(WTS) Watts Water Technologies - NYSE
Sector: Industrials | Industry: Specialty Industrial Machinery | Exchange: NYSE (USA) | Market Cap: 11.320m USD | Total Return: 40.9% in 12m
Avg Turnover: 104M
EPS Trend: 96.3%
Qual. Beats: 13
Rev. Trend: 96.7%
Qual. Beats: 5
Warnings
Fakeout
Tailwinds
No distinct edge detected
Watts Water Technologies (WTS) designs and manufactures fluid management solutions for commercial, industrial, and residential applications. Its extensive product portfolio includes backflow preventers, pressure regulators, HVAC boilers, and water quality systems. The company operates globally, distributing products through wholesale channels, original equipment manufacturers (OEMs), and retail chains.
The company functions within the highly fragmented building products sector, where demand is driven by both new construction cycles and mandatory repair-and-replace requirements for aging infrastructure. As a manufacturer in the industrial machinery space, Watts Water Technologies relies on a business model centered on technical specifications and regulatory compliance standards for plumbing and safety equipment. For further analysis of these fundamentals, reviewing the latest metrics on ValueRay may provide additional clarity. Established in 1874, the firm maintains a significant presence across the Americas, Europe, and the Asia-Pacific region.
- Commercial construction activity levels dictate demand for high-margin flow control solutions
- Stringent water conservation and safety regulations drive product replacement cycles
- Residential repair and remodel spending influences volume through wholesale and retail channels
- Strategic acquisitions in smart water technology expand digital product margins and market share
- Fluctuations in copper and brass raw material costs impact manufacturing operating margins
| Net Income: 366.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -2.64 > 1.0 |
| NWC/Revenue: 33.31% < 20% (prev 29.38%; Δ 3.93% < -1%) |
| CFO/TA 0.12 > 3% & CFO 364.7m > Net Income 366.4m |
| Net Debt (-176.9m) to EBITDA (572.7m): -0.31 < 3 |
| Current Ratio: 2.72 > 1.5 & < 3 |
| Outstanding Shares: last quarter (33.5m) vs 12m ago 0.0% < -2% |
| Gross Margin: 49.25% > 18% (prev 47.65%; Δ 1.60% > 0.5%) |
| Asset Turnover: 94.03% > 50% (prev 89.55%; Δ 4.48% > 0%) |
| Interest Coverage Ratio: 46.82 > 6 (EBIT TTM 501.0m / Interest Expense TTM 10.7m) |
| A: 0.29 (Total Current Assets 1.35b - Total Current Liabilities 496.0m) / Total Assets 2.94b |
| B: 0.51 (Retained Earnings 1.50b / Total Assets 2.94b) |
| C: 0.18 (EBIT TTM 501.0m / Avg Total Assets 2.72b) |
| D: 2.49 (Book Value of Equity 2.10b / Total Liabilities 843.5m) |
| Altman-Z'' = 7.41 = AAA |
| DSRI: 1.09 (Receivables 374.4m/301.1m, Revenue 2.56b/2.24b) |
| GMI: 0.97 (GM 47.65% / 49.25%) |
| AQI: 0.61 (AQ_t 0.28 / AQ_t-1 0.45) |
| SGI: 1.14 (Revenue 2.56b / 2.24b) |
| TATA: 0.00 (NI 366.4m - CFO 364.7m) / TA 2.94b) |
| Beneish M = -3.11 (Cap -4..+1) = AA |
As of June 19, 2026, the stock is trading at USD 336.32 with a total of 468,713 shares traded.
Over the past week, the price has changed by +7.33%,
over one month by +11.61%,
over three months by +11.87% and
over the past year by +40.86%.
Watts Water Technologies has received a consensus analysts rating of 3.33. Therefore, it is recommended to hold WTS.
