Watts Water Technologies, Inc. (WTS) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Industrial - Machinery
EV/EBITDA
↓
21.33
↑+24% vs avg
5yr avg: 17.14
30Y Low4.2·High22.8
P/FCF
↓
32.23
+16% vs avg
5yr avg: 27.90
30Y Low7.2·High47.3
P/B Ratio
↓
5.68
↑+26% vs avg
5yr avg: 4.51
30Y Low1.0·High5.6
ROE
↑
18.2%
↓+1% vs avg
5yr avg: 18.0%
30Y Low-14%·High20%
Debt/EBITDA
↓
0.37
↓-25% vs avg
5yr avg: 0.50
30Y Low0.4·High3.8
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
WTS Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Watts Water Technologies, Inc. trades at 33.8x earnings, 24% above its 5-year average of 27.3x, sitting at the 79th percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a premium of 32%. On a free-cash-flow basis, the stock trades at 32.2x P/FCF, 16% above the 5-year average of 27.9x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.5B | $9.2B | $6.8B | $7.0B | $4.9B | $6.6B | $4.1B | $3.4B | $2.2B | $2.6B | $2.2B |
| Enterprise Value | $11.3B | $9.0B | $6.6B | $6.9B | $4.8B | $6.5B | $4.1B | $3.5B | $2.4B | $2.8B | $2.6B |
| P/E Ratio → | 33.81 | 27.14 | 23.39 | 26.64 | 19.52 | 39.71 | 36.22 | 25.91 | 17.73 | 35.83 | 26.72 |
| P/S Ratio | 4.71 | 3.79 | 3.02 | 3.39 | 2.48 | 3.64 | 2.74 | 2.13 | 1.41 | 1.79 | 1.61 |
| P/B Ratio | 5.68 | 4.56 | 3.99 | 4.61 | 3.78 | 5.61 | 3.87 | 3.49 | 2.49 | 3.15 | 3.06 |
| P/FCF | 32.23 | 25.95 | 20.90 | 24.83 | 25.08 | 42.71 | 22.37 | 20.70 | 16.67 | 20.90 | 22.03 |
| P/OCF | 28.57 | 23.00 | 18.86 | 22.46 | 21.93 | 36.41 | 18.08 | 17.59 | 13.07 | 16.76 | 16.29 |
P/E links to full P/E history page with 30-year chart
WTS EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Watts Water Technologies, Inc.'s enterprise value stands at 21.3x EBITDA, 24% above its 5-year average of 17.1x. The Industrials sector median is 13.8x, placing the stock at a 54% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.71 | 2.94 | 3.37 | 2.40 | 3.58 | 2.73 | 2.19 | 1.51 | 1.94 | 1.83 |
| EV / EBITDA | 21.33 | 17.10 | 14.88 | 17.57 | 13.39 | 22.77 | 18.09 | 14.37 | 9.97 | 13.19 | 13.06 |
| EV / EBIT | 23.90 | 19.80 | 16.52 | 19.37 | 15.10 | 26.96 | 22.83 | 17.68 | 12.38 | 17.45 | 17.03 |
| EV / FCF | — | 25.37 | 20.32 | 24.64 | 24.25 | 42.07 | 22.25 | 21.25 | 17.79 | 22.64 | 25.09 |
WTS Profitability
Margins and return-on-capital ratios measuring operating efficiency
Watts Water Technologies, Inc. earns an operating margin of 19.3%, significantly above the Industrials sector average of 4.3%. Operating margins have expanded from 17.1% to 19.3% over the past 3 years, signaling improving operational efficiency. ROE of 18.2% indicates solid capital efficiency, compared to the sector median of 8.2%. ROIC of 21.2% represents excellent returns on invested capital versus a sector median of 6.1%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 49.5% | 49.5% | 47.2% | 46.7% | 44.2% | 42.4% | 41.5% | 42.3% | 42.0% | 41.4% | 40.4% |
| Operating Margin | 19.3% | 19.3% | 17.3% | 17.1% | 15.9% | 13.2% | 12.0% | 12.3% | 12.0% | 11.1% | 10.4% |
