WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis

NYSE:WTS • US9427491025

328.09 USD
-0.65 (-0.2%)
Last: Mar 2, 2026, 01:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

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. Both the health and profitability get an excellent rating, making WTS a very profitable company, without any liquidiy or solvency issues. WTS is quite expensive at the moment. It does show a decent growth rate. This makes WTS very considerable for quality investing!


Dividend Valuation Growth Profitability Health

9

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.
  • 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.
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 88.46% 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 79.23% of the companies in the same industry.
  • WTS has a Return On Invested Capital of 15.13%. This is amongst the best in the industry. WTS outperforms 90.00% of its industry peers.
  • WTS had an Average Return On Invested Capital over the past 3 years of 14.87%. This is above the industry average of 10.27%.
  • 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

  • The Profit Margin of WTS (13.98%) is better than 85.38% of its industry peers.
  • WTS's Profit Margin has improved in the last couple of years.
  • WTS's Operating Margin of 19.35% is amongst the best of the industry. WTS outperforms 87.69% of its industry peers.
  • In the last couple of years the Operating Margin of WTS has grown nicely.
  • Looking at the Gross Margin, with a value of 49.46%, WTS belongs to the top 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 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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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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.
  • 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
  • WTS has a better debt/assets ratio than last year.
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 10.11 indicates that WTS is not in any danger for bankruptcy at the moment.
  • WTS has a Altman-Z score of 10.11. This is amongst the best in the industry. WTS outperforms 94.62% 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.
  • WTS's Debt to FCF ratio of 0.55 is amongst the best of 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.
  • Looking at the Debt to Equity ratio, with a value of 0.10, WTS is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF 0.55
Altman-Z 10.11
ROIC/WACC1.68
WACC9.02%
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

  • WTS has a Current Ratio of 2.51. This indicates that WTS is financially healthy and has no problem in meeting its short term obligations.
  • WTS's Current ratio of 2.51 is fine compared to the rest of the industry. WTS outperforms 63.85% of its industry peers.
  • WTS has a Quick Ratio of 1.49. 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 (1.49) is better than 63.08% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

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.
  • WTS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.15% yearly.
  • The Revenue has grown by 8.27% in the past year. This is quite good.
  • 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

  • WTS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.19% yearly.
  • WTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.84% yearly.
EPS Next Y7.7%
EPS Next 2Y7.32%
EPS Next 3Y8.98%
EPS Next 5Y9.19%
Revenue Next Year10.54%
Revenue Next 2Y8.26%
Revenue Next 3Y7.12%
Revenue Next 5Y5.84%

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.
  • 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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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 31.01 indicates a quite expensive valuation of WTS.
  • The rest of the industry has a similar Price/Earnings ratio as WTS.
  • Compared to an average S&P500 Price/Earnings ratio of 27.07, WTS is valued at the same level.
  • The Price/Forward Earnings ratio is 28.79, which means the current valuation is very expensive for WTS.
  • The rest of the industry has a similar Price/Forward Earnings ratio as WTS.
  • When comparing the Price/Forward Earnings ratio of WTS to the average of the S&P500 Index (28.05), we can say WTS is valued inline with the index average.
Industry RankSector Rank
PE 31.01
Fwd PE 28.79
WTS Price Earnings VS Forward Price EarningsWTS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • WTS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WTS is more expensive than 61.54% of the companies in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as WTS.
Industry RankSector Rank
P/FCF 30.71
EV/EBITDA 20.35
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.
  • WTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.03
PEG (5Y)1.4
EPS Next 2Y7.32%
EPS Next 3Y8.98%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • WTS has a yearly dividend return of 0.72%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.13, WTS has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, WTS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.72%

5.2 History

  • On average, the dividend of WTS grows each year by 16.62%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.62%
Div Incr Years12
Div Non Decr Years23
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

  • 19.63% 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.
DP19.63%
EPS Next 2Y7.32%
EPS Next 3Y8.98%
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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WATTS WATER TECHNOLOGIES-A

NYSE:WTS (3/2/2026, 1:02:41 PM)

328.09

-0.65 (-0.2%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners101.65%
Inst Owner Change-1.91%
Ins Owners1.08%
Ins Owner Change-0.95%
Market Cap10.94B
Revenue(TTM)2.44B
Net Income(TTM)340.80M
Analysts70.59
Price Target334.99 (2.1%)
Short Float %2.37%
Short Ratio3.39
Dividend
Industry RankSector Rank
Dividend Yield 0.72%
Yearly Dividend2.01
Dividend Growth(5Y)16.62%
DP19.63%
Div Incr Years12
Div Non Decr Years23
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)13.46%
PT rev (3m)15.46%
EPS NQ rev (1m)1.83%
EPS NQ rev (3m)3.52%
EPS NY rev (1m)0.08%
EPS NY rev (3m)6.87%
Revenue NQ rev (1m)3.37%
Revenue NQ rev (3m)4.79%
Revenue NY rev (1m)3.2%
Revenue NY rev (3m)9.56%
Valuation
Industry RankSector Rank
PE 31.01
Fwd PE 28.79
P/S 4.49
P/FCF 30.71
P/OCF 27.22
P/B 5.4
P/tB 12.52
EV/EBITDA 20.35
EPS(TTM)10.58
EY3.22%
EPS(NY)11.39
Fwd EY3.47%
FCF(TTM)10.68
FCFY3.26%
OCF(TTM)12.05
OCFY3.67%
SpS73.12
BVpS60.8
TBVpS26.21
PEG (NY)4.03
PEG (5Y)1.4
Graham Number120.31
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 250
Cash Conversion 76.05%
Profit Quality 104.55%
Current Ratio 2.51
Quick Ratio 1.49
Altman-Z 10.11
F-Score6
WACC9.02%
ROIC/WACC1.68
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 Y7.7%
EPS Next 2Y7.32%
EPS Next 3Y8.98%
EPS Next 5Y9.19%
Revenue 1Y (TTM)8.27%
Revenue growth 3Y7.2%
Revenue growth 5Y10.08%
Sales Q2Q%15.67%
Revenue Next Year10.54%
Revenue Next 2Y8.26%
Revenue Next 3Y7.12%
Revenue Next 5Y5.84%
EBIT growth 1Y18.69%
EBIT growth 3Y13.25%
EBIT growth 5Y19.57%
EBIT Next Year27.58%
EBIT Next 3Y13.99%
EBIT Next 5Y12.15%
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 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 2 / 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 31.01 and the Price/Book (PB) ratio is 5.4.


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 7.7% in the next year.