(WTS) Watts Water Technologies - Ratings and Ratios
FlowControl, HeatingSolutions, DrainageProducts, WaterReuse, PlumbingSystems
WTS EPS (Earnings per Share)
WTS Revenue
Description: WTS Watts Water Technologies
Watts Water Technologies Inc (NYSE:WTS) is a leading global supplier of systems, products, and solutions for managing and conserving fluid and energy flow in commercial, industrial, and residential markets. The company operates across multiple regions, including the Americas, Europe, Asia-Pacific, the Middle East, and Africa, offering a diverse range of products that cater to various applications.
The companys product portfolio includes residential and commercial flow control and protection products, heating, ventilation, and air conditioning (HVAC) and gas products, drainage and water re-use products, and water quality products. These products are designed to meet the needs of plumbing, heating, and mechanical wholesale distributors and dealers, original equipment manufacturers, specialty product distributors, and do-it-yourself and retail chains.
From a financial perspective, Watts Water Technologies has demonstrated a strong track record of performance. Key performance indicators (KPIs) such as Return on Equity (RoE) of 17.24% indicate a healthy level of profitability. The companys market capitalization stands at $8.27 billion, with a forward Price-to-Earnings (P/E) ratio of 27.86, suggesting a relatively stable valuation. Additionally, the companys dividend yield and payout ratio can be considered attractive for income-seeking investors.
To further evaluate the companys prospects, it is essential to analyze its revenue growth, profit margins, and cash flow generation. A review of the companys historical financial statements reveals a steady increase in revenue, driven by a combination of organic growth and strategic acquisitions. The companys ability to maintain a healthy level of profitability, as measured by its operating margin and net income margin, is also a positive indicator.
From a technical analysis perspective, Watts Water Technologies stock price has demonstrated a strong upward trend, with the stock currently trading near its 52-week high. The stocks Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators can provide further insights into the stocks momentum and potential future price movements.
WTS Stock Overview
| Market Cap in USD | 9,048m |
| Sub-Industry | Industrial Machinery & Supplies & Components |
| IPO / Inception | 1986-08-01 |
WTS Stock Ratings
| Growth Rating | 84.5% |
| Fundamental | 80.0% |
| Dividend Rating | 62.1% |
| Return 12m vs S&P 500 | 23.0% |
| Analyst Rating | 3.22 of 5 |
WTS Dividends
| Dividend Yield 12m | 0.77% |
| Yield on Cost 5y | 2.06% |
| Annual Growth 5y | 12.39% |
| Payout Consistency | 96.4% |
| Payout Ratio | 19.9% |
WTS Growth Ratios
| Growth Correlation 3m | 94.1% |
| Growth Correlation 12m | 76.8% |
| Growth Correlation 5y | 87.6% |
| CAGR 5y | 24.73% |
| CAGR/Max DD 5y | 0.56 |
| Sharpe Ratio 12m | 0.42 |
| Alpha | 29.60 |
| Beta | 0.844 |
| Volatility | 24.65% |
| Current Volume | 307.1k |
| Average Volume 20d | 199.7k |
| Stop Loss | 268.5 (-3%) |
| Signal | 0.00 |
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (311.5m TTM) > 0 and > 6% of Revenue (6% = 137.1m TTM) |
| FCFTA 0.12 (>2.0%) and ΔFCFTA -0.87pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 32.62% (prev 28.67%; Δ 3.95pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.13 (>3.0%) and CFO 355.1m > Net Income 311.5m (YES >=105%, WARN >=100%) |
| Net Debt (-172.0m) to EBITDA (470.5m) ratio: -0.37 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.59 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (33.5m) change vs 12m ago 0.0% (target <= -2.0% for YES) |
| Gross Margin 48.48% (prev 46.95%; Δ 1.53pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 90.92% (prev 93.15%; Δ -2.23pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 35.14 (EBITDA TTM 470.5m / Interest Expense TTM 11.8m) >= 6 (WARN >= 3) |
Altman Z'' 6.22
| (A) 0.28 = (Total Current Assets 1.21b - Total Current Liabilities 468.4m) / Total Assets 2.64b |
| (B) 0.49 = Retained Earnings (Balance) 1.31b / Total Assets 2.64b |
| (C) 0.16 = EBIT TTM 414.6m / Avg Total Assets 2.51b |
| (D) 1.57 = Book Value of Equity 1.18b / Total Liabilities 752.5m |
| Total Rating: 6.22 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 79.96
| 1. Piotroski 6.50pt = 1.50 |
| 2. FCF Yield 3.39% = 1.70 |
| 3. FCF Margin 13.86% = 3.47 |
| 4. Debt/Equity 0.35 = 2.44 |
| 5. Debt/Ebitda 1.41 = 1.11 |
| 6. ROIC - WACC 7.38% = 9.23 |
| 7. RoE 17.64% = 1.47 |
| 8. Rev. Trend 80.75% = 4.04 |
| 9. Rev. CAGR 10.61% = 1.33 |
| 10. EPS Trend 60.30% = 1.51 |
| 11. EPS CAGR 21.77% = 2.18 |
What is the price of WTS shares?
