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Watts Water Technologies, Inc. (WTS) 10-Year Financial Performance & Capital Metrics

WTS • • Industrial / General
IndustrialsIndustrial MachineryFluid Handling & Pumping SystemsWater & Fuel Pumping
AboutWatts Water Technologies, Inc. designs, manufactures, and sells products, solution, and systems that manage and conserve the flow of fluids and energy into, through and out of buildings in the commercial and residential markets in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa. The company offers residential and commercial flow control products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, and thermostatic mixing valves. It also provides heating, ventilation, and air conditioning and gas products, such as boilers, water heaters, custom heat, and hot water 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 comprising drainage products and engineered rain water harvesting solutions for commercial, industrial, marine, and residential applications; and water quality products that include point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems for commercial and residential applications. Further, it provides smart mixing system under the IntelliStation name. The company sells its products to plumbing, heating, and mechanical wholesale distributors and dealers, as well as original equipment manufacturers, specialty product distributors, do-it-yourself chains, and retail chains; and directly to wholesalers and private label accounts. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.Show more
  • Revenue $2.25B +9.5%
  • EBITDA $445M +12.8%
  • Net Income $291M +11.1%
  • EPS (Diluted) 8.69 +11.1%
  • Gross Margin 47.15% +0.9%
  • EBITDA Margin 19.75% +3.0%
  • Operating Margin 17.33% +1.6%
  • Net Margin 12.93% +1.4%
  • ROE 18.08% -2.9%
  • ROIC 19.65% -3.0%
  • Debt/Equity 0.12 -41.5%
  • Interest Coverage 26.56 -37.9%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Strong 5Y profit CAGR of 17.2%
  • ✓Strong Piotroski F-Score: 8/9
  • ✓13 consecutive years of dividend growth
  • ✓High quality earnings: Operating CF exceeds net income
  • ✓Good 3Y average ROE of 19.0%
  • ✓Healthy 5Y average net margin of 11.0%

✗Weaknesses

No significant weaknesses identified

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y4.05%
5Y7.07%
3Y7.57%
TTM4.18%

Profit (Net Income) CAGR

10Y19.2%
5Y17.23%
3Y20.68%
TTM16.21%

EPS CAGR

10Y19.86%
5Y17.68%
3Y21.13%
TTM16.05%

ROCE

10Y Avg13.65%
5Y Avg18.28%
3Y Avg20.47%
Latest20.11%

Peer Comparison

Water & Fuel Pumping
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
XYLXylem Inc.35.26B144.8139.6716.27%10.66%8.28%2.67%0.20
MWAMueller Water Products, Inc.4.12B26.3635.623.06%13.41%19.53%4.64%0.59
WTSWatts Water Technologies, Inc.8.13B296.8034.159.53%13.79%16.59%4.01%0.12
PNRPentair plc17.5B106.9728.60-0.53%15.84%17.29%3.95%0.50
FELEFranklin Electric Co., Inc.4.47B100.4526.02-2.12%6.71%10.69%4.91%0.15
AOSA. O. Smith Corporation8.16B71.9919.83-0.9%13.85%28.76%5.81%0.12

