# Watts Water Technologies Inc. (WTS) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Machinery. Price $363.13, market value $12.1 billion.

## Valuation
- **P/E (trailing): 31.7×** (5-yr avg 26.7×, 3-yr avg 25.4×). Watts Water Technologies Inc. trades at 31.7× trailing earnings, close to its own five-year average of 26.7×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 25.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.52**. A PEG of 1.52 is in the range usually read as fairly priced for its growth.
- **Price / sales: 4.5×**. Each dollar of revenue is priced at 4.5×.
- **Price / book: 5.8×**. The shares trade at 5.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 20.8×**. Enterprise value is 20.8× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 2.9%** (5-yr avg 3.9%). Free cash flow equals 2.9% of the market value, below its five-year average of 3.9%, so the shares are pricier on cash than usual.
- **Earnings yield: 3.2%**. The inverse of the P/E: 3.2% of the price is earned each year.

## Profitability
- **Gross margin: 48.8%**. Watts Water Technologies Inc. keeps 48.8% of revenue after the direct cost of what it sells.
- **Operating margin: 19.1%**. 19.1% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 14.0%**. 14.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.8%**. 16.8% on shareholders' equity is solid.
- **Return on invested capital: 22.2%**. Return on all capital, debt included, is 22.2%: comfortably above what that capital costs.
- **Return on assets: 13.3%**. Each dollar of assets produces 13.3% of profit.

## Growth
- **Revenue growth (1 yr): 8.3%** (3-yr 7.2%/yr, 5-yr 10.1%/yr). Revenue grew 8.3% over the last year, against 10.1% a year compounded over five years.
- **EPS growth (1 yr): 17.0%** (3-yr 10.8%/yr, 5-yr 24.8%/yr). Earnings per share rose 17.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 22.1%/yr**. Free cash flow has compounded at 22.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.10**. Debt is 0.10 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Watts Water Technologies Inc. holds more cash than debt.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.63%** ($2.19 per share, trailing). Watts Water Technologies Inc. yields 0.63%, a modest yield more typical of a growth-oriented payer.
- **Consecutive years of increases: 24**. 24 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 16.7%/yr** (1-yr 20.6%). The dividend has compounded at 16.7% a year over five years, doubling roughly every 4 years at that pace.

## Analyst view
- **Analyst consensus: buy** (7 analysts). 7 analysts cover Watts Water Technologies Inc.; the consensus is buy, with an average price target of $404.00 (+11% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 30.5%** (YTD 32.0%, 3-mo 15.6%). The shares are up 30.5% over twelve months including dividends.
- **From 52-week high: -8.0%** (39.7% above the low). Trading 8% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 0.90** (volatility 27%). Beta of 0.90 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=WTS · Page: https://foliofundamentals.com/stocks/wts

Not investment advice.