Watsco Intrinsic Value Calculation – WATSCO Reports 6.1% Decrease in Total Revenue for Q2 FY2023 at USD 2003.1 Million
August 28, 2023
🌥️Earnings Overview
On June 30 2023, WATSCO ($NYSE:WSO) reported their second quarter FY2023 earnings results showing a total revenue of USD 2003.1 million, a 6.1% decrease from the same period in FY2022. Net income for the quarter was USD 172.8 million, a 10.3% drop when compared to the same quarter the previous year.
Analysis – Watsco Intrinsic Value Calculation
GoodWhale has conducted an analysis of WATSCO‘s wellbeing and our proprietary Valuation Line has calculated the fair value of WATSCO share to be around $313.6. Currently, WATSCO stock is trading at $377.0, which is overvalued by 20.2%. This indicates that there may be an opportunity to purchase WATSCO shares at a discounted rate. However, this should not be seen as a recommendation to buy or sell the stock. Investors should conduct their own research and use their own judgement before investing. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Watsco. WATSCO_Reports_6.1_Decrease_in_Total_Revenue_for_Q2_FY2023_at_USD_2003.1_Million”>More…
| Total Revenues | Net Income | Net Margin |
| 7.17k | 535.36 | 8.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Watsco. WATSCO_Reports_6.1_Decrease_in_Total_Revenue_for_Q2_FY2023_at_USD_2003.1_Million”>More…
| Operations | Investing | Financing |
| 409.71 | -32.54 | -341.22 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Watsco. WATSCO_Reports_6.1_Decrease_in_Total_Revenue_for_Q2_FY2023_at_USD_2003.1_Million”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.1k | 1.65k | 52.31 |
Key Ratios Snapshot
Some of the financial key ratios for Watsco are shown below. WATSCO_Reports_6.1_Decrease_in_Total_Revenue_for_Q2_FY2023_at_USD_2003.1_Million”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.1% | 31.8% | 11.2% |
| FCF Margin | ROE | ROA |
| 5.3% | 25.3% | 12.2% |
Peers
The company operates through five segments: Air Conditioning, Heating, Refrigeration, Parts and Equipment, and International. It has a network of over 430 branches and distribution centers across the United States, Canada, Mexico, the Caribbean and Latin America. The company was founded in 1945 and is headquartered in Miami, Florida.
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Summary
WATSCO Inc. released their second quarter FY2023 earnings report on June 30th, 2023. Total revenue for the period was reported at USD 2003.1 million, a decrease of 6.1% from the same quarter the prior year. Net income was USD 172.8 million, representing a 10.3% decline from the same quarter in the preceding year.
For investors, these results demonstrate a downward trend in both top and bottom line growth for the company. As such, investors with existing positions may wish to reevaluate their holdings, and potential investors may consider other options.
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