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Watts Water Technologies, Inc.

WTS

Last
$352.72
Day
+1.6%
1y
+26.8%
5y
+105.8%
52w
-12.0%
SPY YTD
+13.3%
XLI
+6.6%
Earnings
2026-11-0424d
EMA 21
355.75
EMA 50
356.16
EMA 200
328.11
20d high
-5.9%
5y high
-12.0%
5y range
83th
Website · 5,700 employees · United States

Positions held

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Score
-26
Hold
avoid
Signal
Strong Sell
Target
$361.71
Stop
$335.00
Stop distance
5.0%
Target vs last
+2.5%

Bull / bear case

Site-generated summary from fundamentals, news, and score — not investment advice. As of 2026-10-08.

Bull case
  • 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.
Bear case
  • 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$11.59BEnterprise value$11.45BTrailing P/E30.32Forward P/E24.73
PEG3.09Price / book5.29Beta1.15Dividend yield0.66%
Revenue growth18.6%Earnings growth17.3%Gross margin48.9%Operating margin20.9%
Profit margin14.3%ROE18.8%ROA11.6%Debt / equity0.10
Current ratio2.66Free cash flow$228.79MAnalyst recommendationbuyMean target$404.00
52w high$394.5452w low$260.00

Quarterly

2026-Q22026-Q12025-Q42025-Q32025-Q2
Revenue$763M$677M$625M$612M$644M
Op margin20.9%19.7%18.4%18.5%21.5%
Net income$118M$99.6M$83.7M$82.2M$101M
Gross margin49.0%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)

20252024202320222021
Revenue$2.4B$2.3B$2.1B$2.0B—
Op margin19.3%17.7%17.3%16.4%—
Net income$341M$291M$262M$252M—
Gross margin49.5%47.2%46.7%44.2%—
Gross profit$1.2B$1.1B$961M$874M—
Operating income$472M$398M$356M$326M—
Headline scan

No flags

• No distress or material-risk keywords in recent headlines (keyword scan only — not a guarantee).

News

WTS · daily-2.0% over 13 sessions
Close EMA21 EMA50 EMA200
338.97346.81354.65362.49370.322026-092026-092026-092026-092026-102026-102026-10
Quarterly · revenue, net income, margins
Revenue Net income Gross margin Op margin
$0M$191M$382M$572M$763M0%25%51%2025-Q22025-Q32025-Q42026-Q12026-Q2