WTS

Industrials

Watts Water Technologies, Inc. · Industrial - Machinery · $10B

UQS Score — Balanced Preset
68.4
Good

Watts Water Technologies, Inc. scores 68.4/100 using the Balanced preset.

UQS vs Industrials Sector
WTS
68.4
Sector avg
42.4
Quality
Strong
Moat
Neutral
Growth
Good
Risk
Strong
Valuation
Neutral

What is Watts Water Technologies, Inc.?

Watts Water Technologies designs and manufactures flow control, water quality, and heating products for commercial and residential buildings worldwide. Headquartered in North Andover, Massachusetts, the company serves markets across the Americas, Europe, Asia-Pacific, and beyond.

The company generates revenue by selling engineered products that regulate, conserve, and manage the flow of water, fluids, and energy through buildings. Its customers include plumbing and heating contractors, distributors, and original equipment manufacturers. Revenue comes from both product sales and system solutions across residential, commercial, and industrial end markets globally.

Watts Water Technologies was incorporated in 1986 and is headquartered in North Andover, Massachusetts.

  • Flow control products — backflow preventers, pressure regulators, and relief valves
  • HVAC and gas products — boilers, water heaters, and hydronic heating systems
  • Drainage and water reuse — rainwater harvesting and engineered drainage solutions
  • Water quality systems — point-of-use and point-of-entry filtration and conditioning

Is WTS a Good Stock to Buy?

UQS Score rates WTS as Good overall, reflecting a balanced profile across quality, growth, and risk.

The Risk pillar stands out as the strongest element of WTS's profile, suggesting the business carries relatively low financial or operational vulnerability compared to sector peers. Quality and Growth both register as Good, pointing to a business that generates consistent results and maintains a credible expansion trajectory.

The Moat and Valuation pillars both land at Neutral, indicating that competitive differentiation and current pricing leave limited margin for error.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does WTS pay dividends?

Yes — Watts Water Technologies, Inc. pays a dividend.

Watts Water Technologies pays a regular dividend, which is relatively uncommon among mid-sized industrials still investing in product development. The dividend reflects the company's stable cash generation and management's confidence in sustaining returns to shareholders alongside ongoing reinvestment in the business.

When does WTS report earnings?

Watts Water Technologies reports earnings on a quarterly cadence, typical for US-listed equities.

The company's Good Quality and Growth pillar ratings suggest results have been broadly consistent, with revenue and profitability tracking in line with or above sector averages. Management commentary on pricing, volume trends, and geographic mix tends to move the stock around reporting periods.

For the most recent quarter's results, visit Watts Water Technologies' investor relations page directly.

WTS Price History

+126.3% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Watts Water Technologies, Inc.?

$
Today it would be worth
$25,702
That's a +157% total return, or +20.8% annualized.

Based on Watts Water Technologies, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

WTS Long-term Outlook

WTS's Good Growth pillar suggests the business has identifiable drivers that can sustain expansion over the medium term, while its Strong Risk rating implies the company is well-positioned to navigate economic headwinds. The Neutral Valuation pillar means the current price does not offer an obvious discount, so the forward outlook depends heavily on execution against those growth drivers.

Growth drivers

  • Global demand for water efficiency and building sustainability upgrades
  • Expansion of smart water management products such as the IntelliStation mixing system
  • Continued penetration in Asia-Pacific and EMEA commercial construction markets

Key risks

  • Cyclical exposure to commercial construction activity and capital spending
  • Neutral Moat rating leaves pricing power vulnerable to competitive pressure
  • Neutral Valuation means limited buffer if growth disappoints

WTS vs Peers

Watts Water Technologies competes with a range of industrial flow and filtration companies, each with distinct market focuses.

GTLSWTS scores higher
Chart Industries, Inc.

Chart Industries focuses on industrial gas and clean energy equipment, giving it a different end-market exposure than WTS's building-centric water management portfolio.

DCIWTS scores higher
Donaldson Company, Inc.

Donaldson specializes in filtration systems for industrial and commercial applications, overlapping with WTS on water quality but with a broader industrial filtration scope.

FLSWTS scores higher
Flowserve Corporation

Flowserve targets large-scale industrial pump and valve systems for energy and process industries, operating at a different scale and customer base than WTS's building products focus.

Frequently Asked Questions

What does Watts Water Technologies do?

