Watts Water Technologies, Inc.
Rank #130ValueWTS · NYSE · Industrials
Watts Water Technologies, Inc. (WTS) — Rank #130 by gross profitability (GP/assets 0.41) · ROE 15.6% · Piotroski F-Score 6 / 9.
As-of 2026-09-15 · CIK 0000795403 · all metrics point-in-time as of the filing date.
About
Watts Water Technologies, Inc., together with its subsidiaries, supplies products and solutions that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial, industrial, and residential markets.
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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, hydration 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, institutional, and industrial 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, including point-of-use and point-of-entry, closed loop, cooling tower, and other water applications 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 in the Americas, Europe, Asia-Pacific, Middle East, and Africa. Watts Water Technologies, Inc.
was founded in 1874 and is headquartered in North Andover, Massachusetts.
- Industry
- Specialty Industrial Machinery
- Sector
- Industrials
- State
- DE
- Filer Category
- Large accelerated filer
- Fiscal Year End
- December 31
- Website
- watts.com
Price History
Company Snapshot
P/E and dividend yield are the primary valuation lenses for mature businesses.
Market Cap
$11.65B
P/E (annual)
34.3
P/S (annual)
4.8
P/B
5.3
P/OCF (annual)
29.0
Shareholder Yield
0.0%
Employees
5,700
Industry
Specialty Industrial Machinery
Exchange
NYSE
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
2/2 passTerry Smith quality gate
Passes 2/5 Terry Smith thresholdsWhat Growth Is Priced In
Implied revenue growth (10Y)
14.4%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Dilution drag: 0.0% — per-share value needs a total required return of 14.4% once share-count change is priced in.
vs. own 6-year median revenue growth: 8.8%
priced above its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
9.7%
r = 10% (base)
14.4%
r = 12%
18.5%
Net debt / market cap: -2.1%
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
Earnings bubble check
Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.
Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).
Profitability
Gross profitability (GP / assets)
0.41
Primary signal (Novy-Marx).
1st of 5 SIC 3490 peers
Return on equity
15.6%
Gross margin
49.5%
1st of 5 SIC 3490 peers
Revenue growth (YoY)
8.3%
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
7.2%
Revenue CAGR (5Y)
10.1%
Earnings CAGR (3Y)
10.7%
FCF CAGR (3Y)
22.1%
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.35
1st of 5 SIC 3490 peers (best = lowest)
Current ratio
2.66×
3rd of 5 SIC 3490 peers
Quick ratio
1.47×
Net cash
$239.90M
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$356.30M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
0.05
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
0.9%
Stock-based comp intensity.
Piotroski F-Score
F-Score
6 / 9
Fundamental-strength score (0-9).