WATTS WATER TECHNOLOGIES-A (WTS)
US9427491025 - Common Stock
WTS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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.
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.
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
The Return On Assets of WTS (11.65%) is better than 84.62% of its industry peers.
Looking at the Return On Equity, with a value of 16.54%, WTS is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
WTS has a Return On Invested Capital of 15.43%. This is amongst the best in the industry. WTS outperforms 86.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WTS is above the industry average of 11.13%.
The last Return On Invested Capital (15.43%) for WTS is above the 3 year average (15.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.65% | ||
| ROE | 16.54% | ||
| ROIC | 15.43% |
ROA(3y)11.1%
ROA(5y)9.5%
ROE(3y)16.93%
ROE(5y)14.98%
ROIC(3y)15.03%
ROIC(5y)13.56%
1.3 Margins
WTS has a Profit Margin of 12.37%. This is amongst the best in the industry. WTS outperforms 83.08% of its industry peers.
In the last couple of years the Profit Margin of WTS has grown nicely.
WTS has a Operating Margin of 17.27%. This is amongst the best in the industry. WTS outperforms 82.31% of its industry peers.
WTS's Operating Margin has improved in the last couple of years.
The Gross Margin of WTS (47.14%) is better than 86.92% of its industry peers.
WTS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.27% | ||
| PM (TTM) | 12.37% | ||
| GM | 47.14% |
OM growth 3Y10.65%
OM growth 5Y7.18%
PM growth 3Y18.93%
PM growth 5Y9.28%
GM growth 3Y4.07%
GM growth 5Y2.18%
2. Health
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.
The number of shares outstanding for WTS has been reduced compared to 5 years ago.
WTS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.20 indicates that WTS is not in any danger for bankruptcy at the moment.
The Altman-Z score of WTS (8.20) is better than 89.23% of its industry peers.
WTS has a debt to FCF ratio of 0.71. This is a very positive value and a sign of high solvency as it would only need 0.71 years to pay back of all of its debts.
The Debt to FCF ratio of WTS (0.71) is better than 91.54% of its industry peers.
WTS has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
WTS's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. WTS outperforms 76.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 8.2 |
ROIC/WACC1.72
WACC8.95%
2.3 Liquidity
WTS has a Current Ratio of 2.55. This indicates that WTS is financially healthy and has no problem in meeting its short term obligations.
WTS's Current ratio of 2.55 is fine compared to the rest of the industry. WTS outperforms 68.46% of its industry peers.
A Quick Ratio of 1.55 indicates that WTS should not have too much problems paying its short term obligations.
The Quick ratio of WTS (1.55) is better than 68.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
WTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.27%, which is quite good.
Measured over the past years, WTS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.20% on average per year.
The Revenue has grown by 12.36% in the past year. This is quite good.
Measured over the past years, WTS shows a small growth in Revenue. The Revenue has been growing by 5.61% on average per year.
EPS 1Y (TTM)11.27%
EPS 3Y28.58%
EPS 5Y17.2%
EPS Q2Q%-0.49%
Revenue 1Y (TTM)12.36%
Revenue growth 3Y10.88%
Revenue growth 5Y5.61%
Sales Q2Q%7.79%
3.2 Future
Based on estimates for the next years, WTS will show a small growth in Earnings Per Share. The EPS will grow by 6.39% on average per year.
WTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
EPS Next Y6.72%
EPS Next 2Y4.59%
EPS Next 3Y5.66%
EPS Next 5Y6.39%
Revenue Next Year10.18%
Revenue Next 2Y5.77%
Revenue Next 3Y5.18%
Revenue Next 5Y5.29%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
WTS is valuated rather expensively with a Price/Earnings ratio of 23.30.
WTS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.37. WTS is around the same levels.
WTS is valuated rather expensively with a Price/Forward Earnings ratio of 22.64.
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 23.85, WTS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.3 | ||
| Fwd PE | 22.64 |
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 ratio is a bit cheaper when compared to the industry. WTS is cheaper than 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.95 | ||
| EV/EBITDA | 15.1 |
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.
WTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.47
PEG (5Y)1.35
EPS Next 2Y4.59%
EPS Next 3Y5.66%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, WTS is not a good candidate for dividend investing.
WTS's Dividend Yield is comparable with the industry average which is at 1.71.
With a Dividend Yield of 0.85, WTS pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
The dividend of WTS is nicely growing with an annual growth rate of 10.94%!
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)10.94%
Div Incr Years12
Div Non Decr Years23
5.3 Sustainability
WTS pays out 19.04% 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.