Watts Water Technologies designs and manufactures products that control the flow of water, fluids, and energy through residential and commercial buildings. Its portfolio spans flow control valves, HVAC systems, water filtration, and drainage solutions sold to plumbing and heating contractors, distributors, and OEMs worldwide.

Does WTS pay dividends?

Yes, Watts Water Technologies pays a regular dividend. This reflects the company's ability to generate consistent cash flow while continuing to invest in product development and geographic expansion. Investors seeking income alongside industrial exposure may find this relevant to their screening criteria.

When does WTS report earnings?

Watts Water Technologies follows a standard quarterly earnings cadence for US-listed companies. For the exact schedule and most recent results, check the investor relations section of the company's official website, as specific dates are subject to change.

Is WTS a good stock to buy?

UQS Score rates WTS as Good overall. The Risk pillar is the standout strength, while Moat and Valuation are both Neutral. Whether WTS fits a portfolio depends on individual goals — the complete pillar breakdown available to Pro members provides a deeper view.

Is WTS overvalued?

WTS carries a Neutral Valuation rating in the UQS framework, meaning the stock is neither clearly cheap nor obviously expensive relative to its fundamentals. Investors looking for a margin of safety may want to monitor valuation trends alongside the company's growth execution.

How does WTS compare to its competitors?

Compared to peers like Flowserve, Donaldson, and Chart Industries, WTS is more narrowly focused on building water management rather than broad industrial or energy markets. Its Strong Risk pillar may differentiate it from peers with heavier cyclical or balance-sheet exposure.

What is WTS's market cap bracket?

Watts Water Technologies is classified as a large-cap stock. This places it among the more established names in the industrials sector, typically associated with greater liquidity and analyst coverage than mid- or small-cap peers.

Who founded Watts Water Technologies?

Watts Water Technologies traces its roots to the Horne family, who built the business over decades before its public incorporation in 1986. Full founding history is publicly available through the company's official corporate profile and investor relations materials.

Is WTS a long-term quality stock?

As a long-term quality indicator, WTS scores as Good across the UQS framework, with particular strength in Risk. A Neutral Moat suggests the company's competitive position is adequate but not exceptional — long-term holders should monitor whether product differentiation strengthens over time.

What is the main competitive advantage of Watts Water Technologies?

Watts Water Technologies benefits from a broad, specialized product portfolio serving essential building infrastructure needs — a category with recurring replacement demand. Its global distribution network and presence across multiple geographies add operational resilience, though the UQS Moat pillar rates this advantage as Neutral relative to sector peers.

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Pro Analysis

WTS — Score History

60657075Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 15 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 23, 202668.480.041.073.197.459.5-0.1
May 22, 202668.580.141.073.197.460.10.0
May 21, 202668.580.141.073.197.460.0-0.1
May 14, 202668.680.141.073.197.460.6+0.1
May 11, 202668.580.241.073.197.459.9+1.0
May 7, 202667.579.141.070.995.460.10.0
May 3, 202667.579.141.070.995.459.8+0.1
Apr 26, 202667.479.141.070.995.459.0+0.2
Apr 21, 202667.279.141.070.795.457.90.0
Apr 19, 202667.279.141.070.995.458.00.0

WTS — Pillar Breakdown

Quality

80.0/100 (25%)

Watts Water Technologies, Inc. demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.

Capital Efficiency (ROIC)Strong

How effectively capital is deployed to generate returns.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityStrong

Ability to convert revenue into operating profit.

Net ProfitabilityStrong

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

73.1/100 (20%)

Watts Water Technologies, Inc. demonstrates healthy growth trends across revenue and earnings.

Recent Revenue TrendModerate

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

97.4/100 (15%)

Watts Water Technologies, Inc. carries minimal financial risk with conservative leverage and strong solvency.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

59.5/100 (15%)

Watts Water Technologies, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowModerate

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorModerate

Enterprise value multiple relative to sector median.

Moat

41/100 (25%)

Watts Water Technologies, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for WTS.

Score Composition

Quality
80.0×25%20.0
Growth
73.1×20%14.6
Risk
97.4×15%14.6
Valuation
59.5×15%8.9
Moat
41.0×25%10.3
Total
68.4Good

Financial Data

More Stock Analysis

How is the WTS UQS Score Calculated?

The UQS (Unified Quality Score) for Watts Water Technologies, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Watts Water Technologies, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Watts Water Technologies, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.