WTSNYSEMiscellaneous Fabricated Metal ProductsFiscal year ends December 31
WATTS WATER TECHNOLOGIES INC
Financials through Q2 FY2026, quarter ended Jun 28, 2026Last filing: 10-Q on Aug 6, 2026
$357.00+0.30 (+0.08%)
Close on Oct 19, 2026
- Market cap
- $11.96B
- P/E (TTM)
- 31.2
- Dividend yield
- 0.56%
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
49.5%+8.0 pts over 5 years
Operating margin
18.4%+6.4 pts over 5 years
Net margin
14.0%+6.4 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +8.3% | +7.2% | +10.1% | +5.2% | |
| Gross profit | +13.6% | +11.3% | +14.0% | +8.1% | |
| Operating income | +14.8% | +12.5% | +19.9% | – | |
| Net income | +17.0% | +10.7% | +24.4% | – | |
| EPS, diluted | +17.0% | +10.8% | +24.8% | – | |
| Free cash flow | +9.4% | +22.1% | +14.0% | +15.9% | |
| Dividend per share | +20.6% | +19.7% | +16.7% | +11.7% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 11.7% | 11.2% | 18.2% | |
| Return on assets | 4.9% | 6.6% | 12.9% | |
| Current ratio | 1.93 | 2.27 | 2.51 | |
| Debt to equity | 0.88 | 0.19 | 0.10 | |
| Net debt to EBITDA | 1.59× | -0.09× | -0.41× | |
| Interest coverage | 6.4× | 13.6× | 41.5× | |
| Inventory turnover | 3.5× | 3.3× | 2.7× | |
| Capex to revenue | 2.6% | 2.9% | 1.9% | |
| Diluted shares | 35M | 34M | 34M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Watts Water Technologies generated $1.48B from operations and spent $299.90M on capital expenditure, dividends and share buybacks. 55% of that went back into the business.
Generated
$1.48B
Used
$299.90M
Capital expenditure$165.50M55%Dividends$00%Share buybacks$134.40M45%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin14.0%
×Asset turnover0.92×
×Equity multiplier1.41×
=Return on equity, FY202518.2%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 14.0% | 0.92× | 1.41× | 18.2% |
| FY2024 | 12.9% | 0.96× | 1.46× | 18.1% |
| FY2023 | 12.7% | 0.97× | 1.51× | 18.6% |
| FY2022 | 12.7% | 1.05× | 1.53× | 20.3% |
| FY2021 | 9.2% | 1.01× | 1.60× | 14.8% |
| FY2020 | 7.6% | 0.87× | 1.69× | 11.2% |
| FY2019 | 8.2% | 0.95× | 1.81× | 14.1% |
| FY2018 | 8.2% | 0.92× | 1.97× | 14.9% |
| FY2017 | 5.0% | 0.83× | 2.24× | 9.3% |
| FY2016 | 6.0% | 0.81× | 2.40× | 11.7% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
8of 9 tests passed in fiscal 2025. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero$340.80M
- Cash generatingOperating cash flow above zero$402.00M
- Return on assets improvedROA up on the prior year12.6% → 14.2%
- Earnings backed by cashOperating cash flow above net income$402.00M vs $340.80M
- Less leverageLong-term debt to assets fell8.2% → 6.9%
- Better liquidityCurrent ratio rose2.59 → 2.51
- No dilutionShare count did not rise34M → 34M
- Gross margin improvedGross margin up on the prior year47.15% → 49.46%
- More efficientAsset turnover rose0.98 → 1.02