Stock Analiz

Watts Water Technologies Inc. WTS

Metal Fabrications · IPO 1986 · data as of November 13, 2026

$360.39Market cap $12.0B
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Watts Water Technologies Inc. (WTS) is a industrial company listed in the US with a market value of about $12.0B. In the twelve months to September 27, 2026 it had revenue of $2.8B and net income of $447M, a net margin of 16.0%.

Its overall Stock Analiz score is 3.6 out of 5 (good). The strongest part is track record (5/5); the weakest is value (2/5).

Key numbers: a P/E of 27.0, a price to free cash flow of 32.5, 5-year revenue growth of 10% a year, a 5-year average ROIC of 15%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 45% below the current price.

Score: 3.6 / 5

Value2/5
Future growth2/5
Track record5/5
Financial health5/5
Shareholder returns4/5

Checks passed

  • P/E below the industry median
  • PEG below 1.5
  • Profit margin improving
  • 3-year free cash flow growth above 10% a year
  • 5-year EPS growth above 10% a year
  • 5-year revenue growth above 8% a year
  • 5-year average ROIC above 12%
  • Profitable 5 years in a row

Checks not passed

  • P/E below 25
  • P/FCF below 20
  • Price below intrinsic value (DCF, moderate assumptions)
  • Revenue growth above 10% last year
  • 3-year revenue growth above 10% a year
  • Strong R&D investment or growth above 20%
  • Share count down over 3 years (buybacks)

Valuation

P/E (TTM)27.0
Forward P/E26.4
P/FCF32.5
P/S4.3
P/B5.2
EV/EBITDA17.9
PEG1.09
Dividend yield0.64%
FCF yield3.1%
Shareholder yield0.8%
Intrinsic value vs. price−45%

Growth and quality

Revenue growth (1 yr)8.3%
Revenue growth (5 yrs, per year)10.1%
EPS growth (5 yrs, per year)24.8%
FCF growth (3 yrs, per year)22.1%
Net margin (5-yr avg.)12.3%
ROIC (5-yr avg.)14.7%
Profitable years (of last 10)10
Years paying a dividend10

Financials, last 10 years

Fiscal yearTTM2025202420232022202120202019201820172016
Revenue$2.8B$2.4B$2.3B$2.1B$2.0B$1.8B$1.5B$1.6B$1.6B$1.5B$1.4B
Net income$447M$341M$291M$262M$252M$166M$114M$132M$128M$73M$84M
Free cash flow$370M$356M$326M$281M$196M$154M$185M$165M$134M$126M$102M
EPS (diluted)$13.34$10.17$8.69$7.82$7.48$4.88$3.36$3.85$3.73$2.12$2.44
Net margin16.0%14.0%12.9%12.8%12.7%9.2%7.6%8.2%8.2%5.0%6.0%
ROIC—14.8%15.1%14.1%17.2%12.4%9.3%10.6%11.1%6.2%6.9%

From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.

What analysts expect

The average 12-month price target from 7 analysts is $393.00, 9% above the current price; targets range from $360.00 to $430.00; the consensus rating is “Buy”; expected EPS is $13.22 for the fiscal year ending December 31, 2026.

Frequently asked questions

What is Watts Water Technologies’s P/E ratio?

About 27.0, based on the last twelve months of diluted earnings per share (forward P/E about 26.4).

Is Watts Water Technologies stock undervalued?

Our DCF model with moderate assumptions puts its intrinsic value about 45% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.

Does Watts Water Technologies pay a dividend?

Yes. The dividend yield is about 0.64%, and it has paid dividends for 10 years in our data.

Is Watts Water Technologies a good stock to buy?

We do not give buy or sell advice. Watts Water Technologies scores 3.6 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.

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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.