Watsco Inc. (WSO) scored on five pillars from its reported financial statements, and ranked against 270 Industrials companies.
Watsco Inc. (WSO) scores 6.7 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on solvency, and growth is what holds it back.
Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
We cannot judge Watsco Inc. yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.
Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →
As of October 18, 2026, Watsco Inc. scores 6.7 out of 10 on the Lemma Quality Score, a reading of solid quality. This band covers companies that do several things well but not everything, so the pillar detail below matters more than the headline. Nothing in it comes from the share price or from forecasts: it is Watsco Inc.’s own reported numbers, scored pillar by pillar.
Set against 270 Industrials companies, Watsco Inc. lands at the 80th percentile, among the stronger quarter of the group. For reference, the middle of the group scores 5.6 and a company needs 6.5 to reach its top quarter, which leaves Watsco Inc. above the median.
On profitability, Watsco Inc. scores 5.6, an average reading. Its peers have a median of 4.9 across 262 Industrials companies, which places it above them, at the 62nd percentile. An average profitability reading usually means the company earns a fair return without obvious pricing power, so the other pillars decide more of the story.
Watsco Inc.’s solvency score is 9.4 out of 10 (strong). Against a median of 7.1 among 241 Industrials companies, that is well above the group and the 87th percentile. Strong solvency points to a balance sheet that can carry its debts comfortably, with interest well covered and little pressure from creditors.
On growth, Watsco Inc. scores 4.6, an average reading. Its peers have a median of 5.4 across 216 Industrials companies, which places it below them, at the 39th percentile. Average growth reflects a business expanding at roughly the pace of its sector, without a clear acceleration or decline.
On efficiency, Watsco Inc. scores 8.0, a strong reading. Its peers have a median of 6.2 across 264 Industrials companies, which places it well above them, at the 90th percentile. Efficiency at this level means the company needs comparatively little capital to produce what it sells.
Watsco Inc.’s predictability score is 6.7 out of 10 (average). Against a median of 5.0 among 267 Industrials companies, that is well above the group and the 80th percentile. An average predictability reading means results have wobbled about as much as is normal for the sector.
The gap between Watsco Inc.’s best and worst pillar is wide: solvency at 9.4 against growth at 4.6, 4.8 points apart. An average of two readings this different deserves a closer look than the headline number. Leading with solvency is a defensive strength: it protects the business more than it grows it. Slow growth limits how fast the business can compound, even when everything else is in order.
The pillar with the most room to move the score is growth. If it rose to the median of Industrials companies, 5.4, Watsco Inc.’s overall score would go from 6.7 to about 6.9. The weights add up to 100 points (profitability 25, solvency 20, growth 20, efficiency 15, predictability 20), and Watsco Inc. has a reading on every pillar.
For a fair comparison, start with companies of a similar size: the Industrials companies below are nearest to Watsco Inc. by market value, each scored on the same pillars.
How much profit the company generates from its capital and sales.
The company’s ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.
This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.
Educational only. Not investment advice.
On this reading Watsco Inc. scores 6.7 out of 10, which reads as solid quality. Its strongest pillar is solvency, its weakest is growth. Quality is not the same as a good investment: the score says nothing about the price you would pay.
Watsco Inc. ranks at the 80th percentile of the 270 Industrials companies Lemma publishes a score for. The median there is 5.6 and the top quarter starts at 6.5, against Watsco Inc.’s 6.7.
Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.
This page last changed on October 18, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for WSO are in the app.
No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.
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