WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - NYSE:WTS - US9427491025 - Common Stock
273.21 USD
+9.66 (+3.67%)
273.21 USD
0 (0%)
WTS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. WTS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
In the past 5 years WTS has always been profitable.
In the past 5 years WTS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.78%, WTS belongs to the top of the industry, outperforming 86.92% of the companies in the same industry.
WTS's Return On Equity of 16.47% is fine compared to the rest of the industry. WTS outperforms 77.69% of its industry peers.
With an excellent Return On Invested Capital value of 14.92%, WTS belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
WTS had an Average Return On Invested Capital over the past 3 years of 14.98%. This is above the industry average of 10.24%.
| 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 85.38% of its industry peers.
In the last couple of years the Profit Margin of WTS has grown nicely.
The Operating Margin of WTS (18.88%) is better than 86.92% of its industry peers.
WTS's Operating Margin has improved in the last couple of years.
WTS's Gross Margin of 48.48% is amongst the best of the industry. WTS outperforms 90.77% of its industry peers.
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
WTS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, WTS has about the same amount of shares outstanding.
WTS has less shares outstanding than it did 5 years ago.
WTS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.44 indicates that WTS is not in any danger for bankruptcy at the moment.
The Altman-Z score of WTS (9.44) is better than 92.31% 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.
The Debt to FCF ratio of WTS (0.62) is better than 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.
With a decent Debt to Equity ratio value of 0.10, WTS is doing good in the industry, outperforming 77.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.62 | ||
| Altman-Z | 9.44 |
ROIC/WACC1.57
WACC9.48%
2.3 Liquidity
WTS has a Current Ratio of 2.59. This indicates that WTS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.59, WTS is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
A Quick Ratio of 1.63 indicates that WTS should not have too much problems paying its short term obligations.
WTS has a Quick ratio of 1.63. This is in the better half of the industry: WTS outperforms 67.69% of its industry peers.
| 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 13.88%, which is quite good.
WTS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.86% yearly.
Looking at the last year, WTS shows a quite strong growth in Revenue. The Revenue has grown by 9.53% in the last 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)13.88%
EPS 3Y17.06%
EPS 5Y16.86%
EPS Q2Q%23.15%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%12.53%
3.2 Future
The Earnings Per Share is expected to grow by 8.61% on average over the next years. This is quite good.
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 Year4.32%
Revenue Next 2Y4.27%
Revenue Next 3Y4.11%
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
A Price/Earnings ratio of 27.29 indicates a quite expensive valuation of WTS.
WTS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.83, WTS is valued at the same level.
WTS is valuated quite expensively with a Price/Forward Earnings ratio of 25.63.
WTS's Price/Forward Earnings is on the same level as the industry average.
WTS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.29 | ||
| Fwd PE | 25.63 |
4.2 Price Multiples
WTS's Enterprise Value to EBITDA ratio is in line with the industry average.
WTS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.76 | ||
| EV/EBITDA | 17.68 |
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)2.32
PEG (5Y)1.62
EPS Next 2Y9.64%
EPS Next 3Y8.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, WTS is not a good candidate for dividend investing.
WTS's Dividend Yield is comparable with the industry average which is at 1.83.
Compared to an average S&P500 Dividend Yield of 2.37, WTS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of WTS is nicely growing with an annual growth rate of 12.49%!
WTS has paid a dividend for at least 10 years, which is a reliable track record.
WTS has not decreased their dividend for at least 10 years, which is a reliable track record.
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 2Y9.64%
EPS Next 3Y8.28%
273.21
+9.66 (+3.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.99%
Inst Owner Change-4.08%
Ins Owners1.06%
Ins Owner Change-0.69%
Market Cap9.11B
Revenue(TTM)2.25B
Net Income(TTM)311.60M
Analysts71.43
Price Target280.53 (2.68%)
Short Float %2.78%
Short Ratio4.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)1.47%
PT rev (3m)12.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.05%
EPS NY rev (1m)0%
EPS NY rev (3m)4.95%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)2.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.29 | ||
| Fwd PE | 25.63 | ||
| P/S | 3.99 | ||
| P/FCF | 28.76 | ||
| P/OCF | 25.67 | ||
| P/B | 4.82 | ||
| P/tB | 10.62 | ||
| EV/EBITDA | 17.68 |
EPS(TTM)10.01
EY3.66%
EPS(NY)10.66
Fwd EY3.9%
FCF(TTM)9.5
FCFY3.48%
OCF(TTM)10.64
OCFY3.9%
SpS68.52
BVpS56.73
TBVpS25.73
PEG (NY)2.32
PEG (5Y)1.62
Graham Number113.03
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 | 9.44 |
F-Score8
WACC9.48%
ROIC/WACC1.57
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)13.88%
EPS 3Y17.06%
EPS 5Y16.86%
EPS Q2Q%23.15%
EPS Next Y11.74%
EPS Next 2Y9.64%
EPS Next 3Y8.28%
EPS Next 5Y8.61%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%12.53%
Revenue Next Year4.32%
Revenue Next 2Y4.27%
Revenue Next 3Y4.11%
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 27.29 and the Price/Book (PB) ratio is 4.82.
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.