Watts Water Technologies, Inc.
- Open
- 389.01
- Day high
- 390.74
- Day low
- 382.53
- Prev close
- 391.45
- Volume
- 67K
- Mkt cap
- $13.0B
- P/E (TTM)
- 35.6
- EPS (TTM)
- $10.94
- P/B
- 6.2
- P/S
- 5.1
- Yield
- 0.29%
- Per share
- $1.15
- ▼Insiders net selling -$803K over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions accumulating (13F)
Watts Water Technologies, Inc. (WTS) is a Industrials company listed on NYSE. The stock is up 56% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4).
Watts Water Technologies, Inc. (WTS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
WTS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $2.72 | $3.04 | +11.8% | $677M | +6.1% |
| Feb 11, 2026 | $2.36 | $2.62 | +11.0% | $625M | +1.9% |
| Nov 5, 2025 | $2.26 | $2.50 | +10.6% | $612M | +6.1% |
| Aug 6, 2025 | $2.68 | $3.09 | +15.3% | $644M | +14.6% |
| Oct 30, 2024 | $1.99 | $2.03 | +2.0% | $544M | +0.6% |
| Nov 1, 2023 | $1.83 | $2.04 | +11.5% | $504M | +1.4% |
| Aug 2, 2023 | $2.04 | $2.34 | +14.7% | $533M | +8.3% |
| May 3, 2023 | $1.64 | $1.92 | +17.1% | $472M | -0.3% |
| Feb 8, 2023 | $1.53 | $1.60 | +4.6% | $502M | +3.2% |
| Nov 2, 2022 | $1.55 | $1.79 | +15.5% | $488M | +2.0% |
| Aug 3, 2022 | $1.63 | $2.11 | +29.4% | $527M | +7.4% |
| May 3, 2022 | $1.37 | $1.63 | +19.0% | $463M | +4.6% |
WTS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 28, 2026 | Dubose Michael J.director | Sell | 398 | $309.63 |
| May 14, 2026 | Melhem Elieofficer: President- APAC, M. East, Afr. | Sell | 2,257 | $301.00 |
| Mar 19, 2026 | Melhem Elieofficer: President- APAC, M. East, Afr. | Sell | 372 | $292.13 |
| Mar 18, 2026 | Melhem Elieofficer: President- APAC, M. East, Afr. | Sell | 379 | $300.03 |
| Mar 17, 2026 | McClintock Diane Mofficer: Chief Financial Officer | Grant | 642 | $238.24 |
| Mar 13, 2026 | Dubose Michael J.director | Sell | 332 | $301.70 |
| Feb 23, 2026 | HORNE TIMOTHY P10 percent owner | Sell | 7,500 | $330.04 |
| Feb 20, 2026 | Pagano Robert J Jrofficer: President and CEO | Sell | 78 | $330.26 |
| Feb 20, 2026 | Pagano Robert J Jrofficer: President and CEO | Sell | 3,348 | $326.89 |
| Feb 20, 2026 | Pagano Robert J Jrofficer: President and CEO | Sell | 2,834 | $325.75 |
| Feb 20, 2026 | Pagano Robert J Jrofficer: President and CEO | Sell | 7,731 | $327.68 |
| Feb 20, 2026 | Pagano Robert J Jrofficer: President and CEO | Sell | 81 | $329.62 |
| Feb 20, 2026 | Pagano Robert J Jrofficer: President and CEO | Sell | 1,994 | $328.55 |
| Feb 18, 2026 | Lepage Kenneth Robertofficer: General Counsel | Sell | 5,025 | $321.08 |
| Feb 11, 2026 | Lepage Kenneth Robertofficer: General Counsel | Tax | 1,002 | $319.76 |
Source: WTS SEC Form 4 filings, latest May 28, 2026. For informational purposes only — not investment advice.
See the full WTS insider & 13F page →Watts Water Technologies, Inc. company profile
Overview
Watts Water Technologies, Inc. (NYSE:WTS) is a global designer, manufacturer, and distributor of water flow control and energy management products founded in 1874. Headquartered in North Andover, Massachusetts, the company has evolved from a small valve manufacturer into a comprehensive water management solutions provider serving commercial and residential markets across the Americas, Europe, Asia-Pacific, Middle East, and Africa. With over 150 years of history, Watts has built a diversified portfolio through strategic acquisitions and organic growth, positioning itself as a leading player in the water infrastructure industry.
Business
Watts Water Technologies operates in the water management and flow control industry, providing essential infrastructure products that regulate, conserve, and manage water and energy flow in buildings. The company's products are critical components in plumbing, heating, and HVAC systems that ensure safe, efficient water delivery and temperature control in both residential and commercial applications. The company operates through three main geographic segments. The Americas segment generates approximately 65-70% of total revenue and includes products like backflow preventers (devices that prevent contaminated water from flowing back into clean water supplies), water pressure regulators, temperature and pressure relief valves, and thermostatic mixing valves. This segment also encompasses heating solutions including boilers, water heaters, and radiant heating systems for floors. The Europe segment contributes roughly 25-30% of revenue and focuses heavily on heating, ventilation, and air conditioning products, particularly heat pumps and hydronic heating systems. European operations have faced challenges due to construction market weakness and heat pump market destocking. The Asia-Pacific, Middle East, and Africa (APMEA) segment represents about 5-10% of revenue but has shown strong growth, particularly in data center applications and infrastructure projects in China, Australia, and the Middle East. Beyond traditional flow control products, Watts has expanded into smart and connected solutions, aiming for 25% of sales from intelligent products. The company launched Nexa, an intelligent water management platform for commercial properties that provides real-time monitoring and analytics. Additionally, Watts offers drainage solutions, water quality products including filtration systems, and specialized products for marine and industrial applications.
