WatscoWSO.B 87 OCF Yield % is 4.62 as of Jun. 25, 2026, which is 4% above its 10-year median of 4.46. GuruFocus rates WSO.B with a GF Score™ of 87/100 and a GF Value™ of $428.35 (Fairly Valued). The stock has 3 warning signs investors should review. Among 155 Industrial Distribution companies, Watsco ranks worse than 68.39% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF 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 operating 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 OCF Yield % Related Terms
Watsco OCF Yield % Historical Data
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The historical data trend for Watsco's OCF 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 OCF Yield %, along with its competitors' market caps and OCF 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 OCF Yield % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Watsco's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Watsco's OCF 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 (WSO.B) has a OCF Yield % of 4.62 as of Jun. 25, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Watsco and its competitors. This is near median its historical median of 4.46. Over the past decade, Watsco's OCF Yield % has ranged from 2.30 to 8.39. According to the industry distribution chart, Watsco ranks #106 out of 155 companies in the Industrial Distribution industry, placing it in the top 68.4%.
Is Watsco's OCF Yield % too high?
Watsco's current OCF Yield % of 4.62 is near median its 10-year median of 4.46. Over the past 10 years, this metric has ranged from a low of 2.30 to a high of 8.39. The Industrial Distribution industry median OCF Yield % is 8.20. Watsco's value of 4.62 is 43.7% below this industry median. Based on the distribution chart, Watsco ranks #106 out of 155 companies in the Industrial Distribution industry, which is below 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 Yield % compare to WCC and QXO?
According to the Industrial Distribution industry distribution chart, Watsco ranks #106 out of 155 companies for OCF Yield %. This places Watsco in the lower half of its industry. The industry median OCF Yield % is 8.20. Watsco's value of 4.62 is 43.7% below this benchmark. Historically, Watsco's own OCF Yield % has ranged from 2.30 to 8.39 over the past decade. While the company's 10-year median is 4.46 vs. the industry median of 8.20, Watsco has consistently been below 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 OCF Yield % for an Industrial Distribution company?
The median OCF Yield % among Industrial Distribution companies is 8.20, based on 155 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watsco's current OCF Yield % of 4.62 is 43.7% below 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Watsco and its competitors. For the Industrial Distribution industry, the median OCF Yield % is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watsco's current OCF Yield % is 4.62, which is near median its own 10-year median of 4.46. 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 $428.35, compared to a current price of $350.00 — trading 18.3% below its estimated fair value. The current OCF Yield % is 4.62, which is near median its 10-year median of 4.46 and 43.7% below the Industrial Distribution industry median of 8.20. 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 Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Watsco (WSO.B), the current OCF Yield % is 4.62 as of Jun. 25, 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 18.3% below its estimated GF Value™ of $428.35.
GuruFocus considers Watsco to be Fairly Valued.
Key valuation signals for WSO.B:
OCF Yield %: 4.62 (near median its 10-year median of 4.46)
GF Value™: $428.35 vs. price of $350.00 (18.3% below fair value)
Industry Position: 43.7% below the Industrial Distribution median (#106 of 155)
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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