Why WATTS WATER TECHNOLOGIES-A (NYSE:WTS) qualifies as a quality stock.

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.

A Deep Dive into WATTS WATER TECHNOLOGIES-A's Quality Metrics.

• The 5-year revenue growth of WATTS WATER TECHNOLOGIES-A has been remarkable, with 7.07% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• WATTS WATER TECHNOLOGIES-A exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 46.56% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a Debt/Free Cash Flow Ratio of 0.6, WATTS WATER TECHNOLOGIES-A exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• WATTS WATER TECHNOLOGIES-A demonstrates consistent Profit Quality over the past 5 years, with a strong 110.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• WATTS WATER TECHNOLOGIES-A has demonstrated consistent growth in EBIT over the past 5 years, with a strong 14.57%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• WATTS WATER TECHNOLOGIES-A demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for NYSE:WTS?

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

WTS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. WTS gets an excellent profitability rating and is at the same time showing great financial health properties. 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.

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

Disclaimer

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.