WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTS - US9427491025 - Common Stock
274.94 USD
+7.62 (+2.85%)
274.97 USD
+0.03 (+0.01%)
Overall WTS gets a fundamental rating of 7 out of 10. We evaluated WTS against 130 industry peers in the Machinery industry. WTS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WTS is quite expensive at the moment. It does show a decent growth rate. These ratings could make WTS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
WTS had positive earnings in the past year.
In the past year WTS had a positive cash flow from operations.
WTS had positive earnings in each of the past 5 years.
WTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.91%, WTS belongs to the top of the industry, outperforming 85.38% of the companies in the same industry.
WTS's Return On Equity of 16.59% is fine compared to the rest of the industry. WTS outperforms 76.92% of its industry peers.
With an excellent Return On Invested Capital value of 14.86%, WTS belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
WTS had an Average Return On Invested Capital over the past 3 years of 14.98%. This is above the industry average of 10.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.91% | ||
| ROE | 16.59% | ||
| ROIC | 14.86% |
ROA(3y)12.17%
ROA(5y)10.41%
ROE(3y)17.9%
ROE(5y)15.7%
ROIC(3y)14.98%
ROIC(5y)13.71%
1.3 Margins
WTS's Profit Margin of 13.79% is amongst the best of the industry. WTS outperforms 83.08% of its industry peers.
In the last couple of years the Profit Margin of WTS has grown nicely.
The Operating Margin of WTS (18.98%) is better than 86.92% of its industry peers.
In the last couple of years the Operating Margin of WTS has grown nicely.
Looking at the Gross Margin, with a value of 48.83%, WTS belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
WTS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.98% | ||
| PM (TTM) | 13.79% | ||
| GM | 48.83% |
OM growth 3Y7.25%
OM growth 5Y7.01%
PM growth 3Y12.18%
PM growth 5Y9.49%
GM growth 3Y3.61%
GM growth 5Y2.18%
2. Health
2.1 Basic Checks
WTS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WTS has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for WTS has been reduced compared to 5 years ago.
WTS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.64 indicates that WTS is not in any danger for bankruptcy at the moment.
The Altman-Z score of WTS (9.64) is better than 93.08% of its industry peers.
The Debt to FCF ratio of WTS is 0.57, which is an excellent value as it means it would take WTS, only 0.57 years of fcf income to pay off all of its debts.
WTS's Debt to FCF ratio of 0.57 is amongst the best of the industry. WTS outperforms 90.77% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that WTS is not too dependend on debt financing.
The Debt to Equity ratio of WTS (0.10) is better than 79.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | 9.64 |
ROIC/WACC1.55
WACC9.56%
2.3 Liquidity
WTS has a Current Ratio of 2.83. This indicates that WTS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WTS (2.83) is better than 73.85% of its industry peers.
A Quick Ratio of 1.84 indicates that WTS should not have too much problems paying its short term obligations.
WTS's Quick ratio of 1.84 is fine compared to the rest of the industry. WTS outperforms 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.88% over the past year.
Measured over the past years, WTS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.86% on average per year.
WTS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.18%.
The Revenue has been growing slightly by 7.07% on average over the past years.
EPS 1Y (TTM)13.88%
EPS 3Y17.06%
EPS 5Y16.86%
EPS Q2Q%23.15%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%12.53%
3.2 Future
Based on estimates for the next years, WTS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.03% on average per year.
The Revenue is expected to grow by 6.12% on average over the next years.
EPS Next Y17.05%
EPS Next 2Y12.78%
EPS Next 3Y10.97%
EPS Next 5Y11.03%
Revenue Next Year7.44%
Revenue Next 2Y6.77%
Revenue Next 3Y6.09%
Revenue Next 5Y6.12%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
WTS is valuated quite expensively with a Price/Earnings ratio of 27.47.
The rest of the industry has a similar Price/Earnings ratio as WTS.
WTS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.59.
With a Price/Forward Earnings ratio of 24.37, WTS is valued on the expensive side.
WTS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WTS to the average of the S&P500 Index (23.80), we can say WTS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.47 | ||
| Fwd PE | 24.37 |
4.2 Price Multiples
WTS's Enterprise Value to EBITDA ratio is in line with the industry average.
WTS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.69 | ||
| EV/EBITDA | 17.73 |
4.3 Compensation for Growth
WTS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of WTS may justify a higher PE ratio.
PEG (NY)1.61
PEG (5Y)1.63
EPS Next 2Y12.78%
EPS Next 3Y10.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, WTS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.84, WTS has a dividend in line with its industry peers.
With a Dividend Yield of 0.76, WTS pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of WTS grows each year by 12.49%, which is quite nice.
WTS has been paying a dividend for at least 10 years, so it has a reliable track record.
WTS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.49%
Div Incr Years12
Div Non Decr Years23
5.3 Sustainability
19.65% of the earnings are spent on dividend by WTS. This is a low number and sustainable payout ratio.
