WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis

NYSE:WTS • US9427491025

324.01 USD
-2.68 (-0.82%)
At close: Feb 23, 2026
324.01 USD
0 (0%)
After Hours: 2/23/2026, 5:16:23 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall WTS gets a fundamental rating of 7 out of 10. We evaluated WTS against 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 valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, WTS could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • WTS had positive earnings in the past year.
  • In the past year WTS had a positive cash flow from operations.
  • WTS had positive earnings in each of the past 5 years.
  • WTS had a positive operating cash flow in each of the past 5 years.
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 better Return On Assets (11.83%) than 86.92% 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 79.23% of the companies in the same industry.
  • The Return On Invested Capital of WTS (15.13%) is better than 88.46% of its industry peers.
  • WTS had an Average Return On Invested Capital over the past 3 years of 14.87%. This is above the industry average of 10.17%.
  • 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

  • WTS's Profit Margin of 13.98% is amongst the best of the industry. WTS outperforms 86.15% of its industry peers.
  • WTS's Profit Margin has improved in the last couple of years.
  • WTS has a Operating Margin of 19.35%. This is amongst the best in the industry. WTS outperforms 87.69% of its industry peers.
  • WTS's Operating Margin has improved in the last couple of years.
  • WTS has a Gross Margin of 49.46%. This is amongst the best in the industry. WTS outperforms 91.54% of its industry peers.
  • WTS's Gross Margin has improved in the last couple of years.
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. 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.
  • The number of shares outstanding for WTS remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for WTS has been reduced compared to 5 years ago.
  • The debt/assets ratio for WTS has been reduced compared to a year ago.
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 10.06 indicates that WTS is not in any danger for bankruptcy at the moment.
  • WTS has a Altman-Z score of 10.06. This is amongst the best in the industry. WTS outperforms 94.62% of its industry peers.
  • 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.
  • The Debt to FCF ratio of WTS (0.55) is better than 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 79.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF 0.55
Altman-Z 10.06
ROIC/WACC1.65
WACC9.19%
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.
  • The Current ratio of WTS (2.51) is better than 65.38% 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.
  • WTS's Quick ratio of 1.49 is fine compared to the rest of the industry. WTS outperforms 63.08% 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

5

3. Growth

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
  • WTS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.27%.
  • The Revenue has been growing by 10.08% on average over the past years. This is quite good.
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 9.19% yearly.
  • Based on estimates for the next years, WTS will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
EPS Next Y7.7%
EPS Next 2Y7.32%
EPS Next 3Y8.98%
EPS Next 5Y9.19%
Revenue Next Year10.54%
Revenue Next 2Y8.26%
Revenue Next 3Y7.12%
Revenue Next 5Y5.84%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 30.62, the valuation of WTS can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of WTS is on the same level as its industry peers.
  • WTS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.99.
  • With a Price/Forward Earnings ratio of 28.44, WTS can be considered very expensive at the moment.
  • WTS's Price/Forward 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/Forward Earnings ratio to 28.02, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 30.62
Fwd PE 28.44
WTS Price Earnings VS Forward Price EarningsWTS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WTS is on the same level as its industry peers.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as WTS.
Industry RankSector Rank
P/FCF 30.33
EV/EBITDA 20.22
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)3.98
PEG (5Y)1.38
EPS Next 2Y7.32%
EPS Next 3Y8.98%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.72%, WTS is not a good candidate for dividend investing.
  • WTS's Dividend Yield is comparable with the industry average which is at 1.18.
  • With a Dividend Yield of 0.72, WTS pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.72%

5.2 History

  • The dividend of WTS is nicely growing with an annual growth rate of 16.62%!
  • 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)16.62%
Div Incr Years12
Div Non Decr Years23
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.
  • WTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.63%
EPS Next 2Y7.32%
EPS Next 3Y8.98%
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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Find the best dividend stocksShow peers with best dividend

WATTS WATER TECHNOLOGIES-A

NYSE:WTS (2/23/2026, 5:16:23 PM)

After market: 324.01 0 (0%)

324.01

-2.68 (-0.82%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners101.65%
Inst Owner Change-1.93%
Ins Owners1.08%
Ins Owner Change-0.95%
Market Cap10.81B
Revenue(TTM)2.44B
Net Income(TTM)340.80M
Analysts70.59
Price Target301.02 (-7.1%)
Short Float %2.37%
Short Ratio3.39
Dividend
Industry RankSector Rank
Dividend Yield 0.72%
Yearly Dividend2.01
Dividend Growth(5Y)16.62%
DP19.63%
Div Incr Years12
Div Non Decr Years23
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)1.95%
PT rev (3m)3.75%
EPS NQ rev (1m)1.65%
EPS NQ rev (3m)3.5%
EPS NY rev (1m)0.08%
EPS NY rev (3m)6.87%
Revenue NQ rev (1m)2.91%
Revenue NQ rev (3m)4.84%
Revenue NY rev (1m)3.2%
Revenue NY rev (3m)9.56%
Valuation
Industry RankSector Rank
PE 30.62
Fwd PE 28.44
P/S 4.43
P/FCF 30.33
P/OCF 26.88
P/B 5.33
P/tB 12.36
EV/EBITDA 20.22
EPS(TTM)10.58
EY3.27%
EPS(NY)11.39
Fwd EY3.52%
FCF(TTM)10.68
FCFY3.3%
OCF(TTM)12.05
OCFY3.72%
SpS73.12
BVpS60.8
TBVpS26.21
PEG (NY)3.98
PEG (5Y)1.38
Graham Number120.31
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 250
Cash Conversion 76.05%
Profit Quality 104.55%
Current Ratio 2.51
Quick Ratio 1.49
Altman-Z 10.06
F-Score6
WACC9.19%
ROIC/WACC1.65
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 Y7.7%
EPS Next 2Y7.32%
EPS Next 3Y8.98%
EPS Next 5Y9.19%
Revenue 1Y (TTM)8.27%
Revenue growth 3Y7.2%
Revenue growth 5Y10.08%
Sales Q2Q%15.67%
Revenue Next Year10.54%
Revenue Next 2Y8.26%
Revenue Next 3Y7.12%
Revenue Next 5Y5.84%
EBIT growth 1Y18.69%
EBIT growth 3Y13.25%
EBIT growth 5Y19.57%
EBIT Next Year21.77%
EBIT Next 3Y13.11%
EBIT Next 5Y12.16%
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 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 of WATTS WATER TECHNOLOGIES-A (WTS) stock?

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.


What is the valuation of WATTS WATER TECHNOLOGIES-A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for WATTS WATER TECHNOLOGIES-A (WTS) is 30.62 and the Price/Book (PB) ratio is 5.33.


What is the earnings growth outlook for WATTS WATER TECHNOLOGIES-A?

The Earnings per Share (EPS) of WATTS WATER TECHNOLOGIES-A (WTS) is expected to grow by 7.7% in the next year.