WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTS - US9427491025 - Common Stock
279.85 USD
-1.21 (-0.43%)
279.85 USD
0 (0%)
Taking everything into account, WTS scores 7 out of 10 in our fundamental rating. WTS was compared to 130 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making WTS a very profitable company, without any liquidiy or solvency issues. WTS is quite expensive at the moment. It does show a decent growth rate. These ratings could make WTS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year WTS was profitable.
WTS had a positive operating cash flow in the past year.
In the past 5 years WTS has always been profitable.
WTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.91%, WTS belongs to the best of the industry, outperforming 85.38% of the companies in the same industry.
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 87.69% of the companies in the same industry.
WTS had an Average Return On Invested Capital over the past 3 years of 14.98%. This is above the industry average of 10.32%.
| 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's Profit Margin of 13.79% is amongst the best of the industry. WTS outperforms 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.
In the last couple of years the Operating Margin of WTS has grown nicely.
WTS has a better Gross Margin (48.83%) than 90.77% of its industry peers.
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.
WTS has about the same amout of shares outstanding than it did 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
WTS has an Altman-Z score of 9.80. This indicates that WTS is financially healthy and has little risk of bankruptcy at the moment.
WTS's Altman-Z score of 9.80 is amongst the best of the industry. WTS outperforms 93.85% 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.
WTS has a Debt to FCF ratio of 0.57. This is amongst the best in 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's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. WTS outperforms 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | 9.8 |
ROIC/WACC1.55
WACC9.58%
2.3 Liquidity
A Current Ratio of 2.83 indicates that WTS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.83, WTS is in the better half of the industry, outperforming 73.85% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.84, WTS is in the better half of the industry, outperforming 74.62% of the companies in the same industry.
| 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.
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
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.
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
The Price/Earnings ratio is 27.96, which means the current valuation is very expensive for WTS.
Compared to the rest of the industry, the Price/Earnings ratio of WTS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.38, WTS is valued at the same level.
With a Price/Forward Earnings ratio of 24.80, WTS is valued on the expensive side.
WTS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WTS to the average of the S&P500 Index (23.83), we can say WTS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.96 | ||
| Fwd PE | 24.8 |
4.2 Price Multiples
WTS's Enterprise Value to EBITDA is on the same level as the industry average.
WTS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.17 | ||
| EV/EBITDA | 18.14 |
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)1.64
PEG (5Y)1.66
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 1.00.
With a Dividend Yield of 0.76, WTS pays less dividend than the S&P500 average, which is at 1.87.
| 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.
The dividend of WTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.65%
EPS Next 2Y12.78%
EPS Next 3Y10.97%
279.85
-1.21 (-0.43%)
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 Cap9.33B
Revenue(TTM)2.35B
Net Income(TTM)324.70M
Analysts70.67
Price Target290.29 (3.73%)
Short Float %3.27%
Short Ratio5.52
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)5.01%
EPS NQ rev (1m)2.74%
EPS NQ rev (3m)11.1%
EPS NY rev (1m)4.75%
EPS NY rev (3m)5.11%
Revenue NQ rev (1m)2.11%
Revenue NQ rev (3m)7.27%
Revenue NY rev (1m)3%
Revenue NY rev (3m)3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.96 | ||
| Fwd PE | 24.8 | ||
| P/S | 3.97 | ||
| P/FCF | 27.17 | ||
| P/OCF | 24.13 | ||
| P/B | 4.77 | ||
| P/tB | 10.05 | ||
| EV/EBITDA | 18.14 |
EPS(TTM)10.01
EY3.58%
EPS(NY)11.28
Fwd EY4.03%
FCF(TTM)10.3
FCFY3.68%
OCF(TTM)11.6
OCFY4.14%
SpS70.58
BVpS58.67
TBVpS27.85
PEG (NY)1.64
PEG (5Y)1.66
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 | 9.8 |
F-Score8
WACC9.58%
ROIC/WACC1.55
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 27.96 and the Price/Book (PB) ratio is 4.77.
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.