WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTS - US9427491025 - Common Stock
276.02 USD
-4.02 (-1.44%)
276.02 USD
0 (0%)
Overall WTS gets a fundamental rating of 7 out of 10. We evaluated WTS against 132 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. With these ratings, WTS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
WTS had positive earnings in the past year.
In the past year WTS had a positive cash flow from operations.
WTS had positive earnings in each of the past 5 years.
Each year in the past 5 years WTS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.91%, WTS belongs to the best of the industry, outperforming 85.61% of the companies in the same industry.
The Return On Equity of WTS (16.59%) is better than 76.52% of its industry peers.
The Return On Invested Capital of WTS (14.86%) is better 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 10.27%.
| 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
Looking at the Profit Margin, with a value of 13.79%, WTS belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of WTS has grown nicely.
With an excellent Operating Margin value of 18.98%, WTS belongs to the best of the industry, outperforming 87.12% of the companies in the same industry.
WTS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.83%, WTS belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
WTS's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, WTS has about the same amount of shares outstanding.
Compared to 5 years ago, WTS has less shares outstanding
WTS has a better debt/assets ratio than last year.
2.2 Solvency
WTS has an Altman-Z score of 9.77. This indicates that WTS is financially healthy and has little risk of bankruptcy at the moment.
WTS's Altman-Z score of 9.77 is amongst the best of the industry. WTS outperforms 92.42% 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's Debt to FCF ratio of 0.57 is amongst the best of the industry. WTS outperforms 90.91% 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.
Looking at the Debt to Equity ratio, with a value of 0.10, WTS is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | 9.77 |
ROIC/WACC1.58
WACC9.42%
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 74.24% 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.
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
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.
Looking at the last year, WTS shows a small growth in Revenue. The Revenue has grown by 4.18% in the last year.
WTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.07% yearly.
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 11.03% yearly.
Based on estimates for the next years, WTS will show a small growth in Revenue. The Revenue will grow by 6.12% on average per year.
EPS Next Y16.99%
EPS Next 2Y12.92%
EPS Next 3Y11%
EPS Next 5Y11.03%
Revenue Next Year7.49%
Revenue Next 2Y6.96%
Revenue Next 3Y6.25%
Revenue Next 5Y6.12%
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
With a Price/Earnings ratio of 27.57, WTS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as WTS.
WTS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.41 indicates a rather expensive valuation of WTS.
WTS's Price/Forward Earnings ratio is in line with the industry average.
WTS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.57 | ||
| Fwd PE | 24.41 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WTS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.8 | ||
| EV/EBITDA | 18.07 |
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)1.62
PEG (5Y)1.64
EPS Next 2Y12.92%
EPS Next 3Y11%
5. Dividend
5.1 Amount
WTS has a yearly dividend return of 0.76%, which is pretty low.
WTS's Dividend Yield is comparable with the industry average which is at 0.98.
With a Dividend Yield of 0.76, WTS pays less dividend than the S&P500 average, which is at 2.00.
| 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 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
19.65% 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 2Y12.92%
EPS Next 3Y11%
276.02
-4.02 (-1.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.57%
Inst Owner Change-1.71%
Ins Owners1.08%
Ins Owner Change0.73%
Market Cap9.21B
Revenue(TTM)2.35B
Net Income(TTM)324.70M
Analysts70.67
Price Target292.26 (5.88%)
Short Float %3.07%
Short Ratio4.86
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-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)0.73%
PT rev (3m)5.72%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)10.77%
EPS NY rev (1m)4.7%
EPS NY rev (3m)4.7%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)7.34%
Revenue NY rev (1m)3.04%
Revenue NY rev (3m)3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.57 | ||
| Fwd PE | 24.41 | ||
| P/S | 3.91 | ||
| P/FCF | 26.8 | ||
| P/OCF | 23.8 | ||
| P/B | 4.7 | ||
| P/tB | 9.91 | ||
| EV/EBITDA | 18.07 |
EPS(TTM)10.01
EY3.63%
EPS(NY)11.31
Fwd EY4.1%
FCF(TTM)10.3
FCFY3.73%
OCF(TTM)11.6
OCFY4.2%
SpS70.58
BVpS58.67
TBVpS27.85
PEG (NY)1.62
PEG (5Y)1.64
Graham Number114.96
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 | 9.77 |
F-Score8
WACC9.42%
ROIC/WACC1.58
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 Y16.99%
EPS Next 2Y12.92%
EPS Next 3Y11%
EPS Next 5Y11.03%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%12.53%
Revenue Next Year7.49%
Revenue Next 2Y6.96%
Revenue Next 3Y6.25%
Revenue Next 5Y6.12%
EBIT growth 1Y14.51%
EBIT growth 3Y15.37%
EBIT growth 5Y14.57%
EBIT Next Year30.94%
EBIT Next 3Y14.55%
EBIT Next 5Y12.96%
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 27.57 and the Price/Book (PB) ratio is 4.7.
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 16.99% in the next year.