Watsco Stock Fair Value Calculation – WATSCO Reports 6.1% Decrease in Total Revenue for Quarter Ending June 30 2023
August 26, 2023
🌥️Earnings Overview
On August 1 2023, WATSCO ($NYSE:WSO) reported total revenue of USD 2003.1 million for the quarter ending June 30 2023, a decrease of 6.1% from the second quarter of the prior fiscal year. Net income for the same period was USD 172.8 million, which was 10.3% lower than the same quarter of the previous year.
Analysis – Watsco Stock Fair Value Calculation
GoodWhale has conducted an analysis of WATSCO‘s wellbeing, and computed an intrinsic value of $313.6 for their stock with the help of our proprietary Valuation Line. This figure represents the true worth of the stock based on the current market conditions and performance of the company over a certain period. However, the current market price for WATSCO stock is $377.0, which is an overvaluation of 20.2%. This means that although the stock is performing well, investors should be wary of investing in it at the current price as it could be a riskier option than buying at its intrinsic value. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Watsco. 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. 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. 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. 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, a company specializing in air conditioning, heating, and refrigeration solutions, reported total revenue of $2003.1 million for the second quarter ending June 30 2023, a 6.1% decrease from the same period in the previous fiscal year. Net income for the quarter was $172.8 million, 10.3% lower than the same period in the prior year. These results indicate that WATSCO’s business experienced a downturn during the quarter and may be a cause for concern for investors. Analysts may consider further research into WATSCO’s financial performance in order to assess the future of the company’s stock.
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