Revenue model
Watts generates revenue primarily through product sales to a diverse customer base including plumbing and heating wholesale distributors, original equipment manufacturers (OEMs), specialty distributors, retail chains, and direct wholesale accounts. The company operates on a traditional manufacturing business model where it designs, manufactures, and sells physical products with typical industrial margins. The company's revenue streams benefit from both new construction activity and the more stable repair and replacement market. The repair and replacement segment provides more predictable revenue as existing infrastructure requires ongoing maintenance and component replacement. New construction markets, while more volatile, offer opportunities for higher volume sales during building booms. Several factors influence Watts' profitability margins. Positive margin drivers include pricing power due to the mission-critical nature of water safety products, operational efficiency improvements from manufacturing optimization, and the growing mix of higher-margin smart and connected products. The company has successfully implemented price increases to offset inflationary pressures and tariff impacts. Margin pressures come from commodity cost fluctuations, particularly metals used in valve manufacturing, competitive pricing in certain product categories, and economic cycles affecting construction activity. European operations face additional challenges from construction market weakness and government policy changes affecting heat pump incentives. Currency fluctuations also impact international operations, though the company has some natural hedging through global manufacturing footprint. The company has demonstrated ability to maintain margins through economic cycles by focusing on essential safety products where customers prioritize reliability over price, diversifying across geographic markets, and continuously optimizing its manufacturing footprint.
Competitive moat
Watts Water Technologies possesses a moderate but meaningful economic moat built on several defensive characteristics. The company's primary moat stems from the mission-critical nature of its products - water safety and flow control products are essential infrastructure components where failure can result in property damage, health hazards, or regulatory violations. This creates customer loyalty and reduces price sensitivity, as building owners and contractors prioritize reliability over cost savings. The company benefits from regulatory barriers and compliance requirements that create switching costs. Many of Watts' products must meet strict safety and building codes, and the company has invested heavily in certifications and regulatory approvals across multiple jurisdictions. This creates barriers for new entrants and makes customers reluctant to switch suppliers. Distribution relationships provide another defensive element, as Watts has established long-term partnerships with wholesale distributors who value reliable supply, technical support, and broad product portfolios. The company's 150-year history and reputation for quality create trust in the marketplace. However, the moat faces several challenges. The water management industry includes large, well-capitalized competitors like Pentair, Xylem, and regional players who can compete on price and technology. The company operates in a mature industry where product differentiation can be limited, and many products are commodity-like despite safety requirements. Potential disruption could come from new technologies in smart water management, alternative materials that reduce costs, or direct-to-consumer models that bypass traditional distribution. The company is addressing this through its Nexa platform and smart product initiatives, but faces competition from technology companies entering the water management space. Overall, Watts has a solid but not insurmountable moat that provides some protection against competition and supports modest pricing power, particularly in safety-critical applications.
Risks & safety
Watts Water Technologies demonstrates strong financial safety with low leverage and solid cash generation, though trading at elevated valuation multiples. **Liquidity and Solvency:** - Strong balance sheet with $387 million cash and minimal debt - Current ratio of 2.6x indicating excellent short-term liquidity - Debt-to-equity ratio of only 11.5%, providing substantial financial flexibility - Consistent positive free cash flow generation of $326 million in 2024 **Valuation Metrics:** - Trading at 23.4x P/E ratio, above historical industrial averages - EV/EBITDA of 14.5x, elevated but not extreme for quality industrial - Price-to-book ratio of 4.0x reflects premium valuation - Graham number suggests potential overvaluation at current levels **Other Considerations:** - Cyclical earnings exposure to construction markets creates some volatility risk - Geographic diversification provides some protection against regional downturns - Strong cash conversion and dividend growth history demonstrates management discipline - Tariff exposure managed through pricing and supply chain diversification
Recent development
Over the past few years, Watts has executed a strategic transformation focused on three key areas: acquisitions, digitalization, and operational optimization. The company completed several strategic acquisitions including Bradley Corporation (commercial washroom and safety products), Josam (drainage solutions), Enware (emergency safety showers), and most recently Icon Systems (correctional facility water management). These acquisitions have expanded Watts' addressable market and enhanced its commercial building solutions portfolio. The company's most significant strategic initiative has been the development of smart and connected products, targeting 25% of sales from intelligent solutions. This culminated in the launch of the Nexa platform in 2024, an intelligent water management system for commercial properties that provides real-time monitoring, analytics, and predictive maintenance capabilities. The platform represents Watts' evolution from a traditional valve manufacturer to a technology-enabled solutions provider. Operationally, Watts has been optimizing its manufacturing footprint, including the announced closure of its French manufacturing facility and expansion of U.S. production capacity to mitigate tariff impacts. The company has also implemented comprehensive ERP system upgrades across its Americas and APMEA regions to improve operational efficiency. In response to evolving trade policies, Watts has proactively diversified its supply chain and increased domestic manufacturing capacity, particularly in the U.S., to reduce dependence on imports and provide cost structure advantages. The company has also initiated 80/20 product rationalization, eliminating low-margin accessory products to focus resources on higher-value offerings. Recent financial management initiatives include a 21% dividend increase, demonstrating confidence in cash generation capabilities, and ongoing share repurchase programs reflecting management's view of intrinsic value.
WTS company profile · for informational purposes only — not investment advice.
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