📊 WTS Key Takeaways
Is Watts Water Technologies Inc. (WTS) a Good Investment?
Watts Water demonstrates solid operational fundamentals with strong margins (49.5% gross, 18.4% operating) and exceptional cash generation ($356.3M FCF), supported by a fortress balance sheet with minimal leverage (0.10x D/E). However, net income stagnation (0% growth) despite 8.3% revenue growth reveals concerning margin compression that may limit near-term appreciation.
Why Buy Watts Water Technologies Inc. Stock? WTS Key Strengths
- Fortress balance sheet with minimal debt ($197.7M LT debt vs $2.0B equity) and $405.5M cash providing financial flexibility
- Exceptional cash flow generation ($356.3M FCF, 14.6% FCF margin) with strong interest coverage (41.5x) enabling strategic deployment
- High profitability margins (49.5% gross, 18.4% operating, 14.0% net) indicating pricing power and operational efficiency
- Excellent liquidity ratios (2.51x current, 1.49x quick) ensuring operational stability
WTS Stock Risks: Watts Water Technologies Inc. Investment Risks
- Net income stagnation (0% growth) despite 8.3% revenue growth indicates margin compression from cost inflation or pricing pressure
- Negative operating leverage suggests costs are rising faster than revenue, signaling potential structural challenges
- 29 Form 4 insider filings in 90 days may indicate elevated uncertainty among company insiders regarding outlook
Key Metrics to Watch
- Operating margin trend (validate whether 18.4% level is sustainable or continues compressing)
- Gross margin trajectory (49.5% baseline needs protection against input cost inflation)
- Free cash flow conversion rate relative to net income (capital efficiency metric)
- Revenue growth acceleration (need >8% growth to demonstrate sustainable expansion)
Watts Water Technologies Inc. (WTS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.51x current ratio provides a solid financial cushion.
WTS Profit Margin, ROE & Profitability Analysis
WTS vs Materials Sector: How Watts Water Technologies Inc. Compares
How Watts Water Technologies Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Watts Water Technologies Inc. Stock Overvalued? WTS Valuation Analysis 2026
Based on fundamental analysis, Watts Water Technologies Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Watts Water Technologies Inc. Balance Sheet: WTS Debt, Cash & Liquidity
WTS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Watts Water Technologies Inc.'s revenue has grown significantly by 35% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.82 reflects profitable operations.
WTS Revenue Growth, EPS Growth & YoY Performance
WTS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $543.6M | $69.1M | $2.06 |
| Q2 2025 | $597.3M | $82.0M | $2.44 |
| Q1 2025 | $558.0M | $72.6M | $2.17 |
| Q3 2024 | $504.3M | $65.8M | $1.96 |
| Q2 2024 | $532.8M | $75.9M | $2.26 |
| Q1 2024 | $471.7M | $64.7M | $1.93 |
| Q3 2023 | $487.8M | $58.7M | $1.75 |
| Q2 2023 | $526.6M | $69.7M | $2.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Watts Water Technologies Inc. Dividends, Buybacks & Capital Allocation
WTS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Watts Water Technologies Inc. (CIK: 0000795403)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WTS
What is the AI rating for WTS?
Watts Water Technologies Inc. (WTS) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WTS's key strengths?
Claude: Fortress balance sheet with minimal debt ($197.7M LT debt vs $2.0B equity) and $405.5M cash providing financial flexibility. Exceptional cash flow generation ($356.3M FCF, 14.6% FCF margin) with strong interest coverage (41.5x) enabling strategic deployment.
What are the risks of investing in WTS?
Claude: Net income stagnation (0% growth) despite 8.3% revenue growth indicates margin compression from cost inflation or pricing pressure. Negative operating leverage suggests costs are rising faster than revenue, signaling potential structural challenges.
What is WTS's revenue and growth?
Watts Water Technologies Inc. reported revenue of $2.4B.
Does WTS pay dividends?
Watts Water Technologies Inc. does not currently pay dividends.
Where can I find WTS SEC filings?
Official SEC filings for Watts Water Technologies Inc. (CIK: 0000795403) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WTS's EPS?
Watts Water Technologies Inc. has a diluted EPS of $10.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WTS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Watts Water Technologies Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is WTS stock overvalued or undervalued?
Valuation metrics for WTS: ROE of 16.8% (sector avg: 14%), net margin of 14.0% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy WTS stock in 2026?
Our dual AI analysis gives Watts Water Technologies Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is WTS's free cash flow?
Watts Water Technologies Inc.'s operating cash flow is $402.0M, with capital expenditures of $45.7M. FCF margin is 14.6%.
How does WTS compare to other Materials stocks?
Vs Materials sector averages: Net margin 14.0% (avg: 10%), ROE 16.8% (avg: 14%), current ratio 2.51 (avg: 1.6).