WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - NYSE:WTS - US9427491025 - Common Stock
278.55 USD
+0.03 (+0.01%)
278.55 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to WTS. WTS was compared to 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. While showing a medium growth rate, WTS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WTS had positive earnings in the past year.
WTS had a positive operating cash flow in the past year.
Each year in the past 5 years WTS has been profitable.
Each year in the past 5 years WTS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.78%, WTS belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
WTS has a Return On Equity of 16.47%. This is in the better half of the industry: WTS outperforms 79.23% of its industry peers.
WTS has a better Return On Invested Capital (14.92%) than 87.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WTS is above the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.78% | ||
| ROE | 16.47% | ||
| ROIC | 14.92% |
ROA(3y)12.17%
ROA(5y)10.41%
ROE(3y)17.9%
ROE(5y)15.7%
ROIC(3y)14.98%
ROIC(5y)13.71%
1.3 Margins
With an excellent Profit Margin value of 13.63%, WTS belongs to the best of the industry, outperforming 85.38% of the companies in the same industry.
In the last couple of years the Profit Margin of WTS has grown nicely.
WTS has a better Operating Margin (18.88%) than 87.69% of its industry peers.
In the last couple of years the Operating Margin of WTS has grown nicely.
The Gross Margin of WTS (48.48%) is better than 90.77% of its industry peers.
In the last couple of years the Gross Margin of WTS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.88% | ||
| PM (TTM) | 13.63% | ||
| GM | 48.48% |
OM growth 3Y7.25%
OM growth 5Y7.01%
PM growth 3Y12.18%
PM growth 5Y9.49%
GM growth 3Y3.61%
GM growth 5Y2.18%
2. Health
2.1 Basic Checks
WTS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WTS has about the same amout of shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 9.84 indicates that WTS is not in any danger for bankruptcy at the moment.
WTS has a better Altman-Z score (9.84) than 93.08% of its industry peers.
WTS has a debt to FCF ratio of 0.62. This is a very positive value and a sign of high solvency as it would only need 0.62 years to pay back of all of its debts.
WTS's Debt to FCF ratio of 0.62 is amongst the best of the industry. WTS outperforms 90.00% 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 has a better Debt to Equity ratio (0.10) than 77.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.62 | ||
| Altman-Z | 9.84 |
ROIC/WACC1.59
WACC9.39%
2.3 Liquidity
A Current Ratio of 2.59 indicates that WTS has no problem at all paying its short term obligations.
WTS has a Current ratio of 2.59. This is in the better half of the industry: WTS outperforms 67.69% of its industry peers.
WTS has a Quick Ratio of 1.63. 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 1.63 is fine compared to the rest of the industry. WTS outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.41% over the past year.
The Earnings Per Share has been growing by 16.86% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.96% in the past year.
WTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.07% yearly.
EPS 1Y (TTM)8.41%
EPS 3Y17.06%
EPS 5Y16.86%
EPS Q2Q%25.61%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%7.77%
3.2 Future
Based on estimates for the next years, WTS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.61% on average per year.
Based on estimates for the next years, WTS will show a small growth in Revenue. The Revenue will grow by 5.08% on average per year.
EPS Next Y11.74%
EPS Next 2Y9.64%
EPS Next 3Y8.28%
EPS Next 5Y8.61%
Revenue Next Year4.18%
Revenue Next 2Y4.27%
Revenue Next 3Y4.13%
Revenue Next 5Y5.08%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.20, the valuation of WTS can be described as expensive.
WTS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of WTS to the average of the S&P500 Index (26.91), we can say WTS is valued inline with the index average.
A Price/Forward Earnings ratio of 26.12 indicates a quite expensive valuation of WTS.
WTS's Price/Forward Earnings is on the same level as the industry average.
WTS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.2 | ||
| Fwd PE | 26.12 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WTS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.32 | ||
| EV/EBITDA | 18.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.49
PEG (5Y)1.73
EPS Next 2Y9.64%
EPS Next 3Y8.28%
5. Dividend
5.1 Amount
WTS has a yearly dividend return of 0.75%, which is pretty low.
WTS's Dividend Yield is comparable with the industry average which is at 1.80.
With a Dividend Yield of 0.75, WTS pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
On average, the dividend of WTS grows each year by 12.49%, which is quite nice.
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)12.49%
Div Incr Years12
Div Non Decr Years23
5.3 Sustainability
19.51% of the earnings are spent on dividend by WTS. This is a low number and sustainable payout ratio.
