WATTS WATER TECHNOLOGIES-A (WTS) Fundamental Analysis & Valuation

NYSE:WTS • US9427491025

Current stock price

298.45 USD
+3.9 (+1.32%)
At close:
298.45 USD
0 (0%)
After Hours:

This WTS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. WTS Profitability Analysis

1.1 Basic Checks

  • WTS had positive earnings in the past year.
  • WTS had a positive operating cash flow in the past year.
  • 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.
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 88.55% of the companies in the same industry.
  • The Return On Equity of WTS (16.81%) is better than 77.86% of its industry peers.
  • The Return On Invested Capital of WTS (15.13%) is better than 90.84% 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 10.17%.
  • 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

  • WTS has a Profit Margin of 13.98%. This is amongst the best in the industry. WTS outperforms 84.73% of its industry peers.
  • In the last couple of years the Profit Margin of WTS has grown nicely.
  • Looking at the Operating Margin, with a value of 19.35%, WTS belongs to the top of the industry, outperforming 87.79% of the companies in the same industry.
  • In the last couple of years the Operating Margin of WTS has grown nicely.
  • WTS's Gross Margin of 49.46% is amongst the best of the industry. WTS outperforms 90.84% of its industry peers.
  • WTS's Gross Margin has improved in the last couple of years.
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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8

2. WTS Health Analysis

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.
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

  • WTS has an Altman-Z score of 9.31. This indicates that WTS is financially healthy and has little risk of bankruptcy at the moment.
  • WTS's Altman-Z score of 9.31 is amongst the best of the industry. WTS outperforms 93.89% 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.
  • Looking at the Debt to FCF ratio, with a value of 0.55, WTS belongs to the top of the industry, outperforming 90.84% 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 78.63% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF 0.55
Altman-Z 9.31
ROIC/WACC1.49
WACC10.12%
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.
  • With a decent Current ratio value of 2.51, WTS is doing good in the industry, outperforming 64.89% of the companies in the same industry.
  • 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.
  • WTS has a better Quick ratio (1.49) than 63.36% 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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6

3. WTS Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 19.28% over the past year.
  • WTS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.15% yearly.
  • WTS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.27%.
  • Measured over the past years, WTS shows a quite strong growth in Revenue. The Revenue has been growing by 10.08% on average per year.
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 10.54% yearly.
  • Based on estimates for the next years, WTS will show a small growth in Revenue. The Revenue will grow by 7.27% on average per year.
EPS Next Y11.74%
EPS Next 2Y10.36%
EPS Next 3Y9.97%
EPS Next 5Y10.54%
Revenue Next Year10.79%
Revenue Next 2Y8.24%
Revenue Next 3Y7.12%
Revenue Next 5Y7.27%

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 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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3

4. WTS Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 28.21 indicates a quite expensive valuation of WTS.
  • WTS's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 25.54. WTS is around the same levels.
  • The Price/Forward Earnings ratio is 25.24, which means the current valuation is very expensive for WTS.
  • WTS's Price/Forward Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, WTS is valued at the same level.
Industry RankSector Rank
PE 28.21
Fwd PE 25.24
WTS Price Earnings VS Forward Price EarningsWTS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • WTS's Enterprise Value to EBITDA ratio is in line with the industry average.
  • 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 RankSector Rank
P/FCF 27.93
EV/EBITDA 18.18
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 an expensive valuation of the company.
  • WTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.4
PEG (5Y)1.27
EPS Next 2Y10.36%
EPS Next 3Y9.97%

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

5

5. WTS Dividend Analysis

5.1 Amount

  • WTS has a yearly dividend return of 0.72%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.22, WTS has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, 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 paid a dividend for at least 10 years, which is 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

  • WTS pays out 19.63% 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.
DP19.63%
EPS Next 2Y10.36%
EPS Next 3Y9.97%
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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WTS Fundamentals: All Metrics, Ratios and Statistics

WATTS WATER TECHNOLOGIES-A

NYSE:WTS (3/24/2026, 4:10:03 PM)

After market: 298.45 0 (0%)

298.45

+3.9 (+1.32%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners100.78%
Inst Owner Change-1.96%
Ins Owners1.06%
Ins Owner Change-1.23%
Market Cap9.95B
Revenue(TTM)2.44B
Net Income(TTM)340.80M
Analysts70.59
Price Target334.99 (12.24%)
Short Float %2.46%
Short Ratio3.5
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)11.28%
PT rev (3m)15.4%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)3.44%
EPS NY rev (1m)3.76%
EPS NY rev (3m)4.78%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)4.61%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)4.71%
Valuation
Industry RankSector Rank
PE 28.21
Fwd PE 25.24
P/S 4.08
P/FCF 27.93
P/OCF 24.75
P/B 4.91
P/tB 11.38
EV/EBITDA 18.18
EPS(TTM)10.58
EY3.54%
EPS(NY)11.82
Fwd EY3.96%
FCF(TTM)10.69
FCFY3.58%
OCF(TTM)12.06
OCFY4.04%
SpS73.14
BVpS60.82
TBVpS26.22
PEG (NY)2.4
PEG (5Y)1.27
Graham Number120.32
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 47.66
Cash Conversion 76.05%
Profit Quality 104.55%
Current Ratio 2.51
Quick Ratio 1.49
Altman-Z 9.31
F-Score6
WACC10.12%
ROIC/WACC1.49
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 Y11.74%
EPS Next 2Y10.36%
EPS Next 3Y9.97%
EPS Next 5Y10.54%
Revenue 1Y (TTM)8.27%
Revenue growth 3Y7.2%
Revenue growth 5Y10.08%
Sales Q2Q%15.67%
Revenue Next Year10.79%
Revenue Next 2Y8.24%
Revenue Next 3Y7.12%
Revenue Next 5Y7.27%
EBIT growth 1Y18.69%
EBIT growth 3Y13.25%
EBIT growth 5Y19.57%
EBIT Next Year27.58%
EBIT Next 3Y13.99%
EBIT Next 5Y13.94%
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 Fundamental Analysis 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 28.21 and the Price/Book (PB) ratio is 4.91.


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 11.74% in the next year.