WTS Stock Analysis: Watts Water Technologies | NYSE
Specialty Industrial Machinery | NYSE, USA | Market Cap: 11.475m USD | 12M Return: 38.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 96.0M
EPS Trend: 96.3%
Qual. Beats: 6
Rev. Trend: 96.7%
Qual. Beats: 5
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Watts Water Technologies (NYSE: WTS) is a global manufacturer of products that manage and conserve the flow of fluids and energy in residential, commercial, and industrial buildings. Founded in 1874 and headquartered in North Andover, Massachusetts, the company operates within the Industrials sector (GICS Sub-Industry: Industrial Machinery & Supplies & Components) and has been publicly traded since 1986.
The companys product portfolio is organized into three core categories: flow control and protection products (such as backflow preventers, pressure regulators, and leak detection systems); heating, ventilation, air conditioning, and gas products (including boilers, water heaters, and hydronic heating systems); and drainage and water re-use products (covering rainwater harvesting, roof drain systems, and water quality solutions for point-of-use and point-of-entry applications).
Watts sells primarily through a B2B distribution model, reaching customers via plumbing, heating, and mechanical wholesale distributors and dealers, original equipment manufacturers (OEMs), specialty distributors, and retail and DIY chains. Its operations span the Americas, Europe, Asia-Pacific, the Middle East, and Africa, providing geographic diversification across mature and emerging building and infrastructure markets.
- Lead-free mandates and water quality rules boost product demand
- US housing starts and remodel activity drive plumbing volumes
- Copper and brass raw material costs pressure gross margins
| Net Income: 366.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -2.64 > 1.0 |
| NWC/Revenue: 33.31% < 20% (prev 29.38%; Δ 3.93% < -1%) |
| CFO/TA 0.12 > 3% & CFO 364.7m > Net Income 366.4m |
| Net Debt (-176.9m) to EBITDA (572.7m): -0.31 < 3 |
| Current Ratio: 2.72 > 1.5 & < 3 |
| Outstanding Shares: last quarter (33.5m) vs 12m ago 0.0% < -2% |
| Gross Margin: 49.25% > 18% (prev 47.65%; Δ 1.60% > 0.5%) |
| Asset Turnover: 94.03% > 50% (prev 89.55%; Δ 4.48% > 0%) |
| Interest Coverage Ratio: 46.82 > 6 (EBIT TTM 501.0m / Interest Expense TTM 10.7m) |
| A: 0.29 (Total Current Assets 1.35b - Total Current Liabilities 496.0m) / Total Assets 2.94b |
| B: 0.51 (Retained Earnings 1.50b / Total Assets 2.94b) |
| C: 0.18 (EBIT TTM 501.0m / Avg Total Assets 2.72b) |
| D: 2.49 (Book Value of Equity 2.10b / Total Liabilities 843.5m) |
| Altman-Z'' = 7.41 = AAA |
| DSRI: 1.09 (Receivables 374.4m/301.1m, Revenue 2.56b/2.24b) |
| GMI: 0.97 (GM 47.65% / 49.25%) |
| AQI: 0.61 (AQ_t 0.28 / AQ_t-1 0.45) |
| SGI: 1.14 (Revenue 2.56b / 2.24b) |
| TATA: 0.00 (NI 366.4m - CFO 364.7m) / TA 2.94b) |
| Beneish M = -3.11 (Cap -4..+1) = AA |
As of July 28, 2026, the stock is trading at USD 345.70 with a total of 126,553 shares traded. Over the past week, the price has changed by +1.52%, over one month by -3.69%, over three months by +14.00% and over the past year by +38.08%.
Current recommended Stop Loss: 333.10 (which is 3.6% or 1.2 ATR below the current price).
Watts Water Technologies has received a consensus analysts rating of 3.33. Therefore, it is recommended to hold WTS.
