Loading...

Watts Water Technologies

DB:W3W
Snowflake Description

Solid track record with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
W3W
DB
$3B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Watts Water Technologies, Inc. designs, manufactures, and sells products and systems that manage and conserve the flow of fluids and energy into, through and out of buildings in the residential and commercial markets. The last earnings update was 76 days ago. More info.


Add to Portfolio Compare Print
W3W Share Price and Events
7 Day Returns
-0.7%
DB:W3W
-2%
DE Machinery
-0.6%
DE Market
1 Year Returns
-
DB:W3W
-30.7%
DE Machinery
-8.3%
DE Market
W3W Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Watts Water Technologies (W3W) -0.7% 3.6% - - 46.9% 79.8%
DE Machinery -2% -7.2% -16.3% -30.7% -22.8% 0.6%
DE Market -0.6% 1.8% -3.2% -8.3% 8.9% 10.6%
1 Year Return vs Industry and Market
  • No trading data on W3W.
  • No trading data on W3W.
Price Volatility
W3W
Industry
5yr Volatility vs Market

Value

 Is Watts Water Technologies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Watts Water Technologies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Watts Water Technologies.

DB:W3W Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:W3W
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.082 (1 + (1- 21%) (13.13%))
1.13
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.13 * 5.96%)
6.97%

Discounted Cash Flow Calculation for DB:W3W using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Watts Water Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:W3W DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.97%)
2020 163.32 Analyst x4 152.68
2021 185.90 Analyst x1 162.48
2022 201.60 Analyst x1 164.73
2023 213.18 Est @ 5.74% 162.85
2024 221.90 Est @ 4.09% 158.47
2025 228.40 Est @ 2.93% 152.49
2026 233.25 Est @ 2.12% 145.58
2027 236.87 Est @ 1.55% 138.22
2028 239.60 Est @ 1.16% 130.71
2029 241.70 Est @ 0.88% 123.27
Present value of next 10 years cash flows $1,491.47
DB:W3W DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $241.70 × (1 + 0.23%) ÷ (6.97% – 0.23%)
$3,595.69
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,595.69 ÷ (1 + 6.97%)10
$1,833.80
DB:W3W Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,491.47 + $1,833.80
$3,325.26
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,325.26 / 33.97
$97.88
DB:W3W Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:W3W represents 0.88993x of NYSE:WTS
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88993x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 97.88 x 0.88993
€87.11
Value per share (EUR) From above. €87.11
Current discount Discount to share price of €80.93
= -1 x (€80.93 - €87.11) / €87.11
7.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Watts Water Technologies is available for.
Intrinsic value
7%
Share price is €80.93 vs Future cash flow value of €87.11
Current Discount Checks
For Watts Water Technologies to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Watts Water Technologies's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Watts Water Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Watts Water Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Watts Water Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:W3W PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.82
NYSE:WTS Share Price ** NYSE (2019-07-18) in USD $90.94
Germany Machinery Industry PE Ratio Median Figure of 37 Publicly-Listed Machinery Companies 14.37x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Watts Water Technologies.

DB:W3W PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WTS Share Price ÷ EPS (both in USD)

= 90.94 ÷ 3.82

23.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Watts Water Technologies is overvalued based on earnings compared to the DE Machinery industry average.
  • Watts Water Technologies is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Watts Water Technologies's expected growth come at a high price?
Raw Data
DB:W3W PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
7.2%per year
Germany Machinery Industry PEG Ratio Median Figure of 29 Publicly-Listed Machinery Companies 1.3x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

DB:W3W PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.83x ÷ 7.2%

3.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Watts Water Technologies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Watts Water Technologies's assets?
Raw Data
DB:W3W PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $26.63
NYSE:WTS Share Price * NYSE (2019-07-18) in USD $90.94
Germany Machinery Industry PB Ratio Median Figure of 47 Publicly-Listed Machinery Companies 1.5x
Germany Market PB Ratio Median Figure of 569 Publicly-Listed Companies 1.75x
DB:W3W PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WTS Share Price ÷ Book Value per Share (both in USD)

