Watts Water Technologies, Inc.

WTS

NYSE · Pumps & Flow Control

$346.14

At close - USD

Market Cap$11.56B

P/E34.0x

52W High$394.54

Volume401.29K

VCP Research Verdict2026Q3

Margin Expansion Drives Watts Water Re-Rating Amid Cyclical Risk

Watts Water Technologies appears to be in a sustained earnings recovery, with revenue growing 19.0% year over year to $728.0M in 2026Q3 and gross margin rising to 55.1% from a 46.7% to 50.6% range across 2024 and 2025, which suggests operating leverage is flowing through to earnings, as operating margin reached 26.2%.

Explore valuation models

MARKET ACTION

WTS price & volume

Price trend, volume and key moving averages

Launch Terminal

Loading chart...

Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis

Fundamental Trajectory

Revenue growth re-accelerated to 19.0% year over year in 2026Q3 while gross margin expanded to 55.1% and operating margin to 26.2%, though investors should monitor whether these elevated margins are sustainable relative to the 46.7% to 50.6% gross margin range observed through 2024 and 2025.

Analyst Consensus+13.5% target

Hold(23 analysts)

9 Buy14 Hold0 Sell

The Bull Case

Upside Catalysts

AI data center infrastructure

Watts Water Technologies is positioning its water and energy management solutions as key infrastructure for AI data center buildouts, creating a growth opportunity.

Strategic acquisitions

The company has completed acquisitions like Haws Corp, which could enhance its product portfolio and market reach.

Exceptional profitability

The company has a high Quality score (77/100), indicating strong profitability metrics.

The Bear Case

Key Downside Risks

Market performance

Price History →

Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return

WTS+24.89%

S&P 500 (^GSPC)+7.63%

1-Year Return

WTS+32.21%

S&P 500 (^GSPC)+9.69%

3-Year Return

WTS+89.43%

S&P 500 (^GSPC)+68.11%

5-Year Return

WTS+70.54%

S&P 500 (^GSPC)+56.21%

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis

Trailing P/EMedian

25.9x

Forward P/E

26.9x

EV/EBITDA60th %ile

17.3x

FCF YieldCash Flow

3.2%

Valuation vs 5-Year History

Multiple Range

Metric

Current

5Y Median

Historical Range

Percentile

P/E

25.9x

26.6x

40th· Fair

EV/EBITDA

17.3x

17.1x

60th· Fair

Price/FCF

31.2x

25.1x

80th· High

Current Multiple

5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection

Bear$147.05-57.5%

Base (Fair)$268.39-22.5%

Bull$340.21-1.7%

$147.05 Bear$268.39 Base$340.21 Bull

Current Market Price: $346.14

Trades at a 29.0% premium to Base DCF ($268.39)

Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend

Revenue FY25

$2.44B+8.3% YoY

Net income FY25

$341M+17.0% YoY

Free cash flow FY25

$356M+9.4% YoY

Operating margin FY25

19.3%+2.0 pts YoY

ROIC (FY25)21.2%

Avg ROIC 5Y-

ROE (FY25)18.2%

Piotroski Score7 / 9

Financial Statements →

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History

EPS Beat Rate12/12 (100%)

Revenue Beat Rate10/12 (83%)

Quarter	EPS (Act vs Est)	Revenue (Act vs Est)
Q4 2026Latest Nov 4, 2026	$3.40+8.3% vs $3.14	$728M+5.1% vs $693M
Q3 2026 Aug 5, 2026	$3.66+9.9% vs $3.33	$763M+5.1% vs $726M
Q2 2026 May 6, 2026	$3.04+12.6% vs $2.70	$677M+6.1% vs $638M
Q1 2026 Feb 11, 2026	$2.62+11.0% vs $2.36	$625M+2.5% vs $610M

Historical baseline: 12 quarters analyzedGAAP / Adjusted

MARKET COVERAGE

Latest News

4 Stories

Seeking Alpha·2d ago

Watts Water Technologies, Inc. (WTS) Q3 2026 Earnings Call Transcript

Watts Water Technologies, Inc. ( WTS ) Q3 2026 Earnings Call November 5, 2026 9:00 AM EST Company Participants Ray Nash - Vice President of FP&A and Investor Relations Robert Pagano - Chairman, President & CEO Diane McClintock - Chief Financial Officer Conference Call Participants Jeffrey Hammond - KeyBanc Capital Markets Inc., Research Division Michael Halloran - Robert W. Baird & Co. Incorporated, Research Division Nathan Jones - Stifel, Nicolaus & Company, Incorporated, Research Division Jae Hyun Ko - Jefferies LLC, Research Division William Grippin - Barclays Bank PLC, Research Division Brian Lee - Goldman Sachs Group, Inc., Research Division Jeffrey Reive - RBC Capital Markets, Research Division Walter Liptak - Seaport Research Partners Presentation Operator Welcome to Watts Water Technologies, Inc. Third Quarter 2026 Earnings Call.

Zacks Investment Research·3d ago

Watts Water (WTS) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

While the top- and bottom-line numbers for Watts Water (WTS) give a sense of how the business performed in the quarter ended September 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Zacks Investment Research·3d ago

Watts Water (WTS) Tops Q3 Earnings and Revenue Estimates

Watts Water (WTS) came out with quarterly earnings of $3.4 per share, beating the Zacks Consensus Estimate of $3.15 per share. This compares to earnings of $2.5 per share a year ago.

