WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTS - US9427491025 - Common Stock
272.66 USD
-1.26 (-0.46%)
272.66 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to WTS. WTS was compared to 130 industry peers in the Machinery industry. WTS gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, WTS is valued expensive at the moment. With these ratings, WTS could be worth investigating further for quality investing!.
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.
Each year in the past 5 years WTS has been profitable.
WTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WTS (11.91%) is better than 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.
Looking at the Return On Invested Capital, with a value of 14.86%, WTS belongs to the top of the industry, outperforming 86.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
WTS has a better Profit Margin (13.79%) than 83.08% of its industry peers.
In the last couple of years the Profit Margin of WTS has grown nicely.
The Operating Margin of WTS (18.98%) is better than 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
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
WTS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.58 indicates that WTS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.58, WTS belongs to the best 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.
WTS's Debt to FCF ratio of 0.57 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.
WTS has a Debt to Equity ratio of 0.10. This is in the better half of the industry: WTS outperforms 79.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | 9.58 |
ROIC/WACC1.57
WACC9.44%
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.
WTS has a better Current ratio (2.83) 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 better Quick ratio (1.84) than 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.88% over the past year.
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.
Looking at the last year, WTS shows a small growth in Revenue. The Revenue has grown by 4.18% in the last year.
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.
WTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.12% yearly.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 27.24, the valuation of WTS can be described as expensive.
WTS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.49. WTS is around the same levels.
Based on the Price/Forward Earnings ratio of 24.17, the valuation of WTS can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WTS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of WTS to the average of the S&P500 Index (23.69), we can say WTS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.24 | ||
| Fwd PE | 24.17 |
4.2 Price Multiples
WTS's Enterprise Value to EBITDA is on the same level as 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.47 | ||
| EV/EBITDA | 17.58 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of WTS may justify a higher PE ratio.
PEG (NY)1.6
PEG (5Y)1.62
EPS Next 2Y12.78%
EPS Next 3Y10.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, WTS is not a good candidate for dividend investing.
WTS's Dividend Yield is comparable with the industry average which is at 1.84.
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 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
19.65% of the earnings are spent on dividend by WTS. This is a low number and 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%
272.66
-1.26 (-0.46%)
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 Cap9.09B
Revenue(TTM)2.35B
Net Income(TTM)324.70M
Analysts70.67
Price Target290.29 (6.47%)
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 | 27.24 | ||
| Fwd PE | 24.17 | ||
| P/S | 3.86 | ||
| P/FCF | 26.47 | ||
| P/OCF | 23.51 | ||
| P/B | 4.65 | ||
| P/tB | 9.79 | ||
| EV/EBITDA | 17.58 |
EPS(TTM)10.01
EY3.67%
EPS(NY)11.28
Fwd EY4.14%
FCF(TTM)10.3
FCFY3.78%
OCF(TTM)11.6
OCFY4.25%
SpS70.58
BVpS58.67
TBVpS27.85
PEG (NY)1.6
PEG (5Y)1.62
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 | 9.58 |
F-Score8
WACC9.44%
ROIC/WACC1.57
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 27.24 and the Price/Book (PB) ratio is 4.65.
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.