Assay
Financial-condition grades for SEC filers
Company Report · as of Oct 9, 2026
|
| Watsco Inc.WSO · shops | |
|---|---|
| Grade |  Astrongest fifth of 258 graded peers; percentile 11.9, sampling error 2.9 points; lower is stronger |
| Rank | 31 of 258 |
| Profitability | B/Cpercentile 42.4 |
| Solvency | Apercentile 11.5 |
| Growth and financing | Cpercentile 47.3 |
| Reliability | 0.94 AUCfailure model, filers with over $2.67B assets; 95% interval 0.88 to 0.97; 61 events, 2020 to 2025 |
| Peer failure rate | 0.52% a yearItem 1.03 bankruptcies, same asset band, 2012 to 2025 |
| Size band | over $2.67B assetstotal assets $4.4B[1] |
| Standard universe | insiderevenue above $1M and assets above $10M[1-2] |
| Warnings | none active · fortress balance sheetnot computable: dilution, distress |
| Inputs computable | 10 of 14 |
| Graded from | filings received through Feb 27, 2026224 days before the rescan; every figure keyed to the SEC receipt date |
| Last close | $282.282026-10-08; market equity $0; iex feed |
| Price used in grade | None |
| Share price, twelve months to the rescansplit-adjusted close; a lollipop at every rescan carries the letter held then; baseline ticks are SEC receipt dates of the inputs; ranges and dragging scroll the full history | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Percentile at every rescan on file, Jan 21, 2012 to Oct 9, 2026; stronger toward the top. Hover for the date. Open this report as it stood on | ||||||||||||||||||||||||
Each date opens the report as it stood on that rescan. |
Business, in the company's words. Opening of Item 1 of the 10-K received Feb 27, 2026; the document on sec.gov.
Watsco, Inc. and its subsidiaries (collectively, “Watsco,” the “Company”, or “we,” “us,” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. At December 31, 2025, we operated from 695 locations in 43 U.S. States, Canada, Mexico and Puerto Rico with additional market coverage on an export basis to portions of Latin America and the Caribbean, through which we serve more than 130,000 active contractors that service the replacement and new construction markets.
Warnings [top]
7 checks ran; none of them enters the letter. The checks are listed on the warnings screen.
The Fourteen Inputs [top]
Lower percentile is stronger. Source numbers open the SEC filing; a range that spans filings opens the sources table.
| Input | Percentile, 0 to 100 | Value | Source | Peer median | Percentile | Peers | Period end |
|---|---|---|---|---|---|---|---|
| Profitability, sleeve percentile 42.4 | |||||||
| Gross profitability | 46.0% | [1,5] | 42.6% | 43.8 | 242 | 2025-12-31 | |
| Return on invested capital | 22.2% | [3-4,6-12] | 10.9% | 23.5 | 84 | 2025-12-31 | |
| Accruals ratio | (1.6%) | [1,13-15] | (4.9%) | 81.6 | 287 | 2025-12-31 | |
| Gross margin stability, five years | 0.6 pts | [2,5,16-23] | 1.2 pts | 20.9 | 219 | 2025-12-31 | |
| Solvency, sleeve percentile 11.5 | |||||||
| Twelve-month failure probability | not computable | 0.04% | |||||
| firm-wide XBRL shares cannot be assigned to one ticker class | |||||||
| Altman Z double-prime | not computable | 1.92 | |||||
| one or more required annual facts are missing | |||||||
| Net debt to EBITDA | (0.09x) | [3-4,6,24] | 1.84x | 15.7 | 100 | 2025-12-31 | |
| Interest coverage | not computable | 2.26x | |||||
| latest aligned inputs end 2015-12-31; latest annual assets end 2025-12-31 | |||||||
| Current ratio | 4.12x | [25-26] | 1.37x | 7.3 | 295 | 2025-12-31 | |
| Growth and financing, sleeve percentile 47.3 | |||||||
| Revenue growth, three-year compound | (0.2%) | [2,17,19,21] | 1.5% | 57.3 | 269 | 2025-12-31 | |
| Free cash flow growth, three-year compound | (0.08%) | [14,27-33] | 5.6% | 64.0 | 147 | 2025-12-31 | |
| Reinvestment rate | 22.9% | [6-8,24-27,34-35] | 7.3% | 41.4 | 152 | 2025-12-31 | |
| Asset growth, three years | 8.2% | [1,15,36-37] | 3.4% | 26.4 | 272 | 2025-12-31 | |
| Net share issuance, one year | not computable | (0.6%) | |||||
| firm-wide XBRL shares cannot be assigned to one ticker class | |||||||
Gross profitability. Revenue less cost of goods sold, over total assets.
