Upside case
Bull case
$515+49.6%
WTS would need investors to value it at roughly 43x earnings — about 14x more generous than today's 29x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated Jun 18, 2026
Watts Water Technologies, Inc. (WTS) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
23
analysts
8 bullish · 0 bearish · 23 covering WTS
Strong Buy
0
Buy
8
Hold
15
Sell
0
Strong Sell
0
Consensus Target
$347
+1.0% vs today
Scenario Range
$246 – $515
Model bear to bull value window
Coverage
23
Published analyst ratings
Valuation Context
28.8x
Forward P/E · Market cap $11.5B
WTS price targets
Three scenarios for where WTS stock could go
Current
~$344
Confidence
54 / 100
Updated
Jun 18, 2026
Where we are now
Current · $344
Bear
$246
Base
$391
Bull
$515
Market caseClosest to today
Base case
$391+13.6%
At 33x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$246-28.5%
If investor confidence fades or macro conditions deteriorate, a 8x multiple contraction could push WTS down roughly 28% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Watts Water Technologies, Inc.
WTS · NYSEIndustrialsIndustrial - MachineryDecember year-end
Watts Water Technologies is a manufacturer of fluid flow control and conservation products for residential and commercial buildings. It generates revenue primarily from selling plumbing and HVAC products—including valves, backflow preventers, boilers, and drainage systems—across the Americas, Europe, and Asia-Pacific. The company's competitive advantage lies in its comprehensive product portfolio and established brand reputation in the specialized water management industry.
Market Cap
$11.5B
Revenue TTM
$2.6B
Net Income TTM
$366M
Net Margin
14.3%
WTS Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
83%Exceptional
vs consensus estimates
Avg EPS Surprise
+10.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$3.09/$2.68
Revenue
$644M/$562M
Q4 2025
EPS
$2.50/$2.26
Revenue
$612M/$576M
Q1 2026
EPS
$2.62/$2.36
Revenue
$625M/$610M
Q2 2026
EPS
$3.04/$2.70
Revenue
$677M/$638M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $3.09/$2.68 | +15.3% | $644M/$562M | +14.6% |
| Q4 2025 | $2.50/$2.26 | +10.6% | $612M/$576M | +6.1% |
| Q1 2026 | $2.62/$2.36 | +11.0% | $625M/$610M | +2.5% |
| Q2 2026 | $3.04/$2.70 | +12.6% | $677M/$638M | +6.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$2.8B
+7.5% YoY
FY2
$2.9B
+6.3% YoY
EPS Outlook
FY1
$11.39
+4.2% YoY
FY2
$11.92
+4.7% YoY
Trailing FCF (TTM)$317M
FCF Margin: 12.4%
Next Earnings
August 5, 2026
Expected EPS
$3.33
Expected Revenue
$724M
WTS beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
WTS Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $1.5B
Product Mix
Latest annual revenue by segment or product family
Segment breakdown not available for this company.
Geographic Mix
Latest annual revenue by reported region
Americas
79.7%
+11.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Americas is the largest reported region at 79.7%, up 11.4% YoY.
WTS Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Expensive versus peers
Fair value est. $247 — implies -28.0% from today's price.
