WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTS - US9427491025 - Common Stock
271.12 USD
-1.54 (-0.56%)
271.12 USD
0 (0%)
Overall WTS gets a fundamental rating of 7 out of 10. We evaluated WTS against 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 valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, WTS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year WTS was profitable.
In the past year WTS had a positive cash flow from operations.
Each year in the past 5 years WTS has been profitable.
Each year in the past 5 years WTS had a positive operating cash flow.
1.2 Ratios
WTS's Return On Assets of 11.91% is amongst the best of the industry. WTS outperforms 85.38% of its industry peers.
WTS has a Return On Equity of 16.59%. This is in the better half of the industry: WTS outperforms 76.92% of its industry peers.
WTS's Return On Invested Capital of 14.86% is amongst the best of 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 10.46%.
| 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
The Profit Margin of WTS (13.79%) is better than 83.08% of its industry peers.
WTS's Profit Margin has improved in the last couple of years.
WTS has a Operating Margin of 18.98%. This is amongst the best in the industry. WTS outperforms 86.92% of its industry peers.
WTS's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 48.83%, 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 | 18.98% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WTS is 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
The debt/assets ratio for WTS has been reduced compared to a year ago.
2.2 Solvency
WTS has an Altman-Z score of 9.54. This indicates that WTS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.54, WTS belongs to the top of the industry, outperforming 93.08% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.57, WTS belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
WTS has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.10, WTS is doing good in the industry, outperforming 79.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | 9.54 |
ROIC/WACC1.56
WACC9.52%
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.
The Current ratio of WTS (2.83) is better than 73.85% 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.
WTS has a Quick ratio of 1.84. This is in the better half of the industry: WTS outperforms 74.62% 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
The Earnings Per Share is expected to grow by 11.03% on average over the next years. This is quite good.
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 Y17.05%
EPS Next 2Y12.78%
EPS Next 3Y10.97%
EPS Next 5Y11.03%
Revenue Next Year7.44%
Revenue Next 2Y6.77%
Revenue Next 3Y6.09%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.08, WTS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WTS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.34. WTS is around the same levels.
WTS is valuated rather expensively with a Price/Forward Earnings ratio of 24.03.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WTS is on the same level as its industry peers.
WTS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.08 | ||
| Fwd PE | 24.03 |
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 | 26.32 | ||
| EV/EBITDA | 17.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)1.61
EPS Next 2Y12.78%
EPS Next 3Y10.97%
5. Dividend
5.1 Amount
WTS has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 1.84, WTS has a dividend in line with its industry peers.
With a Dividend Yield of 0.76, WTS pays less dividend than the S&P500 average, which is at 2.31.
| 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 paid a dividend for at least 10 years, which is 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 2Y12.78%
EPS Next 3Y10.97%
271.12
-1.54 (-0.56%)
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 Change0.83%
Market Cap9.04B
Revenue(TTM)2.35B
Net Income(TTM)324.70M
Analysts70.67
Price Target290.29 (7.07%)
Short Float %2.76%
Short Ratio4.9
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)3.48%
PT rev (3m)6.65%
EPS NQ rev (1m)2.74%
EPS NQ rev (3m)11.17%
EPS NY rev (1m)4.75%
EPS NY rev (3m)5.11%
Revenue NQ rev (1m)2.11%
Revenue NQ rev (3m)7.4%
Revenue NY rev (1m)3%
Revenue NY rev (3m)3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.08 | ||
| Fwd PE | 24.03 | ||
| P/S | 3.84 | ||
| P/FCF | 26.32 | ||
| P/OCF | 23.38 | ||
| P/B | 4.62 | ||
| P/tB | 9.74 | ||
| EV/EBITDA | 17.48 |
EPS(TTM)10.01
EY3.69%
EPS(NY)11.28
Fwd EY4.16%
FCF(TTM)10.3
FCFY3.8%
OCF(TTM)11.6
OCFY4.28%
SpS70.58
BVpS58.67
TBVpS27.85
PEG (NY)1.59
PEG (5Y)1.61
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 | 9.54 |
F-Score8
WACC9.52%
ROIC/WACC1.56
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 Y17.05%
EPS Next 2Y12.78%
EPS Next 3Y10.97%
EPS Next 5Y11.03%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%12.53%
Revenue Next Year7.44%
Revenue Next 2Y6.77%
Revenue Next 3Y6.09%
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.
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 27.08 and the Price/Book (PB) ratio is 4.62.
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 17.05% in the next year.