Business Wire·3d ago

Watts Water Technologies Reports Record Third Quarter 2026 Results

NORTH ANDOVER, Mass.--(BUSINESS WIRE)--WATTS WATER TECHNOLOGIES REPORTS RECORD THIRD QUARTER 2026 RESULTS.

Filtered for Watts Water Technologies, Inc.More Headlines

Compare before deciding

Benchmark WTS against direct peers instead of judging its metrics in isolation.

Peers Comparison

Key metrics vs top competitors for Watts Water Technologies, Inc. (WTS)

Full Screener →

Company	Price	Market Cap	P/E Ratio	Rev Growth (1Y)	Net Margin	ROE	Div Yield
WTSWatts Water Technologies, Inc.Current	$346.14	$11.56B	34.04	8.27%	13.98%	18.25%	0.58%
FELEFranklin Electric Co., Inc.	$94.17	$4.16B	29.25	5.44%	8.83%	14.46%	1.17%
LIQTLiqTech International, Inc.	$0.32	$3.18M	-0.36	13.03%	-63.18%	-69.03%	—
MWAMueller Water Products, Inc.	$24.05	$3.76B	19.71	8.75%	15.02%	21.21%	1.11%
ERIIEnergy Recovery, Inc.	$7.15	$368.55M	17.02	-7.07%	12.75%	8.25%	—
ITRIItron, Inc.	$98.44	$4.31B	15.14	-3.02%	12.05%	16.64%	—

Compare WTS vs Peers

Watts Water Technologies, Inc. (WTS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs FELE

Most directly comparable listed peer for WTS.

Scale Benchmark

vs AME

Larger-name benchmark to compare WTS against a more recognizable public peer.

Peer Set

Compare Top 5

vs FELE, LIQT, MWA, ERII

Keep researching

Verify the primary filings, follow material updates, and answer the remaining questions.

WTS SEC Filings & Documents

Watts Water Technologies, Inc. (WTS) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

Material company update

Aug 5, 2026·SEC

Material company update

May 20, 2026·SEC

Material company update

May 6, 2026·SEC

10-K Annual Reports

FY 2026

Feb 23, 2026·SEC

FY 2025

Feb 18, 2025·SEC

FY 2024

Feb 21, 2024·SEC

10-Q Quarterly Reports

FY 2026

Aug 6, 2026·SEC

FY 2026

May 7, 2026·SEC

FY 2025

Nov 6, 2025·SEC

Get notified when WTS posts new earnings or crosses analyst targets

Free. No account needed. Unsubscribe any time.

WTS Frequently Asked Questions

Watts Water Technologies, Inc. (WTS) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials

What is Watts Water Technologies, Inc.'s revenue?

Watts Water Technologies, Inc. (WTS) reported $2.68B in revenue over the trailing twelve months. Revenue was $2.44B in fiscal year 2025. That is 280% more than the $640.9M of fiscal year 1996.

How fast is Watts Water Technologies, Inc. growing?

Watts Water Technologies, Inc. (WTS) grew revenue by 8.3% in fiscal year 2025, compared with the prior fiscal year.

Is WTS profitable?

Yes. Watts Water Technologies, Inc. (WTS) earned $383.8M in net income over the trailing twelve months (a 14.3% net margin).

Dividend & Returns

Does WTS pay dividends?

Yes. Watts Water Technologies, Inc. (WTS) pays a dividend that yields 0.58% at the current price, a small yield.

What is WTS's return on equity?

Watts Water Technologies, Inc. (WTS) had a return on equity (ROE) of 18.2% in fiscal year 2025. That is above the market's typical 10-15%.

What is Watts Water Technologies, Inc.'s free cash flow?

Watts Water Technologies, Inc. (WTS) generated $356.0M in free cash flow over the trailing twelve months.

What if you invested $1,000 in WTS back in 1996?

Total return calculator · dividends reinvested · 30+ years of data

See returns →

Margin Expansion Drives Watts Water Re-Rating Amid Cyclical Risk

Quarter

EPS (Act vs Est)

Revenue (Act vs Est)

Q4 2026Latest

Nov 4, 2026

$3.40+8.3%

vs $3.14

$728M+5.1%

vs $693M

Q3 2026

Aug 5, 2026

$3.66+9.9%

vs $3.33

$763M+5.1%

vs $726M

Q2 2026

May 6, 2026

$3.04+12.6%

vs $2.70

$677M+6.1%

vs $638M

Q1 2026

Feb 11, 2026

$2.62+11.0%

vs $2.36

$625M+2.5%

vs $610M

Company

Price

Market Cap

P/E Ratio

Rev Growth (1Y)

Net Margin

ROE

Div Yield

WTSWatts Water Technologies, Inc.Current

$346.14

$11.56B

34.04

8.27%

13.98%

18.25%

0.58%

FELEFranklin Electric Co., Inc.

$94.17

$4.16B

29.25

5.44%

8.83%

14.46%

1.17%

LIQTLiqTech International, Inc.

$0.32

$3.18M

-0.36

13.03%

-63.18%

-69.03%

—

MWAMueller Water Products, Inc.

$24.05

$3.76B

19.71

8.75%

15.02%

21.21%

1.11%

ERIIEnergy Recovery, Inc.

$7.15

$368.55M

17.02

-7.07%

12.75%

8.25%

—

ITRIItron, Inc.

$98.44

$4.31B

15.14

-3.02%

12.05%

16.64%

—