Watts Water Technologies Inc

Industrials
Metal Fabrications
www.wattswater.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $7.20B
PE 26
Debt $211.80M
Cash $303.90M
EV $7.11B
FCF $297.50M

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	$279.30M
EBIT	$380.10M
ROE	17%
ROA	16%
FCF	$297.50M
Equity	$1.69B
Growth Stability	100%
PE	25.79
PEG	1.03
PB	4.26
P/FCF	24.21
P/S	3.19
Price/Cash	0.04
Debt/Equity	0.13
Debt/FCF	0.71
Net Margins	13%
Gross Margins	47%
Op. Margins	17%
Earnings CAGR	19%
Sales Growth YoY	8%
Sales Growth QoQ	-9%
Sales CAGR	5%
FCF CAGR	16%
Equity CAGR	8%
Earnings Stability	0.88
Earnings Growth YoY	5%
Earnings Growth QoQ	-16%

Earnings CAGR 5Y	25%
Sales CAGR 5Y	9%
FCF CAGR 5Y	12%
Equity CAGR 5Y	12%
Earnings CAGR 3Y	7%
Sales CAGR 3Y	7%
FCF CAGR 3Y	48%
Equity CAGR 3Y	16%
Market Cap	$7.20B
Revenue	$2.26B
Assets	$2.40B
Total Debt	$211.80M
Cash	$303.90M
Shares Outstanding	33.47M
EV	7.11B
Earnings Score	94%
Moat Score	94%
Safety Score	97%
Final Score	95%
Working Capital	648.1M
Current Ratio	2.55
Gross Profit	$1.07B
Shares Growth 3y	-0%
Equity Growth QoQ	4%
Equity Growth YoY	16%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

Watts Water Technologies is a U.S.-based company that provides safety, energy efficiency, and water conservation products. The company's product portfolio includes residential and commercial flow control products, which are sold for plumbing and hot water applications; HVAC and gas products, including commercial boilers, water heaters, and heating solutions, and heating systems; drainage and water reuse products, including drainage products and engineered rainwater-harvesting solutions; and water quality products, including point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems. The company generates most of its revenue from markets in the Americas and in Europe, the Middle East, and Africa.

SEC Filings

Direct access to Watts Water Technologies Inc (WTS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 29
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 24
- 10-Q Jun 25
- 10-Q Mar 26
2022
- 10-K Dec 31
- 10-Q Sep 25
- 10-Q Jun 26
- 10-Q Mar 27

Sector Comparison

How does Watts Water Technologies Inc compare to its competitors?

Loading chart...

Peter Lynch's Chart

This chart shows the current pricing of Watts Water Technologies Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 19%

Stability 88%

loading chart...

Watts Water Technologies Inc Discounted Cash Flow

Fully customizable DCF calculator online for Watts Water Technologies Inc.

Years

Calculation mode

= $8.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$298M	$344M	$399M	$462M	$534M	$619M	$716M	$829M	$960M	$1.1B	$1.3B	$13B
DCF		$313M	$330M	$347M	$365M	$384M	$404M	$425M	$448M	$471M	$496M	$5B
Value	$8.9B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	3%	-8%	6%	5%	8%	8%	8%	9%	13%	13%	13%
ROA	-	-5%	8%	9%	12%	11%	10%	13%	16%	15%	16%
ROE	-	-16%	11%	9%	14%	13%	11%	14%	19%	17%	17%

Good Net Margins (13.06%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	7.08	7.76	4.13	2.88	2.52	1.08	0.92	0.75	1.06	0.71
Debt over Equity	0.64	0.82	1.08	0.63	0.43	0.42	0.19	0.12	0.11	0.2	0.13
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Good Debt/FCF ratio (0.71)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.13)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-3%	-5%	4%	7%	2%	-6%	20%	9%	4%	9%
Earnings YoY growth	-	-324%	-175%	-13%	75%	3%	-13%	45%	52%	4%	25%
Equity YoY growth	-	-23%	4%	13%	8%	10%	9%	10%	11%	16%	12%
FCF YoY growth	-	-27%	25%	24%	6%	23%	12%	-17%	27%	43%	12%