Profit & Loss

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+1.47B1.4B1.46B1.56B1.6B1.51B1.81B1.98B2.06B2.25B
Revenue Growth %-0.03%-0.05%0.04%0.07%0.02%-0.06%0.2%0.09%0.04%0.1%
Cost of Goods Sold+914.6M832.8M854.3M908.4M923M883.2M1.04B1.11B1.1B1.19B
COGS % of Revenue0.62%0.6%0.59%0.58%0.58%0.59%0.58%0.56%0.53%0.53%
Gross Profit+553.1M565.6M602.4M656.5M677.5M625.4M767.1M874.3M960.9M1.06B
Gross Margin %0.38%0.4%0.41%0.42%0.42%0.41%0.42%0.44%0.47%0.47%
Gross Profit Growth %0.02%0.02%0.07%0.09%0.03%-0.08%0.23%0.14%0.1%0.11%
Operating Expenses+643.2M420.6M440.1M468.1M480.4M444.3M527.5M559.3M610M671.6M
OpEx % of Revenue0.44%0.3%0.3%0.3%0.3%0.29%0.29%0.28%0.3%0.3%
Selling, General & Admin464.3M397.6M403.3M430.2M436.5M392.2M462.6M489.3M604.5M594M
SG&A % of Revenue0.32%0.28%0.28%0.27%0.27%0.26%0.26%0.25%0.29%0.26%
Research & Development23.5M26.5M29M34.5M39.6M42.6M45.6M59.4M070.4M
R&D % of Revenue0.02%0.02%0.02%0.02%0.02%0.03%0.03%0.03%-0.03%
Other Operating Expenses155.4M-3.5M7.8M3.4M4.3M9.5M19.3M10.6M5.5M7.2M
Operating Income+-90.1M145M162.3M188.4M197.1M181.1M239.6M315M350.9M390.4M
Operating Margin %-0.06%0.1%0.11%0.12%0.12%0.12%0.13%0.16%0.17%0.17%
Operating Income Growth %-1.85%2.61%0.12%0.16%0.05%-0.08%0.32%0.31%0.11%0.11%
EBITDA+-37.6M196.2M214.5M236.9M243.7M227.6M284.7M354.7M394.2M444.8M
EBITDA Margin %-0.03%0.14%0.15%0.15%0.15%0.15%0.16%0.18%0.19%0.2%
EBITDA Growth %-1.24%6.22%0.09%0.1%0.03%-0.07%0.25%0.25%0.11%0.13%
D&A (Non-Cash Add-back)52.5M51.2M52.2M48.5M46.6M46.5M45.1M39.7M43.3M54.4M
EBIT-86.7M150.4M162.2M190.9M198M180.3M240.4M314.6M357.7M400.7M
Net Interest Income+-23.3M-21.6M-18.1M-15.5M-13.7M-13.1M-6.3M-6.4M-1M-5.8M
Interest Income1M1M1M800K400K200K0600K7.2M8.9M
Interest Expense24.3M22.6M19.1M16.3M14.1M13.3M6.3M7M8.2M14.7M
Other Income/Expense-20.9M-17.2M-19.2M-13.8M-13.2M-14.1M-5.5M-7.4M-1.4M-4.4M
Pretax Income+-111M127.8M143.1M174.6M183.9M167M234.1M307.6M349.5M386M
Pretax Margin %-0.08%0.09%0.1%0.11%0.11%0.11%0.13%0.16%0.17%0.17%
Income Tax+1.9M43.6M70M49.8M52.4M52.7M68.4M56.1M87.4M94.8M
Effective Tax Rate %1.02%0.66%0.51%0.71%0.72%0.68%0.71%0.82%0.75%0.75%
Net Income+-112.9M84.2M73.1M124.8M131.5M114.3M165.7M251.5M262.1M291.2M
Net Margin %-0.08%0.06%0.05%0.08%0.08%0.08%0.09%0.13%0.13%0.13%
Net Income Growth %-3.24%1.75%-0.13%0.71%0.05%-0.13%0.45%0.52%0.04%0.11%
Net Income (Continuing)-112.9M84.2M73.1M128M131.5M114.3M165.7M251.5M262.1M291.2M
Discontinued Operations0000000000
Minority Interest0000000000
EPS (Diluted)+-3.232.442.123.643.853.364.897.497.828.69
EPS Growth %-3.27%1.76%-0.13%0.72%0.06%-0.13%0.46%0.53%0.04%0.11%
EPS (Basic)-3.242.452.123.643.863.374.907.517.858.69
Diluted Shares Outstanding34.9M34.5M34.4M34.3M34.2M34M33.9M33.6M33.5M33.5M
Basic Shares Outstanding34.85M34.4M34.4M34.3M34.1M33.9M33.8M33.5M33.4M33.5M
Dividend Payout Ratio-0.29%0.35%0.23%0.24%0.27%0.21%0.16%0.18%0.19%