- StrongBuy: 2
- Buy: 0
- Hold: 10
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 358.3 | 3.7% |
P/E Trailing = 31.4428
P/E Forward = 29.4985
P/S = 4.4865
P/B = 5.4402
P/EG = 3.6836
Revenue TTM = 2.56b USD
EBIT TTM = 501.0m USD
EBITDA TTM = 572.7m USD
Long Term Debt = 197.8m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 197.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -176.9m USD (calculated: Debt 197.8m - CCE 374.7m)
Enterprise Value = 11.3b USD (11.5b + Debt 197.8m - CCE 374.7m)
Interest Coverage Ratio = 46.82 (Ebit TTM 501.0m / Interest Expense TTM 10.7m)
EV/FCF = 35.61x (Enterprise Value 11.3b / FCF TTM 317.3m)
FCF Yield = 2.81% (FCF TTM 317.3m / Enterprise Value 11.3b)
FCF Margin = 12.41% (FCF TTM 317.3m / Revenue TTM 2.56b)
Net Margin = 14.32% (Net Income TTM 366.4m / Revenue TTM 2.56b)
Gross Margin = 49.25% ((Revenue TTM 2.56b - Cost of Revenue TTM 1.30b) / Revenue TTM)
Gross Margin QoQ = 48.15% (prev 49.46%)
Tobins Q-Ratio = 3.84 (Enterprise Value 11.3b / Total Assets 2.94b)
Interest Expense / Debt = 5.41% (Interest Expense 10.7m / Debt 197.8m)
Taxrate = 25.27% (123.9m / 490.3m)
NOPAT = 374.4m (EBIT 501.0m * (1 - 25.27%))
Current Ratio = 2.72 (Total Current Assets 1.35b / Total Current Liabilities 496.0m)
Debt / Equity = 0.09 (Debt 197.8m / totalStockholderEquity, last quarter 2.10b)
Debt / EBITDA = -0.31 (Net Debt -176.9m / EBITDA 572.7m)
Debt / FCF = -0.56 (Net Debt -176.9m / FCF TTM 317.3m)
Total Stockholder Equity = 1.99b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.47% (Net Income 366.4m / Total Assets 2.94b)
RoE = 18.38% (Net Income TTM 366.4m / Total Stockholder Equity 1.99b)
RoCE = 22.87% (EBIT 501.0m / Capital Employed (Equity 1.99b + L.T.Debt 197.8m))
RoIC = 16.17% (NOPAT 374.4m / Invested Capital 2.32b)
WACC = 8.47% (E(11.5b)/V(11.7b) * Re(8.55%) + D(197.8m)/V(11.7b) * Rd(5.41%) * (1-Tc(0.25)))
Discount Rate = 8.55% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -40.62 | Cagr: 0.0%
[DCF] Terminal Value 74.21% ; FCFF base≈324.7m ; Y1≈311.0m ; Y5≈299.6m
[DCF] Fair Price = 174.3 (EV 4.61b - Net Debt -176.9m = Equity 4.79b / Shares 27.5m; r=8.47% [WACC]; 5y FCF grow -5.54% → 2.50% )
EPS Correlation: 96.30 | EPS CAGR: 12.98% | SUE: 2.81 | # QB: 6
Revenue Correlation: 96.66 | Revenue CAGR: 8.35% | SUE: 3.13 | # QB: 5
EPS current Quarter (2026-06-30): EPS=3.34 | Chg30d=+0.64% | Revisions=+50% | Analysts=10
EPS next Quarter (2026-09-30): EPS=2.86 | Chg30d=+1.71% | Revisions=+50% | Analysts=10
EPS current Year (2026-12-31): EPS=12.08 | Chg30d=+1.14% | Revisions=+50% | GrowthEPS=+14.2% | GrowthRev=+12.5%
EPS next Year (2027-12-31): EPS=13.19 | Chg30d=+1.38% | Revisions=+50% | GrowthEPS=+9.2% | GrowthRev=+5.4%
[Analyst] Revisions Ratio: +80% (up=12, down=0)