WTS
WATTS WATER TECHNOLOGIES INC
Next earnings Aug 4, 2026 · consensus $3.35 EPS, $732M rev
Last earnings +0.1% on 2026-05-06
$368.55
▲ +2.68%$368.55▲ +50.95%
over 1Y
L $244.09H $375.09
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+2.7%
1W-1.7%
1M+18.8%
3M+27.8%
YTD+32.8%
1Y+51.0%
Hold
Conviction
Horizon
Medium (3–12mo)
Street · 17 analysts
Hold
High-quality water-tech compounder with 49.5% gross margin and low debt, but a full 33.8x P/E caps upside.
Revenue $2.44B · FY2025
The read
Middling fundamentals and a rich price (~24% above fair value) leave little margin of safety — a wait-and-see.
Watts Water Technologies is a steadily compounding industrial. FY2025 revenue grew 8.3% to $2.44B (5.3% organic per the 10-K, with acquired sales adding 2.3% and FX 0.6%), continuing a consistent climb from $1.81B in FY2021 through $1.98B, $2.06B, $2.25B and now $2.44B. Profitability is excellent for a fabricated-products maker: a 49.5% gross margin, 18.4% operating margin, operating income of $448M (+14.8%), and net income of $341M (+17.0%) with diluted EPS of $10.17 (+17.0%). Management credits favorable price, volume growth, productivity and acquisitions, partially offset by inflation, tariffs and softer European volumes.
The balance sheet is a clear strength. Stockholders' equity grew 18.7% to $2.03B against just $198M of long-term debt, and the company generated $402M of operating cash flow (+11.3%) while funding a string of bolt-on acquisitions entirely with cash on hand (Saudi Cast, Superior Boiler at $88.7 million, Haws, EasyWater, and I-CON at $70.7 million). Return on equity is a healthy 16.8% and retained earnings rose 20.8% to $1.43B. This is a disciplined, self-funding capital allocator.
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 4:47 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $1.81B | $1.98B | $2.06B | $2.25B | $2.44B |
| Gross profit | $767M | $874M | $961M | $1.06B | $1.21B |
| Operating income | $240M | $315M | $351M | $390M | $448M |
| Net income | $166M | $252M | $262M | $291M | $341M |
| Diluted EPS | $4.88 | $7.48 | $7.82 | $8.69 | $10.17 |
| Net margin | 9.2% | 12.7% | 12.7% | 12.9% | 14.0% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$12.2B
EV / EBITDA24.2
EV / Sales5.0
EV / FCF34.3
P / FCF34.5
PEG (trailing)2.13
Earnings yield2.8%
FCF yield2.9%
Quality & risk
ROIC (est.)15.2%
Free cash flow$356M
Total debt$303M
Net cash$103M
Piotroski F-Score6/9
Capital returns
Buyback yield0.1%
Dividend yield (est.)—
Shareholder yield0.1%
Shares Δ YoY+0.0%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsSome governance/structural items recently, but no outright red flags.
Recent filings
all on EDGAR ↗144Filing2026-05-28open ↗4Period ending 2026-05-282026-05-28open ↗SDFiling2026-05-21open ↗8-KPeriod ending 2026-05-192026-05-20open ↗4Period ending 2026-05-132026-05-14open ↗144Filing2026-05-13open ↗10-QPeriod ending 2026-03-292026-05-07open ↗8-KPeriod ending 2026-05-062026-05-06open ↗SCHEDULE 13G/AFiling2026-04-30open ↗SCHEDULE 13GFiling2026-04-30open ↗SCHEDULE 13GFiling2026-04-29open ↗ARSPeriod ending 2025-12-312026-04-01open ↗
Frequently asked
- Is WATTS WATER TECHNOLOGIES INC (WTS) a buy?
- WTS currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. High-quality water-tech compounder with 49.5% gross margin and low debt, but a full 33.8x P/E caps upside.
- What is WTS's fair value?
- A Modified-Graham model based on WTS's SEC fundamentals estimates a fair value of about $279.46. It is an estimate from reported earnings, not a price target.
- Is WTS overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, WTS currently appears overvalued relative to its SEC-grounded earnings power.
- What is WATTS WATER TECHNOLOGIES INC's quality score?
- WTS scores 73.5411241080717/100 (grade B) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0000795403, latest 10-Q filed 2026-05-07) · EODHD · Proprietary analysis · as of 6/21/2026, 8:47:14 PM.
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