The dividend of WTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.51%
EPS Next 2Y9.64%
EPS Next 3Y8.28%
278.55
+0.03 (+0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.99%
Inst Owner Change0.13%
Ins Owners1.06%
Ins Owner Change-0.69%
Market Cap9.29B
Revenue(TTM)2.29B
Net Income(TTM)311.60M
Analysts71.43
Price Target278.78 (0.08%)
Short Float %2.73%
Short Ratio4.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend1.67
Dividend Growth(5Y)12.49%
DP19.51%
Div Incr Years12
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.13%
Min EPS beat(2)10.75%
Max EPS beat(2)15.5%
EPS beat(4)4
Avg EPS beat(4)8.44%
Min EPS beat(4)1.22%
Max EPS beat(4)15.5%
EPS beat(8)8
Avg EPS beat(8)8.48%
EPS beat(12)12
Avg EPS beat(12)9.65%
EPS beat(16)16
Avg EPS beat(16)10.87%
Revenue beat(2)2
Avg Revenue beat(2)2.54%
Min Revenue beat(2)0.9%
Max Revenue beat(2)4.19%
Revenue beat(4)2
Avg Revenue beat(4)0.99%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)4.19%
Revenue beat(8)6
Avg Revenue beat(8)1.22%
Revenue beat(12)9
Avg Revenue beat(12)0.98%
Revenue beat(16)13
Avg Revenue beat(16)1.81%
PT rev (1m)0.84%
PT rev (3m)11.69%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)2.57%
EPS NY rev (1m)0.34%
EPS NY rev (3m)4.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.2 | ||
| Fwd PE | 26.12 | ||
| P/S | 4.07 | ||
| P/FCF | 29.32 | ||
| P/OCF | 26.17 | ||
| P/B | 4.91 | ||
| P/tB | 10.82 | ||
| EV/EBITDA | 18.71 |
EPS(TTM)9.54
EY3.42%
EPS(NY)10.66
Fwd EY3.83%
FCF(TTM)9.5
FCFY3.41%
OCF(TTM)10.64
OCFY3.82%
SpS68.52
BVpS56.73
TBVpS25.73
PEG (NY)2.49
PEG (5Y)1.73
Graham Number110.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.78% | ||
| ROE | 16.47% | ||
| ROCE | 19.83% | ||
| ROIC | 14.92% | ||
| ROICexc | 17.96% | ||
| ROICexgc | 41.98% | ||
| OM | 18.88% | ||
| PM (TTM) | 13.63% | ||
| GM | 48.48% | ||
| FCFM | 13.86% |
ROA(3y)12.17%
ROA(5y)10.41%
ROE(3y)17.9%
ROE(5y)15.7%
ROIC(3y)14.98%
ROIC(5y)13.71%
ROICexc(3y)18.57%
ROICexc(5y)16.78%
ROICexgc(3y)44.6%
ROICexgc(5y)41.23%
ROCE(3y)19.91%
ROCE(5y)18.23%
ROICexgc growth 3Y4.4%
ROICexgc growth 5Y1.57%
ROICexc growth 3Y5.14%
ROICexc growth 5Y6.09%
OM growth 3Y7.25%
OM growth 5Y7.01%
PM growth 3Y12.18%
PM growth 5Y9.49%
GM growth 3Y3.61%
GM growth 5Y2.18%
F-Score8
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.62 | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 68.34% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 40.72 | ||
| Cash Conversion | 72.84% | ||
| Profit Quality | 101.7% | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 9.84 |
F-Score8
WACC9.39%
ROIC/WACC1.59
Cap/Depr(3y)68.09%
Cap/Depr(5y)71.53%
Cap/Sales(3y)1.48%
Cap/Sales(5y)1.76%
Profit Quality(3y)99.01%
Profit Quality(5y)110.38%
High Growth Momentum
Growth
EPS 1Y (TTM)8.41%
EPS 3Y17.06%
EPS 5Y16.86%
EPS Q2Q%25.61%
EPS Next Y11.74%
EPS Next 2Y9.64%
EPS Next 3Y8.28%
EPS Next 5Y8.61%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%7.77%
Revenue Next Year4.18%
Revenue Next 2Y4.27%
Revenue Next 3Y4.13%
Revenue Next 5Y5.08%
EBIT growth 1Y13.7%
EBIT growth 3Y15.37%
EBIT growth 5Y14.57%
EBIT Next Year25.35%
EBIT Next 3Y12.02%
EBIT Next 5Y10.86%
FCF growth 1Y25.26%
FCF growth 3Y28.35%
FCF growth 5Y14.6%
OCF growth 1Y27%
OCF growth 3Y25.93%
OCF growth 5Y13.23%
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.
Can you provide the valuation status for WATTS WATER TECHNOLOGIES-A?
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.
Can you provide the PE and PB ratios for WTS stock?
The Price/Earnings (PE) ratio for WATTS WATER TECHNOLOGIES-A (WTS) is 29.2 and the Price/Book (PB) ratio is 4.91.
Can you provide the expected EPS growth for WTS stock?
The Earnings per Share (EPS) of WATTS WATER TECHNOLOGIES-A (WTS) is expected to grow by 11.74% in the next year.