WTS Stock Analysis: Watts Water Technologies | NYSE

Specialty Industrial Machinery | NYSE, USA | Market Cap: 12.120m USD | 12M Return: 24.7% | US9427491025 | Charts, Fundamentals & Technical Analysis

Flow Control, HVAC Systems, Drainage Solutions, Water Quality
Total Rating 75
Safety 86
Buy Signal 0.47
Specialty Industrial Machinery
Industry Rotation: +6.4
Market Cap: 12.1B
Avg Turnover: 65.9M
Risk 3d forecast
Volatility28.5%
VaR 5th Pctl4.64%
VaR vs Median-1.04%
Reward TTM
Sharpe Ratio0.79
Rel. Str. IBD71.4
Rel. Str. Peer Group74.8
Character TTM
Beta0.893
Beta Downside0.595
Hurst Exponent0.554
Drawdowns 3y
Max DD19.54%
CAGR/Max DD1.30
CAGR/Mean DD4.43
EPS (Earnings per Share) EPS (Earnings per Share) of WTS over the last years for every Quarter: "2021-09": 1.39, "2021-12": 1.42, "2022-03": 1.63, "2022-06": 2.11, "2022-09": 1.79, "2022-12": 1.6, "2023-03": 1.92, "2023-06": 2.34, "2023-09": 2.04, "2023-12": 1.97, "2024-03": 2.33, "2024-06": 2.46, "2024-09": 2.03, "2024-12": 2.05, "2025-03": 2.37, "2025-06": 3.09, "2025-09": 2.5, "2025-12": 2.62, "2026-03": 3.04, "2026-06": 3.66,
EPS CAGR: 14.18%
EPS Trend: 95.9%
Last SUE: 2.40
Qual. Beats: 7
Revenue Revenue of WTS over the last years for every Quarter: 2021-09: 455, 2021-12: 473.9, 2022-03: 463.2, 2022-06: 526.6, 2022-09: 487.8, 2022-12: 501.9, 2023-03: 471.7, 2023-06: 532.8, 2023-09: 504.3, 2023-12: 547.5, 2024-03: 570.9, 2024-06: 597.3, 2024-09: 543.6, 2024-12: 540.4, 2025-03: 558, 2025-06: 643.7, 2025-09: 611.7, 2025-12: 625.1, 2026-03: 677.3, 2026-06: 763.2,
Rev. CAGR: 9.21%
Rev. Trend: 95.9%
Last SUE: 4.00
Qual. Beats: 6

Warnings

Below Avwap Earnings

Tailwinds

Confidence

Seasonality 11.7 years of data

Jan +0.0% 7
Feb +2.4% 11
Mar -2.8% 23
Apr -1.2% 8
May +1.4% 20
Jun -0.1% 7
Jul +3.9% 35
Aug +1.7% 8
Sep -1.1% 16
Oct -2.2% 24
Nov +6.8% 44
Dec -1.1% 17

How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.

Description: WTS Watts Water Technologies

Watts Water Technologies (NYSE: WTS) is a global manufacturer of products and solutions that manage and conserve the flow of fluids and energy in residential, commercial, and industrial buildings. The company operates across three primary product lines: flow control and protection products (such as backflow preventers, pressure regulators, and leak detection systems); heating, ventilation, air conditioning, and gas products (including boilers, water heaters, and hydronic heating systems); and drainage and water re-use products (encompassing rainwater harvesting, roof drain systems, and water quality solutions).

The company distributes its products through multiple channels, including plumbing, heating, and mechanical wholesale distributors and dealers, original equipment manufacturers, specialty distributors, and DIY and retail chains, with operations spanning the Americas, Europe, Asia-Pacific, the Middle East, and Africa. Headquartered in North Andover, Massachusetts, Watts Water is classified within the Industrials sector under the Industrial Machinery & Supplies & Components sub-industry, and has a long operating history dating back to its founding in 1874.

Headlines to Watch Out For
  • EPA lead and copper rule revisions accelerate water safety replacement demand
  • European construction weakness pressures EMEA segment revenue and margins
  • Data center buildout drives commercial HVAC and boiler segment growth
Piotroski VR-10 (Strict) 6.5
Net Income: 383.8m TTM > 0 and > 6% of Revenue
FCF/TA: 0.12 > 0.02 and ΔFCF/TA -0.14 > 1.0
NWC/Revenue: 31.83% < 20% (prev 32.62%; Δ -0.79% < -1%)
CFO/TA 0.13 > 3% & CFO 397.9m > Net Income 383.8m
Net Debt (-239.9m) to EBITDA (606.9m): -0.40 < 3
Current Ratio: 2.66 > 1.5 & < 3
Outstanding Shares: last quarter (33.5m) vs 12m ago 0.0% < -2%
Gross Margin: 48.85% > 18% (prev 48.48%; Δ 0.37% > 0.5%)
Asset Turnover: 95.68% > 50% (prev 86.42%; Δ 9.26% > 0%)
Interest Coverage Ratio: 50.73 > 6 (EBIT TTM 517.4m / Interest Expense TTM 10.2m)
Altman Z'' 7.91
A: 0.29 (Total Current Assets 1.37b - Total Current Liabilities 513.3m) / Total Assets 2.95b
B: 0.54 (Retained Earnings 1.59b / Total Assets 2.95b)
C: 0.18 (EBIT TTM 517.4m / Avg Total Assets 2.80b)
D: 2.87 (Book Value of Equity 2.19b / Total Liabilities 762.1m)
Altman-Z'' = 7.91 = AAA
Beneish M -2.90
DSRI: 1.02 (Receivables 404.4m/337.5m, Revenue 2.68b/2.29b)
GMI: 0.99 (GM 48.48% / 48.85%)
AQI: 0.99 (AQ_t 0.44 / AQ_t-1 0.44)
SGI: 1.17 (Revenue 2.68b / 2.29b)
TATA: -0.00 (NI 383.8m - CFO 397.9m) / TA 2.95b)
Beneish M = -2.90 (Cap -4..+1) = A
What is the price of WTS shares?