Premium to Fair Value
28.0%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WTS
33.8x
vs
S&P 500
24.4x
+38% premium
vs Industrials Trailing P/E
WTS
33.8x
vs
Industrials
25.6x
+32% premium
vs WTS 5Y Avg P/E
Today
33.8x
vs
5Y Average
27.3x
+24% premium
Forward PE
28.8x
S&P 500
18.8x
+53%
Industrials
21.2x
+36%
5Y Avg
—
—
Trailing PE
33.8x
S&P 500
24.4x
+38%
Industrials
25.6x
+32%
5Y Avg
27.3x
+24%
PEG Ratio
1.36x
S&P 500
1.66x
-18%
Industrials
1.65x
-17%
5Y Avg
—
—
EV/EBITDA
21.3x
S&P 500
15.2x
+40%
Industrials
13.9x
+54%
5Y Avg
17.1x
+24%
Price/FCF
32.2x
S&P 500
20.7x
+56%
Industrials
20.0x
+61%
5Y Avg
27.9x
+16%
Price/Sales
4.7x
S&P 500
3.1x
+52%
Industrials
1.6x
+201%
5Y Avg
3.3x
+44%
Dividend Yield
0.58%
S&P 500
1.91%
-70%
Industrials
1.21%
-52%
5Y Avg
0.71%
-18%
| Metric | WTS | S&P 500 | Industrials | 5Y Avg WTS |
|---|---|---|---|---|
| Forward PE | 28.8x | 18.8x+53% | 21.2x+36% | — |
| Trailing PE | 33.8x | 24.4x+38% | 25.6x+32% | 27.3x+24% |
| PEG Ratio | 1.36x | 1.66x-18% | 1.65x-17% | — |
| EV/EBITDA | 21.3x | 15.2x+40% | 13.9x+54% | 17.1x+24% |
| Price/FCF | 32.2x | 20.7x+56% | 20.0x+61% | 27.9x+16% |
| Price/Sales | 4.7x | 3.1x+52% | 1.6x+201% | 3.3x+44% |
| Dividend Yield | 0.58% | 1.91% | 1.21% | 0.71% |
WTS trades above S&P 500 benchmarks on 5 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolWTS Financial Health
Verdict
Strong
WTS generates $317M in free cash flow at a 12.4% margin — 21.2% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$2.6B
Revenue Growth
TTM vs prior year
+14.2%
Gross Margin
Gross profit as a share of revenue
49.2%
Operating Margin
Operating income divided by revenue
19.4%
Net Margin
Net income divided by revenue
14.3%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$10.94
Free Cash Flow (TTM)
Cash generation after capex
$317M
FCF Margin
FCF as share of revenue — the primary cash quality signal
12.4%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
21.2%
ROA
Return on assets, trailing twelve months
13.1%
Cash & Equivalents
Liquid assets on the balance sheet
$406M
Net Cash
Cash exceeds total debt — no net leverage
$208M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
18.4%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.7%
Dividend
0.6%
Buyback
0.1%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$16M
Dividend / Share
Annualized trailing dividend per share
$2.00
Payout Ratio
Share of earnings distributed as dividends
19.6%
Shares Outstanding
Declining as buybacks retire shares
33M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageWTS Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Valuation Risk
The bear case price target of $182 suggests significant downside risk compared to the base and bull cases, indicating potential overvaluation.
Medium
Revenue Growth Uncertainty
The lack of clarity on expected revenue growth rates raises concerns about future performance and market demand.
Medium
Market Competition
Operating in a competitive industry with multiple leading brands may pressure margins and market share.
Lower
Regulatory Compliance
Meeting highest standards across applications and industries may involve regulatory risks, though mitigated by experience.
High Risk
Investment Risk
Disclosure of 23 risk factors in recent earnings highlights multiple challenges that could impact investor returns.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why WTS Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
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.
Favorable market dynamics
Watts Water Technologies benefits from strong Momentum (82/100), reflecting positive market trends and investor sentiment.
Reasonable valuation
The stock offers a reasonable valuation relative to its quality, with a Value score of 74/100.
Strong revenue growth
The company has demonstrated robust revenue growth of 12.5% over the trailing twelve months.
