Exhibiting impressive inorganic growth and operating in the HVAC/R distribution industry since many years, Watsco (WSO) is a name to be remembered. The only issue is its market capitalization, which appears overvalued as compared to its peers. Besides, the market may have not discounted that there may exist an agency problem. Executive officers own more than 50% of the total amount of voting power.
Growing Through Acquisitions
Headquartered in Miami, Florida, Watsco is the largest distributor of air conditioning, heating, and refrigeration equipment as well as related parts and supplies in the HVAC/R