# Watts Water Technologies, Inc. (WTS)

> Source: Nexqual · https://nexqual.com/WTS · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Watts Water Technologies, Inc. (WTS), nexqual.com/WTS" · informational, not investment advice.

**Price:** USD 356.94 (-1.78% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 363.4 · day 349.26–364.63 · 52w 260–394.54 · market cap $11.9B · NYQ

## Key facts
- Last four reported quarters (through Jun 28, 2026): revenue $2.68B, net income $384M (14.3% margin), free cash flow $349M (SEC filings).
- Valuation: P/E 31.0x (avg 25.7x at the last 3 fiscal year-ends), EV/EBITDA 20.4x, net cash $240M.
- Insider open-market sales, last ~7 months: 4 Form 4 filings, $2.5M; 4 not under a Rule 10b5-1 plan ($2.5M); 3 by opportunistic insiders (3 outside 10b5-1 plans), 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Hold (mean 2.60 on a 1–5 scale) (10 analysts), mean target USD 403.71 (range 360–445).
- Total return with dividends: 1Y +29.1% vs S&P 500 +14.9%; 5Y +99.3% vs S&P 500 +80.3%.
- Next earnings: 2026-11-04, EPS estimate USD 3.14, revenue estimate $693M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.81B | $1.98B | $2.06B | $2.25B | $2.44B | $2.68B |
| Gross profit | $767M | $874M | $961M | $1.06B | $1.21B | — |
| Operating income | $240M | $315M | $351M | $390M | $448M | $512M |
| Net income | $166M | $252M | $262M | $291M | $341M | $384M |
| EPS (diluted) | $4.88 | $7.48 | $7.82 | $8.69 | $10.17 | — |
| Free cash flow | $154M | $196M | $281M | $326M | $356M | $349M |
| Gross margin | 42.4% | 44.2% | 46.7% | 47.2% | 49.5% | — |
| Operating margin | 13.2% | 15.9% | 17.1% | 17.3% | 18.4% | 19.1% |
| Net margin | 9.2% | 12.7% | 12.7% | 12.9% | 14.0% | 14.3% |
| Revenue growth | +19.9% | +9.4% | +3.9% | +9.5% | +8.3% | — |
| Cash + short-term investments | $242M | $311M | $350M | $387M | $406M | — |
| Total debt | $142M | $148M | $298M | $197M | $198M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 28, 2026)
P/E 31.0x · P/S 4.5x · EV/EBITDA 20.4x · EV/Sales 4.4x · P/FCF 34.1x · P/B 5.4x · FCF yield 2.93% · Earnings yield 3.22% · Buyback yield (TTM) 0.13% · Net cash $240M · EV $11.7B
P/E at fiscal year-ends: Dec 2025 27.1x, Dec 2024 23.4x, Dec 2023 26.6x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 4 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-09-04 | Melhem Elie | President- APAC, M. East, Afr. | 1,096 | $394K | 12.2% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-09-01 | Noonan Joseph T | Director | 3,650 | $1.3M | 68.9% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-05-28 | Dubose Michael J. | Director | 398 | $123K | 18% | No | Too little history (no open-market trades in 2023) |
| 2026-05-13 | Melhem Elie | President- APAC, M. East, Afr. | 2,257 | $679K | 20.1% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Hold (mean 2.60 on a 1–5 scale), 10 analysts; mean target USD 403.71 (low 360, high 445).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-14 | RBC Capital | Reiterated | Sector Perform | $417 |
| 2026-08-07 | RBC Capital | Target raised | Sector Perform | $350 → $417 |
| 2026-08-07 | Barclays | Target raised | Overweight | $414 → $425 |
| 2026-08-06 | Keybanc | Target raised | Overweight | $380 → $400 |
| 2026-07-20 | Stifel | Target raised | Buy | $379 → $403 |
| 2026-07-16 | RBC Capital | Target raised | Sector Perform | $323 → $350 |
| 2026-07-13 | Keybanc | Target raised | Overweight | $360 → $380 |
| 2026-07-02 | TD Cowen | Target raised | Hold | $275 → $320 |
| 2026-06-30 | Barclays | Upgrade | Equal-Weight → Overweight | $317 → $414 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +29.1% | +99.3% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +29.2% | +14.7% |
| Volatility (annualized) | 27.0% | 27.1% |
| Max drawdown | -15.4% (Feb 2026→Mar 2026) | -43.1% (Nov 2021→Jun 2022) |

## Peers (Specialty Industrial Machinery)
INIO (INNIO N.V.) USD 15.11 -10.43% · GGG (Graco Inc.) USD 69.28 -15.32% · GNRC (Generac Holdlings Inc.) USD 188.02 -7.44% · CR (Crane Company) USD 189.05 -7.52% · IEX (IDEX Corporation) USD 226.88 -3.63% · ITT (ITT Inc.) USD 188.26 -6.03%

## More
Full page: https://nexqual.com/WTS · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by business segment (quarter ended 2026-06-28)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| Americas | $585.0M | 76.7% | +17.4% | $150.1M | 25.7% |
| Europe | $124.6M | 16.3% | +12.3% | $16.6M | 13.3% |
| Asia Pacific Middle East & Africa | $53.6M | 7.0% | +56.7% | $10.6M | 19.8% |
| Corporate costs (not allocated) | — | — | — | -$17.3M | — |
| Total revenue | $763.2M | 100% | — | $154.0M | 20.2% |

## Revenue by product line (quarter ended 2026-06-28)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Residential & Commercial Flow Control | $471.8M | 61.8% | +19.5% |
| HVAC & Gas | $180.9M | 23.7% | +26.6% |
| Drains & Water Reuse | $78.8M | 10.3% | +3.8% |
| Water Quality | $31.7M | 4.2% | +5.3% |
| Total revenue | $763.2M | 100% | — |

## Revenue by region (quarter ended 2026-06-28)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Americas | $585.0M | 76.7% | +17.4% |
| Europe | $124.6M | 16.3% | +12.3% |
| Asia Pacific Middle East & Africa | $53.6M | 7.0% | +56.7% |
| Total revenue | $763.2M | 100% | — |

## Company outlook (8-K filed 2026-08-05)

- "Sales growth is expected to range from up 14% to up 17% on a reported basis and up 8% to up 11% on an organic basis."
- "Full year operating margin is expected to be between 19.4% and 20.0%, or up 100 basis points to up 160 basis points, and adjusted operating margin is expected to be between 19.8% and 20.4%, or up 20 basis points to up 80 basis points."
- "The full year outlook assumes no change in the level of impact resulting from the Middle East conflict and incorporates the estimated impact of tariffs in place or announced as of August 4, 2026."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $3.14 | $2.86 | +9.8% | $692.6M | 8 |
| Next quarter (ends 2026-12-31) | $3.01 | $2.81 | +7.2% | $695.1M | 8 |
| Current fiscal year (ends 2026-12-31) | $12.70 | $12.08 | +5.1% | $2.83B | 9 |
| Next fiscal year (ends 2027-12-31) | $14.03 | $13.19 | +6.3% | $2.99B | 8 |