| Net Profit Margin | 14.0% | 14.0% | 12.9% | 12.7% | 12.7% | 9.2% | 7.6% | 8.2% | 8.0% | 5.0% | 6.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.2% | 18.2% | 18.1% | 18.6% | 20.3% | 14.8% | 11.2% | 14.1% | 14.5% | 9.4% | 11.7% |
| ROA | 12.9% | 12.9% | 12.4% | 12.4% | 13.3% | 9.2% | 6.6% | 7.8% | 7.4% | 4.1% | 4.8% |
| ROIC | 21.2% | 21.2% | 19.7% | 20.3% | 21.4% | 16.9% | 12.8% | 14.0% | 13.6% | 11.6% | 10.7% |
| ROCE | 21.7% | 21.7% | 20.1% | 20.3% | 21.0% | 16.7% | 13.3% | 15.1% | 13.9% | 11.7% | 10.5% |
WTS Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Watts Water Technologies, Inc. carries a Debt/EBITDA ratio of 0.4x, which is very conservative (88% below the sector average of 3.2x). The company holds a net cash position — cash of $406M exceeds total debt of $198M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 42.3x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.10 | 0.10 | 0.12 | 0.20 | 0.11 | 0.12 | 0.19 | 0.32 | 0.40 | 0.60 | 0.89 |
| Debt / EBITDA | 0.37 | 0.37 | 0.44 | 0.76 | 0.42 | 0.50 | 0.87 | 1.27 | 1.49 | 2.32 | 3.31 |
| Net Debt / Equity | — | -0.10 | -0.11 | -0.03 | -0.13 | -0.09 | -0.02 | 0.09 | 0.17 | 0.26 | 0.43 |
| Net Debt / EBITDA | -0.39 | -0.39 | -0.43 | -0.13 | -0.46 | -0.35 | -0.09 | 0.37 | 0.63 | 1.01 | 1.59 |
| Debt / FCF | — | -0.58 | -0.58 | -0.18 | -0.83 | -0.65 | -0.11 | 0.54 | 1.12 | 1.74 | 3.06 |
| Interest Coverage | 42.28 | 42.28 | 27.26 | 43.62 | 44.94 | 38.16 | 13.56 | 14.04 | 11.71 | 8.49 | 6.65 |
Net cash position: cash ($406M) exceeds total debt ($198M)
WTS Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Watts Water Technologies, Inc.'s current ratio of 2.51x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.49x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 2.61x to 2.51x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.51 | 2.51 | 2.59 | 2.61 | 2.51 | 2.11 | 2.27 | 1.75 | 2.07 | 2.39 | 2.02 |
| Quick Ratio | 1.49 | 1.49 | 1.65 | 1.63 | 1.52 | 1.20 | 1.43 | 1.11 | 1.25 | 1.60 | 1.45 |
| Cash Ratio | 0.79 | 0.79 | 0.93 | 0.86 | 0.82 | 0.59 | 0.70 | 0.52 | 0.59 | 0.86 | 0.80 |
| Asset Turnover | — | 0.85 | 0.94 | 0.89 | 1.03 | 0.97 | 0.87 | 0.93 | 0.95 | 0.84 | 0.78 |
| Inventory Turnover | 2.35 | 2.35 | 3.04 | 2.74 | 2.94 | 2.81 | 3.35 | 3.42 | 3.17 | 3.30 | 3.48 |
| Days Sales Outstanding | — | 44.01 | 41.03 | 46.12 | 43.11 | 44.57 | 47.81 | 50.13 | 47.93 | 54.15 | 51.68 |
WTS Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Watts Water Technologies, Inc. returns 0.7% to shareholders annually — split between a 0.6% dividend yield and 0.1% buyback yield. The payout ratio of 19.6% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.6% | 0.7% | 0.8% | 0.7% | 0.8% | 0.5% | 0.8% | 0.9% | 1.3% | 1.0% | 1.1% |
| Payout Ratio | 19.6% | 19.6% | 19.1% | 17.7% | 15.7% | 20.7% | 27.5% | 23.9% | 22.7% | 35.4% | 29.1% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.0% | 3.7% | 4.3% | 3.8% | 5.1% | 2.5% | 2.8% | 3.9% | 5.6% | 2.8% | 3.7% |
