WATTS WATER TECHNOLOGIES-A (NYSE:WTS) can be considered a quality stock. Here's why.

In this article we will dive into WATTS WATER TECHNOLOGIES-A (NYSE:WTS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed WATTS WATER TECHNOLOGIES-A showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:WTS highlighted

• WATTS WATER TECHNOLOGIES-A has demonstrated significant revenue growth over the past 5 years, with a 6.33% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• The ROIC excluding cash and goodwill of WATTS WATER TECHNOLOGIES-A stands at 43.12%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• WATTS WATER TECHNOLOGIES-A maintains a healthy Debt/Free Cash Flow Ratio of 0.39, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 112.0%, WATTS WATER TECHNOLOGIES-A showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• WATTS WATER TECHNOLOGIES-A has demonstrated consistent growth in EBIT over the past 5 years, with a strong 13.81%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of WATTS WATER TECHNOLOGIES-A has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental analysis of NYSE:WTS

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Overall WTS gets a fundamental rating of 7 out of 10. We evaluated WTS against 134 industry peers in the Machinery industry. WTS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, WTS is valued expensive at the moment.

Our latest full fundamental report of WTS contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.