a high of 98.00. Overall, Watsco has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Watsco's GF Score compare to WCC and QXO?
Watsco's GF Score of 85 can be compared against companies in the Industrial Distribution industry. Historically, Watsco's own GF Score has ranged from 32.00 to 98.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good GF Score for an Industrial Distribution company?
A good GF Score depends on the Industrial Distribution industry context. However, GF Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high GF Score mean?
A high GF Score can signal that a stock is expensive relative to its fundamentals. GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation. View historical data on Watsco and its competitors. Watsco's current GF Score is 85, which is near median its own 10-year median of 87.00. 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 (STU:WC3) is currently considered Fairly Valued. The stock's GF Value™ is €362.67, compared to a current price of €333.40 — trading 8.1% below its estimated fair value. The current GF Score is 85, which is near median its 10-year median of 87.00. Watsco's overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is GF Score calculated?
GF Score is calculated from a company's financial statements. For Watsco (STU:WC3), the current GF Score is 85 as of Jul. 09, 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 (STU:WC3) Overvalued in 2026?
Based on GuruFocus' analysis, Watsco stock appears to be undervalued.
The current stock price of €333.40 is trading 8.1% below its estimated GF Value™ of €362.67.
GuruFocus considers Watsco to be Fairly Valued.
Key valuation signals for STU:WC3:
GF Score: 85 (near median its 10-year median of 87.00)
GF Value™: €362.67 vs. price of €333.40 (8.1% below fair value)
No single metric tells the full story. See the STU:WC3 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.
85GF Score
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