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Watts Water Technologies Inc
NYSE:WTS

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Watts Water Technologies Inc Logo
Watts Water Technologies Inc
NYSE:WTS
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Price: 212.55 USD 0.46% Market Closed
Updated: Mar 29, 2024

Intrinsic Value

Watts Water Technologies, Inc. engages in the manufacture and provision of products for water conservation, safety, and flow control. [ Read More ]

The intrinsic value of one WTS stock under the Base Case scenario is 162.82 USD. Compared to the current market price of 212.55 USD, Watts Water Technologies Inc is Overvalued by 23%.

Key Points:
WTS Intrinsic Value
Base Case
162.82 USD
Overvaluation 23%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Watts Water Technologies Inc

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Fundamental Analysis

Watts Water Technologies Projects Cautious Growth
2023-Q4 Earnings Call

Watts Water Technologies Projects Cautious Growth

Watts Water Technologies wrapped up a strong 2023, growing sales by 9% to $548 million and boosting adjusted operating margins by 150 basis points to 15.8%. They achieved this while investing an additional $24 million in strategic projects. Looking ahead to 2024, the company expects more moderate revenue growth of 3-5% on an organic basis, and anticipates margins to be squeezed by inflation and incremental investments, guiding an adjusted operating margin range of 13.5% to 14.5%. They forecast overall 2024 sales growth between 6-12%, factoring in recent acquisitions but anticipate organic revenue could vary widely, from a 5% decrease to a 1% increase. Operating margin headwinds are expected, with projected EBITDA margins ranging from 19.4% to 20%, possibly declining by up to 50 basis points or improving by 10 basis points year-over-year.

Financials

Balance Sheet Decomposition
Watts Water Technologies Inc

Current Assets 1.1B
Cash & Short-Term Investments 350.1m
Receivables 259.8m
Other Current Assets 451.1m
Non-Current Assets 1.2B
PP&E 248.2m
Intangibles 909.1m
Other Non-Current Assets 91.1m
Current Liabilities 405.8m
Accounts Payable 131.8m
Accrued Liabilities 274m
Non-Current Liabilities 390.3m
Long-Term Debt 298.3m
Other Non-Current Liabilities 92m
Efficiency

Earnings Waterfall
Watts Water Technologies Inc

Revenue
2.1B USD
Cost of Revenue
-1.1B USD
Gross Profit
960.9m USD
Operating Expenses
-604.5m USD
Operating Income
356.4m USD
Other Expenses
-94.3m USD
Net Income
262.1m USD

Free Cash Flow Analysis
Watts Water Technologies Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
Chart
Table
What is Free Cash Flow?
Fundamental Scores

WTS Profitability Score
Profitability Due Diligence

Watts Water Technologies Inc's profitability score is 60/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive 3-Year Average ROE
Positive 3-Years Revenue Growth
60/100
Profitability
Score

Watts Water Technologies Inc's profitability score is 60/100. The higher the profitability score, the more profitable the company is.

WTS Solvency Score
Solvency Due Diligence

Watts Water Technologies Inc's solvency score is 87/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
High Altman Z-Score
Low D/E
Long-Term Solvency
87/100
Solvency
Score

Watts Water Technologies Inc's solvency score is 87/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

WTS Price Targets Summary
Watts Water Technologies Inc

Wall Street analysts forecast WTS stock price to drop over the next 12 months.

According to Wall Street analysts, the average 1-year price target for WTS is 208.69 USD with a low forecast of 176.75 USD and a high forecast of 227.85 USD.

Lowest
Price Target
176.75 USD
17% Downside
Average
Price Target
208.69 USD
2% Downside
Highest
Price Target
227.85 USD
7% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

WTS Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

WTS Price
Watts Water Technologies Inc

1M 1M
+4%
6M 6M
+23%
1Y 1Y
+30%
3Y 3Y
+81%
5Y 5Y
+172%
10Y 10Y
+296%
Annual Price Range
212.55
52w Low
155.14
52w High
219
Price Metrics
Average Annual Return 20.84%
Standard Deviation of Annual Returns 34.66%
Max Drawdown -33%
Shares Statistics
Market Capitalization 7.1B USD
Shares Outstanding 33 310 000
Percentage of Shares Shorted 2.47%

WTS Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

Watts Water Technologies Inc Logo
Watts Water Technologies Inc

Country

United States of America

Industry

Machinery

Market Cap

7.1B USD

Dividend Yield

0.69%

Description

Watts Water Technologies, Inc. engages in the manufacture and provision of products for water conservation, safety, and flow control. The company is headquartered in North Andover, Massachusetts and currently employs 4,597 full-time employees. Its product lines include residential & commercial flow control products, such as backflow preventers, water pressure regulators, temperature and pressure relief valves, and leak detection products; heating, ventilation and air conditioning and gas products, which include water heaters and heating solutions, hydronic and electric heating systems for under-floor radiant applications, custom heat and hot water solutions and hydronic pump groups; drainage & water re-use products, which includes drainage and engineered rainwater harvesting solutions for commercial, industrial, marine and residential applications, and water quality products, such as point-of-use and point-of-entry water filtration and scale prevention systems for commercial, marine and residential applications.

Contact

MASSACHUSETTS
North Andover
815 Chestnut St
+19786881811.0
https://www.watts.com/

IPO

1986-08-21

Employees

4 597

Officers

Chief Financial Officer
Mr. Shashank Patel
Chief Operating Officer
Mr. Andre Dhawan
General Counsel, Chief Sustainability Officer & Secretary
Mr. Kenneth R. Lepage
President of Asia-Pacific, The Middle East & Africa
Mr. Elie A. Melhem
Chief Accounting Officer
Ms. Virginia A. Halloran
Senior Vice President of FP&A and Investor Relations
Ms. Diane M. McClintock CPA
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Executive Vice President of Strategy & Business Development
Mr. Ram Ramakrishnan
Chief Human Resources Officer
Ms. Monica Barry
President of Heating & Hot Water Solutions
Mr. James F. Dagley
VP of Investor Relations & Treasurer
Mr. Timothy M. MacPhee
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See Also

Discover More
What is the Intrinsic Value of one WTS stock?

The intrinsic value of one WTS stock under the Base Case scenario is 162.82 USD.

Is WTS stock undervalued or overvalued?

Compared to the current market price of 212.55 USD, Watts Water Technologies Inc is Overvalued by 23%.