WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTS - US9427491025 - Common Stock
277.81 USD
+7.43 (+2.75%)
277.81 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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WTS is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years WTS has always 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 86.92% of its industry peers.
Looking at the Return On Equity, with a value of 16.59%, WTS is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.86%, WTS belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WTS is above the industry average of 10.34%.
| 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 85.38% of the companies in the same industry.
In the last couple of years the Profit Margin of WTS has grown nicely.
WTS has a Operating Margin of 18.98%. This is amongst the best in the industry. WTS outperforms 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.
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
WTS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 9.52 indicates that WTS is not in any danger for bankruptcy at the moment.
WTS has a better Altman-Z score (9.52) than 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.
With an excellent Debt to FCF ratio value of 0.57, WTS belongs to the best 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 | 9.52 |
ROIC/WACC1.6
WACC9.31%
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.
A Quick Ratio of 1.84 indicates that WTS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.84, WTS is doing good in the industry, outperforming 73.85% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 4.18% in the past 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
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.
The Revenue is expected to grow by 5.08% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.75, the valuation of WTS can be described as expensive.
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 25.98, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.06 indicates a quite expensive valuation of WTS.
WTS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.79. WTS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 26.06 |
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.
WTS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.98 | ||
| EV/EBITDA | 17.44 |
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.
The excellent profitability rating of WTS may justify a higher PE ratio.
PEG (NY)2.36
PEG (5Y)1.65
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.
Compared to an average industry Dividend Yield of 1.97, 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 2.41.
| 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 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.
The dividend of WTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.65%
EPS Next 2Y9.64%
EPS Next 3Y8.28%
277.81
+7.43 (+2.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.99%
Inst Owner Change-1.59%
Ins Owners1.06%
Ins Owner Change0.84%
Market Cap9.27B
Revenue(TTM)2.35B
Net Income(TTM)324.70M
Analysts71.43
Price Target290.15 (4.44%)
Short Float %2.76%
Short Ratio4.75
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)4.08%
PT rev (3m)6.59%
EPS NQ rev (1m)11.64%
EPS NQ rev (3m)12.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)7.08%
Revenue NQ rev (3m)7.22%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 26.06 | ||
| P/S | 3.94 | ||
| P/FCF | 26.98 | ||
| P/OCF | 23.96 | ||
| P/B | 4.74 | ||
| P/tB | 9.98 | ||
| EV/EBITDA | 17.44 |
EPS(TTM)10.01
EY3.6%
EPS(NY)10.66
Fwd EY3.84%
FCF(TTM)10.3
FCFY3.71%
OCF(TTM)11.59
OCFY4.17%
SpS70.56
BVpS58.66
TBVpS27.84
PEG (NY)2.36
PEG (5Y)1.65
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 | 9.52 |
F-Score8
WACC9.31%
ROIC/WACC1.6
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 27.75 and the Price/Book (PB) ratio is 4.74.
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.