WATTS WATER TECHNOLOGIES INC (WTS) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does WATTS WATER TECHNOLOGIES INC Do?
Watts Water Technologies, Inc. designs, manufactures, and sells products, solution, and systems that manage and conserve the flow of fluids and energy into, through and out of buildings in the commercial and residential markets in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa. The company offers residential and commercial flow control products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, and thermostatic mixing valves. It also provides heating, ventilation, and air conditioning and gas products, such as boilers, water heaters, custom heat, and hot water 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 comprising drainage products and engineered rain water harvesting solutions for commercial, industrial, marine, and residential applications; and water quality products that include point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems for commercial and residential applications. Further, it provides smart mixing system under the IntelliStation name. The company sells its products to plumbing, heating, and mechanical wholesale distributors and dealers, as well as original equipment manufacturers, specialty product distributors, do-it-yourself chains, and retail chains; and directly to wholesalers and private label accounts. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts. WATTS WATER TECHNOLOGIES INC (WTS) is classified as a mid-cap stock in the Materials sector, specifically within the Construction Materials industry. The company is led by CEO Robert J. Pagano and employs approximately 4,600 people, headquartered in North Andover, Massachusetts. With a market capitalization of $9.8B, WTS is one of the notable companies in the Materials sector.
WATTS WATER TECHNOLOGIES INC (WTS) Stock Rating — Hold (April 2026)
As of April 2026, WATTS WATER TECHNOLOGIES INC receives a Hold rating with a composite score of 49.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.WTS ranks #988 out of 4,446 stocks in our coverage universe. Within the Materials sector, WATTS WATER TECHNOLOGIES INC ranks #60 of 284 stocks, placing it in the top quartile of its Materials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
WTS Stock Price and 52-Week Range
WATTS WATER TECHNOLOGIES INC (WTS) currently trades at $302.73. The stock lost $1.46 (0.5%) in the most recent trading session. The 52-week high for WTS is $345.17, which means the stock is currently trading -12.3% from its annual peak. The 52-week low is $177.59, putting the stock 70.5% above its annual trough. Recent trading volume was 132K shares, suggesting relatively thin trading activity.
Is WTS Overvalued or Undervalued? — Valuation Analysis
WATTS WATER TECHNOLOGIES INC (WTS) carries a value factor score of 43/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 30.82x, compared to the Materials sector average of 26.50x — a premium of 16%. The price-to-book ratio stands at 5.14x, versus the sector average of 2.83x. The price-to-sales ratio is 4.27x, compared to 0.74x for the average Materials stock. On an enterprise value basis, WTS trades at 23.51x EV/EBITDA, versus 6.01x for the sector.
Overall, WTS's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
WATTS WATER TECHNOLOGIES INC Profitability — ROE, Margins, and Quality Score
WATTS WATER TECHNOLOGIES INC (WTS) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 16.7%, compared to the Materials sector average of 3.3%, which is within a healthy range. Return on assets (ROA) comes in at 12.0% versus the sector average of 0.6%.
On a margin basis, WATTS WATER TECHNOLOGIES INC reports gross margins of 48.9%, compared to 29.8% for the sector. The operating margin is 18.0% (sector: 6.0%). Net profit margin stands at 13.8%, versus 3.0% for the average Materials stock. Revenue growth is running at 2.4% on a trailing basis, compared to 1.8% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
WTS Debt, Balance Sheet, and Financial Health
WATTS WATER TECHNOLOGIES INC has a debt-to-equity ratio of 39.0%, compared to the Materials sector average of 41.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.83x, indicating strong short-term liquidity. Total debt on the balance sheet is $198M. Cash and equivalents stand at $458M.
WTS has a beta of 0.91, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for WATTS WATER TECHNOLOGIES INC is 81/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
WATTS WATER TECHNOLOGIES INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, WATTS WATER TECHNOLOGIES INC reported revenue of $2.36B and earnings per share (EPS) of $2.45. Net income for the quarter was $326M. Gross margin was 48.9%. Operating income came in at $428M.
In Q3 2025, WATTS WATER TECHNOLOGIES INC reported revenue of $612M and earnings per share (EPS) of $2.45. Net income for the quarter was $82M. Gross margin was 48.8%. Revenue grew 12.5% year-over-year compared to Q3 2024. Operating income came in at $111M.
In Q2 2025, WATTS WATER TECHNOLOGIES INC reported revenue of $644M and earnings per share (EPS) of $3.01. Net income for the quarter was $101M. Gross margin was 50.6%. Revenue grew 7.8% year-over-year compared to Q2 2024. Operating income came in at $135M.
In Q1 2025, WATTS WATER TECHNOLOGIES INC reported revenue of $558M and earnings per share (EPS) of $2.21. Net income for the quarter was $74M. Gross margin was 48.8%. Revenue grew -2.3% year-over-year compared to Q1 2024. Operating income came in at $88M.
Over the past 8 quarters, WATTS WATER TECHNOLOGIES INC has demonstrated a growth trajectory, with revenue expanding from $571M to $2.36B. Investors analyzing WTS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
WTS Dividend Yield and Income Analysis
WATTS WATER TECHNOLOGIES INC (WTS) currently pays a dividend yield of 0.7%. At this yield, a $10,000 investment in WTS stock would generate approximately $$68.00 in annual dividend income. This compares to the Materials sector average dividend yield of 0.5%, meaning WTS offers above-average income for its sector. The net margin of 13.8% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
WTS Momentum and Technical Analysis Profile
WATTS WATER TECHNOLOGIES INC (WTS) has a momentum factor score of 59/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 16/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
WTS vs Competitors — Materials Sector Ranking and Peer Comparison
Within the Materials sector, WATTS WATER TECHNOLOGIES INC (WTS) ranks #60 out of 284 stocks based on the Blank Capital composite score. This places WTS in the top quartile of all Materials stocks in our coverage universe. Key competitors and sector peers include CF Industries Holdings, Inc. (CF) with a score of 56.6/100, Nutrien Ltd. (NTR) with a score of 56.6/100, CVR PARTNERS, LP (UAN) with a score of 55.6/100, LSB INDUSTRIES, INC. (LXU) with a score of 53.6/100, and ACME UNITED CORP (ACU) with a score of 51.2/100.
Comparing WTS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full WTS vs S&P 500 (SPY) comparison to assess how WATTS WATER TECHNOLOGIES INC stacks up against the broader market across all factor dimensions.
WTS Next Earnings Date
No upcoming earnings date has been announced for WATTS WATER TECHNOLOGIES INC (WTS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy WTS? — Investment Thesis Summary
WATTS WATER TECHNOLOGIES INC presents a balanced picture with arguments on both sides. Low volatility (stability score 81/100) reduces downside risk.
In summary, WATTS WATER TECHNOLOGIES INC (WTS) earns a Hold rating with a composite score of 49.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on WTS stock.
Related Resources for WTS Investors
Explore more research and tools: WTS vs S&P 500 comparison, top Materials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare WTS head-to-head with peers: WTS vs CF, WTS vs NTR, WTS vs UAN.