WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTS - US9427491025 - Common Stock
272.49 USD
+6.14 (+2.31%)
272.498 USD
0.01 (0%)
We assign a fundamental rating of 7 out of 10 to WTS. 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. While showing a medium growth rate, WTS is valued expensive at the moment.
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.
WTS had positive earnings in each of the past 5 years.
In the past 5 years WTS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.91%, WTS belongs to the top of the industry, outperforming 86.92% of the companies in the same industry.
With a decent Return On Equity value of 16.59%, WTS is doing good in the industry, outperforming 79.23% of the companies in the same industry.
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.
WTS had an Average Return On Invested Capital over the past 3 years of 14.98%. This is above the industry average of 10.24%.
| 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 85.38% of its industry peers.
WTS's Profit Margin has improved in the last couple of years.
WTS's Operating Margin of 18.98% is amongst the best of the industry. WTS outperforms 87.69% of its industry peers.
In the last couple of years the Operating Margin of WTS has grown nicely.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WTS 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
WTS has an Altman-Z score of 9.42. This indicates that WTS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.42, 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 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 has a better Debt to Equity ratio (0.10) than 79.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | 9.42 |
ROIC/WACC1.58
WACC9.4%
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 better Current ratio (2.83) than 74.62% of its industry peers.
A Quick Ratio of 1.84 indicates that WTS should not have too much problems paying its short term obligations.
The Quick ratio of WTS (1.84) is better than 73.85% 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.
WTS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.86% yearly.
WTS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.18%.
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
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.
WTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.08% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 27.22 indicates a quite expensive valuation of WTS.
WTS's Price/Earnings ratio is in line with the industry average.
WTS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.56 indicates a quite expensive valuation of WTS.
WTS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WTS is more expensive than 62.31% of the companies in the same industry.
WTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 25.56 |
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 | 26.46 | ||
| EV/EBITDA | 17.17 |
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)2.32
PEG (5Y)1.61
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 1.95, 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of WTS is nicely growing with an annual growth rate of 12.49%!
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
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 2Y9.64%
EPS Next 3Y8.28%
272.49
+6.14 (+2.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.99%
Inst Owner Change-1.57%
Ins Owners1.06%
Ins Owner Change1.32%
Market Cap9.09B
Revenue(TTM)2.35B
Net Income(TTM)324.70M
Analysts71.43
Price Target290.15 (6.48%)
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)0.63%
PT rev (3m)11.26%
EPS NQ rev (1m)8.6%
EPS NQ rev (3m)8.2%
EPS NY rev (1m)0%
EPS NY rev (3m)4.95%
Revenue NQ rev (1m)5.05%
Revenue NQ rev (3m)5.18%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 25.56 | ||
| P/S | 3.86 | ||
| P/FCF | 26.46 | ||
| P/OCF | 23.5 | ||
| P/B | 4.65 | ||
| P/tB | 9.79 | ||
| EV/EBITDA | 17.17 |
EPS(TTM)10.01
EY3.67%
EPS(NY)10.66
Fwd EY3.91%
FCF(TTM)10.3
FCFY3.78%
OCF(TTM)11.59
OCFY4.26%
SpS70.56
BVpS58.66
TBVpS27.84
PEG (NY)2.32
PEG (5Y)1.61
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 | 9.42 |
F-Score8
WACC9.4%
ROIC/WACC1.58
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 27.22 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 11.74% in the next year.