Balance Sheet

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+809M858M783.6M721.3M734.9M709.5M861.5M950.6M1.06B1.08B
Cash & Short-Term Investments296.2M338.4M280.2M204.1M219.7M218.9M242M310.8M350.1M386.9M
Cash Only296.2M338.4M280.2M204.1M219.7M218.9M242M310.8M350.1M386.9M
Short-Term Investments0000000000
Accounts Receivable186.4M198M216.1M205.5M219.8M197.6M220.9M233.8M259.8M253.2M
Days Sales Outstanding46.3651.6854.1547.9350.1347.8144.5743.1146.1241.03
Inventory240M239.4M259.1M286.8M270.1M263.6M370.7M375.6M399.3M392.1M
Days Inventory Outstanding95.78104.92110.7115.24106.81108.94129.84124.04133.05120.25
Other Current Assets40.3M3.1M1.5M000030.4M51.8M51.3M
Total Non-Current Assets+883.8M938.8M952.9M932.4M988.2M1.03B994.1M980.3M1.25B1.31B
Property, Plant & Equipment184.4M189.7M198.5M201.9M200M212.3M200.7M196.8M248.2M254.8M
Fixed Asset Turnover7.96x7.37x7.34x7.75x8.00x7.11x9.01x10.06x8.28x8.84x
Goodwill489M532.7M550.5M544.8M581.1M602.4M600.7M592.4M693M715M
Intangible Assets192.8M202.5M185.2M165.2M151.4M141.8M128.6M113.7M216.1M235M
Long-Term Investments0000000000
Other Non-Current Assets11.9M15.9M17.1M18.9M53M67.8M60.6M59.6M67.5M72.3M
Total Assets+1.69B1.8B1.74B1.65B1.72B1.74B1.86B1.93B2.31B2.4B
Asset Turnover0.87x0.78x0.84x0.95x0.93x0.87x0.97x1.03x0.89x0.94x
Asset Growth %-0.13%0.06%-0.03%-0.05%0.04%0.01%0.07%0.04%0.2%0.04%
Total Current Liabilities+295M425.5M327.4M348.7M419.3M312.8M408.5M378.7M405.8M417.9M
Accounts Payable101.7M101.1M123.8M127.2M123.3M110.1M143.4M134.3M131.8M148M
Days Payables Outstanding40.5944.3152.8951.1148.7645.550.2344.3543.9245.39
Short-Term Debt1.1M139.1M22.5M30M105M00000
Deferred Revenue (Current)0000000000
Other Current Liabilities46.5M48.5M112.9M115.5M116.3M122.8M155.6M149.3M171.6M177.7M
Current Ratio2.74x2.02x2.39x2.07x1.75x2.27x2.11x2.51x2.61x2.59x
Quick Ratio1.93x1.45x1.60x1.25x1.11x1.43x1.20x1.52x1.63x1.65x
Cash Conversion Cycle101.55112.29111.95112.06108.18111.25124.18122.8135.25115.89
Total Non-Current Liabilities+692.9M637.2M580.1M416.9M325.8M355.6M273.9M251.6M390.3M271.2M
Long-Term Debt574.2M511.3M474.6M323.4M204.2M198.2M141.9M147.6M298.3M197M
Capital Lease Obligations0000000000
Deferred Tax Liabilities71.8M84.4M55.2M38.5M38.6M51.1M40.5M26.2M13.5M10.9M
Other Non-Current Liabilities44.9M41.5M50.3M51.8M83M106.3M91.5M77.8M78.5M63.3M
Total Liabilities987.9M1.06B907.5M765.6M745.1M668.4M682.4M630.3M796.1M689.1M
Total Debt+577.3M650.4M497.1M353.4M309.2M198.2M141.9M147.6M298.3M197M
Net Debt281.1M312M216.9M149.3M89.5M-20.7M-100.1M-163.2M-51.8M-189.9M
Debt / Equity0.82x0.89x0.60x0.40x0.32x0.19x0.12x0.11x0.20x0.12x
Debt / EBITDA-3.31x2.32x1.49x1.27x0.87x0.50x0.42x0.76x0.44x
Net Debt / EBITDA-1.59x1.01x0.63x0.37x-0.09x-0.35x-0.46x-0.13x-0.43x
Interest Coverage-3.71x6.42x8.50x11.56x13.98x13.62x38.03x45.00x42.79x26.56x
Total Equity+704.9M734.1M829M888.1M978M1.07B1.17B1.3B1.51B1.71B
Equity Growth %-0.23%0.04%0.13%0.07%0.1%0.09%0.1%0.11%0.16%0.13%
Book Value per Share20.2021.2824.1025.8928.6031.4634.6138.7145.1750.98
Total Shareholders' Equity704.9M734.1M829M888.1M978M1.07B1.17B1.3B1.51B1.71B
Common Stock3.4M3.4M3.4M3.4M3.4M3.4M3.4M3.3M3.3M3.3M
Retained Earnings317.7M348.5M372.9M437.5M513.9M560.1M665.9M795.3M979.1M1.18B
Treasury Stock0000000000
Accumulated OCI-128.2M-153M-99.1M-121.1M-130.8M-100M-127.3M-149.9M-143.4M-176.4M
Minority Interest0000000000

