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WTS

Watts Water Technologies NYSE:WTS Stock Report

Last Price

US$124.33

Market Cap

US$4.2b

7D

0.2%

1Y

-15.2%

Updated

03 Jul, 2022

Data

Company Financials +
WTS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends4/6

WTS Stock Overview

Watts Water Technologies, Inc. designs, manufactures, and sells products, solution, 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.

Watts Water Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Watts Water Technologies
Historical stock prices
Current Share PriceUS$124.33
52 Week HighUS$212.00
52 Week LowUS$116.31
Beta0.98
1 Month Change-9.05%
3 Month Change-11.29%
1 Year Change-15.25%
3 Year Change35.72%
5 Year Change97.51%
Change since IPO550.09%

Recent News & Updates

Jul 01
Is It Time To Consider Buying Watts Water Technologies, Inc. (NYSE:WTS)?

Is It Time To Consider Buying Watts Water Technologies, Inc. (NYSE:WTS)?

Watts Water Technologies, Inc. ( NYSE:WTS ), might not be a large cap stock, but it received a lot of attention from a...

Jun 19
Watts Water Technologies, Inc. (NYSE:WTS) Shares Could Be 37% Below Their Intrinsic Value Estimate

Watts Water Technologies, Inc. (NYSE:WTS) Shares Could Be 37% Below Their Intrinsic Value Estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Watts Water...

May 26
Watts Water Technologies (NYSE:WTS) Is Increasing Its Dividend To US$0.30

Watts Water Technologies (NYSE:WTS) Is Increasing Its Dividend To US$0.30

Watts Water Technologies, Inc.'s ( NYSE:WTS ) dividend will be increasing to US$0.30 on 15th of June. Even though the...

Shareholder Returns

WTSUS MachineryUS Market
7D0.2%-2.6%-2.5%
1Y-15.2%-22.5%-21.2%

Return vs Industry: WTS exceeded the US Machinery industry which returned -22.5% over the past year.

Return vs Market: WTS exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is WTS's price volatile compared to industry and market?
WTS volatility
WTS Average Weekly Movement5.0%
Machinery Industry Average Movement6.2%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.3%

Stable Share Price: WTS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WTS's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18744,597Bob Paganohttps://www.watts.com

Watts Water Technologies, Inc. designs, manufactures, and sells products, solution, 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. 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, custom heat, and hot water solutions; 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.

Watts Water Technologies Fundamentals Summary

How do Watts Water Technologies's earnings and revenue compare to its market cap?
WTS fundamental statistics
Market CapUS$4.16b
Earnings (TTM)US$178.50m
Revenue (TTM)US$1.86b

23.3x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WTS income statement (TTM)
RevenueUS$1.86b
Cost of RevenueUS$1.07b
Gross ProfitUS$792.00m
Other ExpensesUS$613.50m
EarningsUS$178.50m

Last Reported Earnings

Mar 27, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.34
Gross Margin42.60%
Net Profit Margin9.60%
Debt/Equity Ratio17.4%

How did WTS perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

20%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is WTS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WTS?

Other financial metrics that can be useful for relative valuation.

WTS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.2x
Enterprise Value/EBITDA13.1x
PEG Ratio2.9x

Price to Earnings Ratio vs Peers

How does WTS's PE Ratio compare to its peers?

WTS PE Ratio vs Peers
The above table shows the PE ratio for WTS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average63.4x
TKR Timken
10.6x13.0%US$4.0b
AQUA Evoqua Water Technologies
74.7x33.8%US$4.0b
FLS Flowserve
39.1x54.2%US$3.8b
GTLS Chart Industries
129.3x39.5%US$5.6b
WTS Watts Water Technologies
23.3x8.0%US$4.2b

Price-To-Earnings vs Peers: WTS is good value based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (63.4x).


Price to Earnings Ratio vs Industry

How does WTS's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: WTS is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the US Machinery industry average (20.6x)


Price to Earnings Ratio vs Fair Ratio

What is WTS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WTS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.3x
Fair PE Ratio17.7x

Price-To-Earnings vs Fair Ratio: WTS is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).


Share Price vs Fair Value

What is the Fair Price of WTS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WTS ($124.33) is trading below our estimate of fair value ($192.8)

Significantly Below Fair Value: WTS is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: WTS is poor value based on its PEG Ratio (2.9x)


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTS's forecast earnings growth (8% per year) is above the savings rate (1.9%).

Earnings vs Market: WTS's earnings (8% per year) are forecast to grow slower than the US market (13.6% per year).

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

Revenue vs Market: WTS's revenue (3.5% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: WTS's revenue (3.5% 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


Discover growth companies

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


13.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WTS has high quality earnings.

Growing Profit Margin: WTS's current net profit margins (9.6%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: WTS's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: WTS's earnings growth over the past year (44.1%) exceeds its 5-year average (13.2% per year).

Earnings vs Industry: WTS earnings growth over the past year (44.1%) exceeded the Machinery industry 22.7%.


Return on Equity

High ROE: WTS's Return on Equity (15.4%) is considered low.


Discover strong past performing companies

Financial Health

How is Watts Water Technologies's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WTS's short term assets ($919.9M) exceed its short term liabilities ($404.8M).

Long Term Liabilities: WTS's short term assets ($919.9M) exceed its long term liabilities ($336.0M).


Debt to Equity History and Analysis

Debt Level: WTS has more cash than its total debt.

Reducing Debt: WTS's debt to equity ratio has reduced from 82.7% to 17.4% over the past 5 years.

Debt Coverage: WTS's debt is well covered by operating cash flow (71.7%).

Interest Coverage: WTS's interest payments on its debt are well covered by EBIT (48.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.97%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WTS's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: WTS's dividend (0.97%) is low compared to the top 25% of dividend payers in the US market (4.25%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.7%), WTS's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (34.2%), WTS's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

6.5yrs

Average management tenure


CEO

Bob Pagano (59 yo)

8.17yrs

Tenure

US$7,070,685

Compensation

Mr. Robert J. Pagano, Jr., also known as Bob, serves as the Chief Executive Officer and President of Watts Water Technologies, Inc. since May 27, 2014 and serves as its Chairman since February 07, 2022 and...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD7.07M) is about average for companies of similar size in the US market ($USD6.91M).

Compensation vs Earnings: Bob's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WTS's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: WTS's board of directors are considered experienced (7.6 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 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
  • Implied Market Cap: US$4.159b
  • Shares outstanding: 33.45m
  • Website: https://www.watts.com

Number of Employees


Location

  • Watts Water Technologies, Inc.
  • 815 Chestnut Street
  • North Andover
  • Massachusetts
  • 01845-6098
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/27
Annual Earnings2021/12/31


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.