Watts Water Technologies, Inc.

Miscellaneous Fabricated Metal Products

WTSStrong11 of 11 basics passed

$352.72

+1.61%

Market cap $11.8B

$352.72

+1.61%

Market cap $11.8B

Watts Water Technologies Inc is a U.S.-based company that provides safety, energy efficiency, and water conservation products.

It is a $11.8B industrial company. Revenue grew 17.1% over the last year, it keeps 14¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 30.8× earnings — in the most expensive third of its own history.

Website: wattswater.com
Location: North Andover, MA
Employees: 5 700
Sector: Industrials
Founded: 1874

Share price · 3 years

$172.17 → $352.72+104.9%

price only — dividends excluded

Key facts · TTM

Revenue: total sales; $2.68B
Profit: keeps 14¢ of every $1 sold; $384M
Free cash flow: cash left after running the business; $349M
Net cash: more cash than debt; $208M
P/E: years of profit in the price; 30.8
EPS: earnings per share, TTM; $11.46
Dividend: pays out 19% of profit · 21% of FCF; 0.62%
Shares: down 3% since 2016 — buybacks; 33.5M
Volatility: beta vs the market — under 1 swings less; 1.13

Revenue, last 10 years

52-week range

Low $263.55$352.72High $392.23

Today's price is 69% of the way from the year's low to its high.

P/E vs its history5y

30.7×median 25.3×

Higher than 79% of past days — in the most expensive third of its own history.

Valuation vs own history

P/E

30.7×

20%

P/S

4.4×

EV/EBITDA

22.5×

19%

P/B

5.4×

10%

FCF yield

3.0%

24%

Share of the last ~5 years that was pricier than today (unusually expensive vs its own history). Based on the daily valuation record.

Insider activity · 90 days

-$1.69Mnet selling

Purchases$0

Sales$1.69M

Insiders trading, last 14d0 buy · 0 sell

Standing in Industrials

Size$11.8Btop 75%
Revenue growth+7%top 30%
Net margin14%top 25%
Return on equity19%top 45%
P/E30.8×top 62%
Dividend yield0.62%top 79%

Ranked against 130 Industrials companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Strong growth, profitability, health, quality and moat; Valuation lags behind.

Valuation42

P/E vs own history79th pct · 5/25
FCF yield3.0% · 5/25
P/S4.4x · 20/25
EV/EBITDA21.1x · 12/25

Growth77

Revenue CAGR7.7% · 12/25
Net income CAGR19.8% · 20/25
EPS CAGR ~5Y24.8% · 25/25
Fwd implied growth19.2% · 20/25

Profitability80

ROIC18.7% · 20/25
ROE18.6% · 20/25
Net margin14.3% · 20/25
Operating margin19.1% · 20/25

Health100

Altman Z11.21 · 25/25
Current ratio2.66 · 25/25
Interest coverage446.8x · 25/25
Net cash / debtNet cash · 25/25

Quality89

Piotroski F7/9 · 22/25
Beneish M-2.39 · 20/25
FCF conversion91% · 22/25
Margin stabilityσ 3.4% · 25/25

Moat88

ROIC >12% years10/10 yrs · 25/25
Median gross margin42.4% · 20/25
FCF-positive years10/10 yrs · 25/25
Worst-year net marginworst 5.0% · 18/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

FY2025Financial
Best year on record
$341M net income
2023Acquisition
The company acquired Bradley Corporation for $303 million
FY2019Financial
Became debt-free
cash now exceeds total debt
FY2016Financial
Profitable every year on record
10 consecutive profitable years in our data
FY2016Financial
Revenue already above $1B
$1.40B in first reported year
FY2016Financial
Positive free cash flow every year since
10-year streak
2011Acquisition
The company acquired Danfoss Scola for $176 million
2006Acquisition
The company acquired Kim Olofsson Safe
2005Acquisition
The company acquired Dormont Manufacturing for $95 million
1986IPO
The company became a public company via an initial public offering
1874Founded
The company was founded in 1874 by Joseph E

Achievements

Verifiable track record, straight from the reported numbers.

