WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:WTS • US9427491025

319.22 USD
+10.42 (+3.37%)
At close: Feb 6, 2026
319.22 USD
0 (0%)
After Hours: 2/6/2026, 8:11:50 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

WTS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 132 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. WTS is quite expensive at the moment. It does show a decent growth rate. These ratings would make WTS suitable for quality investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • WTS had positive earnings in the past year.
  • In the past year WTS had a positive cash flow from operations.
  • 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.
WTS Yearly Net Income VS EBIT VS OCF VS FCFWTS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

1.2 Ratios

  • WTS has a Return On Assets of 11.91%. This is amongst the best in the industry. WTS outperforms 87.12% of its industry peers.
  • WTS's Return On Equity of 16.59% is fine compared to the rest of the industry. WTS outperforms 78.03% of its industry peers.
  • WTS has a Return On Invested Capital of 14.86%. This is amongst the best in the industry. WTS outperforms 87.12% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for WTS is above the industry average of 10.37%.
Industry RankSector Rank
ROA 11.91%
ROE 16.59%
ROIC 14.86%
ROA(3y)12.17%
ROA(5y)10.41%
ROE(3y)17.9%
ROE(5y)15.7%
ROIC(3y)14.98%
ROIC(5y)13.71%
WTS Yearly ROA, ROE, ROICWTS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • The Profit Margin of WTS (13.79%) is better than 84.85% of its industry peers.
  • In the last couple of years the Profit Margin of WTS has grown nicely.
  • The Operating Margin of WTS (18.98%) is better than 87.88% of its industry peers.
  • WTS's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 48.83%, WTS belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
  • In the last couple of years the Gross Margin of WTS has grown nicely.
Industry RankSector Rank
OM 18.98%
PM (TTM) 13.79%
GM 48.83%
OM growth 3Y7.25%
OM growth 5Y7.01%
PM growth 3Y12.18%
PM growth 5Y9.49%
GM growth 3Y3.61%
GM growth 5Y2.18%
WTS Yearly Profit, Operating, Gross MarginsWTS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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.
  • Compared to 1 year ago, WTS has about the same amount of shares outstanding.
  • Compared to 5 years ago, WTS has less shares outstanding
  • Compared to 1 year ago, WTS has an improved debt to assets ratio.
WTS Yearly Shares OutstandingWTS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
WTS Yearly Total Debt VS Total AssetsWTS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

  • WTS has an Altman-Z score of 10.52. This indicates that WTS is financially healthy and has little risk of bankruptcy at the moment.
  • WTS's Altman-Z score of 10.52 is amongst the best of the industry. WTS outperforms 93.94% of its industry peers.
  • WTS has a debt to FCF ratio of 0.57. This is a very positive value and a sign of high solvency as it would only need 0.57 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.57, WTS belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
  • 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 78.79% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.1
Debt/FCF 0.57
Altman-Z 10.52
ROIC/WACC1.55
WACC9.56%
WTS Yearly LT Debt VS Equity VS FCFWTS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 2.83 indicates that WTS has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.83, WTS is in the better half of the industry, outperforming 74.24% of the companies in the same industry.
  • A Quick Ratio of 1.84 indicates that WTS should not have too much problems paying its short term obligations.
  • The Quick ratio of WTS (1.84) is better than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.83
Quick Ratio 1.84
WTS Yearly Current Assets VS Current LiabilitesWTS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • Measured over the past years, WTS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.86% on average per year.
  • WTS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.18%.
  • 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)4.18%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%12.53%

3.2 Future

  • WTS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.09% yearly.
  • Based on estimates for the next years, WTS will show a small growth in Revenue. The Revenue will grow by 6.18% on average per year.
EPS Next Y17.34%
EPS Next 2Y13.29%
EPS Next 3Y11.1%
EPS Next 5Y11.09%
Revenue Next Year7.75%
Revenue Next 2Y7.43%
Revenue Next 3Y6.26%
Revenue Next 5Y6.18%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
WTS Yearly Revenue VS EstimatesWTS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B
WTS Yearly EPS VS EstimatesWTS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 31.89 indicates a quite expensive valuation of WTS.
  • The rest of the industry has a similar Price/Earnings ratio as WTS.
  • The average S&P500 Price/Earnings ratio is at 27.92. WTS is around the same levels.
  • Based on the Price/Forward Earnings ratio of 28.04, the valuation of WTS can be described as expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as WTS.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.78, WTS is valued at the same level.
Industry RankSector Rank
PE 31.89
Fwd PE 28.04
WTS Price Earnings VS Forward Price EarningsWTS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WTS indicates a slightly more expensive valuation: WTS is more expensive than 60.61% of the companies listed in the same industry.
  • 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 RankSector Rank
P/FCF 30.99
EV/EBITDA 19.98
WTS Per share dataWTS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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)1.84
PEG (5Y)1.89
EPS Next 2Y13.29%
EPS Next 3Y11.1%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • WTS has a yearly dividend return of 0.72%, which is pretty low.
  • WTS's Dividend Yield is comparable with the industry average which is at 1.00.
  • With a Dividend Yield of 0.72, WTS pays less dividend than the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 0.72%

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 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
WTS Yearly Dividends per shareWTS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • 19.65% of the earnings are spent on dividend by WTS. This is a low number and sustainable payout ratio.
  • WTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.65%
EPS Next 2Y13.29%
EPS Next 3Y11.1%
WTS Yearly Income VS Free CF VS DividendWTS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
WTS Dividend Payout.WTS Dividend Payout, showing the Payout Ratio.WTS Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

WATTS WATER TECHNOLOGIES-A

NYSE:WTS (2/6/2026, 8:11:50 PM)

After market: 319.22 0 (0%)

319.22

+10.42 (+3.37%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-05
Earnings (Next)02-11
Inst Owners101.65%
Inst Owner Change-2.32%
Ins Owners1.08%
Ins Owner Change0.4%
Market Cap10.65B
Revenue(TTM)2.35B
Net Income(TTM)324.70M
Analysts70
Price Target295.26 (-7.51%)
Short Float %2.56%
Short Ratio4.07
Dividend
Industry RankSector Rank
Dividend Yield 0.72%
Yearly Dividend1.67
Dividend Growth(5Y)12.49%
DP19.65%
Div Incr Years12
Div Non Decr Years23
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.44%
Min EPS beat(2)9.38%
Max EPS beat(2)15.5%
EPS beat(4)4
Avg EPS beat(4)10.48%
Min EPS beat(4)6.27%
Max EPS beat(4)15.5%
EPS beat(8)8
Avg EPS beat(8)8.34%
EPS beat(12)12
Avg EPS beat(12)9.24%
EPS beat(16)16
Avg EPS beat(16)11.02%
Revenue beat(2)2
Avg Revenue beat(2)4.64%
Min Revenue beat(2)4.19%
Max Revenue beat(2)5.08%
Revenue beat(4)3
Avg Revenue beat(4)2.44%
Min Revenue beat(4)-0.41%
Max Revenue beat(4)5.08%
Revenue beat(8)6
Avg Revenue beat(8)1.8%
Revenue beat(12)9
Avg Revenue beat(12)1.32%
Revenue beat(16)13
Avg Revenue beat(16)1.89%
PT rev (1m)1.03%
PT rev (3m)5.25%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)12.18%
EPS NY rev (1m)0.3%
EPS NY rev (3m)5.01%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)8%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)3.42%
Valuation
Industry RankSector Rank
PE 31.89
Fwd PE 28.04
P/S 4.52
P/FCF 30.99
P/OCF 27.52
P/B 5.44
P/tB 11.46
EV/EBITDA 19.98
EPS(TTM)10.01
EY3.14%
EPS(NY)11.39
Fwd EY3.57%
FCF(TTM)10.3
FCFY3.23%
OCF(TTM)11.6
OCFY3.63%
SpS70.58
BVpS58.67
TBVpS27.85
PEG (NY)1.84
PEG (5Y)1.89
Graham Number114.96
Profitability
Industry RankSector Rank
ROA 11.91%
ROE 16.59%
ROCE 19.76%
ROIC 14.86%
ROICexc 18.63%
ROICexgc 43.32%
OM 18.98%
PM (TTM) 13.79%
GM 48.83%
FCFM 14.59%
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 RankSector Rank
Debt/Equity 0.1
Debt/FCF 0.57
Debt/EBITDA 0.39
Cap/Depr 77.88%
Cap/Sales 1.84%
Interest Coverage 44.68
Cash Conversion 76.99%
Profit Quality 105.79%
Current Ratio 2.83
Quick Ratio 1.84
Altman-Z 10.52
F-Score8
WACC9.56%
ROIC/WACC1.55
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 Y17.34%
EPS Next 2Y13.29%
EPS Next 3Y11.1%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y7.57%
Revenue growth 5Y7.07%
Sales Q2Q%12.53%
Revenue Next Year7.75%
Revenue Next 2Y7.43%
Revenue Next 3Y6.26%
Revenue Next 5Y6.18%
EBIT growth 1Y14.51%
EBIT growth 3Y15.37%
EBIT growth 5Y14.57%
EBIT Next Year31.42%
EBIT Next 3Y14.7%
EBIT Next 5Y13.02%
FCF growth 1Y10.2%
FCF growth 3Y28.35%
FCF growth 5Y14.6%
OCF growth 1Y14.24%
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.


What is the valuation status of WATTS WATER TECHNOLOGIES-A (WTS) stock?

ChartMill assigns a valuation rating of 2 / 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.


What is the valuation of WATTS WATER TECHNOLOGIES-A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for WATTS WATER TECHNOLOGIES-A (WTS) is 31.89 and the Price/Book (PB) ratio is 5.44.


What is the earnings growth outlook for WATTS WATER TECHNOLOGIES-A?

The Earnings per Share (EPS) of WATTS WATER TECHNOLOGIES-A (WTS) is expected to grow by 17.34% in the next year.