WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:WTS • US9427491025

315.02 USD
-4.74 (-1.48%)
At close: Feb 10, 2026
315.02 USD
0 (0%)
After Hours: 2/10/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall WTS gets a fundamental rating of 7 out of 10. We evaluated WTS against 131 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. This makes WTS very considerable for quality investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year WTS was profitable.
  • In the past year WTS had a positive cash flow from operations.
  • Each year in the past 5 years WTS has been profitable.
  • Each year in the past 5 years WTS had a positive operating cash flow.
WTS Yearly Net Income VS EBIT VS OCF VS FCFWTS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

1.2 Ratios

  • WTS's Return On Assets of 11.91% is amongst the best of the industry. WTS outperforms 87.02% of its industry peers.
  • WTS has a Return On Equity of 16.59%. This is in the better half of the industry: WTS outperforms 79.39% of its industry peers.
  • The Return On Invested Capital of WTS (14.86%) is better than 87.79% of its industry peers.
  • WTS had an Average Return On Invested Capital over the past 3 years of 14.98%. This is above the industry average of 10.25%.
Industry RankSector 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%
WTS Yearly ROA, ROE, ROICWTS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • WTS's Profit Margin of 13.79% is amongst the best of the industry. WTS outperforms 84.73% of its industry peers.
  • In the last couple of years the Profit Margin of WTS has grown nicely.
  • Looking at the Operating Margin, with a value of 18.98%, WTS belongs to the top of the industry, outperforming 87.79% of the companies in the same industry.
  • In the last couple of years the Operating Margin of WTS has grown nicely.
  • With an excellent Gross Margin value of 48.83%, WTS belongs to the best of the industry, outperforming 91.60% of the companies in the same industry.
  • In the last couple of years the Gross Margin of WTS has grown nicely.
Industry RankSector 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%
WTS Yearly Profit, Operating, Gross MarginsWTS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WTS is still 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.
  • The debt/assets ratio for WTS has been reduced compared to a year ago.
WTS Yearly Shares OutstandingWTS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
WTS Yearly Total Debt VS Total AssetsWTS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

  • WTS has an Altman-Z score of 10.68. This indicates that WTS is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of WTS (10.68) is better than 93.89% 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 has a better Debt to FCF ratio (0.57) than 90.84% of its industry peers.
  • WTS has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
  • WTS has a Debt to Equity ratio of 0.10. This is in the better half of the industry: WTS outperforms 78.63% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF 0.57
Altman-Z 10.68
ROIC/WACC1.55
WACC9.59%
WTS Yearly LT Debt VS Equity VS FCFWTS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 2.83 indicates that WTS has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.83, WTS is in the better half of the industry, outperforming 75.57% of the companies in the same industry.
  • WTS has a Quick Ratio of 1.84. This is a normal value and indicates that WTS is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.84, WTS is in the better half of the industry, outperforming 74.05% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.83
Quick Ratio 1.84
WTS Yearly Current Assets VS Current LiabilitesWTS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • WTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.88%, which is quite good.
  • 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.
  • Looking at the last year, WTS shows a small growth in Revenue. The Revenue has grown by 4.18% in the last year.
  • 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 11.09% on average per year.
  • The Revenue is expected to grow by 6.18% on average over the next years.
EPS Next Y17.33%
EPS Next 2Y13.34%
EPS Next 3Y11.16%
EPS Next 5Y11.09%
Revenue Next Year7.75%
Revenue Next 2Y7.45%
Revenue Next 3Y6.29%
Revenue Next 5Y6.18%