| FCF Yield | 3.1% | 3.9% | 4.8% | 4.0% | 4.0% | 2.3% | 4.5% | 4.8% | 6.0% | 4.8% | 4.5% |
| Buyback Yield | 0.1% | 0.2% | 0.2% | 0.2% | 1.4% | 0.2% | 0.7% | 0.6% | 1.2% | 0.7% | 1.2% |
| Total Shareholder Yield | 0.7% | 0.9% | 1.1% | 0.9% | 2.2% | 0.8% | 1.5% | 1.5% | 2.5% | 1.7% | 2.3% |
| Shares Outstanding | — | $34M | $34M | $34M | $34M | $34M | $34M | $34M | $34M | $34M | $35M |
Peer Comparison
Compare WTS with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 WTSYou | $11B | 33.8 | 21.3 | 32.2 | 49.5% | 19.3% | 18.2% | 21.2% | 0.4 |
 FELE | $5B | 32.1 | 14.4 | 23.8 | 35.5% | 12.7% | 11.3% | 14.7% | 0.8 |
 LIQT | $9M | -1.0 | — | — | 7.6% | -50.3% | -63.1% | -31.0% | — |
 MWA | $4B | 21.4 | 13.7 | 23.8 | 36.1% | 18.2% | 21.4% | 19.7% | 1.5 |
 ERII | $486M | 22.4 | 15.8 | 27.8 | 65.2% | 18.2% | 11.0% | 10.3% | 0.3 |
 ITRI | $4B | 12.4 | 10.4 | 9.4 | 37.5% | 13.5% | 19.1% | 13.1% | 3.5 |
 PNR | $12B | 18.8 | 13.9 | 16.1 | 40.5% | 20.5% | 17.6% | 12.1% | 1.7 |
 XYL | $26B | 28.4 | 15.0 | 29.1 | 38.5% | 13.5% | 8.5% | 7.6% | 1.1 |
 REXR | $8B | 38.5 | 16.1 | 37.7 | 77.3% | 37.9% | 2.4% | 2.4% | 5.0 |
 GFF | $4B | 83.6 | 21.1 | 13.8 | 42.0% | 8.2% | 34.2% | 9.1% | 5.9 |
 BWXT | $19B | 57.2 | 47.0 | 63.7 | 22.9% | 10.1% | 28.5% | 10.1% | 4.7 |
| Industrials Median | — | 25.6 | 13.8 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
Consensus-Based Analysis Tools
Full Stock Analysis
Deep dive into WTS consensus models and risk factors.
View Analysis
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Check Valuation
Historical Returns
10-year return with dividends reinvested.
Calculate
DCA Calculator
See how regular investing compounds over time.
Run Numbers
Peer Comparison
Compare growth, multiples, and margins vs sector.
Compare
WTS — Frequently Asked Questions
Quick answers to the most common questions about buying WTS stock.
What is Watts Water Technologies, Inc.'s P/E ratio?
Watts Water Technologies, Inc.'s current P/E ratio is 33.8x. The historical average is 24.2x. This places it at the 79th percentile of its historical range.
What is Watts Water Technologies, Inc.'s EV/EBITDA?
Watts Water Technologies, Inc.'s current EV/EBITDA is 21.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.9x.
What is Watts Water Technologies, Inc.'s ROE?
Watts Water Technologies, Inc.'s return on equity (ROE) is 18.2%. The historical average is 9.6%.
Is WTS stock overvalued?
Based on historical data, Watts Water Technologies, Inc. is trading at a P/E of 33.8x. This is at the 79th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Watts Water Technologies, Inc.'s dividend yield?
Watts Water Technologies, Inc.'s current dividend yield is 0.58% with a payout ratio of 19.6%.
What are Watts Water Technologies, Inc.'s profit margins?
Watts Water Technologies, Inc. has 49.5% gross margin and 19.3% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Watts Water Technologies, Inc. have?
Watts Water Technologies, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.