Is WATTS WATER TECHNOLOGIES-A (NYSE:WTS) a Strong Candidate for Quality Investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if WATTS WATER TECHNOLOGIES-A (NYSE:WTS) is suited for quality investing. Investors should of course do their own research, but we spotted WATTS WATER TECHNOLOGIES-A showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Key Considerations for Quality Investors.

• WATTS WATER TECHNOLOGIES-A has shown strong performance in revenue growth over the past 5 years, with a 6.33% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• WATTS WATER TECHNOLOGIES-A demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 45.65% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• WATTS WATER TECHNOLOGIES-A maintains a healthy Debt/Free Cash Flow Ratio of 0.32, 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 robust Profit Quality (5-year) ratio of 112.0%, WATTS WATER TECHNOLOGIES-A highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• With a robust 5-year EBIT growth of 13.81%, WATTS WATER TECHNOLOGIES-A showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• WATTS WATER TECHNOLOGIES-A has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What else is there to say on the fundamentals of NYSE:WTS?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Overall WTS gets a fundamental rating of 7 out of 10. We evaluated WTS against 132 industry peers in the Machinery industry. WTS gets an excellent profitability rating and is at the same time showing great financial health properties. WTS is valied quite expensively at the moment, while it does show a decent growth rate.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.