- StrongBuy: 2
- Buy: 0
- Hold: 10
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 333.1 | -1% |
P/E Trailing = 30.4856
P/E Forward = 29.0698
P/S = 4.4255
P/B = 5.3086
P/EG = 3.6321
Revenue TTM = 2.56b USD
EBIT TTM = 501.0m USD
EBITDA TTM = 572.7m USD
Long Term Debt = 197.8m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 197.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -176.9m USD (calculated: Debt 197.8m - CCE 374.7m)
Enterprise Value = 11.1b USD (11.3b + Debt 197.8m - CCE 374.7m)
Interest Coverage Ratio = 46.82 (Ebit TTM 501.0m / Interest Expense TTM 10.7m)
EV/FCF = 35.12x (Enterprise Value 11.1b / FCF TTM 317.3m)
FCF Yield = 2.85% (FCF TTM 317.3m / Enterprise Value 11.1b)
FCF Margin = 12.41% (FCF TTM 317.3m / Revenue TTM 2.56b)
Net Margin = 14.32% (Net Income TTM 366.4m / Revenue TTM 2.56b)
Gross Margin = 49.25% ((Revenue TTM 2.56b - Cost of Revenue TTM 1.30b) / Revenue TTM)
Gross Margin QoQ = 48.15% (prev 49.46%)
Tobins Q-Ratio = 3.79 (Enterprise Value 11.1b / Total Assets 2.94b)
Interest Expense / Debt = 5.41% (Interest Expense 10.7m / Debt 197.8m)
Taxrate = 25.27% (123.9m / 490.3m)
NOPAT = 374.4m (EBIT 501.0m * (1 - 25.27%))
Current Ratio = 2.72 (Total Current Assets 1.35b / Total Current Liabilities 496.0m)
Debt / Equity = 0.09 (Debt 197.8m / totalStockholderEquity, last quarter 2.10b)
Debt / EBITDA = -0.31 (Net Debt -176.9m / EBITDA 572.7m)
Debt / FCF = -0.56 (Net Debt -176.9m / FCF TTM 317.3m)
Total Stockholder Equity = 1.99b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.47% (Net Income 366.4m / Total Assets 2.94b)
RoE = 18.38% (Net Income TTM 366.4m / Total Stockholder Equity 1.99b)
RoCE = 22.87% (EBIT 501.0m / Capital Employed (Equity 1.99b + L.T.Debt 197.8m))
RoIC = 16.17% (NOPAT 374.4m / Invested Capital 2.32b)
WACC = 8.35% (E(11.3b)/V(11.5b) * Re(8.43%) + D(197.8m)/V(11.5b) * Rd(5.41%) * (1-Tc(0.25)))
Discount Rate = 8.43% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -34.78 | Cagr: 0.0%
[DCF] Terminal Value 74.64% ; FCFF base≈324.7m ; Y1≈311.0m ; Y5≈299.6m
[DCF] Fair Price = 177.7 (EV 4.70b - Net Debt -176.9m = Equity 4.88b / Shares 27.5m; r=8.35% [WACC]; 5y FCF grow -5.54% → 2.50% )
EPS Correlation: 96.30 | EPS CAGR: 12.94% | SUE: 3.15 | # QB: 13
Revenue Correlation: 96.66 | Revenue CAGR: 8.35% | SUE: 3.13 | # QB: 5
EPS current Quarter (2026-06-30): EPS=3.32 | Chg30d=+0.11% | Revisions=-14% | Analysts=10
EPS next Quarter (2026-09-30): EPS=2.82 | Chg30d=-2.09% | Revisions=-14% | Analysts=10
EPS current Year (2026-12-31): EPS=11.94 | Chg30d=+1.94% | Revisions=+50% | GrowthEPS=+12.9% | GrowthRev=+12.0%
EPS next Year (2027-12-31): EPS=13.01 | Chg30d=+1.80% | Revisions=+50% | GrowthEPS=+9.0% | GrowthRev=+5.1%
[Analyst] Revisions Ratio: +50%