WSO-BWatsco, Inc.

$321.70-24% 1Y

RyuScore

Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.

RyuScore 72 out of 100, Above average
Today's price. Only valuation depends on it.

Above average. Watsco, Inc. scores higher than 82% of the 2,291 companies Ryufin scores.

Carried by valuation and return on capital, with nothing holding it far back.

Industrials median 59 · all companies 54

How the score has moved

At each fiscal year end, from the reports and price of the time
72
74
80
74
73
73
72
202020212022202320242025today

The biggest move was up 6 points from 2021 to 2022, mostly valuation.

Valuation

26% of the score

70median 50

Watsco, Inc. is valued at 18.1x its operating profit, including debt: an ordinary multiple.

60x
50x
35x
25x
18x
12x
8x
18.1x
Full points at 8x or less, none from 60xfull points

Return on capital

18% of the score

93median 23

Over 7 years the business earned 21% a year after tax on the capital it uses.

2%
8%
15%
25%
21%
None at 2% or less, full points from 25%full points
Return on capital by year
7 years agolatest 19%

Return on new capital

16% of the score

65median 33

For every dollar of operating profit earned over 6 years, yearly profit grew by 6 cents. New capital earned 22%, and 27% of profit went back into the business.

-5%
12%
6.1%
None at minus 5 cents, full points from 12 centsfull points

Capital allocation

14% of the score

47median 63

How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.

Share countUp 1.5% a year over 6 years: new shares
44
5%
-3%
1.5%
0 pointsfull points
Assets against salesAssets grew 12% a year, sales 7.4%
52
12%
-2%
4.7%
0 pointsfull points

Cycle position

12% of the score

64median 63

Today's operating margin of 9.9% is 1.01x its normal 9.8%: close to its usual level. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.

2x
1.5x
1x
0.7x
1x
A trough earns points, a peak costs themfull points
Operating margin by year, against its normal level
10 years agonow 9.9%

Balance sheet

8% of the score

100median 50

What the debt weighs against the profit that has to carry it.

Net debt to EBITDAMore cash than debt
100
Interest coverOperating profit covers interest 130x
100
1.5x
12x
129.5x
0 pointsfull points

Earnings quality

6% of the score

78median 90

Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.

Cash against profitOperating cash flow was 1.21x profit over 3 years
89
0.7x
1x
1.3x
1.2x
0 pointsfull points
AccrualsCash ran ahead of profit by 1.6% of assets
68
8%
0%
-8%
-1.6%
0 pointsfull points

How the RyuScore works

Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. Where a criterion cannot be measured from the filings it is taken out and the remaining weights scale up; a company needs 60% of the weight covered, and always a price, to get a score.

Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there. Figures as of 2026-03-31, latest annual report FY2025.