WatscoWSO.B 87 OCF Margin % is -1.23% as of Mar. 2026. GuruFocus rates WSO.B with a GF Score™ of 87/100 and a GF Value™ of $360.12 (Fairly Valued). The stock has 3 warning signs investors should review. Among 156 Industrial Distribution companies, Watsco ranks better than 69.87% on this metric.
The historical rank and industry rank for Watsco's OCF Margin % or its related term are showing as below:
WSO.B'
s OCF Margin % Range Over the Past 10 Years
Min: 3.75 Med: 7.39 Max: 10.57
Current: 10.06
During the past 13 years, the highest OCF Margin % of Watsco was 10.57%. The lowest was 3.75%. And the median was 7.39%.
WSO.B's OCF Margin % is ranked better than 69.87% of 156
companies
in the Industrial Distribution industry
Industry Median: 6.305
vs WSO.B: 10.06
Watsco OCF Margin % Related Terms
Watsco OCF Margin % Historical Data
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The historical data trend for Watsco's OCF 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 OCF Margin %, along with its competitors' market caps and OCF 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 OCF Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Watsco's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Watsco's OCF 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 (WSO.B) has a OCF Margin % of -1.23% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Watsco and its competitors. Over the past decade, Watsco's OCF Margin % has ranged from 3.75 to 10.57. According to the industry distribution chart, Watsco ranks #47 out of 156 companies in the Industrial Distribution industry, placing it in the top 30.1%.
Is Watsco's OCF Margin % too high?
Watsco's current OCF Margin % is -1.23%. Over the past 10 years, this metric has ranged from a low of 3.75 to a high of 10.57. Based on the distribution chart, Watsco ranks #47 out of 156 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, Watsco has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Watsco's OCF Margin % compare to WCC and QXO?
According to the Industrial Distribution industry distribution chart, Watsco ranks #47 out of 156 companies for OCF Margin %. This puts Watsco in the upper half of its industry. The industry median OCF Margin % is 6.31. Historically, Watsco's own OCF Margin % has ranged from 3.75 to 10.57 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 OCF Margin % for an Industrial Distribution company?
The median OCF Margin % among Industrial Distribution companies is 6.31, based on 156 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % 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 OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Watsco and its competitors. For the Industrial Distribution industry, the median OCF Margin % is 6.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watsco's current OCF Margin % is -1.23%. 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 (WSO.B) is currently considered Fairly Valued. The stock's GF Value™ is $360.12, compared to a current price of $350.00 — trading 2.8% below its estimated fair value. The current OCF Margin % is -1.23%. Watsco's overall GF Score™ is 87/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Watsco (WSO.B), the current OCF Margin % is -1.23% as of Mar. 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 (WSO.B) Overvalued in 2026?
Based on GuruFocus' analysis, Watsco stock appears to be undervalued.
The current stock price of $350.00 is trading 2.8% below its estimated GF Value™ of $360.12.
GuruFocus considers Watsco to be Fairly Valued.
Key valuation signals for WSO.B:
OCF Margin %: -1.23%
GF Value™: $360.12 vs. price of $350.00 (2.8% below fair value)
No single metric tells the full story. See the WSO.B 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.
87GF Score
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