WTS
Watts Water Technologies Inc
$368.78
▲ 0.1%Updated Today 12:11 PM ET
WTS at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 63/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 44.7% over the last 12 months
Market Cap
$11.32B
P/E
33.62x
Forward P/E (est.)
26.86x
ROE
18.4%
Revenue Growth
14.2%
EPS Growth
25.2%
Profit Margin
14.3%
FCF Yield
2.5%
Debt / Equity
0.1x
ROIC
15.0%
Interest Coverage
41.49x
Current Ratio
2.72x
Dividend Yield
0.7%
Implied Growth (rev. DCF)
5.7%
Rating Score
63/100
Watts Water Technologies Inc (WTS) is a large-cap company in the Machinery industry, part of the Industrials sector of the S&P 500, with a market value around $11.32B.
In its latest reported year it generated about $2.44B in revenue and $340.80M in net profit.
Our model rates WTS Favorable (63/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what WTS's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. WTS trades near $368.78, above its 50-day average ($319.44) and 200-day average ($297.49). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 63 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. WTS's is $13.32 (~3.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month WTS found buyers near $311.11 (support) and sellers near $394.54 (resistance); its 52-week range is $242.77–$394.54. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.1× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
7.7%
Revenue moved from $1.40B in 2016 to $2.44B in 2025, a 6.4% compound annual growth rate. The most recent year grew a steady 14.2% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
49.5%
Operating Margin
18.4%
Net Margin
14.0%
ROE
18.4%
Watts Water Technologies Inc keeps about 14.3% of each sales dollar as net profit, with a 49.5% gross margin and 18.4% operating margin. Return on equity is 18.4% and return on invested capital about 15.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$200.00M
Net Debt
-$174.70M
Net cash position
Net Debt / EBITDA
-0.39x
Debt / Equity
0.1x
Leverage: debt-to-equity is 0.1x, and operating profit covers interest about 41.5x, with a current ratio of 2.7x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $200.00M of total debt against $374.70M of cash.
Operating CF
$402.00M
Free Cash Flow
$356.30M
FCF Margin
14.6%
In the latest year Watts Water Technologies Inc produced about $402.00M of operating cash flow and $356.30M of free cash flow after capital spending. That is a free-cash-flow yield of about 2.5% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
33.62x
P/S
5.05x
P/B
4.54x
EV / EBITDA
22.07x
WTS trades at 33.6x trailing earnings (about 26.9x on estimated forward earnings), 5.1x sales, and 4.5x book value. Reverse-engineering today's price implies the market expects roughly 5.7% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
—
Current price
$368.78
Starting FCF (latest 10-K)
$356.30M
Growth, years 1–5
14.2%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
The case for WTS:
- Revenue is growing 14.2% a year, a sign of real demand.
- Strong return on equity (18.4%) shows capital is put to work well.
- A conservative balance sheet (debt/equity 0.1x) lowers risk.
- Our model's overall read is Favorable (63/100).
The case against WTS:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Valuation risk — at 33.6x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Watts Water Technologies Inc is a large-cap industrials business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 33.6x earnings, which our model scores Favorable (63/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
WTS — frequently asked questions
Is WTS a good stock to buy?
We don't give buy or sell advice. Our model rates Watts Water Technologies Inc Favorable (63/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is WTS's rating on The Stocks School?
Watts Water Technologies Inc currently scores 63/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does WTS's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Watts Water Technologies Inc's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for WTS calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this WTS analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell WTS. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.