WTSWatts Water Technologies demonstrates solid fundamentals and positive performance trends. While valuation metrics are mixed, strong profitability and consistent growth support a positive outlook. Technical indicators show a generally bullish trend with some short-term overbought conditions.
Watts Water Technologies is well-positioned to benefit from trends in water conservation, infrastructure upgrades, and increasing demand for efficient fluid and energy management systems in residential, commercial, and industrial sectors.
Watts Water Technologies exhibits strong profitability, robust revenue growth, and a healthy balance sheet. Free cash flow generation is consistent, and the company manages its debt effectively. Valuation metrics show a premium, reflecting its stability and growth prospects.
The stock exhibits a strong upward trend across multiple timeframes, supported by moving averages. However, some short-term oscillators suggest it may be approaching overbought levels, indicating a potential for consolidation.
| Factor | Score |
|---|---|
| Water Management & Conservation | 90 |
| Infrastructure Spending | 85 |
| Energy Efficiency | 70 |
| Connected & Smart Home | 50 |
| Global Expansion | 70 |
| Factor | Score |
|---|---|
| Valuation | 50 |
| Profitability | 85 |
| Growth | 80 |
| Balance Sheet Health | 90 |
| Cash Flow | 88 |
| Dividend | 60 |
| Factor | Score |
|---|---|
| Trend Analysis | 85 |
| Momentum | 60 |
| Support & Resistance | 70 |
| Volume Analysis | 75 |
| Short-Term Oscillators | 55 |
Consistent Earnings Surprises
Watts Water Technologies (WTS) has consistently beaten earnings per share (EPS) estimates for the past several quarters, indicating robust operational performance and effective management. For example, Q2 2025 reported EPS of $2.37 exceeded the estimate of $2.12 by 11.8%.
Reasonable Price-to-Earnings (P/E) Ratio
The trailing P/E ratio of 28.9 is competitive within the water technology sector, suggesting that the stock is not excessively overvalued given its earnings. This can offer a favorable entry point for investors seeking growth.
Elevated Price-to-Sales (P/S) Ratio
The trailing P/S ratio of 5.1, while potentially justified by growth, is on the higher end. A significant deceleration in revenue growth could make the stock appear overvalued relative to its sales.
Potential Slowdown in Revenue Growth
While recent annual revenue growth (e.g., 9.4% in 2024 from 2023) has been solid, monitoring future revenue trends is crucial. A significant slowdown could impact earnings growth expectations and stock valuation.
May 2025
30
Ex-Dividend Date
June 2025
13
Next Dividend Date
August 2025
7
Next Earnings Date
H: $2.75
A: $2.63
L: $2.44
H: 626.70M
A: 613.90M
L: 603.00M
Watts Water Technologies, Inc., together with its subsidiaries, supplies systems, products and solutions that manage and conserve the flow of fluids and energy into, though, and out of buildings in the commercial, industrial, and residential markets in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa. The company offers residential and commercial flow control and protection products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak detection and protection products, commercial washroom solutions, and emergency safety products and equipment for plumbing and hot water applications. It also provides heating, ventilation, and air conditioning and gas products comprising commercial boilers; water heaters and heating solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless-steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, the company offers drainage and water re-use products, such as drainage products, engineered rainwater harvesting solutions for commercial, industrial, marine, and residential applications; connected roof drain systems; and water quality products that include point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems for commercial, marine, and residential applications. It sells its products to plumbing, heating, and mechanical wholesale distributors and dealers; original equipment manufacturers; specialty product distributors; and do-it-yourself and retail chains, as well as wholesalers and private label accounts. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.
247.20 USD
The 39 analysts offering 1 year price forecasts for WTS have a max estimate of 290.00 and a min estimate of 225.00.