Upside case
Bull case
$392+34.2%
WTS would need investors to value it at roughly 33x earnings — about 9x more generous than today's 25x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 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
$345
+17.8% vs today
Scenario Range
$175 – $392
Model bear to bull value window
Coverage
23
Published analyst ratings
Valuation Context
24.9x
Forward P/E · Market cap $9.7B
WTS price targets
Three scenarios for where WTS stock could go
Current
~$292
Confidence
64 / 100
Updated
May 1, 2026
Where we are now
Current · $292
Bear
$175
Base
$401
Bull
$392
Market caseClosest to today
Base case
$401+37.0%
At 34x 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
$175-40.3%
If investor confidence fades or macro conditions deteriorate, a 10x multiple contraction could push WTS down roughly 40% 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
$9.7B
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
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+10.7%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$2.37/$2.12
Revenue
$558M/$547M
Q3 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
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $2.37/$2.12 | +11.8% | $558M/$547M | +1.9% |
| 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% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$2.6B
+9.7% YoY
FY2
$2.8B
+7.6% YoY
EPS Outlook
FY1
$10.89
+12.4% YoY
FY2
$11.90
+9.3% YoY
Trailing FCF (TTM)$317M
FCF Margin: 12.4%
Next Earnings
May 6, 2026
Expected EPS
$2.72
Expected Revenue
$638M
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
Overvalued
Fair value est. $227 — implies -22.6% from today's price.
Premium to Fair Value
22.6%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WTS
28.7x
vs
S&P 500
25.2x
+14% premium
vs Industrials Trailing P/E
WTS
28.7x
vs
Industrials
25.9x
+11% premium
vs WTS 5Y Avg P/E
Today
28.7x
vs
5Y Average
27.3x
+5% premium
Forward PE
24.9x
S&P 500
19.1x
+31%
Industrials
20.8x
+20%
5Y Avg
—
—
Trailing PE
28.7x
S&P 500
25.2x
+14%
Industrials
25.9x
+11%
5Y Avg
27.3x
+5%
PEG Ratio
1.16x
S&P 500
1.75x
-34%
Industrials
1.59x
-27%
5Y Avg
—
—
EV/EBITDA
18.0x
S&P 500
15.3x
+18%
Industrials
13.9x
+30%
5Y Avg
17.1x
+5%
Price/FCF
27.4x
S&P 500
21.3x
+28%
Industrials
20.6x
+33%
5Y Avg
27.9x
-2%
Price/Sales
4.0x
S&P 500
3.1x
+28%
Industrials
1.6x
+151%
5Y Avg
3.3x
+22%
Dividend Yield
0.68%
S&P 500
1.88%
-64%
Industrials
1.24%
-45%
5Y Avg
0.71%
-3%
| Metric | WTS | S&P 500 | Industrials | 5Y Avg WTS |
|---|---|---|---|---|
| Forward PE | 24.9x | 19.1x+31% | 20.8x+20% | — |
| Trailing PE | 28.7x | 25.2x+14% | 25.9x+11% | 27.3x |
| PEG Ratio | 1.16x | 1.75x-34% | 1.59x-27% | — |
| EV/EBITDA | 18.0x | 15.3x+18% | 13.9x+30% | 17.1x |
| Price/FCF | 27.4x | 21.3x+28% | 20.6x+33% | 27.9x |
| Price/Sales | 4.0x | 3.1x+28% | 1.6x+151% | 3.3x+22% |
| Dividend Yield | 0.68% | 1.88% | 1.24% | 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
0.8%
Dividend
0.7%
Buyback
0.2%
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.
Based on the latest company results, valuation, and market data
High Risk
Americas exposure
Americas represents 79.7% of disclosed revenue and changed 11.4% year over year. A sharper slowdown, policy change, or competitive shift in that market would hit the revenue base quickly and could pull expectations toward the lower end of the valuation range.
Medium
Valuation de-rating
WTS trades at 28.7x trailing earnings versus 25.2x for the S&P 500 and 25.9x for its sector. If earnings delivery or sentiment slips, the stock could re-rate lower and move closer to the bear case target of $175.