Quantitative model ranking
WATTS WATER TECHNOLOGIES INC ranks #22 in a quantitative model with a composite score of 79.6/100, placing it in 'Strong Buy' territory.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
WTS Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$343.89
52W Range Position
96%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$238.58
+44.1% from the low
52-Week High
$348.09
-1.2% from the high
1 Month
+13.89%
3 Month
+15.98%
YTD
+23.4%
1 Year
+42.7%
3Y CAGR
+24.9%
5Y CAGR
+20.5%
10Y CAGR
+19.1%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
WTS vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
28.8x
vs 17.7x median
+63% above peer median
Revenue Growth
+7.5%
vs +4.4% median
+71% above peer median
Net Margin
14.3%
vs 12.3% median
+16% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
WTS WTS Watts Water Technologies, Inc. | $11.5B | 28.8x | +7.5% | 14.3% | Hold | +1.0% |
FEL FELE Franklin Electric Co., Inc. | $4.6B | 22.7x | +5.5% | 6.9% | Hold | -4.0% |
LIQ LIQT LiqTech International, Inc. | $9M | — | +6.9% | -55.4% | — | — |
MWA MWA Mueller Water Products, Inc. | $4.1B | 17.7x | +3.8% | 14.2% | Hold | +23.4% |
ERI ERII Energy Recovery, Inc. | $486M | — | +2.7% | 15.1% | Buy | +32.7% |
ITR ITRI Itron, Inc. | $3.6B | 13.5x | +4.4% | 12.3% | Hold | +69.3% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
WTS Dividend and Capital Return
WTS returns 0.7% total yield, led by a 0.58% dividend, raised 13 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
0.7%
Dividend + buyback return per year
Buyback Yield
0.1%
Dividend Yield
0.58%
Payout Ratio
19.6%
How WTS Splits Its Return
Div 0.58%
Dividend 0.58%Buybacks 0.1%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.00
Growth Streak
Consecutive years of dividend increases
13Y
3Y Div CAGR
19.7%
5Y Div CAGR
16.7%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$16M
Estimated Shares Retired
46.5K
Approx. Share Reduction
0.1%
Shares Outstanding
Current diluted share count from the screening snapshot
33M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.15 | — | — | — |
| 2025 | $1.99 | +20.6% | 0.2% | 0.9% |
| 2024 | $1.65 | +19.6% | 0.2% | 1.1% |
| 2023 | $1.38 | +19.0% | 0.2% | 0.9% |
| 2022 | $1.16 | +14.9% | 1.4% | 2.2% |
FAQ
7 questionsWTS Investor Questions
Common questions answered from live analyst data and company financials.
01Is Watts Water Technologies, Inc. (WTS) stock a buy or sell in 2026?
Watts Water Technologies, Inc. (WTS) is rated Hold by Wall Street analysts as of 2026. Of 23 analysts covering the stock, 8 rate it Buy or Strong Buy, 15 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $347, implying +1.0% from the current price of $344. The bear case scenario is $246 and the bull case is $515.
02What is the WTS stock price target for 2026?
The Wall Street consensus price target for WTS is $347 based on 23 analyst estimates. The high-end target is $460 (+33.8% from today), and the low-end target is $275 (-20.0%). The base case model target is $391.
03Is Watts Water Technologies, Inc. (WTS) stock overvalued in 2026?
WTS trades at 28.8x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Watts Water Technologies, Inc. (WTS) stock in 2026?
The primary risks for WTS in 2026 are: (1) Valuation Risk — The bear case price target of $182 suggests significant downside risk compared to the base and bull cases, indicating potential overvaluation. (2) Investment Risk — Disclosure of 23 risk factors in recent earnings highlights multiple challenges that could impact investor returns. (3) Revenue Growth Uncertainty — The lack of clarity on expected revenue growth rates raises concerns about future performance and market demand. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Watts Water Technologies, Inc.'s revenue and earnings forecast?
Analyst consensus estimates WTS will report consensus revenue of $2.8B (+7.5% year-over-year) and EPS of $11.39 (+4.2% year-over-year) for the upcoming fiscal year. The following year, analysts project $2.9B in revenue.
06When does Watts Water Technologies, Inc. (WTS) report its next earnings?
Watts Water Technologies, Inc. is expected to report its next earnings on approximately 2026-08-05. Consensus expects EPS of $3.33 and revenue of $724M. Over recent quarters, WTS has beaten EPS estimates 100% of the time.
07How much free cash flow does Watts Water Technologies, Inc. generate?
Watts Water Technologies, Inc. (WTS) generated $317M in free cash flow over the trailing twelve months — a free cash flow margin of 12.4%. WTS returns capital to shareholders through dividends (0.6% yield) and share repurchases ($16M TTM).