Watts Water Technologies
Market Cap
US$4.7b
Last Updated
2021/05/17 22:09 UTC
Data Sources
Company Financials +
Executive Summary
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 commercial and residential markets in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Watts Water Technologies's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WTS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: WTS's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-2.3%
WTS
-0.9%
US Machinery
-0.6%
US Market
1 Year Return
72.4%
WTS
89.5%
US Machinery
46.0%
US Market
Return vs Industry: WTS underperformed the US Machinery industry which returned 98.1% over the past year.
Return vs Market: WTS exceeded the US Market which returned 50.8% over the past year.
Shareholder returns
| WTS | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.3% | -0.9% | -0.6% |
| 30 Day | 12.7% | 2.6% | -1.8% |
| 90 Day | 12.2% | 12.9% | 0.2% |
| 1 Year | 74.0%72.4% | 93.7%89.5% | 48.4%46.0% |
| 3 Year | 78.1%72.9% | 64.0%54.3% | 60.5%50.4% |
| 5 Year | 155.6%142.6% | 173.3%145.8% | 125.9%100.9% |
Long-Term Price Volatility Vs. Market
How volatile is Watts Water Technologies's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
These 4 Measures Indicate That Watts Water Technologies (NYSE:WTS) Is Using Debt Reasonably Well2 months ago | Simply Wall St
Should You Buy Watts Water Technologies, Inc. (NYSE:WTS) For Its Upcoming Dividend?3 months ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In Watts Water Technologies, Inc. (NYSE:WTS)Valuation
Is Watts Water Technologies undervalued compared to its fair value and its price relative to the market?
37.07x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WTS ($135.81) is trading above our estimate of fair value ($115.79)
Significantly Below Fair Value: WTS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WTS is poor value based on its PE Ratio (37.1x) compared to the US Machinery industry average (34.6x).
PE vs Market: WTS is poor value based on its PE Ratio (37.1x) compared to the US market (19.8x).
Price to Earnings Growth Ratio
PEG Ratio: WTS is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: WTS is overvalued based on its PB Ratio (4.2x) compared to the US Machinery industry average (3.3x).
Future Growth
How is Watts Water Technologies forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
8.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WTS's forecast earnings growth (8.5% per year) is above the savings rate (2%).
Earnings vs Market: WTS's earnings (8.5% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: WTS's earnings are forecast to grow, but not significantly.
Revenue vs Market: WTS's revenue (3.8% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: WTS's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if WTS's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Watts Water Technologies performed over the past 5 years?
33.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WTS has high quality earnings.
Growing Profit Margin: WTS's current net profit margins (8.1%) are lower than last year (8.3%).
Past Earnings Growth Analysis
Earnings Trend: WTS has become profitable over the past 5 years, growing earnings by 33.5% per year.
Accelerating Growth: WTS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WTS had negative earnings growth (-6.4%) over the past year, making it difficult to compare to the Machinery industry average (-6.7%).
Return on Equity
High ROE: WTS's Return on Equity (11.5%) is considered low.
Financial Health
How is Watts Water Technologies's financial position?
Financial Position Analysis
Short Term Liabilities: WTS's short term assets ($774.6M) exceed its short term liabilities ($345.2M).
Long Term Liabilities: WTS's short term assets ($774.6M) exceed its long term liabilities ($358.0M).
Debt to Equity History and Analysis
Debt Level: WTS's debt to equity ratio (12.8%) is considered satisfactory.
Reducing Debt: WTS's debt to equity ratio has reduced from 81.8% to 12.8% over the past 5 years.
Debt Coverage: WTS's debt is well covered by operating cash flow (191%).
Interest Coverage: WTS's interest payments on its debt are well covered by EBIT (16.9x coverage).
Balance Sheet
Dividend
What is Watts Water Technologies's current dividend yield, its reliability and sustainability?
0.76%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: WTS's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: WTS's dividend (0.77%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: WTS's dividends per share have been stable in the past 10 years.
Growing Dividend: WTS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (25.1%), WTS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WTS's dividends in 3 years are forecast to be well covered by earnings (19.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Bob Pagano (57 yo)
7yrs
Tenure
US$5,328,463
Compensation
Mr. Robert J. Pagano, Jr., also known as Bob, has been the Chief Executive Officer and President of Watts Water Technologies, Inc. since May 27, 2014 and was its Interim Chief Financial Officer from April ...
CEO Compensation Analysis
Compensation vs Market: Bob's total compensation ($USD5.33M) is about average for companies of similar size in the US market ($USD5.32M).
Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: WTS's management team is seasoned and experienced (5.3 years average tenure).
Board Members
Experienced Board: WTS's board of directors are considered experienced (5.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WTS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Watts Water Technologies, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Watts Water Technologies, Inc.
- Ticker: WTS
- Exchange: NYSE
- Founded: 1874
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$4.680b
- Shares outstanding: 33.67m
- Website: https://www.watts.com
Number of Employees
Location
- Watts Water Technologies, Inc.
- 815 Chestnut Street
- North Andover
- Massachusetts
- 01845-6098
- United States
Listings
Biography
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 commercial and resident...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/17 22:09 |
| End of Day Share Price | 2021/05/17 00:00 |
| Earnings | 2021/03/28 |
| Annual Earnings | 2020/12/31 |
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.