= 90.94 ÷ 26.63

3.42x

* Primary Listing of Watts Water Technologies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Watts Water Technologies is overvalued based on assets compared to the DE Machinery industry average.
X
Value checks
We assess Watts Water Technologies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Watts Water Technologies has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Watts Water Technologies expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Watts Water Technologies expected to grow at an attractive rate?
  • Watts Water Technologies's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Watts Water Technologies's earnings growth is positive but not above the Germany market average.
  • Watts Water Technologies's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:W3W Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:W3W Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 7.2%
DB:W3W Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 3%
Germany Machinery Industry Earnings Growth Rate Market Cap Weighted Average 11.1%
Germany Machinery Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.2%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:W3W Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:W3W Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,753 242 1
2021-12-31 1,702 225 3
2020-12-31 1,650 203 148 9
2019-12-31 1,602 171 138 9
DB:W3W Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,575 171 131
2018-12-31 1,565 169 128
2018-09-30 1,544 149 93
2018-07-01 1,517 148 88
2018-04-01 1,488 139 80
2017-12-31 1,457 156 73
2017-10-01 1,432 142 93
2017-07-02 1,409 139 88
2017-04-02 1,401 151 90
2016-12-31 1,398 138 84
2016-10-02 1,415 137 -51
2016-07-03 1,440 75 -99
2016-04-03 1,456 87 -108

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Watts Water Technologies's earnings are expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
  • Watts Water Technologies's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:W3W Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Watts Water Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:W3W Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 4.34 4.40 4.30 6.00
2019-12-31 4.03 4.08 4.00 5.00
DB:W3W Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.82
2018-12-31 3.73
2018-09-30 2.72
2018-07-01 2.57
2018-04-01 2.32
2017-12-31 2.13
2017-10-01 2.71
2017-07-02 2.56
2017-04-02 2.61
2016-12-31 2.45
2016-10-02 -1.49
2016-07-03 -2.87
2016-04-03 -3.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Watts Water Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Watts Water Technologies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Watts Water Technologies has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Watts Water Technologies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Watts Water Technologies's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Watts Water Technologies has delivered over 20% year on year earnings growth in the past 5 years.
  • Watts Water Technologies's 1-year earnings growth exceeds its 5-year average (64.5% vs 24.3%)
  • Watts Water Technologies's earnings growth has exceeded the DE Machinery industry average in the past year (64.5% vs -1.3%).
Earnings and Revenue History
Watts Water Technologies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Watts Water Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:W3W Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,575.10 130.80 432.70 35.30
2018-12-31 1,564.90 128.00 430.20 34.50
2018-09-30 1,543.60 93.40 418.80 32.90
2018-07-01 1,517.40 88.40 413.00 31.50
2018-04-01 1,488.00 79.60 407.10 30.40
2017-12-31 1,456.70 73.10 403.30 29.00
2017-10-01 1,432.40 92.90 402.80 28.50
2017-07-02 1,408.80 88.30 401.00 27.80
2017-04-02 1,401.40 89.70 402.10 27.00
2016-12-31 1,398.40 84.20 397.60 26.50
2016-10-02 1,414.70 -51.40 400.40 24.80
2016-07-03 1,439.90 -99.00 463.50 23.80
2016-04-03 1,455.70 -108.30 459.40 23.70
2015-12-31 1,467.70 -112.90 464.30 23.50
2015-09-27 1,485.90 -2.50 472.60 1.10
2015-06-28 1,495.60 45.80 399.80 0.80
2015-03-29 1,504.70 47.80 395.50 0.10
2014-12-31 1,513.70 50.30 378.70 22.50
2014-09-28 1,513.20 66.20 371.80 22.60
2014-06-29 1,509.00 61.10 379.10 22.50
2014-03-30 1,479.80 58.70 373.10 22.40
2013-12-31 1,473.50 60.90 390.30
2013-09-29 1,452.00 70.90 368.30 21.20
2013-06-30 1,433.00 71.70 358.80 20.90
2013-03-31 1,425.10 71.20 358.00 20.50
2012-12-31 1,427.40 70.40 361.80 20.40
2012-09-30 1,424.60 69.00 332.90 36.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Watts Water Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Watts Water Technologies used its assets more efficiently than the DE Machinery industry average last year based on Return on Assets.
  • Watts Water Technologies has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Watts Water Technologies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Watts Water Technologies has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Watts Water Technologies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Watts Water Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Watts Water Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Watts Water Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Watts Water Technologies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Watts Water Technologies Company Filings, last reported 3 months ago.