Medium
Estimate execution
The next fiscal year requires Street estimates of $2.6B in revenue (9.7% growth) and $10.89 in EPS. Missing those operating targets would undermine the premium multiple investors are paying today.
Lower
Capital return support
Part of the per-share support comes from capital returns, backed by $317M in trailing free cash flow, a 0.2% buyback yield, and a 0.7% dividend yield. If cash generation softens, the EPS lift and downside cushion from repurchases can narrow.
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.
Based on recent company results and analyst estimates
High-margin cash engine
Watts Water Technologies, Inc. already operates from a position of scale, with 49.2% gross margin, 19.4% operating margin, and $317M in trailing free cash flow. That combination gives management room to keep funding product investment without relying on outside capital.
Multiple growth levers remain
Watts Water Technologies, Inc. still has room to compound if management converts its existing scale into steadier revenue growth and margin discipline. The bull case does not require perfection; it requires the core business to keep translating operating strength into higher per-share earnings.
Upside and capital returns align
Consensus still points to $345, or 17.8% upside, while the modeled bull target reaches $392. If $2.6B in forward revenue and $10.89 in EPS are delivered, ongoing shareholder returns running at 0.8% can amplify the equity upside.
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
$292.35
52W Range Position
61%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$209.85
+39.3% from the low
52-Week High
$345.17
-15.3% from the high
1 Month
+1.53%
3 Month
-8.42%
YTD
+4.9%
1 Year
+38.0%
3Y CAGR
+19.8%
5Y CAGR
+16.8%
10Y CAGR
+17.9%
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
24.9x
vs 20.4x median
+22% above peer median
Revenue Growth
+9.7%
vs +5.0% median
+95% 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. | $9.7B | 24.9x | +9.7% | 14.3% | Hold | +17.8% |
FEL FELE Franklin Electric Co., Inc. | $4.5B | 22.0x | +5.0% | 6.9% | Hold | -1.0% |
LIQ LIQT LiqTech International, Inc. | $21M | — | +11.0% | -53.3% | — | — |
MWA MWA Mueller Water Products, Inc. | $4.2B | 18.8x | +6.5% | 14.2% | Hold | +22.8% |
ERI ERII Energy Recovery, Inc. | $613M | 28.2x | -2.7% | 25.9% | Buy | +12.0% |
ITR ITRI Itron, Inc. | $3.7B | 13.8x | +1.8% | 12.3% | Hold | +65.1% |
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 0.8% total yield, led by a 0.68% dividend, raised 14 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
0.8%
Dividend + buyback return per year
Buyback Yield
0.2%
Dividend Yield
0.68%
Payout Ratio
19.6%
How WTS Splits Its Return
Div 0.68%
Dividend 0.68%Buybacks 0.2%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.00
Growth Streak
Consecutive years of dividend increases
14Y
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
54.7K
Approx. Share Reduction
0.2%
Shares Outstanding
Current diluted share count from the screening snapshot
33M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.52 | — | — | — |
| 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 $345, implying +17.8% from the current price of $292. The bear case scenario is $175 and the bull case is $392.
02What is the WTS stock price target for 2026?
The Wall Street consensus price target for WTS is $345 based on 23 analyst estimates. The high-end target is $460 (+57.3% from today), and the low-end target is $275 (-5.9%). The base case model target is $401.
03Is Watts Water Technologies, Inc. (WTS) stock overvalued in 2026?
WTS trades at 24.9x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals overvalued. 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) Americas exposure — Americas represents 79. (2) Valuation de-rating — WTS trades at 28. (3) Estimate execution — The next fiscal year requires Street estimates of $2. 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 $2.6B (+9.7% year-over-year) and EPS of $10.89 (+12.4% year-over-year) for the upcoming fiscal year. The following year, analysts project $2.8B 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 2026-05-06. Consensus expects EPS of $2.72 and revenue of $638M. 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 (0.7% yield) and share repurchases ($16M TTM).