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GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:
1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank
A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
For the Industrial Distribution subindustry, Watsco's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Watsco's Profitability Rank distribution charts can be found below:
* The bar in red indicates where Watsco's Profitability Rank falls into.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.
The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
Watsco has the Profitability Rank of 7.
Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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 Profitability Rank of 7 as of Jun. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Watsco and its competitors.
Is Watsco's Profitability Rank too high?
Watsco's current Profitability Rank is 7. 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 Profitability Rank compare to ?
Watsco's Profitability Rank of 7 can be compared against companies in the Industrial Distribution industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for an Industrial Distribution company?
A good Profitability Rank depends on the Industrial Distribution industry context. However, Profitability Rank 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 Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Watsco and its competitors. Watsco's current Profitability Rank is 7. 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 Profitability Rank is 7. 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 Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Watsco (MEX:WSO), the current Profitability Rank is 7 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:
Profitability Rank: 7
GF Value™: MXN7,335.95 vs. price of MXN5,527.80 (24.6% below fair value)
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
Get the complete analysis for MEX:WSO
Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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