DB:W3W Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 905.10 371.10 170.20
2018-12-31 891.30 353.40 204.10
2018-09-30 884.20 378.80 156.80
2018-07-01 858.20 409.20 142.60
2018-04-01 855.80 446.60 184.70
2017-12-31 829.00 497.10 280.20
2017-10-01 830.80 523.10 246.60
2017-07-02 797.20 548.30 217.50
2017-04-02 757.00 623.60 287.00
2016-12-31 736.30 650.40 338.40
2016-10-02 756.40 603.50 338.60
2016-07-03 733.80 604.90 286.70
2016-04-03 731.10 598.20 259.40
2015-12-31 704.90 575.30 296.20
2015-09-27 860.70 578.00 288.80
2015-06-28 872.50 578.50 284.60
2015-03-29 847.40 578.90 261.80
2014-12-31 912.40 579.70 301.10
2014-09-28 970.10 305.70 272.40
2014-06-29 1,008.60 306.60 244.30
2014-03-30 1,000.70 307.30 225.00
2013-12-31 1,002.10 307.70 267.90
2013-09-29 985.90 308.30 227.20
2013-06-30 953.20 308.40 181.90
2013-03-31 936.00 383.80 253.10
2012-12-31 939.50 384.60 273.40
2012-09-30 912.40 384.80 211.60
  • Watts Water Technologies's level of debt (41.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (30.7% vs 41.4% today).
  • Debt is well covered by operating cash flow (45.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13x coverage).
X
Financial health checks
We assess Watts Water Technologies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Watts Water Technologies has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Watts Water Technologies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.01%
Current annual income from Watts Water Technologies dividends. Estimated to be 0.97% next year.
If you bought €2,000 of Watts Water Technologies shares you are expected to receive €20 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Watts Water Technologies's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Watts Water Technologies's dividend is below the markets top 25% of dividend payers in Germany (3.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:W3W Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Germany Machinery Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:W3W Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.84 1.00
2021-12-31 0.87 2.00
2020-12-31 0.90 4.00
2019-12-31 0.89 4.00
DB:W3W Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-06 0.920 1.055
2019-02-06 0.840 1.032
2018-11-02 0.840 1.189
2018-07-30 0.840 1.062
2018-05-07 0.840 1.053
2018-05-03 0.760 1.019
2017-10-30 0.760 1.003
2017-08-01 0.760 1.159
2017-05-09 0.760 1.203
2017-02-08 0.720 1.157
2016-11-01 0.720 1.089
2016-08-04 0.720 1.137
2016-05-10 0.720 1.228
2016-02-11 0.680 1.256
2015-10-27 0.680 1.326
2015-07-29 0.680 1.241
2015-04-29 0.680 1.288
2015-02-12 0.600 1.089
2014-10-28 0.600 0.982
2014-07-29 0.600 1.002
2014-04-29 0.600 1.030
2014-02-18 0.520 0.888
2013-10-29 0.520 0.890
2013-07-30 0.520 0.950
2013-04-30 0.520 1.089
2013-02-19 0.440 0.937
2012-10-31 0.440 1.041
2012-07-31 0.440 1.167
2012-05-01 0.440 1.331
2012-02-07 0.440 1.111
2011-11-02 0.440 1.219
2011-08-02 0.440 1.572
2011-05-03 0.440 1.272
2011-02-08 0.440 1.149
2010-11-02 0.440 1.246
2010-08-03 0.440 1.325
2010-05-04 0.440 1.402
2010-02-09 0.440 1.389
2009-10-27 0.440 1.427
2009-07-28 0.440 1.494
2009-04-28 0.440 2.056
2009-02-10 0.440 2.302
2008-10-28 0.440 1.893
2008-07-30 0.440 1.560

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Watts Water Technologies's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.6x coverage).
X
Income/ dividend checks
We assess Watts Water Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Watts Water Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Watts Water Technologies has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Watts Water Technologies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bob Pagano
COMPENSATION $5,854,532
AGE 56
TENURE AS CEO 5.2 years
CEO Bio

Mr. Robert J. Pagano, Jr., also known as Bob, has been the Chief Executive Officer and President of Watts Water Technologies, Inc. since May 27, 2014 and was its Interim Chief Financial Officer from April 6, 2018 to July 02, 2018 and previously from October 14, 2014 to April 9, 2015. Mr. Pagano served as Senior Vice President and President of Industrial Process at ITT Corporation from October 2011 to May 26, 2014. He was responsible for all aspects of accounting and financial reporting for this diversified Fortune 500 company. Prior to joining Watts Water, he gained 16 years of executive management experience at ITT Corporation. He served as a Vice President and Corporate Controller of ITT Defense since August 2004. He served as Corporate Controller at ITT Corporation (Also known as ITT Industries Inc.) since August 2004 and served as its Vice President of Finance since 2006 until 2009. He also served as Vice President at ITT Corporation since October 2004 and its Principal Accounting Officer. He served as the President of ITT Industries' Fluid Technology Industrial Products Group in Seneca Falls, New York. He joined ITT Industries with ITT's acquisition of Goulds Pumps in May 1997. He joined Goulds in 1988 and following Goulds' acquisition by ITT, he served a number of increasingly responsible positions in finance and operations, including Vice President of Finance and Controller at ITT's Fluid Technology group in Upper Saddle River, New Jersey. He served for KPMG Peat Marwick in Syracuse. He has been a Director of Watts Water Technologies, Inc. since May 27, 2014. He has been a Director at Applied Industrial Technologies, Inc. since August 10, 2017. He has extensive leadership and operations experience and has a strong background in finance and accounting. Mr. Pagano began his career with an international public accounting firm and he is a Certified Public Accountant. He has both CPA and CMA Certifications. He is a Value-Based Six Sigma Green Belt. Mr. Pagano graduated Magna Cum Laude with a B.S. in Accounting from the State University of New York at Oswego and attended Post-Graduate Courses at Syracuse University.

CEO Compensation
  • Bob's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Bob's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Watts Water Technologies management team in years:

3.5
Average Tenure
54
Average Age
  • The tenure for the Watts Water Technologies management team is about average.
Management Team

Bob Pagano

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
56
TENURE
5.2 yrs

Shashank Patel

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
58
TENURE
1 yrs

Kenneth Lepage

TITLE
Executive VP
COMPENSATION
$2M
AGE
48
TENURE
10.9 yrs

Elie Melhem

TITLE
President of Asia-Pacific
COMPENSATION
$2M
AGE
56
TENURE
3.4 yrs

Munish Nanda

TITLE
President of Americas & Europe
COMPENSATION
$2M
AGE
54
TENURE
3.4 yrs

Virginia Halloran

TITLE
Chief Accounting Officer
AGE
39
TENURE
3.5 yrs

Tim MacPhee

TITLE
VP of Investor Relations & Treasurer

Ram Ramakrishnan

TITLE
Executive Vice President of Strategy & Business Development
TENURE
5.8 yrs

Jenn Congdon

TITLE
Chief Human Resources Officer
AGE
49
TENURE
2.6 yrs
Board of Directors Tenure

Average tenure and age of the Watts Water Technologies board of directors in years:

4.1
Average Tenure
60
Average Age
  • The tenure for the Watts Water Technologies board of directors is about average.
Board of Directors

