WATTS WATER TECHNOLOGIES INC
$360.39
+3.16 (+0.88%) · delayed · Nov 13, 2026
Five-year price
52w $262.96 to $394.54
- Market cap
- $12.1B
- Enterprise value
- $11.9B
- P/E
- 35.4×
- 40.5× on 3y avg EPS
- EV / EBIT
- 26.5×
- FCF yield
- 3.0%
- ROIC
- 18.8%
- Debt / equity
- 0.10
- Piotroski F
- 6/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
100
- ●ROIC > 12% (5y avg)5y avg ROIC 18.9%
- ●ROE > 15% (5y avg)5y avg ROE 16.9%
- ●Stable operating marginsMargin volatility 1.8% (σ, 5y)
- ●Earnings convert to cashFCF / net income 99% (5y avg)
- ●Growing revenueRevenue CAGR 5y 10.1%
- ●Shrinking share countDiluted shares -1.5% over 5y
Value
0
- ○P/E below 15P/E 35.4
- ○EV/EBIT below 12EV/EBIT 26.5
- ○FCF yield above 6%FCF yield 3.0%
- ○Price below Graham NumberGraham Number $117.69
- ○P/B below 3P/B 6.0
Safety
100
- ●Debt / equity below 0.5D/E 0.10
- ●Debt payable in < 4 yrs of earningsNet debt $-0.2B
- ●Interest coverage > 8xCoverage 41.5x
- ●Current ratio > 1.5Current ratio 2.51
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
57
- ●Adequate size (revenue > $2B)Revenue $2.4B
- ●Strong condition (current ratio ≥ 2)Current ratio 2.51
- ●Earnings stability (no loss, 10y)10 years of data
- ○Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 222%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 40.5
- ○P/E × P/B ≤ 22.5Product 241.3
Valuation lab
What do you have to believe?
At $360.39, the market is pricing in about 12.4% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt −$208M · 34M shares · 5y revenue CAGR 10.1%
Intrinsic value
$301.84
Price
$360.39
Premium paid
19%
What the price implies
The market is paying for 12.4% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
62% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,398 | 1,457 | 1,565 | 1,601 | 1,509 | 1,809 | 1,980 | 2,056 | 2,252 | 2,439 |
| Gross profit | 566 | 602 | 657 | 678 | 625 | 767 | 874 | 961 | 1,062 | 1,206 |
| Operating income | 145 | 162 | 188 | 197 | 181 | 240 | 315 | 351 | 390 | 448 |
| Operating margin | 10.4% | 11.1% | 12.0% | 12.3% | 12.0% | 13.2% | 15.9% | 17.1% | 17.3% | 18.4% |
| Pre-tax income | 128 | 143 | 175 | 184 | 167 | 234 | 308 | 350 | 386 | 446 |
| Income tax | 44 | 70 | 47 | 52 | 53 | 68 | 56 | 87 | 95 | 105 |
| Net income | 84 | 73 | 128 | 132 | 114 | 166 | 252 | 262 | 291 | 341 |
| EPS (diluted) | 2.44 | 2.12 | 3.73 | 3.85 | 3.36 | 4.88 | 7.48 | 7.82 | 8.69 | 10.17 |
| Diluted shares | 35 | 34 | 34 | 34 | 34 | 34 | 34 | 34 | 34 | 34 |
Who owns it