DP19.04%
EPS Next 2Y4.59%
EPS Next 3Y5.66%
WATTS WATER TECHNOLOGIES-A
NYSE:WTS (12/24/2024, 1:10:00 PM)
After market: 204.81 0 (0%)204.81
+1.12 (+0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.93%
Inst Owner Change4.16%
Ins Owners1.09%
Ins Owner Change-6.25%
Market Cap6.83B
Analysts69.23
Price Target205.22 (0.2%)
Short Float %3.33%
Short Ratio6.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Dividend Growth(5Y)10.94%
DP19.04%
Div Incr Years12
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.88%
Min EPS beat(2)1.22%
Max EPS beat(2)4.53%
EPS beat(4)4
Avg EPS beat(4)6.2%
Min EPS beat(4)1.22%
Max EPS beat(4)9.7%
EPS beat(8)8
Avg EPS beat(8)8.62%
EPS beat(12)12
Avg EPS beat(12)11.21%
EPS beat(16)16
Avg EPS beat(16)11.94%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)0.31%
Revenue beat(4)3
Avg Revenue beat(4)1.17%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)3.3%
Revenue beat(8)6
Avg Revenue beat(8)0.77%
Revenue beat(12)10
Avg Revenue beat(12)1.71%
Revenue beat(16)14
Avg Revenue beat(16)2.66%
PT rev (1m)3.31%
PT rev (3m)4.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.82%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.3 | ||
| Fwd PE | 22.64 | ||
| P/S | 3.02 | ||
| P/FCF | 22.95 | ||
| P/OCF | 20.59 | ||
| P/B | 4.04 | ||
| P/tB | 9.45 | ||
| EV/EBITDA | 15.1 |
EPS(TTM)8.79
EY4.29%
EPS(NY)9.05
Fwd EY4.42%
FCF(TTM)8.93
FCFY4.36%
OCF(TTM)9.95
OCFY4.86%
SpS67.79
BVpS50.68
TBVpS21.67
PEG (NY)3.47
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.65% | ||
| ROE | 16.54% | ||
| ROCE | 19.69% | ||
| ROIC | 15.43% | ||
| ROICexc | 18.23% | ||
| ROICexgc | 43.03% | ||
| OM | 17.27% | ||
| PM (TTM) | 12.37% | ||
| GM | 47.14% | ||
| FCFM | 13.17% |
ROA(3y)11.1%
ROA(5y)9.5%
ROE(3y)16.93%
ROE(5y)14.98%
ROIC(3y)15.03%
ROIC(5y)13.56%
ROICexc(3y)18.44%
ROICexc(5y)16.48%
ROICexgc(3y)44.52%
ROICexgc(5y)42.23%
ROCE(3y)19.18%
ROCE(5y)17.31%
ROICexcg growth 3Y9.83%
ROICexcg growth 5Y2.42%
ROICexc growth 3Y12.77%
ROICexc growth 5Y5.66%
OM growth 3Y10.65%
OM growth 5Y7.18%
PM growth 3Y18.93%
PM growth 5Y9.28%
GM growth 3Y4.07%
GM growth 5Y2.18%
F-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 63.79% | ||
| Cap/Sales | 1.5% | ||
| Interest Coverage | 27.87 | ||
| Cash Conversion | 74.75% | ||
| Profit Quality | 106.48% | ||
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 8.2 |
F-Score5
WACC8.95%
ROIC/WACC1.72
Cap/Depr(3y)66.19%
Cap/Depr(5y)71.09%
Cap/Sales(3y)1.45%
Cap/Sales(5y)1.81%
Profit Quality(3y)92.71%
Profit Quality(5y)113.06%
High Growth Momentum
Growth
EPS 1Y (TTM)11.27%
EPS 3Y28.58%
EPS 5Y17.2%
EPS Q2Q%-0.49%
EPS Next Y6.72%
EPS Next 2Y4.59%
EPS Next 3Y5.66%
EPS Next 5Y6.39%
Revenue 1Y (TTM)12.36%
Revenue growth 3Y10.88%
Revenue growth 5Y5.61%
Sales Q2Q%7.79%
Revenue Next Year10.18%
Revenue Next 2Y5.77%
Revenue Next 3Y5.18%
Revenue Next 5Y5.29%
EBIT growth 1Y12.61%
EBIT growth 3Y22.69%
EBIT growth 5Y13.19%
EBIT Next Year24.73%
EBIT Next 3Y10.76%
EBIT Next 5Y9.41%
FCF growth 1Y183.6%
FCF growth 3Y14.96%
FCF growth 5Y16.18%
OCF growth 1Y150.76%
OCF growth 3Y10.75%
OCF growth 5Y12.91%