WATTS WATER TECHNOLOGIES-A (WTS) Fundamental Analysis & Valuation

NYSE:WTS • US9427491025

Current stock price

304.19 USD
+3.04 (+1.01%)
At close:
304.19 USD
0 (0%)
After Hours:

This WTS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. WTS Profitability Analysis

1.1 Basic Checks

  • WTS had positive earnings in the past year.
  • WTS had a positive operating cash flow in the past year.
  • Each year in the past 5 years WTS has been profitable.
  • WTS had a positive operating cash flow in each of the past 5 years.
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 2025 100M 200M 300M 400M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 11.83%, WTS belongs to the top of the industry, outperforming 88.55% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 16.81%, WTS is in the better half of the industry, outperforming 79.39% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 15.13%, WTS belongs to the top of the industry, outperforming 90.84% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for WTS is above the industry average of 10.02%.
  • The last Return On Invested Capital (15.13%) for WTS is above the 3 year average (14.87%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.83%
ROE 16.81%
ROIC 15.13%
ROA(3y)11.78%
ROA(5y)11.46%
ROE(3y)17.06%
ROE(5y)16.93%
ROIC(3y)14.87%
ROIC(5y)14.82%
WTS Yearly ROA, ROE, ROICWTS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 13.98%, WTS belongs to the top of the industry, outperforming 86.26% of the companies in the same industry.
  • In the last couple of years the Profit Margin of WTS has grown nicely.
  • The Operating Margin of WTS (19.35%) is better than 87.79% of its industry peers.
  • WTS's Operating Margin has improved in the last couple of years.
  • WTS has a better Gross Margin (49.46%) than 90.84% of its industry peers.
  • In the last couple of years the Gross Margin of WTS has grown nicely.
Industry RankSector Rank
OM 19.35%
PM (TTM) 13.98%
GM 49.46%
OM growth 3Y5.65%
OM growth 5Y8.63%
PM growth 3Y3.23%
PM growth 5Y13.03%
GM growth 3Y3.84%
GM growth 5Y3.59%
WTS Yearly Profit, Operating, Gross MarginsWTS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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8

2. WTS Health Analysis

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.
  • The number of shares outstanding for WTS remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, WTS has less shares outstanding
  • Compared to 1 year ago, WTS has an improved debt to assets ratio.
WTS Yearly Shares OutstandingWTS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • An Altman-Z score of 9.53 indicates that WTS is not in any danger for bankruptcy at the moment.
  • WTS has a Altman-Z score of 9.53. This is amongst the best in the industry. WTS outperforms 92.37% of its industry peers.
  • The Debt to FCF ratio of WTS is 0.55, which is an excellent value as it means it would take WTS, only 0.55 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 0.55, WTS belongs to the best of the industry, outperforming 90.84% of the companies in the same industry.
  • 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 78.63% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF 0.55
Altman-Z 9.53
ROIC/WACC1.49
WACC10.16%
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 2025 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 2.51 indicates that WTS has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 2.51, WTS is doing good in the industry, outperforming 66.41% of the companies in the same industry.
  • A Quick Ratio of 1.49 indicates that WTS should not have too much problems paying its short term obligations.
  • With a decent Quick ratio value of 1.49, WTS is doing good in the industry, outperforming 63.36% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.51
Quick Ratio 1.49
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 2025 200M 400M 600M 800M 1B

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6

3. WTS Growth Analysis

3.1 Past

  • WTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.28%, which is quite good.
  • The Earnings Per Share has been growing by 22.15% on average over the past years. This is a very strong growth
  • Looking at the last year, WTS shows a quite strong growth in Revenue. The Revenue has grown by 8.27% in the last year.
  • WTS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.08% yearly.
EPS 1Y (TTM)19.28%
EPS 3Y14.06%
EPS 5Y22.15%
EPS Q2Q%27.8%
Revenue 1Y (TTM)8.27%
Revenue growth 3Y7.2%
Revenue growth 5Y10.08%
Sales Q2Q%15.67%

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 10.54% on average per year.
  • WTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.27% yearly.
EPS Next Y11.74%
EPS Next 2Y10.36%
EPS Next 3Y9.97%
EPS Next 5Y10.54%
Revenue Next Year10.83%
Revenue Next 2Y8.24%
Revenue Next 3Y7.12%
Revenue Next 5Y7.27%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 decreasing.
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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3

4. WTS Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 28.75, the valuation of WTS can be described as expensive.
  • WTS's Price/Earnings ratio is in line with the industry average.
  • WTS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 25.73, which means the current valuation is very expensive for WTS.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WTS is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 23.68. WTS is around the same levels.
Industry RankSector Rank
PE 28.75
Fwd PE 25.73
WTS Price Earnings VS Forward Price EarningsWTS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WTS is on the same level as its industry peers.
  • WTS's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 28.46
EV/EBITDA 18.79
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 WTS does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of WTS may justify a higher PE ratio.
PEG (NY)2.45
PEG (5Y)1.3
EPS Next 2Y10.36%
EPS Next 3Y9.97%

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5

5. WTS Dividend Analysis

5.1 Amount

  • WTS has a yearly dividend return of 0.72%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.21, WTS has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, 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 16.62%!
  • 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)16.62%
Div Incr Years13
Div Non Decr Years24
WTS Yearly Dividends per shareWTS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • WTS pays out 19.63% of its income as dividend. This is a sustainable payout ratio.
  • WTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.63%
EPS Next 2Y10.36%
EPS Next 3Y9.97%
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 2025 100M 200M 300M
WTS Dividend Payout.WTS Dividend Payout, showing the Payout Ratio.WTS Dividend Payout.PayoutRetained Earnings

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WTS Fundamentals: All Metrics, Ratios and Statistics

WATTS WATER TECHNOLOGIES-A

NYSE:WTS (4/9/2026, 8:05:26 PM)

After market: 304.19 0 (0%)

