WSO (Watsco) Moat Score : 6/10 (As of Jul. 09, 2025)

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What is Watsco Moat Score?

Watsco has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Watsco has Narrow Moat: Watsco has a strong narrow moat due to its leading position in HVAC distribution, economies of scale, and superior distribution network. However, the competitive nature of the industry prevents it from achieving a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Watsco might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Competitive Comparison of Watsco's Moat Score

For the Industrial Distribution subindustry, Watsco's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Watsco's Moat Score Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Watsco's Moat Score distribution charts can be found below:

* The bar in red indicates where Watsco's Moat Score falls into.

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Watsco (NYSE:WSO) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score	Moat Level
10	Wide Moat - Exceptionally dominant and durable wide moat
8 - 9	Wide Moat - Clear and robust wide moat
7	Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6	Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5	Narrow Moat - Solid narrow moat
4	Narrow Moat - Discernible but modest moat
1 - 3	No Moat - Very weak/transient advantages
0	No Moat - No discernible moat

Watsco Moat Score Related Terms

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Watsco Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Watsco Inc (NYSE:WSO) » Definitions » Moat Score

Comparable Companies

Traded in Other Exchanges

WSO.B:USA WC3:Germany WC3:Germany W1SO34:Brazil

Address

2665 South Bayshore Drive, Suite 901, Miami, FL, USA, 33133

Website

https://www.watsco.com

Watsco is the largest heating, ventilation, air conditioning, and refrigeration products distributor in North America. The company primarily operates in the United States (90% of revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada (5% of sales) and Latin America (5% of sales). The company's customer base consists of more than 125,000 contractors that serve the replacement and new construction HVACR markets for residential and light commercial applications.

Executives

Ana Lopez-blazquez	director	2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Valerie Schimel	director	2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
John Alexander Macdonald	director	2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Stephen F. Rush	officer: EVP and COO	2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
John Michael Custer	director	2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Brian E. Keeley	director	2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Steven Rubin	director	2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Barry S Logan	officer: Senior Vice President
Watsco Inc	director	2665 SOUTH BAYSHORE DR, STE 901, COCONUT GROVE FL 33133
Jason Epstein	director	% COLUMBUS ACQUISITION CORP, 153 EAST 53RD STREET 58TH FLOOR, NEW YORK NY 10022
United Technologies Corp /de/	10 percent owner	1000 WILSON BLVD, ARLINGTON VA 22209
David C. Darnell	director	100 NORTH TRYON STREET, CHARLOTTE NC 28255
Paul F Manley	director	C/O GENTA INC., TWO VANWAY, BERKELEY HEIGHTS NJ 07922
Bob L Moss	director
Denise Dickins	director	1867 TRAVIS CIRCLE, WEST PALM BEACH FL 33406