Watts Water Technologies, Inc.WTS
NYSE•Industrials•Specialty Industrial Machinery
Watts Water Technologies, Inc., together with its subsidiaries, supplies products and solutions that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial, industrial, and residential markets. The company offers residential and commercial flow control and protection products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak detection and protection products, commercial washroom solutions, hydration solutions, and emergency safety products and equipment for plumbing and hot water applications. It also provides heating, ventilation, and air conditioning and gas products comprising commercial, institutional, and industrial boilers; water heaters and heating solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless-steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, the company offers drainage and water re-use products, such as drainage products, engineered rainwater harvesting solutions for commercial, industrial, marine, and residential applications; connected roof drain systems; and water quality products, including point-of-use and point-of-entry, closed loop, cooling tower, and other water applications for commercial, marine, and residential applications. It sells its products to plumbing, heating, and mechanical wholesale distributors and dealers; original equipment manufacturers; specialty product distributors; and do-it-yourself and retail chains, as well as wholesalers and private label accounts in the Americas, Europe, Asia-Pacific, Middle East, and Africa. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.
Watts Water Technologies, Inc. (WTS) reported trailing twelve months revenue of $2.56B as of March 2026, a 14.2% increase year-over-year. Quarterly revenue reached $677.30M, reflecting continued top-line momentum.
Watts Water Technologies, Inc. generated $366.40M in TTM net income, with quarterly EBITDA of $148.40M. The operating margin expanded from 15.7% to 19.6%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (19.6%) and net margin (14.7%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 13.3% a year ago, signaling stronger bottom-line efficiency.
WTS trades at a P/E of 26.2x (in line with broad market averages) and a P/S of 3.8x. The price-to-book ratio of 4.6x reflects a moderate premium to book value.
The company generated $6.60M in free cash flow over the trailing twelve months, a 85.5% decrease year-over-year, indicating cash generation ability. The balance sheet shows $2.94B in total assets with $197.80M in long-term debt against $2.10B in stockholders equity for a debt-to-equity ratio of 0.1, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~18.1%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 16.8% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~19.3% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.1 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation