Watts Water Technologies
Market Cap
US$3.6b
Last Updated
2020/02/16 23:45 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 residential and commercial markets.
Rewards
Risk Analysis
No risks detected for WTS from our risk checks.
Snowflake Analysis
Flawless balance sheet with proven track record and pays a dividend.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
6.8%
WTS
1.5%
US Machinery
1.5%
US Market
1 Year Return
32.5%
WTS
11.4%
US Machinery
20.1%
US Market
Return vs Industry: WTS exceeded the US Machinery industry which returned 11.4% over the past year.
Return vs Market: WTS exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| WTS | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.8% | 1.5% | 1.5% |
| 30 Day | 5.5% | -2.1% | 1.4% |
| 90 Day | 12.5% | 2.0% | 8.7% |
| 1 Year | 33.8%32.5% | 13.4%11.4% | 22.7%20.1% |
| 3 Year | 77.6%71.9% | 37.2%28.4% | 50.1%40.5% |
| 5 Year | 104.2%93.1% | 64.0%44.5% | 73.1%54.1% |
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
1 week ago | Simply Wall St
I Ran A Stock Scan For Earnings Growth And Watts Water Technologies (NYSE:WTS) Passed With Ease2 weeks ago | Simply Wall St
Should You Think About Buying Watts Water Technologies, Inc. (NYSE:WTS) Now?1 month ago | Simply Wall St
Is Watts Water Technologies, Inc.'s (NYSE:WTS) CEO Overpaid Relative To Its Peers?Valuation
Is Watts Water Technologies undervalued compared to its fair value and its price relative to the market?
27.75x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WTS ($107) is trading above our estimate of fair value ($103.51)
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 (27.7x) compared to the Machinery industry average (21.4x).
PE vs Market: WTS is poor value based on its PE Ratio (27.7x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: WTS is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: WTS is overvalued based on its PB Ratio (3.7x) compared to the US Machinery industry average (2.2x).
Next Steps
Future Growth
How is Watts Water Technologies forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
8.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WTS's forecast earnings growth (8.7% per year) is above the savings rate (1.7%).
Earnings vs Market: WTS's earnings (8.7% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: WTS's earnings are forecast to grow, but not significantly.
Revenue vs Market: WTS's revenue (2.8% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: WTS's revenue (2.8% 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
Next Steps
Past Performance
How has Watts Water Technologies performed over the past 5 years?
39.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WTS has high quality earnings.
Growing Profit Margin: WTS's current net profit margins (8.2%) are higher than last year (8.2%).
Past Earnings Growth Analysis
Earnings Trend: WTS's earnings have grown significantly by 39.6% per year over the past 5 years.
Accelerating Growth: WTS's earnings growth over the past year (2.7%) is below its 5-year average (39.6% per year).
Earnings vs Industry: WTS earnings growth over the past year (2.7%) exceeded the Machinery industry 2.1%.
Return on Equity
High ROE: WTS's Return on Equity (13.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Watts Water Technologies's financial position?
Financial Position Analysis
Short Term Liabilities: WTS's short term assets ($734.9M) exceed its short term liabilities ($419.3M).
Long Term Liabilities: WTS's short term assets ($734.9M) exceed its long term liabilities ($325.8M).
Debt to Equity History and Analysis
Debt Level: WTS's debt to equity ratio (27.2%) is considered satisfactory.
Reducing Debt: WTS's debt to equity ratio has reduced from 63.6% to 27.2% over the past 5 years.
Debt Coverage: WTS's debt is well covered by operating cash flow (73%).
Interest Coverage: WTS's interest payments on its debt are well covered by EBIT (14.7x coverage).
Balance Sheet
Inventory Level: WTS has a high level of physical assets or inventory.
Debt Coverage by Assets: WTS's debt is covered by short term assets (assets are 2.8x debt).
Next Steps
Dividend
What is Watts Water Technologies's current dividend yield, its reliability and sustainability?
0.86%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Watts Water Technologies before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: WTS's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: WTS's dividend (0.86%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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 low payout ratio (23.3%), 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 (18.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Bob Pagano (56yo)
5.8yrs
Tenure
US$5,854,532
Compensation
Mr. Robert J. Pagano, Jr., also known as Bob, has been the Chief Executive Officer and President of Watts Water Technologies, Inc. since May 27, 2014 and was its Interim Chief Financial Officer from April ...
CEO Compensation Analysis
Compensation vs Market: Bob's total compensation ($USD5.85M) is about average for companies of similar size in the US market ($USD4.88M).
Compensation vs Earnings: Bob's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 5.8yrs | US$5.85m | 0.43% $15.4m | |
| Chief Financial Officer | 1.6yrs | US$2.08m | 0.051% $1.8m | |
| Executive VP | 11.5yrs | US$1.58m | 0.12% $4.4m | |
| President of Asia-Pacific | 4yrs | US$1.50m | 0.074% $2.7m | |
| President of Americas & Europe | 4yrs | US$2.38m | 0.11% $3.9m | |
| Chief Accounting Officer | 4.1yrs | no data | 0.030% $1.1m | |
| VP of Investor Relations & Treasurer | 0yrs | no data | no data | |
| Executive Vice President of Strategy & Business Development | 6.3yrs | no data | no data | |
| Chief Human Resources Officer | 3.2yrs | no data | 0.044% $1.6m |
4.0yrs
Average Tenure
54yo
Average Age
Experienced Management: WTS's management team is considered experienced (4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 5.8yrs | US$5.85m | 0.43% $15.4m | |
| Independent Director | 1.9yrs | US$196.24k | 0.0092% $332.6k | |
| Independent Director | 9yrs | US$203.90k | 0.048% $1.7m | |
| Independent Chairman of the Board | 0yrs | US$247.03k | 0.044% $1.6m | |
| Director Emeritus | 9.8yrs | US$722.22k | 18.45% $668.7m | |
| Independent Director | 4.7yrs | US$198.90k | 0.011% $381.6k | |
| Independent Director | 3yrs | US$183.90k | 0.014% $505.1k | |
| Independent Director | 4yrs | US$183.90k | 0.0068% $246.4k | |
| Director | 6.8yrs | US$183.90k | 0.056% $2.0m | |
| Independent Director | 3yrs | US$183.90k | 0.014% $505.1k |
4.7yrs
Average Tenure
60yo
Average Age
Experienced Board: WTS's board of directors are considered experienced (4.7 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$3.624b
- Shares outstanding: 33.87m
- Website: https://www.watts.com
Number of Employees
Location
- Watts Water Technologies, Inc.
- 815 Chestnut Street
- North Andover
- Massachusetts
- 1845
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WTS | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Aug 1986 |
| W3W | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Aug 1986 |
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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:45 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.