Watts Water Technologies, Inc.

Valuation Analysis

About the Company

Watts Water Technologies, Inc., together with its subsidiaries, supplies products and solutions that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial, industrial, and residential markets. The company offers residential and commercial flow control and protection products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak detection and protection products, commercial washroom solutions, hydration solutions, and emergency safety products and equipment for plumbing and hot water applications. It also provides heating, ventilation, and air conditioning and gas products comprising commercial, institutional, and industrial boilers; water heaters and heating solut

Watts Water Technologies, Inc. Stock at a Glance

Watts Water Technologies, Inc. (WTS) is currently trading at $333.11 with a market capitalization of $11.1B. The trailing P/E ratio stands at 30.48x, with a forward P/E of 25.6x. The 52-week range spans from $238.47 to $345.17; the current price is 3.5% below the yearly high. Year-over-year revenue growth stands at +21.4%. The net profit margin stands at 14.32%.

💰 Dividend

Watts Water Technologies, Inc. pays an annual dividend of $2.19 per share, representing a yield of 0.66%. The payout ratio stands at 19.03%.

📊 Analyst Rating

9 analysts rate Watts Water Technologies, Inc. (WTS) on consensus: Hold. The average price target is $333.11. Analyst price targets range from $275.00 to $379.00.

Watts Water Technologies, Inc.: The Investment Case in Detail

Watts Water Technologies, Inc. (WTS) operates in the Industrials — specifically Specialty Industrial Machinery — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 21.4% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 34.5% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. The combination of a 49.24% gross margin and 19.67% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

Valuation in Context

At a PEG of 3.63, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

What to Watch Next

• The forward P/E of 25.6x is meaningfully below the trailing 30.48x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (6.51%).

Trading Data

💵 Dividend Info

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