$10 000 invested in 2021 would be worth ~$20 627 today — price return only

$2.4B revenue in FY2025

Revenue up 17.1% year over year

Profitable 10 years in a row

Positive free cash flow 10 years in a row

5 700 employees

ROIC of 18.7%

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

High gross margin (48.9%)
Revenue growing 17.1% year over year
Net cash position after subtracting debt from cash
Interest covered 446.8× by operating earnings
High returns on invested capital (ROIC 18.7%)

Watch-outs

Nothing stands out as a concern in the available data.

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

11 of 11 checks passed

Revenue growing — the company sells more than a year ago+17.1% YoY
Profitable — makes more than it spends$384M TTM
Profit growing — earnings are higher than last year+10.8% YoY
Generates cash — cash left after running and investing$349M TTM
Debt under control — could handle its obligationsmore cash than debt
Established company — not a micro-cap — lower blow-up risk$11.8B market cap
Not printing shares — share count not ballooning — you keep your slice-1.5% shares over ~5y
Proven track record — years of profitability behind it10/10 profitable years
Financially stable — balance sheet not near distressAltman Z 11.2 — safe
Pays a dividend — returns cash to shareholdersyield 0.62%
Valuation not extreme — price not wildly above earningsP/E 30.8

Peer comparisonWatts Water Technologies, Inc. vs 6 largest industrials peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
WTS this company	$11.8B	30.8	+17.1%	14.3%	Strong
LRCX Lam Research Corp	$399.2B	54.9	+26.0%	31.3%	Strong
CAT Caterpillar Inc.	$368.0B	33.9	+18.4%	14.5%	Solid
RTX RTX Corporation	$251.3B	32.4	+11.8%	8.3%	Strained
DE Deere & Company	$167.7B	34.4	+8.3%	10.2%	Solid
ETN Eaton Corporation, plc	$167.2B	43.6	+15.5%	12.8%	Mixed
UNP Union Pacific Corp.	$166.8B	22.6	+4.2%	28.8%	Strained

Head-to-head: WTS vs LRCX · WTS vs CAT · WTS vs RTX

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 2Buy 4Hold 10

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Profit & lossRevenue $2.68B · net income $384M (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2025 revenue flows to profit

RevenueNet income

Revenue (TTM)

$2.68B

YoY 17.1%

Net income (TTM)

$384M

Margin 14.3%

Gross margin

48.9%

Operating margin

19.1%

P/E ratio

30.8

Dividend yield

0.62%

Income statement — full detail

Figures in USD billions · EPS in USD

	2020	2021	2022	2023	2024	2025
Revenue	1.5	1.8	2.0	2.1	2.3	2.4
Gross profit	0.6	0.8	0.9	1.0	1.1	1.2
Operating income (EBIT)	0.2	0.2	0.3	0.4	0.4	0.4
Net income	0.1	0.2	0.3	0.3	0.3	0.3
EPS (diluted)	3.36	4.89	7.49	7.82	8.69	10.17

Cash flowFree cash flow $349M · operating cash flow $398M (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

$349M

Margin 13.1%

Operating cash flow (TTM)

$398M

FCF margin

13.1%

Cash flow statement — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Operating cash flow	0.2	0.2	0.2	0.3	0.4	0.4
Capital expenditure	-0.0	-0.0	-0.0	-0.0	-0.0	-0.0
Free cash flow	0.2	0.2	0.2	0.3	0.3	0.4
FCF margin	12.3%	8.5%	9.9%	13.7%	14.5%	14.6%

Balance sheetAssets $2.88B · net cash $208M (FY2025)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $2.88B of assets is financed

30%

70%

Liabilities $854M — borrowed moneyEquity $2.03B — owners' stake

Cash vs debt

Total debt $198M − cash $406M = net cash $208M

Cash on hand covers all debt.

Altman Z-Score

11.21

Safe zone

Debt repayment

Not needed

Cash already covers all debt

Interest coverage

446.8x

EBIT ÷ interest expense

ROE

18.6%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Cash & equivalents	0.2	0.2	0.3	0.4	0.4	0.4
Total assets	1.7	1.9	1.9	2.3	2.4	2.9
Total liabilities	0.7	0.7	0.6	0.8	0.7	0.9
Total debt	0.2	0.1	0.1	0.3	0.2	0.2
Equity	1.1	1.2	1.3	1.5	1.7	2.0
Net debt	-0.0	-0.1	-0.2	-0.1	-0.2	-0.2

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of WTS on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $352.72 · market cap $11.8B.