WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WTS • US9427491025
299.31 USD
+1.7 (+0.57%)
At close: Jan 30, 2026
299.31 USD
0 (0%)
After Hours: 1/30/2026, 8:24:40 PM
WTS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 132 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. This makes WTS very considerable for quality investing!
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.
- Each year in the past 5 years WTS has been profitable.
- In the past 5 years WTS always reported a positive cash flow from operatings.
1.2 Ratios
- WTS's Return On Assets of 11.91% is amongst the best of the industry. WTS outperforms 86.36% of its industry peers.
- WTS's Return On Equity of 16.59% is fine compared to the rest of the industry. WTS outperforms 77.27% of its industry peers.
- WTS has a better Return On Invested Capital (14.86%) than 87.88% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WTS is above the industry average of 10.18%.
| 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 has a better Profit Margin (13.79%) than 84.09% of its industry peers.
- In the last couple of years the Profit Margin of WTS has grown nicely.
- WTS has a better Operating Margin (18.98%) than 87.88% of its industry peers.
- WTS's Operating Margin has improved in the last couple of years.
- The Gross Margin of WTS (48.83%) is better than 91.67% of its industry peers.
- In the last couple of years the Gross Margin of WTS has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WTS is still 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.
2.2 Solvency
- WTS has an Altman-Z score of 10.27. This indicates that WTS is financially healthy and has little risk of bankruptcy at the moment.
- WTS has a Altman-Z score of 10.27. This is amongst the best in the industry. WTS outperforms 93.94% 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 90.91% of its industry peers.
- A Debt/Equity ratio of 0.10 indicates that WTS is not too dependend on debt financing.
- WTS's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. WTS outperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | 10.27 |
ROIC/WACC1.54
WACC9.65%
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.
- Looking at the Current ratio, with a value of 2.83, WTS is in the better half of the industry, outperforming 74.24% of the companies in the same industry.
- 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.84 |
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.
- 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
- WTS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.09% yearly.
- The Revenue is expected to grow by 6.18% on average over the next years.
EPS Next Y17.34%
EPS Next 2Y13.29%
EPS Next 3Y11.1%
EPS Next 5Y11.09%
Revenue Next Year7.75%
Revenue Next 2Y7.43%
Revenue Next 3Y6.26%
Revenue Next 5Y6.18%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 29.90, which means the current valuation is very expensive for WTS.
- 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 (28.32), we can say WTS is valued inline with the index average.
- With a Price/Forward Earnings ratio of 26.29, WTS can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as WTS.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, WTS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.9 | ||
| Fwd PE | 26.29 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as WTS.
- WTS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.06 | ||
| EV/EBITDA | 19.35 |
4.3 Compensation for Growth
- The 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)1.72
PEG (5Y)1.77
EPS Next 2Y13.29%
EPS Next 3Y11.1%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.72%, WTS is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.01, WTS has a dividend in line with its industry peers.
- With a Dividend Yield of 0.72, WTS pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector 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 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
- WTS pays out 19.65% 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.
DP19.65%
EPS Next 2Y13.29%
EPS Next 3Y11.1%
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 29.9 and the Price/Book (PB) ratio is 5.1.
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 17.34% in the next year.