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

NYSE:WTS • US9427491025

Current stock price

293.6 USD
-6.56 (-2.19%)
At close:
293.6 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

  • 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.
  • Each year in the past 5 years WTS had a positive operating cash flow.
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

  • WTS has a Return On Assets of 11.83%. This is amongst the best in the industry. WTS outperforms 88.55% of its industry peers.
  • Looking at the Return On Equity, with a value of 16.81%, WTS is in the better half of the industry, outperforming 79.39% of the companies in the same industry.
  • The Return On Invested Capital of WTS (15.13%) is better than 90.84% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for WTS is above the industry average of 10.06%.
  • 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

  • The Profit Margin of WTS (13.98%) is better than 87.02% of its industry peers.
  • In the last couple of years the Profit Margin of WTS has grown nicely.
  • WTS's Operating Margin of 19.35% is amongst the best of the industry. WTS outperforms 87.79% of its industry peers.
  • WTS's Operating Margin has improved in the last couple of years.
  • WTS has a better Gross Margin (49.46%) than 90.84% of its industry peers.
  • In the last couple of years the Gross Margin of WTS has grown nicely.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • 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.
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

  • An Altman-Z score of 9.29 indicates that WTS is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 9.29, WTS belongs to the top of the industry, outperforming 93.13% of the companies in the same industry.
  • 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 90.08% of the companies in the same industry.
  • 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 77.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF 0.55
Altman-Z 9.29
ROIC/WACC1.44
WACC10.52%
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

  • A Current Ratio of 2.51 indicates that WTS has no problem at all paying its short term obligations.
  • WTS has a better Current ratio (2.51) than 64.89% of its industry peers.
  • 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.
  • The Quick ratio of WTS (1.49) is better than 61.83% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. WTS Growth Analysis

3.1 Past

  • WTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.28%, which is quite good.
  • The Earnings Per Share has been growing by 22.15% on average over the past years. This is a very strong growth
  • Looking at the last year, WTS shows a quite strong growth in Revenue. The Revenue has grown by 8.27% in the last year.
  • WTS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.08% yearly.
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 10.13% yearly.
  • The Revenue is expected to grow by 6.95% on average over the next years.
EPS Next Y11.74%
EPS Next 2Y10.36%
EPS Next 3Y9.97%
EPS Next 5Y10.13%
Revenue Next Year10.79%
Revenue Next 2Y8.22%
Revenue Next 3Y7.12%
Revenue Next 5Y6.95%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • With a Price/Earnings ratio of 27.75, WTS can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of WTS is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of WTS to the average of the S&P500 Index (26.51), we can say WTS is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 24.83, WTS is valued on the expensive side.
  • The rest of the industry has a similar Price/Forward Earnings ratio as WTS.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.41, WTS is valued at the same level.
Industry RankSector Rank
PE 27.75
Fwd PE 24.83
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.
  • WTS's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 27.51
EV/EBITDA 18.15
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.
  • The excellent profitability rating of WTS may justify a higher PE ratio.
PEG (NY)2.36
PEG (5Y)1.25
EPS Next 2Y10.36%
EPS Next 3Y9.97%

More info and screens

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 0.68%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.12, WTS has a dividend in line with its industry peers.
  • With a Dividend Yield of 0.68, WTS pays less dividend than the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 0.68%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.62%
Div Incr Years13
Div Non Decr Years24
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

  • 19.63% of the earnings are spent on dividend by WTS. This is a low number and sustainable payout ratio.
  • The dividend of WTS is growing, but the earnings are growing slower. 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 (5/1/2026, 8:04:00 PM)

After market: 293.6 0 (0%)

293.6

-6.56 (-2.19%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Industry Strength57.76
Industry Growth54.66
Earnings (Last)02-11
Earnings (Next)05-06
Inst Owners100.76%
Inst Owner Change-0.2%
Ins Owners1.03%
Ins Owner Change-1.23%
Market Cap9.80B
Revenue(TTM)2.44B
Net Income(TTM)340.80M
Analysts68.24
Price Target340.88 (16.1%)
Short Float %2.64%
Short Ratio3.18
Dividend
Industry RankSector Rank
Dividend Yield 0.68%
Yearly Dividend2.01
Dividend Growth(5Y)16.62%
DP19.63%
Div Incr Years13
Div Non Decr Years24
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)-1.3%
PT rev (3m)15.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.83%
EPS NY rev (1m)0%
EPS NY rev (3m)3.84%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)3.33%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)3.43%
Valuation
Industry RankSector Rank
PE 27.75
Fwd PE 24.83
P/S 4.02
P/FCF 27.51
P/OCF 24.38
P/B 4.83
P/tB 11.21
EV/EBITDA 18.15
EPS(TTM)10.58
EY3.6%
EPS(NY)11.82
Fwd EY4.03%
FCF(TTM)10.67
FCFY3.64%
OCF(TTM)12.04
OCFY4.1%
SpS73.05
BVpS60.75
TBVpS26.19
PEG (NY)2.36
PEG (5Y)1.25
Graham Number120.252 (-59.04%)
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 9.29
F-Score6
WACC10.52%
ROIC/WACC1.44
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 5Y10.13%
Revenue 1Y (TTM)8.27%
Revenue growth 3Y7.2%
Revenue growth 5Y10.08%
Sales Q2Q%15.67%
Revenue Next Year10.79%
Revenue Next 2Y8.22%
Revenue Next 3Y7.12%
Revenue Next 5Y6.95%
EBIT growth 1Y18.69%
EBIT growth 3Y13.25%
EBIT growth 5Y19.57%
EBIT Next Year27.71%
EBIT Next 3Y14.08%
EBIT Next 5Y13.55%
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 for WTS stock?

ChartMill assigns a valuation rating of 3 / 10 to WATTS WATER TECHNOLOGIES-A (WTS). This can be considered as Overvalued.


Can you provide the profitability details for WATTS WATER TECHNOLOGIES-A?

WATTS WATER TECHNOLOGIES-A (WTS) has a profitability rating of 9 / 10.


What are the PE and PB ratios of WATTS WATER TECHNOLOGIES-A (WTS) stock?

The Price/Earnings (PE) ratio for WATTS WATER TECHNOLOGIES-A (WTS) is 27.75 and the Price/Book (PB) ratio is 4.83.


Is the dividend of WATTS WATER TECHNOLOGIES-A sustainable?

The dividend rating of WATTS WATER TECHNOLOGIES-A (WTS) is 5 / 10 and the dividend payout ratio is 19.63%.