NYSE
WTS
Last Price
US $384.42
KEY FIGURES
MKT CAP
$12.8B
EPS
TTM
$11.46
PEG
TTM
1.47x
P/E
TTM
33.55x
P/S
TTM
4.81x
YIELD
0.57%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
18.56%
Return on equity
ROIC: 15.92%
Valuation History
34.2X
Price to Earnings
EV/EBITDA: 21.2X
Cash flow
Profit margin
10.08%
(FY vs FY)
EBITDA Y/Y
17.75%
(FY vs FY)
Cash flow Y/Y
14.01%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $384.42
-49.03%
Default assumptions
EBITDA Multiple
Fair Value
Market $384.42
-70.34%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Watts Water Technologies, Inc. cash flow to debt ratio of 203.34% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
Watts Water Technologies, Inc.'s free cash flow has increased 9.36% from $325.80M last year to $356.30M, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
Watts Water Technologies, Inc.'s debt to equity ratio is 0.05, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Watts Water Technologies, Inc.'s debt has decreased relative to shareholder equity from 0.12 last year to 0.05 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Watts Water Technologies, Inc. has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Watts Water Technologies, Inc.'s interest coverage ratio of 50.50 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Watts Water Technologies, Inc.'s profit margin has increased (10.87%) in the last year from 12.93% to 14.34%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Watts Water Technologies, Inc.'s short-term assets of $1.29G exceed its short-term liabilities of $512.40M
Increasing performance - ROA.
Watts Water Technologies, Inc.'s return on assets of 13.00% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Watts Water Technologies, Inc.'s return on equity of 18.56%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Watts Water Technologies, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Watts Water Technologies, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Watts Water Technologies, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Watts Water Technologies, Inc. has a free cash flow yield of 2.78%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Watts Water Technologies, Inc.'s yearly earnings has increased 17.03% since last year from $291.20M to $340.80M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Watts Water Technologies, Inc.'s yearly revenue has increased 8.27% since last year from $2.25G to $2.44G, signaling increasing performance
Increasing performance - ROIC.
ROIC 15.92% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Watts Water Technologies, Inc.'s 3-year revenue CAGR of 7.20% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Watts Water Technologies, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Watts Water Technologies, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Watts Water Technologies, Inc. is overvalued relative to its fair value price of 195.94 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Watts Water Technologies, Inc. has an earnings yield of 2.98%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Watts Water Technologies, Inc. is overvalued relative to its fair value price of 114.03 based on EBITDA multiple model
Overvalued - EV/EBITDA.
Watts Water Technologies, Inc. has an EV/EBITDA ratio of 24.60x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Overvalued - PEG ratio value.
Watts Water Technologies, Inc. has a PEG-ratio over 1 which is considered overvalued
Overvalued - P/B ratio.
Watts Water Technologies, Inc. has a price-to-book ratio of 5.88x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Watts Water Technologies, Inc. has a price-to-sales ratio of 4.81x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue