WATTS WATER TECHNOLOGIES-A (WTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WTS - US9427491025 - Common Stock
274.97 USD
+3.85 (+1.42%)
274.97 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. While showing a medium growth rate, WTS is valued expensive at the moment. This makes WTS very considerable for quality investing!
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.
In the past 5 years WTS has always been profitable.
WTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.91%, WTS belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
WTS has a Return On Equity of 16.59%. This is in the better half of the industry: WTS outperforms 79.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.86%, WTS belongs to the top 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 10.39%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of WTS (13.79%) is better than 85.38% of its industry peers.
WTS's Profit Margin has improved in the last couple of years.
The Operating Margin of WTS (18.98%) is better than 87.69% of its industry peers.
WTS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 48.83%, WTS belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
In the last couple of years the Gross Margin of WTS has grown nicely.
| Industry Rank | Sector 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%
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.
Compared to 1 year ago, WTS has an improved debt to assets ratio.
2.2 Solvency
WTS has an Altman-Z score of 9.54. This indicates that WTS is financially healthy and has little risk of bankruptcy at the moment.
WTS's Altman-Z score of 9.54 is amongst the best of the industry. WTS outperforms 93.08% of its industry peers.
The Debt to FCF ratio of WTS is 0.57, which is an excellent value as it means it would take WTS, only 0.57 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WTS (0.57) is better than 90.77% 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.
Looking at the Debt to Equity ratio, with a value of 0.10, WTS is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | 9.54 |
ROIC/WACC1.59
WACC9.37%
2.3 Liquidity
WTS has a Current Ratio of 2.83. This indicates that WTS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.83, WTS is doing good in the industry, outperforming 73.85% of the companies in the same industry.
WTS has a Quick Ratio of 1.84. This is a normal value and indicates that WTS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.84, WTS is doing good in the industry, outperforming 73.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.84 |
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 small growth in Revenue. The Revenue has grown by 4.18% in the last year.
The Revenue has been growing slightly by 7.07% on average over the past years.
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
The Earnings Per Share is expected to grow by 11.03% 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 6.12% on average per year.
EPS Next Y11.74%
EPS Next 2Y9.64%
EPS Next 3Y8.28%
EPS Next 5Y11.03%
Revenue Next Year4.32%
Revenue Next 2Y4.27%
Revenue Next 3Y4.11%
Revenue Next 5Y6.12%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.47, WTS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as WTS.
When comparing the Price/Earnings ratio of WTS to the average of the S&P500 Index (26.37), we can say WTS is valued inline with the index average.
WTS is valuated quite expensively with a Price/Forward Earnings ratio of 25.79.
The rest of the industry has a similar Price/Forward Earnings ratio as WTS.
When comparing the Price/Forward Earnings ratio of WTS to the average of the S&P500 Index (36.20), we can say WTS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.47 | ||
| Fwd PE | 25.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WTS.
The rest of the industry has a similar Price/Free Cash Flow ratio as WTS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.7 | ||
| EV/EBITDA | 17.48 |
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.
WTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.34
PEG (5Y)1.63
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.
Compared to an average industry Dividend Yield of 1.90, WTS has a dividend in line with its industry peers.
With a Dividend Yield of 0.76, WTS pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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
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 2Y9.64%
EPS Next 3Y8.28%
274.97
+3.85 (+1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.99%
Inst Owner Change-1.59%
Ins Owners1.06%
Ins Owner Change0.83%
Market Cap9.17B
Revenue(TTM)2.35B
Net Income(TTM)324.70M
Analysts71.43
Price Target290.15 (5.52%)
Short Float %2.76%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.67
Dividend Growth(5Y)12.49%
DP19.65%
Div Incr Years12
Div Non Decr Years23
Ex-Date
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)4.08%
PT rev (3m)6.59%
EPS NQ rev (1m)11.64%
EPS NQ rev (3m)11.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)7.24%
Revenue NQ rev (3m)7.36%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.47 | ||
| Fwd PE | 25.79 | ||
| P/S | 3.9 | ||
| P/FCF | 26.7 | ||
| P/OCF | 23.71 | ||
| P/B | 4.69 | ||
| P/tB | 9.87 | ||
| EV/EBITDA | 17.48 |
EPS(TTM)10.01
EY3.64%
EPS(NY)10.66
Fwd EY3.88%
FCF(TTM)10.3
FCFY3.75%
OCF(TTM)11.6
OCFY4.22%
SpS70.58
BVpS58.67
TBVpS27.85
PEG (NY)2.34
PEG (5Y)1.63
Graham Number114.96
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 9.54 |
F-Score8
WACC9.37%
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)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 5Y11.03%
Revenue 1Y (TTM)4.18%
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 5Y6.12%
EBIT growth 1Y14.51%
EBIT growth 3Y15.37%
EBIT growth 5Y14.57%
EBIT Next Year25.35%
EBIT Next 3Y12.02%
EBIT Next 5Y12.96%
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.
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 27.47 and the Price/Book (PB) ratio is 4.69.
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.