Watts Water Technologies, Inc.
WTS
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Bull / bear case
Site-generated summary from fundamentals, news, and score — not investment advice. As of 2026-10-08.
- Watts Water Technologies operates in a growing industry focused on sustainable water solutions, positioning itself well against competitors as demand for efficient water management systems increases.
- In Q2 2026, Watts reported a revenue increase of 13% compared to the previous quarter, reaching $763 million.
- The company's operating margin expanded to 20.9% in Q2 2026, up from 19.7% in Q1 2026.
- Despite strong growth, Watts has a high debt-to-equity ratio of 9.674, which could pose risks in a rising interest rate environment.
- The trailing P/E ratio stands at 31.68, indicating that the stock may be overvalued compared to its earnings growth potential.
- The PEG ratio of 3.22 suggests that the stock's price may not be justified by its earnings growth rate.
Fundamentals
| Market cap | $11.59B | Enterprise value | $11.45B | Trailing P/E | 30.32 | Forward P/E | 24.73 |
| PEG | 3.09 | Price / book | 5.29 | Beta | 1.15 | Dividend yield | 0.66% |
| Revenue growth | 18.6% | Earnings growth | 17.3% | Gross margin | 48.9% | Operating margin | 20.9% |
| Profit margin | 14.3% | ROE | 18.8% | ROA | 11.6% | Debt / equity | 0.10 |
| Current ratio | 2.66 | Free cash flow | $228.79M | Analyst recommendation | buy | Mean target | $404.00 |
| 52w high | $394.54 | 52w low | $260.00 |
Quarterly
| 2026-Q2 | 2026-Q1 | 2025-Q4 | 2025-Q3 | 2025-Q2 | |
|---|---|---|---|---|---|
| Revenue | $763M | $677M | $625M | $612M | $644M |
| Op margin | 20.9% | 19.7% | 18.4% | 18.5% | 21.5% |
| Net income | $118M | $99.6M | $83.7M | $82.2M | $101M |
| Gross margin | 49.0% | 48.1% | 49.5% | 48.8% | 50.6% |
| Gross profit | $374M | $326M | $309M | $298M | $326M |
| Operating income | $160M | $133M | $115M | $113M | $139M |
- Revenue +13% vs prior quarter ($763M vs $677M).
- Gross margin 49% (was 48.1% prior quarter).
- Operating margin expanded to 20.9%.
Yearly (6y)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | $2.4B | $2.3B | $2.1B | $2.0B | — |
| Op margin | 19.3% | 17.7% | 17.3% | 16.4% | — |
| Net income | $341M | $291M | $262M | $252M | — |
| Gross margin | 49.5% | 47.2% | 46.7% | 44.2% | — |
| Gross profit | $1.2B | $1.1B | $961M | $874M | — |
| Operating income | $472M | $398M | $356M | $326M | — |
No flags
• No distress or material-risk keywords in recent headlines (keyword scan only — not a guarantee).
News
2026-10-08 · Watts Water Technologies (WTS): A Hidden Data Center Stock in Billionaire Mario Gabelli’s Portfolio
2026-10-07 · Watts Water Technologies, Inc. Announces Third Quarter 2026 Earnings Release and Conference Call
2026-10-02 · Can Water Quality Margin Expansion Power Veralto's Next Growth Phase?
2026-10-01 · Watts Water Technologies Announces Retirement of Kenneth R. Lepage and Succession Process
2026-09-29 · 1 Cash-Heavy Stock to Own for Decades and 2 Facing Challenges
2026-09-14 · Watts Water (WTS) Stock May Trade Near Fair Value Despite Record Sales
2026-09-11 · 3 Market-Beating Stocks with Promising Prospects
2026-09-09 · 5 Stocks to Buy as U.S. Manufacturing Stays on Growth Track
2026-09-08 · Watts Water Technologies Insider Sold Shares Worth $394,067, According to a Recent SEC Filing
2026-09-07 · Watts Water (WTS) Hits Record Sales While Margins Quietly Slip
2026-09-04 · Top Research Reports for Apple, Broadcom & Shell
2026-09-04 · Why Is Watts Water (WTS) Down 5.7% Since Last Earnings Report?
Price (daily)
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