# Watts Water Technologies, Inc. Class A (WTS) — Stock CV

Watts Water Technologies, Inc. is a $11.8B industrial company. Revenue grew 17.1% over the last year, it keeps 14¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 30.8× earnings — in the most expensive third of its own history.

> Watts Water Technologies Inc is a U.S.-based company that provides safety, energy efficiency, and water conservation products.

## Identity

- **Ticker**: WTS
- **Sector**: Industrials
- **Industry**: Miscellaneous Fabricated Metal Products
- **Headquarters**: NORTH ANDOVER, MA
- **Employees**: 5 700
- **Website**: https://www.wattswater.com
- **Market cap**: $11.8B
- **Last price**: $352.72
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $2.68B
- **Net income**: $384M
- **Free cash flow**: $349M
- **Net cash**: $208M
- **P/E**: 30.8
- **Revenue growth (YoY)**: 17.1%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 42 |
| Growth | 77 |
| Profitability | 80 |
| Health | 100 |
| Quality | 89 |
| Moat | 88 |

## Qualifications (beginner checklist) — 11 of 11 passed

- [x] Revenue growing — +17.1% YoY
- [x] Profitable — $384M TTM
- [x] Profit growing — +10.8% YoY
- [x] Generates cash — $349M TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $11.8B market cap
- [x] Not printing shares — -1.5% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [x] Financially stable — Altman Z 11.2 — safe
- [x] Pays a dividend — yield 0.62%
- [x] Valuation not extreme — P/E 30.8

## Experience (career milestones)

- **FY2025** — Best year on record: $341M net income
- **2023** — The company acquired Bradley Corporation for $303 million
- **FY2019** — Became debt-free: cash now exceeds total debt
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $1.40B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2011** — The company acquired Danfoss Scola for $176 million
- **2006** — The company acquired Kim Olofsson Safe
- **2005** — The company acquired Dormont Manufacturing for $95 million
- **1986** — The company became a public company via an initial public offering
- **1874** — The company was founded in 1874 by Joseph E

## Strengths

- High gross margin (48.9%)
- Revenue growing 17.1% year over year
- Net cash position after subtracting debt from cash
- Interest covered 446.8× by operating earnings
- High returns on invested capital (ROIC 18.7%)

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $1.81B | $166M | $154M |
| FY2022 | $1.98B | $252M | $196M |
| FY2023 | $2.06B | $262M | $281M |
| FY2024 | $2.25B | $291M | $326M |
| FY2025 | $2.44B | $341M | $356M |

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Source: https://stockcv.com/WTS — derived from company filings; may be delayed or incomplete. Information, not investment advice.