Watts Water Technologies WTS
United StatesIndustrials · Specialty Industrial MachineryUSD
404.00 USD (+16.0%)
7 analysts
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Watts Water Technologies designs and manufactures products and solutions for water management, plumbing, heating and climate control in residential and commercial buildings, with a diversified business model focused on replacement and water efficiency.
Key points
from its scores- ✓Very solid balance sheet8.5
- ✓Good share-price trend8.0
- ✓Strong growth7.6
- ✕Demanding valuation3.8
- ✕Little or no dividend4.2
AI analysis
bottom line, main risk, context and newsNotable quality and growth, but the price already discounts much of the good prospects.
Watts Water presents a solid financial profile: net cash (Net Debt/EBITDA of -0.23), ROIC of 23.32% and revenue growth of 18.60%, although its valuation is demanding (P/E of 30.42, FCF yield of 1.97%).
The demanding valuation (P/E of 30.42 and EV/EBITDA of 19.78) leaves little margin of safety if organic growth decelerates or if long-term rates in the US keep rising and compress multiples for quality companies.
Context and risks
No relevant recent news and no material exposure to current macro factors. The rise in long-term US rates is a general market factor, but Watts Water maintains net cash and its plumbing and HVAC components business does not depend on commodities or conflict maritime routes.
Is Watts Water Technologies stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 28% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 30.4 | 25.4 | +20% |
| EV / EBITDA | 19.8 | 14.5 | +36% |
| Price / book | 5.3 | 4.1 | +31% |
| Price / sales | 4.3 | 2.1 | +111% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 3.8 out of 10 (median for Industrials: 5.0).
Average analyst target: 404.00 USD, +16.0% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 7.1 (sector 5.8), Growth 7.6 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 30.4
- Forward P/E
- 24.8
- EV / EBITDA
- 19.8
- Price / book
- 5.3
- Price / sales
- 4.3
- PEG
- 3.22
- Market cap
- 11.6B USD
- Enterprise value
- 11.5B USD
Profitability
- ROE
- 18.8%
- ROA
- 11.6%
- ROIC (approx.)
- 23.3%
- Gross margin
- 48.9%
- Operating margin
- 20.9%
- Net margin
- 14.3%
- Free cash flow
- 228.8M USD
- FCF yield
- 2.0%
- Cash conversion
- 39%
Solvency
- Total debt
- 211.8M USD
- Net debt
- −136.1M USD
- Cash
- 347.9M USD
- EBITDA
- 581.0M USD
- Net debt / EBITDA
- −0.23
- Debt / equity
- 9.67
- Current ratio
- 2.66
- Quick ratio
- 1.48
Growth
- Revenue growth
- +18.6%
- Earnings growth
- +17.3%
- EPS (TTM)
- 11.45 USD
- EPS (forward)
- 14.04 USD
Dividend
- Dividend yield
- 0.7%
- Payout
- 19.1%
Risk and market
- Beta
- 1.15
- Analyst consensus
- Buy (7)
- Target price
- 404.00 USD
- 52-week range
- 260.00 – 394.54
Recent news
All WTS news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Watts Water Technologies
Is Watts Water Technologies stock cheap or expensive?
On P/E and EV / EBITDA, it trades 28% above the Industrials median on average. Valuation score: 3.8 out of 10 (median for Industrials: 5.0). Average analyst target: 404.00 USD, +16.0% versus the price. This is not investment advice.
What score does Watts Water Technologies get on MeridIAn Screener?
It scores 6.2 out of 10, rank 857 of 2,130 (better than 60% of the companies analysed). Its strongest category is Financial health (8.5) and its weakest, Valuation (3.8). Analysis of 08/10/2026.
What is Watts Water Technologies's P/E ratio?
Its P/E is 30.4: the share price equals 30.4 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 24.8.
How much is Watts Water Technologies worth on the stock market?
Its market capitalisation is 11.6B USD and its enterprise value, debt included, is 11.5B USD.
How much debt does Watts Water Technologies have?
It has more cash than debt: net cash of 136.1M USD.
Does Watts Water Technologies pay a dividend?
Yes: its dividend yield is 0.66% and it pays out 19% of its earnings.
How has Watts Water Technologies stock performed over the last year?
It has risen 31.2% over the last year, excluding dividends. Over the last 52 weeks it has traded between 260.00 and 394.54 USD. Past performance does not guarantee future results.
What do analysts think of Watts Water Technologies?
7 analysts cover it; their average recommendation is “Buy” and their average target is 404.00 USD (+16.0% versus the price). It is an estimate, not market data.