W. Kissel

TITLE
Chairman of the Board
COMPENSATION
$247K
AGE
68

Bob Pagano

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
56
TENURE
5.2 yrs

Merilee Raines

TITLE
Director
COMPENSATION
$204K
AGE
63
TENURE
8.4 yrs

Chris Conway

TITLE
Director
COMPENSATION
$199K
AGE
64
TENURE
4.1 yrs

Joseph Noonan

TITLE
Director
COMPENSATION
$184K
AGE
37
TENURE
6.2 yrs

Joe Reitmeier

TITLE
Director
COMPENSATION
$184K
AGE
54
TENURE
3.4 yrs

David Dunbar

TITLE
Director
COMPENSATION
$184K
AGE
57
TENURE
2.4 yrs

Jes Hansen

TITLE
Director
COMPENSATION
$184K
AGE
51
TENURE
2.4 yrs

Louise Goeser

TITLE
Director
COMPENSATION
$196K
AGE
66
TENURE
1.3 yrs

Timothy Horne

TITLE
Director Emeritus
COMPENSATION
$722K
AGE
81
TENURE
9.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
24. May 19 Sell GAMCO Investors, Inc. Company 26. Apr 19 23. May 19 -85,080 €77.42 €-5,278,846
14. Mar 19 Sell Timothy Horne Individual 13. Mar 19 14. Mar 19 -12,500 €70.40 €-877,895
12. Mar 19 Sell Timothy Horne Individual 11. Mar 19 11. Mar 19 -13,481 €70.80 €-954,517
06. Mar 19 Sell Timothy Horne Individual 04. Mar 19 06. Mar 19 -23,043 €71.57 €-1,649,224
05. Mar 19 Sell Elie Melhem Individual 04. Mar 19 04. Mar 19 -2,681 €71.44 €-191,281
04. Mar 19 Sell Timothy Horne Individual 01. Mar 19 01. Mar 19 -976 €71.19 €-69,482
27. Feb 19 Sell Kenneth Lepage Individual 25. Feb 19 25. Feb 19 -9,673 €71.89 €-695,375
14. Feb 19 Sell Munish Nanda Individual 13. Feb 19 13. Feb 19 -11,059 €70.30 €-777,052
11. Dec 18 Sell Elie Melhem Individual 10. Dec 18 10. Dec 18 -1,173 €61.53 €-72,169
14. Nov 18 Sell Elie Melhem Individual 14. Nov 18 14. Nov 18 -1,000 €65.85 €-65,761
08. Nov 18 Sell Joseph Noonan Individual 07. Nov 18 07. Nov 18 -2,653 €66.24 €-175,739
16. Aug 18 Sell Elie Melhem Individual 15. Aug 18 15. Aug 18 -3,910 €72.71 €-284,298
07. Aug 18 Sell Robert Pagano Individual 07. Aug 18 07. Aug 18 -11,040 €73.65 €-813,115
07. Aug 18 Sell Kenneth Lepage Individual 06. Aug 18 06. Aug 18 -10,115 €74.39 €-752,444
X
Management checks
We assess Watts Water Technologies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Watts Water Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Watts Water Technologies, Inc. designs, manufactures, and sells products and systems that manage and conserve the flow of fluids and energy into, through and out of buildings in the residential and commercial markets. The company offers residential and commercial flow control products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, and thermostatic mixing valves. It also provides heating, ventilation, and air conditioning and gas products, such as boilers, water heaters, and heating solution; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, the company offers drainage and water re-use products comprising drainage products and engineered rain water harvesting solutions for commercial, industrial, marine, and residential applications; and water quality products that include point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems for commercial and residential applications. It sells its products to plumbing, heating, and mechanical wholesale distributors and dealers, as well as original equipment manufacturers, specialty product distributors, and do-it-yourself chains; and directly to wholesalers and private label accounts. The company has operations in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.

Details
Name: Watts Water Technologies, Inc.
W3W
Exchange: DB
Founded: 1874
$2,756,254,455
33,971,606
Website: http://www.watts.com
Address: Watts Water Technologies, Inc.
815 Chestnut Street,
North Andover,
Massachusetts, 01845,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WTS Class A Common Stock New York Stock Exchange US USD 21. Aug 1986
DB W3W Class A Common Stock Deutsche Boerse AG DE EUR 21. Aug 1986
Number of employees
Current staff
Staff numbers
4,800
Watts Water Technologies employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 21:32
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.