WATSCO INC

The business, in plain English

WATSCO INC booked $7.2B of revenue in FY2025 in the Industrials sector and kept 28.0% of it as gross profit — a moderate-margin business by that measure. After every other cost, 6.9% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $1.7B (FY2008) to $7.2B (FY2025) — about 8.9% a year compounded over 17 years.

It earned 20.3% on invested capital in the latest filed year, FY2025. Across the full 18-year measurable filed record, median ROIC was 19.9%. Over the v3 recent window (10 measurable filed years), median ROIC was 21.2%. The Returns on Capital filter above scores it 100/100.

The balance sheet carried $479M of total debt in FY2025 against $506M of owner earnings — roughly 0.9 years of owner earnings to retire it all. Balance-Sheet Safety scores it 99/100.

Put together: Returns on Capital is the strongest of the five filters (100/100) and Pricing Power the weakest (43/100), which is how WSO lands at 77/100 — a Narrow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.