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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
WTS Yearly Revenue VS EstimatesWTS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B
WTS Yearly EPS VS EstimatesWTS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 31.47, the valuation of WTS can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of WTS is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of WTS to the average of the S&P500 Index (28.03), we can say WTS is valued inline with the index average.
  • The Price/Forward Earnings ratio is 27.65, which means the current valuation is very expensive for WTS.
  • WTS's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.97, WTS is valued at the same level.
Industry RankSector Rank
PE 31.47
Fwd PE 27.65
WTS Price Earnings VS Forward Price EarningsWTS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • WTS's Enterprise Value to EBITDA is on the same level as the industry average.
  • WTS's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 30.58
EV/EBITDA 20.39
WTS Per share dataWTS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • WTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)1.87
EPS Next 2Y13.34%
EPS Next 3Y11.16%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • WTS has a yearly dividend return of 0.72%, which is pretty low.
  • WTS's Dividend Yield is comparable with the industry average which is at 1.15.
  • Compared to an average S&P500 Dividend Yield of 1.80, WTS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.72%

5.2 History

  • The dividend of WTS is nicely growing with an annual growth rate of 12.49%!
  • WTS has paid a dividend for at least 10 years, which is 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
WTS Yearly Dividends per shareWTS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • 19.65% of the earnings are spent on dividend by WTS. This is a low number and sustainable payout ratio.
  • WTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.65%
EPS Next 2Y13.34%
EPS Next 3Y11.16%
WTS Yearly Income VS Free CF VS DividendWTS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
WTS Dividend Payout.WTS Dividend Payout, showing the Payout Ratio.WTS Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

WATTS WATER TECHNOLOGIES-A

NYSE:WTS (2/10/2026, 8:04:00 PM)

After market: 315.02 0 (0%)

315.02

-4.74 (-1.48%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-05
Earnings (Next)02-11
Inst Owners101.65%
Inst Owner Change-2.16%
Ins Owners1.08%
Ins Owner Change-0.28%
Market Cap10.51B
Revenue(TTM)2.35B
Net Income(TTM)324.70M
Analysts70
Price Target301.02 (-4.44%)
Short Float %2.56%
Short Ratio4.07
Dividend
Industry RankSector Rank
Dividend Yield 0.72%
Yearly Dividend1.67
Dividend Growth(5Y)12.49%
DP19.65%
Div Incr Years12
Div Non Decr Years23
Ex-DateN/A
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%
PT rev (3m)7.31%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)3.24%
EPS NY rev (1m)0.29%
EPS NY rev (3m)5.01%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)2.79%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)3.29%
Valuation
Industry RankSector Rank
PE 31.47
Fwd PE 27.65
P/S 4.46
P/FCF 30.58
P/OCF 27.16
P/B 5.37
P/tB 11.31
EV/EBITDA 20.39
EPS(TTM)10.01
EY3.18%
EPS(NY)11.39
Fwd EY3.62%
FCF(TTM)10.3
FCFY3.27%
OCF(TTM)11.6
OCFY3.68%
SpS70.58
BVpS58.67
TBVpS27.85
PEG (NY)1.82
PEG (5Y)1.87
Graham Number114.96
Profitability
Industry RankSector 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 RankSector 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 10.68
F-Score8
WACC9.59%
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 Y17.33%
EPS Next 2Y13.34%
EPS Next 3Y11.16%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%12.53%
Revenue Next Year7.75%
Revenue Next 2Y7.45%
Revenue Next 3Y6.29%
Revenue Next 5Y6.18%
EBIT growth 1Y14.51%
EBIT growth 3Y15.37%
EBIT growth 5Y14.57%
EBIT Next Year31.42%
EBIT Next 3Y14.7%
EBIT Next 5Y13.02%
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.


What is the valuation status of WATTS WATER TECHNOLOGIES-A (WTS) stock?

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.


What is the valuation of WATTS WATER TECHNOLOGIES-A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for WATTS WATER TECHNOLOGIES-A (WTS) is 31.47 and the Price/Book (PB) ratio is 5.37.


What is the earnings growth outlook for WATTS WATER TECHNOLOGIES-A?

The Earnings per Share (EPS) of WATTS WATER TECHNOLOGIES-A (WTS) is expected to grow by 17.33% in the next year.