Cash Flow

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+109.4M138.1M155.9M169.4M194M228.8M180.8M224M310.8M361.1M
Operating CF Margin %0.07%0.1%0.11%0.11%0.12%0.15%0.1%0.11%0.15%0.16%
Operating CF Growth %-0.19%0.26%0.13%0.09%0.15%0.18%-0.21%0.24%0.39%0.16%
Net Income-112.9M84.2M73.1M124.8M131.5M114.3M165.7M251.5M262.1M291.2M
Depreciation & Amortization52.5M51.2M52.2M48.5M46.6M46.5M45.1M39.7M43.3M54.4M
Stock-Based Compensation10.9M13.4M13.9M13.8M17.8M12.7M22.9M18.4M20.2M19.5M
Deferred Taxes-20.5M3.5M6.4M-15.3M1.3M7M-8.2M-29.6M-18.8M-14.7M
Other Non-Cash Items192.1M-6.6M2.1M200K800K4M1.4M-200K200K-5.2M
Working Capital Changes-12.7M-7.6M8.2M-2.6M-4M44.3M-46.1M-55.8M3.8M15.9M
Change in Receivables13M-7.1M-7.5M6M-15M32.2M-30.2M-20M6.2M3.3M
Change in Inventory21.2M9.8M-8.4M-34.5M17M18.7M-113.7M-16.4M27M13.6M
Change in Payables-29.1M-15.2M9.4M25.3M-4.4M-7.3M98.6M-21.3M-8.8M8M
Cash from Investing+-17.3M-114M-27.3M-35.9M-71.8M-54.8M-30.7M-22.9M-343.1M-124.7M
Capital Expenditures-27.7M-36M-30.9M-36.6M-29.2M-43.8M-26.7M-28.1M-29.7M-35.3M
CapEx % of Revenue0.02%0.03%0.02%0.02%0.02%0.03%0.01%0.01%0.01%0.02%
Acquisitions----------
Investments----------
Other Investing30.8M10M3.5M2.4M100K2.2M5.1M006.9M
Cash from Financing+-70.9M27.7M-205.3M-202.9M-105.6M-181.9M-118.6M-121.7M69M-190.5M
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid-23.1M-24.5M-25.9M-28.3M-31.4M-31.4M-34.3M-39.5M-46.5M-55.5M
Share Repurchases----------
Other Financing300K6.1M1.7M2.5M-10.2M-10M-11.9M-13.1M-15.7M-15.3M
Net Change in Cash----------
Free Cash Flow+81.7M102.1M125M132.8M164.8M185M154.1M195.9M281.1M325.8M
FCF Margin %0.06%0.07%0.09%0.08%0.1%0.12%0.09%0.1%0.14%0.14%
FCF Growth %-0.27%0.25%0.22%0.06%0.24%0.12%-0.17%0.27%0.43%0.16%
FCF per Share2.342.963.633.874.825.444.555.838.399.73
FCF Conversion (FCF/Net Income)-0.97x1.64x2.13x1.36x1.48x2.00x1.09x0.89x1.19x1.24x
Interest Paid23.1M20.2M18.8M19.1M17.1M12.2M6.9M5.7M7.7M12.7M
Taxes Paid24.5M33.5M39.4M55.3M50.8M45.6M73M85.8M115.7M117.2M

