(WTS) Watts Water Technologies - Overview
Stock: Valves, Backflow Preventers, Radiant Heating, Water Filtration, Drainage
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.79% |
| Yield on Cost 5y | 1.60% |
| Yield CAGR 5y | 18.48% |
| Payout Consistency | 97.0% |
| Payout Ratio | 25.0% |
| Risk 5d forecast | |
|---|---|
| Volatility | 26.9% |
| Relative Tail Risk | -9.98% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.54 |
| Alpha | 41.65 |
| Character TTM | |
|---|---|
| Beta | 0.917 |
| Beta Downside | 0.806 |
| Drawdowns 3y | |
|---|---|
| Max DD | 19.54% |
| CAGR/Max DD | 1.19 |
Description: WTS Watts Water Technologies January 06, 2026
Watts Water Technologies (NYSE: WTS) designs, manufactures, and distributes fluid-control and energy-management solutions for residential, commercial, and industrial buildings across the Americas, Europe, APAC, the Middle East, and Africa. Its product portfolio spans backflow preventers, pressure regulators, thermostatic mixing valves, leak-detection systems, HVAC and gas equipment (including commercial boilers and under-floor radiant heating), and water-reuse technologies such as rain-water harvesting and filtration units.
In FY 2023 the company reported roughly $1.2 billion in revenue with an adjusted EBITDA margin of about 12%, reflecting steady demand for code-driven safety products and growing interest in water-conservation solutions.
Key macro drivers include rising global infrastructure spending (U.S. federal and state building-retrofit programs are projected to exceed $150 billion over the next five years) and tightening plumbing codes that mandate backflow protection and water-quality treatment, both of which favor Watts’ product lines.
Sector-specific trends such as the increasing adoption of sustainable building certifications (LEED, WELL) and the surge in rain-water harvesting projects-estimated to grow at a 6-7 % CAGR worldwide-provide additional tailwinds for the company’s drainage and reuse segment.
For a deeper dive into WTS’s valuation metrics and peer comparisons, you might explore the analysis on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income: 324.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA 0.20 > 1.0 |
| NWC/Revenue: 36.11% < 20% (prev 28.69%; Δ 7.43% < -1%) |
| CFO/TA 0.14 > 3% & CFO 386.8m > Net Income 324.7m |
| Net Debt (-260.2m) to EBITDA (501.3m): -0.52 < 3 |
| Current Ratio: 2.83 > 1.5 & < 3 |
| Outstanding Shares: last quarter (33.5m) vs 12m ago 0.0% < -2% |
| Gross Margin: 48.83% > 18% (prev 0.47%; Δ 4836 % > 0.5%) |
| Asset Turnover: 91.86% > 50% (prev 94.17%; Δ -2.31% > 0%) |
| Interest Coverage Ratio: 39.68 > 6 (EBITDA TTM 501.3m / Interest Expense TTM 10.9m) |
Altman Z'' 6.52
| A: 0.31 (Total Current Assets 1.31b - Total Current Liabilities 463.9m) / Total Assets 2.73b |
| B: 0.50 (Retained Earnings 1.37b / Total Assets 2.73b) |
| C: 0.17 (EBIT TTM 432.5m / Avg Total Assets 2.56b) |
| D: 1.62 (Book Value of Equity 1.24b / Total Liabilities 768.6m) |
| Altman-Z'' Score: 6.52 = AAA |
Beneish M -3.27
| DSRI: 1.07 (Receivables 323.9m/291.6m, Revenue 2.35b/2.26b) |
| GMI: 0.97 (GM 48.83% / 47.14%) |
| AQI: 0.54 (AQ_t 0.24 / AQ_t-1 0.45) |
| SGI: 1.04 (Revenue 2.35b / 2.26b) |
| TATA: -0.02 (NI 324.7m - CFO 386.8m) / TA 2.73b) |
| Beneish M-Score: -3.27 (Cap -4..+1) = AA |
What is the price of WTS shares?
Over the past week, the price has changed by +6.65%, over one month by +12.25%, over three months by +21.35% and over the past year by +55.35%.
