WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - NYSE:WTS - US9427491025 - Common Stock
272.6 USD
-0.47 (-0.17%)
272.6 USD
0 (0%)
Taking everything into account, WTS scores 7 out of 10 in our fundamental rating. WTS was compared to 130 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WTS had positive earnings in the past year.
WTS had a positive operating cash flow in the past year.
In the past 5 years WTS has always been profitable.
In the past 5 years WTS always reported a positive cash flow from operatings.
1.2 Ratios
WTS has a Return On Assets of 11.78%. This is amongst the best in the industry. WTS outperforms 87.69% of its industry peers.
Looking at the Return On Equity, with a value of 16.47%, WTS is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
WTS has a Return On Invested Capital of 14.92%. This is amongst the best in the industry. WTS outperforms 87.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WTS is above the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.78% | ||
| ROE | 16.47% | ||
| ROIC | 14.92% |
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
With an excellent Profit Margin value of 13.63%, WTS belongs to the best of the industry, outperforming 85.38% of the companies in the same industry.
In the last couple of years the Profit Margin of WTS has grown nicely.
WTS has a better Operating Margin (18.88%) than 87.69% of its industry peers.
In the last couple of years the Operating Margin of WTS has grown nicely.
With an excellent Gross Margin value of 48.48%, WTS belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
In the last couple of years the Gross Margin of WTS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.88% | ||
| PM (TTM) | 13.63% | ||
| GM | 48.48% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WTS is creating some value.
WTS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, WTS has less shares outstanding
The debt/assets ratio for WTS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.70 indicates that WTS is not in any danger for bankruptcy at the moment.
The Altman-Z score of WTS (9.70) is better than 92.31% of its industry peers.
The Debt to FCF ratio of WTS is 0.62, which is an excellent value as it means it would take WTS, only 0.62 years of fcf income to pay off all of its debts.
WTS has a Debt to FCF ratio of 0.62. This is amongst the best in the industry. WTS outperforms 90.00% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that WTS is not too dependend on debt financing.
WTS has a better Debt to Equity ratio (0.10) than 77.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.62 | ||
| Altman-Z | 9.7 |
ROIC/WACC1.57
WACC9.5%
2.3 Liquidity
A Current Ratio of 2.59 indicates that WTS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.59, WTS is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
WTS has a Quick Ratio of 1.63. This is a normal value and indicates that WTS is financially healthy and should not expect problems in meeting its short term obligations.
WTS's Quick ratio of 1.63 is fine compared to the rest of the industry. WTS outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
WTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.41%, which is quite good.
The Earnings Per Share has been growing by 16.86% on average over the past years. This is quite good.
WTS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.96%.
The Revenue has been growing slightly by 7.07% on average over the past years.
EPS 1Y (TTM)8.41%
EPS 3Y17.06%
EPS 5Y16.86%
EPS Q2Q%25.61%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%7.77%
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 8.61% on average per year.
The Revenue is expected to grow by 5.08% on average over the next years.
EPS Next Y11.74%
EPS Next 2Y9.64%
EPS Next 3Y8.28%
EPS Next 5Y8.61%
Revenue Next Year4.18%
Revenue Next 2Y4.29%
Revenue Next 3Y4.13%
Revenue Next 5Y5.08%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.57, WTS can be considered very expensive at the moment.
WTS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of WTS to the average of the S&P500 Index (26.10), we can say WTS is valued inline with the index average.
A Price/Forward Earnings ratio of 25.57 indicates a quite expensive valuation of WTS.
WTS's Price/Forward 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/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.57 | ||
| Fwd PE | 25.57 |
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 | 28.7 | ||
| EV/EBITDA | 18.33 |
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)2.43
PEG (5Y)1.69
EPS Next 2Y9.64%
EPS Next 3Y8.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, WTS is not a good candidate for dividend investing.
WTS's Dividend Yield is comparable with the industry average which is at 1.79.