Key Ratios

Metric2015201620172018201920202021202220232024
Return on Equity (ROE)-13.96%11.7%9.35%14.54%14.09%11.16%14.77%20.33%18.63%18.08%
Return on Invested Capital (ROIC)-6.21%10.7%11.64%13.56%14.05%12.83%16.94%21.38%20.25%19.65%
Gross Margin37.68%40.45%41.35%41.95%42.33%41.46%42.4%44.17%46.73%47.15%
Net Margin-7.69%6.02%5.02%7.98%8.22%7.58%9.16%12.71%12.75%12.93%
Debt / Equity0.82x0.89x0.60x0.40x0.32x0.19x0.12x0.11x0.20x0.12x
Interest Coverage-3.71x6.42x8.50x11.56x13.98x13.62x38.03x45.00x42.79x26.56x
FCF Conversion-0.97x1.64x2.13x1.36x1.48x2.00x1.09x0.89x1.19x1.24x
Revenue Growth-3.04%-4.72%4.17%7.43%2.27%-5.74%19.93%9.41%3.88%9.53%

Revenue by Segment

2015201620172018201920202021202220232024
Residential And Commercial Flow Control831.1M779.2M758.9M804.4M827.5M786.5M----
Residential And Commercial Flow Control Growth--6.24%-2.61%6.00%2.87%-4.95%----
H V A C And Gas425.1M408.1M472.4M507M498M459.6M----
H V A C And Gas Growth--4.00%15.76%7.32%-1.78%-7.71%----
Drains And Water Reuse131M132.3M145.4M163.1M172.4M156.3M----
Drains And Water Reuse Growth-0.99%9.90%12.17%5.70%-9.34%----
Water Quality80.5M78.8M80M90.4M102.6M106.2M----
Water Quality Growth--2.11%1.52%13.00%13.50%3.51%----

Revenue by Geography

2015201620172018201920202021202220232024
Americas978.5M900.9M951.9M1.03B1.08B1.03B697.4M792.3M7.9M1.07B
Americas Growth--7.93%5.66%8.43%5.04%-5.39%-32.01%13.61%-99.00%13455.70%
Europe--440.3M467M451M424.9M237M234.2M24.7M186.3M
Europe Growth---6.06%-3.43%-5.79%-44.22%-1.18%-89.45%654.25%
APMEA------120.5M71.4M85.2M118.6M
APMEA Growth--------40.75%19.33%39.20%
Asia Pacific Middle East And Africa--69.7M88.4M67.7M71.4M----
Asia Pacific Middle East And Africa Growth---26.83%-23.42%5.47%----
Europe Middle East And Africa445.5M442.3M--------
Europe Middle East And Africa Growth--0.72%--------
Asia Pacific110.9M77.9M--------
Asia Pacific Growth--29.76%--------

Frequently Asked Questions

Valuation & Price

Watts Water Technologies, Inc. (WTS) has a price-to-earnings (P/E) ratio of 34.2x. This suggests investors expect higher future growth.

Growth & Financials

Watts Water Technologies, Inc. (WTS) reported $2.35B in revenue for fiscal year 2024. This represents a 64% increase from $1.44B in 2011.

Watts Water Technologies, Inc. (WTS) grew revenue by 9.5% over the past year. This is steady growth.

Yes, Watts Water Technologies, Inc. (WTS) is profitable, generating $324.7M in net income for fiscal year 2024 (12.9% net margin).

Dividend & Returns

Yes, Watts Water Technologies, Inc. (WTS) pays a dividend with a yield of 0.56%. This makes it attractive for income-focused investors.

Watts Water Technologies, Inc. (WTS) has a return on equity (ROE) of 18.1%. This is reasonable for most industries.

Watts Water Technologies, Inc. (WTS) generated $343.5M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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