Watts Water Technologies (WTS) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Watts Water Technologies

NYSE•Industrials•Specialty Industrial Machinery

$363.13+7.60(0.02%)Market closed

Market Cap

$11.74B

P/E

30.6x

P/S

4.4x

P/B

5.4x

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. 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.

How this company scores

ExcellentMetricSide Score: 96/100

Strongest: Profitability (25/25); weakest: Cash & Earnings Quality (21/25).

Profitability25/25

Growth25/25

Balance Sheet & Red Flags25/25

Cash & Earnings Quality21/25

Strengths

Growing revenueStrong marginsHigh ROERising earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 30.6x5y range 18.3x – 39.5x

Currently near its 20-quarter median.

P/S · 4.4x5y range 2.1x – 4.4x

Currently above its 20-quarter median.

P/B · 5.4x5y range 3.4x – 5.6x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $11.74B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $2.68B
Q. Revenue: $763.20M
TTM EBITDA: $571.90M
TTM Op. Income: $512.10M
Q. Op. Income: $154.00M
TTM Net Income: $383.80M
Q. Net Income: $118.30M
EPS: $3.53
Shares Out.: $33.50M

$2.68B in TTM revenue grew 17.1% YoY, reaching $763.20M last quarter. TTM EBITDA of $571.90M and TTM operating income of $512.10M show growth is flowing through to the bottom line. TTM net income of $383.80M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 5 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 49.0%
EBITDA Margin: 22.2%
Op. Margin: 20.2%
Net Margin: 15.5%

Op. margin of 20.2% is down 0.8% YoY — costs are rising relative to revenue. Net margin at 15.5% and gross margin of 49.0% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 30.6x
P/S Ratio: 4.4x
P/B Ratio: 5.4x

At 30.6x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 4.4x and P/B of 5.4x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 16% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $2.95B
Cash: $347.90M
Long-Term Debt: $108.00M
Book Value: $2.19B
D/E Ratio: 0.0
Debt/EBITDA: 0.6

With $2.95B in assets and $108.00M in long-term debt, D/E is 0.0and book value is $2.19B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 7 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $102.90M
TTM Free Cash Flow: $349.40M
FCF Margin: 13.1%
FCF / Net Income: 0.9

TTM FCF of $349.40M on $102.90M in operating cash flow. The FCF / Net Income ratio of 0.9x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 10% — an improving trend.