The dividend of WTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.65%
EPS Next 2Y12.78%
EPS Next 3Y10.97%
274.94
+7.62 (+2.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.57%
Inst Owner Change-1.71%
Ins Owners1.08%
Ins Owner Change0.83%
Market Cap9.17B
Revenue(TTM)2.35B
Net Income(TTM)324.70M
Analysts70.67
Price Target290.29 (5.58%)
Short Float %2.76%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.67
Dividend Growth(5Y)12.49%
DP19.65%
Div Incr Years12
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.44%
Min EPS beat(2)9.38%
Max EPS beat(2)15.5%
EPS beat(4)4
Avg EPS beat(4)10.48%
Min EPS beat(4)6.27%
Max EPS beat(4)15.5%
EPS beat(8)8
Avg EPS beat(8)8.34%
EPS beat(12)12
Avg EPS beat(12)9.24%
EPS beat(16)16
Avg EPS beat(16)11.02%
Revenue beat(2)2
Avg Revenue beat(2)4.64%
Min Revenue beat(2)4.19%
Max Revenue beat(2)5.08%
Revenue beat(4)3
Avg Revenue beat(4)2.44%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)5.08%
Revenue beat(8)6
Avg Revenue beat(8)1.8%
Revenue beat(12)9
Avg Revenue beat(12)1.32%
Revenue beat(16)13
Avg Revenue beat(16)1.89%
PT rev (1m)3.48%
PT rev (3m)6.65%
EPS NQ rev (1m)2.74%
EPS NQ rev (3m)11.17%
EPS NY rev (1m)4.75%
EPS NY rev (3m)5.11%
Revenue NQ rev (1m)2.11%
Revenue NQ rev (3m)7.4%
Revenue NY rev (1m)3%
Revenue NY rev (3m)3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.47 | ||
| Fwd PE | 24.37 | ||
| P/S | 3.9 | ||
| P/FCF | 26.69 | ||
| P/OCF | 23.71 | ||
| P/B | 4.69 | ||
| P/tB | 9.87 | ||
| EV/EBITDA | 17.73 |
EPS(TTM)10.01
EY3.64%
EPS(NY)11.28
Fwd EY4.1%
FCF(TTM)10.3
FCFY3.75%
OCF(TTM)11.6
OCFY4.22%
SpS70.58
BVpS58.67
TBVpS27.85
PEG (NY)1.61
PEG (5Y)1.63
Graham Number114.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.91% | ||
| ROE | 16.59% | ||
| ROCE | 19.76% | ||
| ROIC | 14.86% | ||
| ROICexc | 18.63% | ||
| ROICexgc | 43.32% | ||
| OM | 18.98% | ||
| PM (TTM) | 13.79% | ||
| GM | 48.83% | ||
| FCFM | 14.59% |
ROA(3y)12.17%
ROA(5y)10.41%
ROE(3y)17.9%
ROE(5y)15.7%
ROIC(3y)14.98%
ROIC(5y)13.71%
ROICexc(3y)18.57%
ROICexc(5y)16.78%
ROICexgc(3y)44.6%
ROICexgc(5y)41.23%
ROCE(3y)19.91%
ROCE(5y)18.23%
ROICexgc growth 3Y4.4%
ROICexgc growth 5Y1.57%
ROICexc growth 3Y5.14%
ROICexc growth 5Y6.09%
OM growth 3Y7.25%
OM growth 5Y7.01%
PM growth 3Y12.18%
PM growth 5Y9.49%
GM growth 3Y3.61%
GM growth 5Y2.18%
F-Score8
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.57 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 77.88% | ||
| Cap/Sales | 1.84% | ||
| Interest Coverage | 44.68 | ||
| Cash Conversion | 76.99% | ||
| Profit Quality | 105.79% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 9.64 |
F-Score8
WACC9.56%
ROIC/WACC1.55
Cap/Depr(3y)68.09%
Cap/Depr(5y)71.53%
Cap/Sales(3y)1.48%
Cap/Sales(5y)1.76%
Profit Quality(3y)99.01%
Profit Quality(5y)110.38%
High Growth Momentum
Growth
EPS 1Y (TTM)13.88%
EPS 3Y17.06%
EPS 5Y16.86%
EPS Q2Q%23.15%
EPS Next Y17.05%
EPS Next 2Y12.78%
EPS Next 3Y10.97%
EPS Next 5Y11.03%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%12.53%
Revenue Next Year7.44%
Revenue Next 2Y6.77%
Revenue Next 3Y6.09%
Revenue Next 5Y6.12%
EBIT growth 1Y14.51%
EBIT growth 3Y15.37%
EBIT growth 5Y14.57%
EBIT Next Year30.94%
EBIT Next 3Y14.55%
EBIT Next 5Y12.96%
FCF growth 1Y10.2%
FCF growth 3Y28.35%
FCF growth 5Y14.6%
OCF growth 1Y14.24%
OCF growth 3Y25.93%
OCF growth 5Y13.23%
WATTS WATER TECHNOLOGIES-A / WTS FAQ
Can you provide the ChartMill fundamental rating for WATTS WATER TECHNOLOGIES-A?
ChartMill assigns a fundamental rating of 7 / 10 to WTS.
Can you provide the valuation status for WATTS WATER TECHNOLOGIES-A?
ChartMill assigns a valuation rating of 3 / 10 to WATTS WATER TECHNOLOGIES-A (WTS). This can be considered as Overvalued.
How profitable is WATTS WATER TECHNOLOGIES-A (WTS) stock?
WATTS WATER TECHNOLOGIES-A (WTS) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for WTS stock?
The Price/Earnings (PE) ratio for WATTS WATER TECHNOLOGIES-A (WTS) is 27.47 and the Price/Book (PB) ratio is 4.69.
Can you provide the expected EPS growth for WTS stock?
The Earnings per Share (EPS) of WATTS WATER TECHNOLOGIES-A (WTS) is expected to grow by 17.05% in the next year.