With a Dividend Yield of 0.76, WTS pays less dividend than the S&P500 average, which is at 2.35.
| 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
19.51% 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.
DP19.51%
EPS Next 2Y9.64%
EPS Next 3Y8.28%
272.6
-0.47 (-0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.99%
Inst Owner Change-1.43%
Ins Owners1.06%
Ins Owner Change-0.69%
Market Cap9.09B
Revenue(TTM)2.29B
Net Income(TTM)311.60M
Analysts71.43
Price Target280.53 (2.91%)
Short Float %2.78%
Short Ratio4.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.67
Dividend Growth(5Y)12.49%
DP19.51%
Div Incr Years12
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.13%
Min EPS beat(2)10.75%
Max EPS beat(2)15.5%
EPS beat(4)4
Avg EPS beat(4)8.44%
Min EPS beat(4)1.22%
Max EPS beat(4)15.5%
EPS beat(8)8
Avg EPS beat(8)8.48%
EPS beat(12)12
Avg EPS beat(12)9.65%
EPS beat(16)16
Avg EPS beat(16)10.87%
Revenue beat(2)2
Avg Revenue beat(2)2.54%
Min Revenue beat(2)0.9%
Max Revenue beat(2)4.19%
Revenue beat(4)2
Avg Revenue beat(4)0.99%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)4.19%
Revenue beat(8)6
Avg Revenue beat(8)1.22%
Revenue beat(12)9
Avg Revenue beat(12)0.98%
Revenue beat(16)13
Avg Revenue beat(16)1.81%
PT rev (1m)0.84%
PT rev (3m)11.69%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)2.05%
EPS NY rev (1m)0%
EPS NY rev (3m)4.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.57 | ||
| Fwd PE | 25.57 | ||
| P/S | 3.98 | ||
| P/FCF | 28.7 | ||
| P/OCF | 25.61 | ||
| P/B | 4.81 | ||
| P/tB | 10.59 | ||
| EV/EBITDA | 18.33 |
EPS(TTM)9.54
EY3.5%
EPS(NY)10.66
Fwd EY3.91%
FCF(TTM)9.5
FCFY3.48%
OCF(TTM)10.64
OCFY3.9%
SpS68.52
BVpS56.73
TBVpS25.73
PEG (NY)2.43
PEG (5Y)1.69
Graham Number110.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.78% | ||
| ROE | 16.47% | ||
| ROCE | 19.83% | ||
| ROIC | 14.92% | ||
| ROICexc | 17.96% | ||
| ROICexgc | 41.98% | ||
| OM | 18.88% | ||
| PM (TTM) | 13.63% | ||
| GM | 48.48% | ||
| FCFM | 13.86% |
ROA(3y)12.17%
ROA(5y)10.41%
ROE(3y)17.9%
ROE(5y)15.7%
ROIC(3y)14.98%
ROIC(5y)13.71%
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 | 0.62 | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 68.34% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 40.72 | ||
| Cash Conversion | 72.84% | ||
| Profit Quality | 101.7% | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 9.7 |
F-Score8
WACC9.5%
ROIC/WACC1.57
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)8.41%
EPS 3Y17.06%
EPS 5Y16.86%
EPS Q2Q%25.61%
EPS Next Y11.74%
EPS Next 2Y9.64%
EPS Next 3Y8.28%
EPS Next 5Y8.61%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%7.77%
Revenue Next Year4.18%
Revenue Next 2Y4.29%
Revenue Next 3Y4.13%
Revenue Next 5Y5.08%
EBIT growth 1Y13.7%
EBIT growth 3Y15.37%
EBIT growth 5Y14.57%
EBIT Next Year25.35%
EBIT Next 3Y12.02%
EBIT Next 5Y10.86%
FCF growth 1Y25.26%
FCF growth 3Y28.35%
FCF growth 5Y14.6%
OCF growth 1Y27%
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 28.57 and the Price/Book (PB) ratio is 4.81.
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 11.74% in the next year.