NYSE:WTS

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Watts Water Technologies

Market Cap

US$5.1b

Last Updated

2021/08/03 00:33 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


Snowflake Analysis

Flawless balance sheet with questionable track record.


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

3.1%

WTS

-0.4%

US Machinery

-0.4%

US Market


1 Year Return

75.8%

WTS

46.5%

US Machinery

34.4%

US Market

Return vs Industry: WTS exceeded the US Machinery industry which returned 49.8% over the past year.

Return vs Market: WTS exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

WTSIndustryMarket
7 Day3.1%-0.4%-0.4%
30 Day3.1%-0.9%-0.4%
90 Day19.7%-3.5%4.0%
1 Year77.3%75.8%49.6%46.5%36.5%34.4%
3 Year81.5%76.3%58.8%49.5%62.0%51.9%
5 Year154.3%141.7%133.8%109.4%121.8%97.2%

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

Valuation

Is Watts Water Technologies undervalued compared to its fair value and its price relative to the market?

41.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WTS ($151.18) is trading above our estimate of fair value ($119.64)

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 (41.3x) compared to the US Machinery industry average (31.2x).

PE vs Market: WTS is poor value based on its PE Ratio (41.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: WTS is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: WTS is overvalued based on its PB Ratio (4.7x) compared to the US Machinery industry average (2.8x).


Future Growth

How is Watts Water Technologies forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTS's forecast earnings growth (11.4% per year) is above the savings rate (2%).

Earnings vs Market: WTS's earnings (11.4% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: WTS's earnings are forecast to grow, but not significantly.

Revenue vs Market: WTS's revenue (4.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: WTS's revenue (4.1% 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 (6.6%).


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?

0.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WTS's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: WTS's dividend (0.69%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: WTS is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: WTS is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WTS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WTS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Bob Pagano (58 yo)

7.25yrs

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 ($USD5.33M) is about average for companies of similar size in the US market ($USD6.49M).

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 (5.6 years average tenure).


Board Members

Experienced Board: WTS's board of directors are considered experienced (6.2 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$5.090b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 00:33
End of Day Share Price2021/08/02 00:00
Earnings2021/03/28
Annual Earnings2020/12/31


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.