Is WTS a buy, sell or hold?
- StrongBuy: 1
- Buy: 0
- Hold: 8
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the WTS price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 301.6 | -5.5% |
| Analysts Target Price | 301.6 | -5.5% |
| ValueRay Target Price | 405.3 | 27% |
WTS Fundamental Data Overview February 07, 2026
P/E Forward = 27.1739
P/S = 4.5233
P/B = 5.2634
P/EG = 3.3949
Revenue TTM = 2.35b USD
EBIT TTM = 432.5m USD
EBITDA TTM = 501.3m USD
Long Term Debt = 197.5m USD (from longTermDebt, last quarter)
Short Term Debt = 13.7m USD (from shortTermDebt, last fiscal year)
Debt = 197.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -260.2m USD (from netDebt column, last quarter)
Enterprise Value = 10.39b USD (10.65b + Debt 197.5m - CCE 457.7m)
Interest Coverage Ratio = 39.68 (Ebit TTM 432.5m / Interest Expense TTM 10.9m)
EV/FCF = 30.24x (Enterprise Value 10.39b / FCF TTM 343.5m)
FCF Yield = 3.31% (FCF TTM 343.5m / Enterprise Value 10.39b)
FCF Margin = 14.59% (FCF TTM 343.5m / Revenue TTM 2.35b)
Net Margin = 13.79% (Net Income TTM 324.7m / Revenue TTM 2.35b)
Gross Margin = 48.83% ((Revenue TTM 2.35b - Cost of Revenue TTM 1.20b) / Revenue TTM)
Gross Margin QoQ = 48.78% (prev 50.63%)
Tobins Q-Ratio = 3.81 (Enterprise Value 10.39b / Total Assets 2.73b)
Interest Expense / Debt = 1.37% (Interest Expense 2.70m / Debt 197.5m)
Taxrate = 25.95% (28.8m / 111.0m)
NOPAT = 320.3m (EBIT 432.5m * (1 - 25.95%))
Current Ratio = 2.83 (Total Current Assets 1.31b / Total Current Liabilities 463.9m)
Debt / Equity = 0.10 (Debt 197.5m / totalStockholderEquity, last quarter 1.96b)
Debt / EBITDA = -0.52 (Net Debt -260.2m / EBITDA 501.3m)
Debt / FCF = -0.76 (Net Debt -260.2m / FCF TTM 343.5m)
Total Stockholder Equity = 1.83b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.67% (Net Income 324.7m / Total Assets 2.73b)
RoE = 17.72% (Net Income TTM 324.7m / Total Stockholder Equity 1.83b)
RoCE = 21.31% (EBIT 432.5m / Capital Employed (Equity 1.83b + L.T.Debt 197.5m))
RoIC = 15.78% (NOPAT 320.3m / Invested Capital 2.03b)
WACC = 9.14% (E(10.65b)/V(10.84b) * Re(9.29%) + D(197.5m)/V(10.84b) * Rd(1.37%) * (1-Tc(0.26)))
Discount Rate = 9.29% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 0.0 | Cagr: 0.0%
[DCF Debug] Terminal Value 77.38% ; FCFF base≈325.1m ; Y1≈394.2m ; Y5≈645.0m
Fair Price DCF = 333.4 (EV 8.88b - Net Debt -260.2m = Equity 9.14b / Shares 27.4m; r=9.14% [WACC]; 5y FCF grow 22.70% → 2.90% )
EPS Correlation: -13.81 | EPS CAGR: -44.36% | SUE: -4.0 | # QB: 0
Revenue Correlation: 85.18 | Revenue CAGR: 7.04% | SUE: 3.56 | # QB: 3
EPS next Quarter (2026-03-31): EPS=2.64 | Chg30d=+0.016 | Revisions Net=+2 | Analysts=8
EPS next Year (2026-12-31): EPS=11.28 | Chg30d=+0.085 | Revisions Net=+6 | Growth EPS=+9.5% | Growth Revenue=+7.3%