Accruals ratio. Net income less operating cash flow, over average assets; lower is stronger.
Gross margin stability, five years. Standard deviation of gross margin; lower is stronger.
Twelve-month failure probability. CHS model; lower is stronger.
Net debt to EBITDA. Lower is stronger.
Net share issuance, one year. Split-adjusted; lower is stronger.
Sleeves are equal-weighted; within a sleeve each computable input carries equal weight. Composite -0.352; sampling error 2.9 percentile points on 258 peers.
Among 258 Peers [top]
Composite score of every graded peer, smoothed. Vertical rules are the letter band edges at the 20th, 40th, 60th and 80th percentiles. Small dots are the six largest peers by market equity.
| Rank | Company | Percentile | Letter | Warnings |
|---|---|---|---|---|
| 26 | Pricesmart Inc. (PSMT) Pricesmart Inc. (PSMT) Astrongest fifth; percentile 9.7 Nasdaq · Retail-Variety Stores market equity $5.2B; last close $167.12 Warnings: fortress balance sheet; 12 of 14 inputs | 9.7 | A | fortress balance sheet |
| 27 | Ulta Beauty, Inc. (ULTA) Ulta Beauty, Inc. (ULTA) Astrongest fifth; percentile 10.1 Nasdaq · Retail-Retail Stores, NEC market equity $24.1B; last close $564.14 No active warnings; 11 of 14 inputs | 10.1 | A | |
| 28 | Eplus Inc. (PLUS) Eplus Inc. (PLUS) Astrongest fifth; percentile 10.5 Nasdaq · Wholesale-Computers & Peripheral Equipment & Software market equity $2.4B; last close $91.24 Warnings: fortress balance sheet; 9 of 14 inputs | 10.5 | A | fortress balance sheet |
| 29 | Lovesac Co. (LOVE) Lovesac Co. (LOVE) Astrongest fifth; percentile 10.9 Nasdaq · Retail-Furniture Stores market equity $210.4M; last close $14.60 Warnings: fortress balance sheet; 9 of 14 inputs | 10.9 | A | fortress balance sheet |
| 30 | Dutch Bros Inc. (BROS) Dutch Bros Inc. (BROS) Astrongest fifth; percentile 11.3 NYSE · Retail-Eating & Drinking Places market equity $6.1B; last close $39.77 Warnings: fortress balance sheet; 10 of 14 inputs | 11.3 | A | fortress balance sheet |
| 31 | Watsco Inc. (WSO) Watsco Inc. (WSO) Astrongest fifth; percentile 11.9 NYSE · Wholesale-Hardware & Plumbing & Heating Equipment & Supplies last close $282.28 Warnings: fortress balance sheet; 10 of 14 inputs | 11.9 | A | fortress balance sheet |
| 32 | Watsco Inc. (WSO-B) Watsco Inc. (WSO-B) Astrongest fifth; percentile 11.9 NYSE · Wholesale-Hardware & Plumbing & Heating Equipment & Supplies last close $312.75 Warnings: fortress balance sheet; 10 of 14 inputs | 11.9 | A | fortress balance sheet |
| 33 | Ollie's Bargain Outlet Holdings, Inc. (OLLI) Ollie's Bargain Outlet Holdings, Inc. (OLLI) Astrongest fifth; percentile 12.5 Nasdaq · Retail-Variety Stores market equity $5.2B; last close $86.75 Warnings: fortress balance sheet; 12 of 14 inputs | 12.5 | A | fortress balance sheet |
| 34 | Unifirst Corp. (UNF) Unifirst Corp. (UNF) Astrongest fifth; percentile 12.8 NYSE · Services-Personal Services last close $259.95 Warnings: late filer, fortress balance sheet; 8 of 14 inputs | 12.8 | A | late filer, fortress balance sheet |
| 35 | Richardson Electronics, Ltd. (RELL) Richardson Electronics, Ltd. (RELL) Astrongest fifth; percentile 13.2 Nasdaq · Wholesale-Electronic Parts & Equipment, NEC last close $20.09 No active warnings; 8 of 14 inputs | 13.2 | A | |
| 36 | Village Super Market Inc. (VLGEA) Village Super Market Inc. (VLGEA) Astrongest fifth; percentile 13.6 Nasdaq · Retail-Grocery Stores last close $43.99 Warnings: fortress balance sheet; 10 of 14 inputs | 13.6 | A | fortress balance sheet |
| Peer policy | Letter | Percentile | Peers |
|---|---|---|---|
| all graded filers, equal sleeves | A | 10.7 | 2204 |
| sector peers, equal sleeves (the grade) | A | 11.9 | 258 |
| same exchange, equal sleeves | A | 6.7 | 984 |
| sector peers, equal inputs | A/B | 19.3 | 258 |
Each letter is one fifth of the 258 graded peers, about 51 companies. A boundary letter (A/B, B/C, C/D, D/E) marks a percentile within one sampling error of a band edge.
What the Price Implies [top]
Market measures at the 2026-10-08 close. None enters the grade. Percentile among graded peers with the same measure.
| Measure | Value | Peer median | Percentile | Reading |
|---|---|---|---|---|
| Twelve-month price change, skipping the latest month | (20.8%) | (0.1%) | 28 | hotter than 28 of 100 peers |
| Distance from 52-week high | (38.2%) | (24.1%) | 30 | closer to its high than 30 of 100 peers |
| EBIT to enterprise value | not computable | 5.3% | required accounting or market input is missing | |
| Free cash flow yield | not computable | 4.2% | required accounting or market input is missing | |
| Book value to price | not computable | 0.36 | required accounting or market input is missing | |
| Sales to price | not computable | 1.75 | required accounting or market input is missing | |
| Composite equity issuance, five years | not computable | (16.7%) | required accounting or market input is missing | |
| Relative strength against the sector, log excess return | (0.21) | 0.02 | 28 | ahead of 28 of 100 peers |
Inputs: EBIT $720.3M; free cash flow $535.1M; book equity $3.0B; sales $7.2B; debt $368.5M; cash $364.2M.
Diagnostics [top]
Diagnostics do not feed the grade.
| Piotroski F-score: None of 9, period end 2025-12-31 | ||
|---|---|---|
| Return on assets above zero | 11.1% | ✓ pass[13,15] |
| Operating cash flow above zero | $569.6M | ✓ pass[14] |
| Return on assets improved | (3.3 pts) | ✗ fail[13,15,36,38] |
| Operating cash flow exceeds net income | $72.6M | ✓ pass[13-14] |
| Long-term leverage fell | (0.1 pts) | ✓ pass[1,4,10,15,36] |
| Current ratio improved | 98.6 pts | ✓ pass[25-26,34-35] |
| No new shares issued | n/a | |
| Gross margin improved | 1.2 pts | ✓ pass[2,5,16-17] |
| Asset turnover improved | (42.7 pts) | ✗ fail[2,15,17,36] |
| Cash, filings, liquidity | |
|---|---|
| Cash and equivalents | $364.2M[39] |
| Operating cash flow, four quarters | $733.3M[14,39-43] |
| Months of runway | not finite |
| trailing operating cash flow is nonnegative, so runway is not finite | |
| Late filings, two years | 0 |
| NT 10-K or NT 10-Q | |
| Days since last periodic filing | 63 |
| 10-Q received Aug 7, 2026 | |
| Median daily dollar volume | $135.9M |
| 63 sessions | |
| Days since newest grade input | 224 |
Downloads [top]
|
Sources [top]
Every citation on this page. Filing opens the SEC index page for that submission; viewer opens the SEC interactive data for the same filing; series opens the SEC XBRL API record for that tag and company.
| # | Concept | XBRL tag | Value | Period end | Received | Form | Links |
|---|---|---|---|---|---|---|---|
| 1 | assets | us-gaap:Assets | $4.4B | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 2 | revenue | us-gaap:Revenues | $7.2B | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 3 | cash | us-gaap:CashAndCashEquivalentsAtCarryingValue | $433.3M | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 4 | total debt | us-gaap:LongTermDebtAndCapitalLeaseObligations | $361.6M | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 5 | gross profit | us-gaap:GrossProfit | $2.0B | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 6 | operating income | us-gaap:OperatingIncomeLoss | $720.3M | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 7 | pretax income | us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest | $737.7M | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 8 | income tax | us-gaap:IncomeTaxExpenseBenefit | $150.1M | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 9 | book equity | us-gaap:StockholdersEquity | $2.8B | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 10 | total debt | us-gaap:LongTermDebtAndCapitalLeaseObligations | $337.2M | 2024-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 11 | book equity | us-gaap:StockholdersEquity | $2.7B | 2024-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 12 | cash | us-gaap:CashAndCashEquivalentsAtCarryingValue | $526.3M | 2024-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 13 | net income | us-gaap:NetIncomeLoss | $497.0M | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 14 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $569.6M | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 15 | assets | us-gaap:Assets | $4.5B | 2024-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 16 | gross profit | us-gaap:GrossProfit | $2.0B | 2024-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 17 | revenue | us-gaap:Revenues | $7.6B | 2024-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 18 | gross profit | us-gaap:GrossProfit | $2.0B | 2023-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 19 | revenue | us-gaap:Revenues | $7.3B | 2023-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 20 | gross profit | us-gaap:GrossProfit | $2.0B | 2022-12-31 | 2025-02-28 | 10-K | filing · viewer · series |
| 21 | revenue | us-gaap:Revenues | $7.3B | 2022-12-31 | 2025-02-28 | 10-K | filing · viewer · series |
| 22 | gross profit | us-gaap:GrossProfit | $1.7B | 2021-12-31 | 2024-02-23 | 10-K | filing · viewer · series |
| 23 | revenue | us-gaap:Revenues | $6.3B | 2021-12-31 | 2024-02-23 | 10-K | filing · viewer · series |
| 24 | depreciation amortization | us-gaap:DepreciationDepletionAndAmortization | $43.8M | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 25 | current assets | us-gaap:AssetsCurrent | $3.0B | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 26 | current liabilities | us-gaap:LiabilitiesCurrent | $717.7M | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 27 | capital expenditure | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | $34.5M | 2025-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 28 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $773.1M | 2024-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 29 | capital expenditure | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | $30.1M | 2024-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 30 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $562.0M | 2023-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 31 | capital expenditure | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | $35.5M | 2023-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 32 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $572.0M | 2022-12-31 | 2025-02-28 | 10-K | filing · viewer · series |
| 33 | capital expenditure | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | $35.7M | 2022-12-31 | 2025-02-28 | 10-K | filing · viewer · series |
| 34 | current assets | us-gaap:AssetsCurrent | $3.1B | 2024-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 35 | current liabilities | us-gaap:LiabilitiesCurrent | $983.9M | 2024-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 36 | assets | us-gaap:Assets | $3.7B | 2023-12-31 | 2025-02-28 | 10-K | filing · viewer · series |
| 37 | assets | us-gaap:Assets | $3.5B | 2022-12-31 | 2024-02-23 | 10-K | filing · viewer · series |
| 38 | net income | us-gaap:NetIncomeLoss | $536.3M | 2024-12-31 | 2026-02-27 | 10-K | filing · viewer · series |
| 39 | cash | us-gaap:CashAndCashEquivalentsAtCarryingValue | $364.2M | 2026-06-30 | 2026-08-07 | 10-Q | filing · viewer · series |
| 40 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | -$21.4M | 2026-06-30 | 2026-08-07 | 10-Q | filing · viewer · series |
| 41 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | -$18.9M | 2026-03-31 | 2026-05-08 | 10-Q | filing · viewer · series |
| 42 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $169.8M | 2025-09-30 | 2025-11-07 | 10-Q | filing · viewer · series |
| 43 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | -$185.1M | 2025-06-30 | 2026-08-07 | 10-Q | filing · viewer · series |
Limitations [top]
Grade boundary. Percentile 11.9 is 8.1 points from the nearest band edge; sampling error is 2.9 points.
Peer group. Sector assignment from four-digit SIC codes, hand-tuned and published. The grade under three alternative peer policies is tabled above.
Size. Within a sector the letter tracks size. Among graded filers in the smallest asset band, 72% grade E and 0% grade A; in the largest, 13% grade E and 21% grade A. Universe as of Oct 9, 2026.
Failure model. filings 2012-01-01 to 2019-12-31 fit, filings 2020-01-01 to 2025-12-31 test; status post hoc pending confirmation. pre-registered on 2026 filings once their 12-month outcome windows close; supported if the paired per-quintile gain over the pooled model has a lower bound above 0.05.
Input validity. Revenue or total assets at or below $100,000 sets the degenerate-inputs flag. An input whose denominator is at or below $100,000 is left not computable rather than ranked.
Returns. No input on this page has a post-2015 confidence interval on returns that excludes zero. The grade ranks reported financial condition and is not a return forecast.
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