Over the past week, the price has changed by -1.13%, over one month by +9.87%, over three months by +14.60% and over the past year by +43.83%.
Is Watts Water Technologies a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of WTS is around 317.13 USD . This means that WTS is currently undervalued and has a potential upside of +14.53% (Margin of Safety).
Is WTS a buy, sell or hold?
- Strong Buy: 1
- Buy: 0
- Hold: 8
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the WTS price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 272.8 | -1.5% |
| Analysts Target Price | 230.8 | -16.6% |
| ValueRay Target Price | 353.7 | 27.7% |
Last update: 2025-08-23 05:05
WTS Fundamental Data Overview
CCE Cash And Equivalents = 369.3m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 29.13
P/E Forward = 29.4118
P/S = 3.9584
P/B = 4.8703
P/EG = 3.6756
Beta = 1.129
Revenue TTM = 2.29b USD
EBIT TTM = 414.6m USD
EBITDA TTM = 470.5m USD
Long Term Debt = 197.3m USD (from longTermDebt, last quarter)
Short Term Debt = 468.4m USD (from totalCurrentLiabilities, last quarter)
Debt = 665.7m USD (Calculated: Short Term 468.4m + Long Term 197.3m)
Net Debt = -172.0m USD (from netDebt column, last quarter)
Enterprise Value = 9.34b USD (9.05b + Debt 665.7m - CCE 369.3m)
Interest Coverage Ratio = 35.14 (Ebit TTM 414.6m / Interest Expense TTM 11.8m)
FCF Yield = 3.39% (FCF TTM 316.9m / Enterprise Value 9.34b)
FCF Margin = 13.86% (FCF TTM 316.9m / Revenue TTM 2.29b)
Net Margin = 13.63% (Net Income TTM 311.5m / Revenue TTM 2.29b)
Gross Margin = 48.48% ((Revenue TTM 2.29b - Cost of Revenue TTM 1.18b) / Revenue TTM)
Tobins Q-Ratio = 7.89 (Enterprise Value 9.34b / Book Value Of Equity 1.18b)
Interest Expense / Debt = 0.41% (Interest Expense 2.70m / Debt 665.7m)
Taxrate = 24.56% (from yearly Income Tax Expense: 94.8m / 386.0m)
NOPAT = 312.8m (EBIT 414.6m * (1 - 24.56%))
Current Ratio = 2.59 (Total Current Assets 1.21b / Total Current Liabilities 468.4m)
Debt / Equity = 0.35 (Debt 665.7m / last Quarter total Stockholder Equity 1.89b)
Debt / EBITDA = 1.41 (Net Debt -172.0m / EBITDA 470.5m)
Debt / FCF = 2.10 (Debt 665.7m / FCF TTM 316.9m)
Total Stockholder Equity = 1.77b (last 4 quarters mean)
RoA = 11.78% (Net Income 311.5m, Total Assets 2.64b )
RoE = 17.64% (Net Income TTM 311.5m / Total Stockholder Equity 1.77b)
RoCE = 21.12% (Ebit 414.6m / (Equity 1.77b + L.T.Debt 197.3m))
RoIC = 15.91% (NOPAT 312.8m / Invested Capital 1.97b)
WACC = 8.53% (E(9.05b)/V(9.71b) * Re(9.13%)) + (D(665.7m)/V(9.71b) * Rd(0.41%) * (1-Tc(0.25)))
Shares Correlation 5-Years: -70.70 | Cagr: -0.30%
Discount Rate = 9.13% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 77.72% ; FCFE base≈312.6m ; Y1≈379.0m ; Y5≈621.4m
Fair Price DCF = 316.6 (DCF Value 8.68b / Shares Outstanding 27.4m; 5y FCF grow 22.70% → 3.0% )
Revenue Correlation: 80.75 | Revenue CAGR: 10.61%
Rev Growth-of-Growth: -4.32
EPS Correlation: 60.30 | EPS CAGR: 21.77%
EPS Growth-of-Growth: 9.43
Additional Sources for WTS Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle