WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
NYSE:WTS - US9427491025 - Common Stock
281.02 USD
+0.45 (+0.16%)
281.02 USD
0 (0%)
Overall WTS gets a fundamental rating of 6 out of 10. We evaluated WTS against 127 industry peers in the Machinery industry. WTS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WTS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WTS was profitable.
WTS had a positive operating cash flow in the past year.
Each year in the past 5 years WTS has been profitable.
In the past 5 years WTS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.78%, WTS belongs to the best of the industry, outperforming 86.61% of the companies in the same industry.
With a decent Return On Equity value of 16.47%, WTS is doing good in the industry, outperforming 77.17% of the companies in the same industry.
WTS has a better Return On Invested Capital (14.92%) than 85.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WTS is above the industry average of 10.48%.
| 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
WTS has a Profit Margin of 13.63%. This is amongst the best in the industry. WTS outperforms 82.68% of its industry peers.
WTS's Profit Margin has improved in the last couple of years.
WTS has a Operating Margin of 18.88%. This is amongst the best in the industry. WTS outperforms 86.61% of its industry peers.
WTS's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 48.48%, WTS belongs to the best of the industry, outperforming 91.34% of the companies in the same industry.
WTS's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WTS is still creating some value.
The number of shares outstanding for WTS remains at a similar level compared to 1 year ago.
The number of shares outstanding for WTS has been reduced compared to 5 years ago.
WTS has a better debt/assets ratio than last year.
2.2 Solvency
WTS has an Altman-Z score of 9.90. This indicates that WTS is financially healthy and has little risk of bankruptcy at the moment.
WTS's Altman-Z score of 9.90 is amongst the best of the industry. WTS outperforms 92.13% 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.
Looking at the Debt to FCF ratio, with a value of 0.62, WTS belongs to the top of the industry, outperforming 88.98% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that WTS is not too dependend on debt financing.
WTS has a Debt to Equity ratio of 0.10. This is in the better half of the industry: WTS outperforms 75.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.62 | ||
| Altman-Z | 9.9 |
ROIC/WACC1.51
WACC9.85%
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 69.29% of its industry peers.
A Quick Ratio of 1.63 indicates that WTS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.63, WTS is in the better half of the industry, outperforming 70.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
WTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.41%, which is quite good.
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.
Measured over the past years, WTS shows a small growth in Revenue. The Revenue has been growing by 7.07% on average per year.
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.
WTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.08% yearly.
EPS Next Y11.36%
EPS Next 2Y9.31%
EPS Next 3Y8.28%
EPS Next 5Y8.61%
Revenue Next Year4.01%
Revenue Next 2Y4.16%
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
The Price/Earnings ratio is 29.46, which means the current valuation is very expensive for WTS.
WTS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.03, WTS is valued at the same level.
The Price/Forward Earnings ratio is 26.51, which means the current valuation is very expensive for WTS.
Based on the Price/Forward Earnings ratio, WTS is valued a bit more expensive than 60.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, WTS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.46 | ||
| Fwd PE | 26.51 |
4.2 Price Multiples
WTS's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as WTS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.58 | ||
| EV/EBITDA | 18.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WTS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of WTS may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)1.75
EPS Next 2Y9.31%
EPS Next 3Y8.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, WTS is not a good candidate for dividend investing.
WTS's Dividend Yield is comparable with the industry average which is at 1.87.
With a Dividend Yield of 0.80, WTS pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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
WTS pays out 19.51% of its income as dividend. This is a sustainable payout ratio.
WTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.51%
EPS Next 2Y9.31%
EPS Next 3Y8.28%
281.02
+0.45 (+0.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.47%
Inst Owner Change1.42%
Ins Owners1.05%
Ins Owner Change1.01%
Market Cap9.37B
Analysts71.43
Price Target272.2 (-3.14%)
Short Float %3.12%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)9.06%
PT rev (3m)22.04%
EPS NQ rev (1m)1.53%
EPS NQ rev (3m)0.06%
EPS NY rev (1m)4.6%
EPS NY rev (3m)5.4%
Revenue NQ rev (1m)2.6%
Revenue NQ rev (3m)3.63%
Revenue NY rev (1m)2.03%
Revenue NY rev (3m)2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.46 | ||
| Fwd PE | 26.51 | ||
| P/S | 4.1 | ||
| P/FCF | 29.58 | ||
| P/OCF | 26.4 | ||
| P/B | 4.95 | ||
| P/tB | 10.92 | ||
| EV/EBITDA | 18.85 |
EPS(TTM)9.54
EY3.39%
EPS(NY)10.6
Fwd EY3.77%
FCF(TTM)9.5
FCFY3.38%
OCF(TTM)10.64
OCFY3.79%
SpS68.52
BVpS56.73
TBVpS25.73
PEG (NY)2.59
PEG (5Y)1.75
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%
ROICexcg growth 3Y4.4%
ROICexcg 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 | 9.9 |
F-Score8
WACC9.85%
ROIC/WACC1.51
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 Y11.36%
EPS Next 2Y9.31%
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 Year4.01%
Revenue Next 2Y4.16%
Revenue Next 3Y4.13%
Revenue Next 5Y5.08%
EBIT growth 1Y13.7%
EBIT growth 3Y15.37%
EBIT growth 5Y14.57%
EBIT Next Year20.19%
EBIT Next 3Y10.24%
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%