304.19

+3.04 (+1.01%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners100.78%
Inst Owner Change0%
Ins Owners1.06%
Ins Owner Change-1.23%
Market Cap10.14B
Revenue(TTM)2.44B
Net Income(TTM)340.80M
Analysts68.24
Price Target345.37 (13.54%)
Short Float %2.43%
Short Ratio3.33
Dividend
Industry RankSector Rank
Dividend Yield 0.72%
Yearly Dividend2.01
Dividend Growth(5Y)16.62%
DP19.63%
Div Incr Years13
Div Non Decr Years24
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.12%
Min EPS beat(2)9.38%
Max EPS beat(2)10.85%
EPS beat(4)4
Avg EPS beat(4)11.62%
Min EPS beat(4)9.38%
Max EPS beat(4)15.5%
EPS beat(8)8
Avg EPS beat(8)8.53%
EPS beat(12)12
Avg EPS beat(12)9.84%
EPS beat(16)16
Avg EPS beat(16)11.36%
Revenue beat(2)2
Avg Revenue beat(2)3.27%
Min Revenue beat(2)1.46%
Max Revenue beat(2)5.08%
Revenue beat(4)4
Avg Revenue beat(4)2.91%
Min Revenue beat(4)0.9%
Max Revenue beat(4)5.08%
Revenue beat(8)6
Avg Revenue beat(8)1.76%
Revenue beat(12)9
Avg Revenue beat(12)1.27%
Revenue beat(16)13
Avg Revenue beat(16)1.79%
PT rev (1m)3.1%
PT rev (3m)18.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.2%
EPS NY rev (1m)0%
EPS NY rev (3m)4.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.98%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)4.39%
Valuation
Industry RankSector Rank
PE 28.75
Fwd PE 25.73
P/S 4.16
P/FCF 28.46
P/OCF 25.23
P/B 5
P/tB 11.6
EV/EBITDA 18.79
EPS(TTM)10.58
EY3.48%
EPS(NY)11.82
Fwd EY3.89%
FCF(TTM)10.69
FCFY3.51%
OCF(TTM)12.06
OCFY3.96%
SpS73.14
BVpS60.82
TBVpS26.22
PEG (NY)2.45
PEG (5Y)1.3
Graham Number120.32
Profitability
Industry RankSector Rank
ROA 11.83%
ROE 16.81%
ROCE 19.92%
ROIC 15.13%
ROICexc 18.25%
ROICexgc 44.25%
OM 19.35%
PM (TTM) 13.98%
GM 49.46%
FCFM 14.61%
ROA(3y)11.78%
ROA(5y)11.46%
ROE(3y)17.06%
ROE(5y)16.93%
ROIC(3y)14.87%
ROIC(5y)14.82%
ROICexc(3y)18.21%
ROICexc(5y)18.16%
ROICexgc(3y)44.42%
ROICexgc(5y)44.14%
ROCE(3y)19.58%
ROCE(5y)19.51%
ROICexgc growth 3Y-1.34%
ROICexgc growth 5Y6.9%
ROICexc growth 3Y-2.79%
ROICexc growth 5Y8.48%
OM growth 3Y5.65%
OM growth 5Y8.63%
PM growth 3Y3.23%
PM growth 5Y13.03%
GM growth 3Y3.84%
GM growth 5Y3.59%
F-Score6
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF 0.55
Debt/EBITDA 0.37
Cap/Depr 80.46%
Cap/Sales 1.87%
Interest Coverage 47.66
Cash Conversion 76.05%
Profit Quality 104.55%
Current Ratio 2.51
Quick Ratio 1.49
Altman-Z 9.53
F-Score6
WACC10.16%
ROIC/WACC1.49
Cap/Depr(3y)71.31%
Cap/Depr(5y)68.78%
Cap/Sales(3y)1.63%
Cap/Sales(5y)1.56%
Profit Quality(3y)107.89%
Profit Quality(5y)98.91%
High Growth Momentum
Growth
EPS 1Y (TTM)19.28%
EPS 3Y14.06%
EPS 5Y22.15%
EPS Q2Q%27.8%
EPS Next Y11.74%
EPS Next 2Y10.36%
EPS Next 3Y9.97%
EPS Next 5Y10.54%
Revenue 1Y (TTM)8.27%
Revenue growth 3Y7.2%
Revenue growth 5Y10.08%
Sales Q2Q%15.67%
Revenue Next Year10.83%
Revenue Next 2Y8.24%
Revenue Next 3Y7.12%
Revenue Next 5Y7.27%
EBIT growth 1Y18.69%
EBIT growth 3Y13.25%
EBIT growth 5Y19.57%
EBIT Next Year27.58%
EBIT Next 3Y13.99%
EBIT Next 5Y13.94%
FCF growth 1Y9.36%
FCF growth 3Y22.07%
FCF growth 5Y14.01%
OCF growth 1Y11.33%
OCF growth 3Y21.52%
OCF growth 5Y11.93%

WATTS WATER TECHNOLOGIES-A / WTS Fundamental Analysis 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 for WTS stock?

ChartMill assigns a valuation rating of 3 / 10 to WATTS WATER TECHNOLOGIES-A (WTS). This can be considered as Overvalued.


Can you provide the profitability details for WATTS WATER TECHNOLOGIES-A?

WATTS WATER TECHNOLOGIES-A (WTS) has a profitability rating of 9 / 10.


What are the PE and PB ratios of WATTS WATER TECHNOLOGIES-A (WTS) stock?

The Price/Earnings (PE) ratio for WATTS WATER TECHNOLOGIES-A (WTS) is 28.75 and the Price/Book (PB) ratio is 5.


Is the dividend of WATTS WATER TECHNOLOGIES-A sustainable?

The dividend rating of WATTS WATER TECHNOLOGIES-A (WTS) is 5 / 10 and the dividend payout ratio is 19.63%.