WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTS - US9427491025 - Common Stock
287.44 USD
+1.11 (+0.39%)
287.44 USD
0 (0%)
Taking everything into account, WTS scores 7 out of 10 in our fundamental rating. WTS was compared to 132 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 quite expensive at the moment. 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.
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 85.61% of its industry peers.
WTS has a better Return On Equity (16.59%) than 77.27% of its industry peers.
WTS's Return On Invested Capital of 14.86% is amongst the best of the industry. WTS outperforms 87.88% of its industry peers.
WTS had an Average Return On Invested Capital over the past 3 years of 14.98%. This is above the industry average of 10.22%.
| 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
With an excellent Profit Margin value of 13.79%, WTS belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
WTS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.98%, WTS belongs to the top 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.
WTS has a Gross Margin of 48.83%. This is amongst the best in the industry. WTS outperforms 91.67% 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.
Compared to 1 year ago, WTS has about the same amount of shares outstanding.
The number of shares outstanding for WTS has been reduced compared to 5 years ago.
Compared to 1 year ago, WTS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.94 indicates that WTS is not in any danger for bankruptcy at the moment.
WTS's Altman-Z score of 9.94 is amongst the best of the industry. WTS outperforms 91.67% of its industry peers.
The Debt to FCF ratio of WTS is 0.57, which is an excellent value as it means it would take WTS, only 0.57 years of fcf income to pay off 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 90.91% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that WTS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.10, WTS is doing good in 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 | 9.94 |
ROIC/WACC1.54
WACC9.65%
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 Current ratio of 2.83. This is in the better half of the industry: WTS outperforms 74.24% 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 75.00% 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.
The Earnings Per Share has been growing by 16.86% on average over the past years. This is quite good.
Looking at the last year, WTS shows a small growth in Revenue. The Revenue has grown by 4.18% in the last 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
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 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
A Price/Earnings ratio of 28.72 indicates a quite expensive valuation of WTS.
The rest of the industry has a similar Price/Earnings ratio as WTS.
WTS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 25.42 indicates a quite expensive valuation of WTS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WTS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, WTS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 25.42 |
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 | 27.91 | ||
| EV/EBITDA | 18.49 |
4.3 Compensation for Growth
WTS's 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)1.69
PEG (5Y)1.7
EPS Next 2Y12.92%
EPS Next 3Y11%
5. Dividend
5.1 Amount
WTS has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 0.85, WTS has a dividend in line with its industry peers.
With a Dividend Yield of 0.74, WTS pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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 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
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 2Y12.92%
EPS Next 3Y11%
287.44
+1.11 (+0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.65%
Inst Owner Change0%
Ins Owners1.08%
Ins Owner Change0.73%
Market Cap9.59B
Revenue(TTM)2.35B
Net Income(TTM)324.70M
Analysts70
Price Target292.26 (1.68%)
Short Float %3.07%
Short Ratio4.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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)4.83%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)11.25%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)4.7%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)7.34%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 25.42 | ||
| P/S | 4.07 | ||
| P/FCF | 27.91 | ||
| P/OCF | 24.78 | ||
| P/B | 4.9 | ||
| P/tB | 10.32 | ||
| EV/EBITDA | 18.49 |
EPS(TTM)10.01
EY3.48%
EPS(NY)11.31
Fwd EY3.93%
FCF(TTM)10.3
FCFY3.58%
OCF(TTM)11.6
OCFY4.03%
SpS70.58
BVpS58.67
TBVpS27.85
PEG (NY)1.69
PEG (5Y)1.7
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 | 9.94 |
F-Score8
WACC9.65%
ROIC/WACC1.54
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 28.72 and the Price/Book (PB) ratio is 4.9.
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.