As of October 09, 2026, the stock is trading at USD 347.14 with a total of 262,113 shares traded. Over the past week, the price has changed by -3.44%, over one month by -3.83%, over three months by -0.09% and over the past year by +24.71%.

Current recommended Stop Loss: 336.70 (which is 3% or 1.2 ATR below the current price).

Is WTS a buy, sell or hold?

Watts Water Technologies has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold WTS.

  • StrongBuy: 2
  • Buy: 1
  • Hold: 7
  • Sell: 0
  • StrongSell: 0

What are the forecasts/targets for the WTS price?
Analysts Target Price 404 16.4%
Watts Water Technologies (WTS) - Fundamental Data Overview as of 05 October 2026
Market Cap USD = 12.1b (12.1b USD * 1.0 USD.USD)
P/E Trailing = 31.3532
P/E Forward = 25.3165
P/S = 4.5273
P/B = 5.4284
P/EG = 3.1618
Revenue TTM = 2.68b USD
EBIT TTM = 517.4m USD
EBITDA TTM = 606.9m USD
Long Term Debt = 108.0m USD (from longTermDebt, last quarter)
 Short Term Debt = unknown (none)
 Debt = 108.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -239.9m USD (calculated: Debt 108.0m - CCE 347.9m)
Enterprise Value = 11.9b USD (12.1b + Debt 108.0m - CCE 347.9m)
Interest Coverage Ratio = 50.73 (Ebit TTM 517.4m / Interest Expense TTM 10.2m)
EV/FCF = 34.00x (Enterprise Value 11.9b / FCF TTM 349.4m)
FCF Yield = 2.94% (FCF TTM 349.4m / Enterprise Value 11.9b)
FCF Margin = 13.05% (FCF TTM 349.4m / Revenue TTM 2.68b)
Net Margin = 14.34% (Net Income TTM 383.8m / Revenue TTM 2.68b)
Gross Margin = 48.85% ((Revenue TTM 2.68b - Cost of Revenue TTM 1.37b) / Revenue TTM)
Gross Margin QoQ = 49.02% (prev 48.15%)
Tobins Q-Ratio = 4.03 (Enterprise Value 11.9b / Total Assets 2.95b)
Interest Expense / Debt = 9.44% (Interest Expense 10.2m / Debt 108.0m)
Taxrate = 24.64% (125.5m / 509.3m)
NOPAT = 389.9m (EBIT 517.4m * (1 - 24.64%))
Current Ratio = 2.66 (Total Current Assets 1.37b / Total Current Liabilities 513.3m)
Debt / Equity = 0.05 (Debt 108.0m / totalStockholderEquity, last quarter 2.19b)
Debt / EBITDA = -0.40 (Net Debt -239.9m / EBITDA 606.9m)
Debt / FCF = -0.69 (Net Debt -239.9m / FCF TTM 349.4m)
Total Stockholder Equity = 2.07b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.72% (Net Income 383.8m / Total Assets 2.95b)
RoE = 18.56% (Net Income TTM 383.8m / Total Stockholder Equity 2.07b)
RoCE = 23.78% (EBIT 517.4m / Capital Employed (Equity 2.07b + L.T.Debt 108.0m))
RoIC = 16.92% (NOPAT 389.9m / Invested Capital 2.30b)
WACC = 9.10% (E(12.1b)/V(12.2b) * Re(9.12%) + D(108.0m)/V(12.2b) * Rd(9.44%) * (1-Tc(0.25)))
Discount Rate = 9.12% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -29.01 | Cagr: 0.0%
[DCF] Terminal Value 74.19% ; FCFF base≈336.4m ; Y1≈366.4m ; Y5≈456.7m
[DCF] Fair Price = 233.8 (EV 6.18b - Net Debt -239.9m = Equity 6.42b / Shares 27.5m; r=9.10% [WACC]; 5y FCF grow 10.26% → 2.50% )
EPS Correlation: 95.89 | EPS CAGR: 14.18% | SUE: 2.40 | # QB: 7
Revenue Correlation: 95.92 | Revenue CAGR: 9.21% | SUE: 4.0 | # QB: 6
EPS current Quarter (2026-09-30): EPS=3.14 | Chg30d=-0.13% | Revisions=+75% | Analysts=8
EPS current Year (2026-12-31): EPS=12.70 | Chg30d=-1.21% | Revisions=+75% | GrowthEPS=+20.1% | GrowthRev=+16.0%
EPS next Year (2027-12-31): EPS=14.04 | Chg30d=-0.36% | Revisions=+75% | GrowthEPS=+10.5% | GrowthRev=+5.8%
[Analyst] Revisions Ratio: +90% (up=27, down=0)