WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - NYSE:WTS - US9427491025 - Common Stock
269.84 USD
-2.13 (-0.78%)
269.84 USD
0 (0%)
WTS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. WTS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, WTS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WTS was profitable.
WTS had a positive operating cash flow in the past year.
WTS had positive earnings in each of the past 5 years.
In the past 5 years WTS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WTS (11.91%) is better than 86.92% of its industry peers.
The Return On Equity of WTS (16.59%) is better than 79.23% of its industry peers.
WTS has a Return On Invested Capital of 14.86%. This is amongst the best in the industry. WTS outperforms 86.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WTS is above the industry average of 10.25%.
| 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 Profit Margin of 13.79%. This is amongst the best in the industry. WTS outperforms 85.38% of its industry peers.
WTS's Profit Margin has improved in the last couple of years.
The Operating Margin of WTS (18.98%) is better than 87.69% of its industry peers.
In the last couple of years the Operating Margin of WTS has grown nicely.
WTS has a Gross Margin of 48.83%. This is amongst the best in the industry. WTS outperforms 90.77% 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.
WTS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WTS has an improved debt to assets ratio.
2.2 Solvency
WTS has an Altman-Z score of 9.51. This indicates that WTS is financially healthy and has little risk of bankruptcy at the moment.
WTS has a Altman-Z score of 9.51. This is amongst the best in the industry. WTS outperforms 93.08% of its industry peers.
WTS has a debt to FCF ratio of 0.57. This is a very positive value and a sign of high solvency as it would only need 0.57 years to pay back of all of its debts.
WTS has a Debt to FCF ratio of 0.57. This is amongst the best in the industry. WTS outperforms 90.77% 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.
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 | 9.51 |
ROIC/WACC1.57
WACC9.48%
2.3 Liquidity
A Current Ratio of 2.83 indicates that WTS has no problem at all paying its short term obligations.
WTS has a better Current ratio (2.83) than 74.62% of its industry peers.
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.
The Quick ratio of WTS (1.84) is better than 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.
WTS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.86% yearly.
The Revenue has been growing slightly by 4.18% in the past year.
Measured over the past years, WTS shows a small growth in Revenue. The Revenue has been growing by 7.07% on average per year.
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 8.61% on average per year.
Based on estimates for the next years, WTS will show a small growth in Revenue. The Revenue will grow by 5.08% on average per year.
EPS Next Y11.74%
EPS Next 2Y9.64%
EPS Next 3Y8.28%
EPS Next 5Y8.61%
Revenue Next Year4.32%
Revenue Next 2Y4.27%
Revenue Next 3Y4.11%
Revenue Next 5Y5.08%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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.
4. Valuation
4.1 Price/Earnings Ratio
WTS is valuated quite expensively with a Price/Earnings ratio of 26.96.
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 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.31, WTS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, WTS is valued a bit more expensive than the industry average as 60.77% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 34.59. WTS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.96 | ||
| Fwd PE | 25.31 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as WTS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.21 | ||
| EV/EBITDA | 17.4 |
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)2.3
PEG (5Y)1.6
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 1.87.
Compared to an average S&P500 Dividend Yield of 2.44, WTS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
WTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.65%
EPS Next 2Y9.64%
EPS Next 3Y8.28%
269.84
-2.13 (-0.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.99%
Inst Owner Change-1.57%
Ins Owners1.06%
Ins Owner Change1.32%
Market Cap9.00B
Revenue(TTM)2.35B
Net Income(TTM)324.70M
Analysts71.43
Price Target280.53 (3.96%)
Short Float %2.78%
Short Ratio4.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.67
Dividend Growth(5Y)12.49%
DP19.65%
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)0.63%
PT rev (3m)11.26%
EPS NQ rev (1m)8.6%
EPS NQ rev (3m)8.2%
EPS NY rev (1m)0%
EPS NY rev (3m)4.95%
Revenue NQ rev (1m)5.05%
Revenue NQ rev (3m)5.18%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.96 | ||
| Fwd PE | 25.31 | ||
| P/S | 3.82 | ||
| P/FCF | 26.21 | ||
| P/OCF | 23.27 | ||
| P/B | 4.6 | ||
| P/tB | 9.69 | ||
| EV/EBITDA | 17.4 |
EPS(TTM)10.01
EY3.71%
EPS(NY)10.66
Fwd EY3.95%
FCF(TTM)10.3
FCFY3.82%
OCF(TTM)11.59
OCFY4.3%
SpS70.56
BVpS58.66
TBVpS27.84
PEG (NY)2.3
PEG (5Y)1.6
Graham Number114.94
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 | 9.51 |
F-Score8
WACC9.48%
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)13.88%
EPS 3Y17.06%
EPS 5Y16.86%
EPS Q2Q%23.15%
EPS Next Y11.74%
EPS Next 2Y9.64%
EPS Next 3Y8.28%
EPS Next 5Y8.61%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%12.53%
Revenue Next Year4.32%
Revenue Next 2Y4.27%
Revenue Next 3Y4.11%
Revenue Next 5Y5.08%
EBIT growth 1Y14.51%
EBIT growth 3Y15.37%
EBIT growth 5Y14.57%
EBIT Next Year25.35%
EBIT Next 3Y12.02%
EBIT Next 5Y10.86%
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 26.96 and the Price/Book (PB) ratio is 4.6.
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.