Definitive Analysis
Definitive Analysis

Financial Statements

Fundamentals

Valuations

Miscellaneous

Analysis Mode

Search

Watsco, Inc. (WSO)

Company Dividend Discount ModelIndustry: Industrial - DistributionSector: Industrials

Valuation Snapshot

Stable Growth$340.72 - $903.83$520.99
Multi-Stage$249.41 - $271.62$260.32
Blended Fair Value$390.66
Current Price$404.30
Upside-3.37%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.90%19.75%11.1910.118.787.787.026.385.534.343.372.60
YoY Growth--10.68%15.10%12.88%10.84%10.07%15.39%27.46%28.64%29.51%41.02%
Dividend Yield--2.20%2.33%2.76%2.55%2.69%4.04%3.81%2.40%2.35%1.93%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)549.75
(-) Cash Dividends Paid (M)461.12
(=) Cash Retained (M)88.63
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)109.9568.7241.23
Cash Retained (M)88.6388.6388.63
(-) Cash Required (M)-109.95-68.72-41.23
(=) Excess Retained (M)-21.3219.9147.39
(/) Shares Outstanding (M)37.8537.8537.85
(=) Excess Retained per Share-0.560.531.25
LTM Dividend per Share12.1812.1812.18
(+) Excess Retained per Share-0.560.531.25
(=) Adjusted Dividend11.6212.7113.44
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$340.72$520.99$903.83
Upside / Downside-15.73%28.86%123.55%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)549.75585.48623.53664.06707.23753.20775.79
Payout Ratio83.88%85.10%86.33%87.55%88.78%90.00%92.50%
Projected Dividends (M)461.12498.26538.28581.40627.85677.88717.61

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)452.42456.71461.00
Year 2 PV (M)443.79452.25460.78
Year 3 PV (M)435.24447.74460.47
Year 4 PV (M)426.77443.19460.07
Year 5 PV (M)418.39438.60459.58
PV of Terminal Value (M)7,263.257,614.077,978.32
Equity Value (M)9,439.889,852.5510,280.21
Shares Outstanding (M)37.8537.8537.85
Fair Value$249.41$260.32$271.62
Upside / Downside-38.31%-35.61%-32.82%

High-Yield Dividend Screener

« Prev Page 26 of 30 Next »
Ticker Company Dividend Yield % Dividend Per Share Payout Ratio %
ODFLOld Dominion Freight Line, Inc.0.69%$1.1022.00%
RRBIRed River Bancshares, Inc.0.69%$0.487.90%
SSDSimpson Manufacturing Co., Inc.0.69%$1.1413.76%
WCCWESCO International, Inc.0.69%$1.7513.38%
ALGAlamo Group Inc.0.68%$1.1511.96%
CBKCommercial Bancgroup, Inc. Common Stock0.68%$0.166.13%
IRMDIRadimed Corporation0.68%$0.6539.59%
UNFUniFirst Corporation0.68%$1.3216.37%
WTSWatts Water Technologies, Inc.0.68%$1.9019.65%
0HF3.LCencora0.67%$2.2528.12%
AITApplied Industrial Technologies, Inc.0.67%$1.7516.64%
CLMBClimb Global Solutions, Inc.0.67%$0.6814.50%
ASTHAstrana Health, Inc.0.66%$0.1786.52%
AVGOBroadcom Inc.0.66%$2.2848.18%
ENSEnerSys0.66%$0.9911.20%
HLIOHelios Technologies, Inc.0.66%$0.3635.50%
ICFIICF International, Inc.0.66%$0.5610.52%
VMCVulcan Materials Company0.66%$1.9322.82%
AAMEAtlantic American Corporation0.65%$0.027.99%
AMATApplied Materials, Inc.0.65%$1.7319.78%
CRMSalesforce, Inc.0.65%$1.6421.86%
GHCGraham Holdings Company0.65%$7.064.22%
LFACLF Capital Acquisition Corp. II0.65%$0.0724.33%
BSYBentley Systems, Incorporated0.64%$0.2530.41%
EHCEncompass Health Corporation0.64%$0.6812.77%
LADLithia Motors, Inc.0.64%$2.136.25%
PRBMParabellum Acquisition Corp.0.64%$0.065.11%
VRSNVeriSign, Inc.0.64%$1.5417.77%
AWIArmstrong World Industries, Inc.0.63%$1.2417.71%
ESQEsquire Financial Holdings, Inc.0.63%$0.6411.29%
SGISomnigroup International Inc0.63%$0.5637.60%
ULSUL Solutions Inc.0.63%$0.5130.38%
VMIValmont Industries, Inc.0.63%$2.5821.97%
ARCBArcBest Corporation0.62%$0.4811.39%
VVisa Inc.0.62%$2.1323.10%
LSXMAThe Liberty SiriusXM Group0.61%$0.141.73%
0J1R.LHCA Healthcare, Inc.0.60%$2.8110.70%
MPWRMonolithic Power Systems, Inc.0.60%$5.6614.34%
RXNZurn Water Solutions Corporation0.60%$0.3924.10%
0I47.LCostco Wholesale Corporation0.59%$5.0527.04%
DJCODaily Journal Corporation0.59%$2.954.20%
DRSLeonardo DRS, Inc.0.59%$0.2020.75%
FCNCAFirst Citizens BancShares, Inc.0.59%$12.697.01%
AMEAMETEK, Inc.0.58%$1.2019.00%
KLACKLA Corporation0.57%$7.2622.67%
SXIStandex International Corporation0.57%$1.2729.15%
RDVTRed Violet, Inc.0.56%$0.2937.32%
0IRE.LFortive Corporation0.55%$0.3016.72%
AIMCAltra Industrial Motion Corp.0.55%$0.3417.56%
BWXTBWX Technologies, Inc.0.55%$1.0029.87%