WATTS WATER TECHNOLOGIES INC

WTS

CIK 0000795403 · Quarterly mode · latest period FY2025 (Q4) (ending 2025-12-31) · sourced from SEC EDGAR

At a glance · FY2025 (Q4)

Revenue
$625M
↑+15.7% +$85Mvs FY2024 (Q4)
Operating Income
$114M
↑+27.8% +$25Mvs FY2024 (Q4)
Net Income
$84M
↑+23.8% +$16Mvs FY2024 (Q4)
Gross Profit
$309M
↑+22.4% +$57Mvs FY2024 (Q4)

Quality Score

Quality score

6-dimension fundamental snapshot · latest annual filed values · S&P 500 calibration

Strong
74/100
  • Profitability
    58ROIC 16.6% (10% = solid, 20%+ = moat)
  • Liquidity
    100Current Ratio 2.51 (above 1.5 = solid)
  • Leverage
    95D/E 0.10 (under 0.5 = conservative)
  • Efficiency
    56Asset Turnover 0.92x (1.0+ = capital-efficient)
  • Growth
    69Revenue YoY +15.7% (10% = solid, 25%+ = elite)
  • Margin Trend
    66Op Margin 18.2% · trend +1.0pts (4Q avg vs prior 4Q)

Calibrated to S&P 500 medians. Each sub-score is computed from a single CFA-grade ratio (Profitability = ROIC, Liquidity = Current Ratio, Leverage = D/E, Efficiency = Asset Turnover, Growth = Revenue YoY, Margin Trend = 4Q operating-margin avg vs prior 4Q). Overall = simple mean.

DCF intrinsic value

DCF intrinsic value

two-stage Gordon model

Project WTS's free cash flow forward, discount back at your hurdle rate, divide by diluted shares. Edit the assumptions to see how sensitive the intrinsic value is.

22%

Trailing 3-yr CAGR was 22.1%

10%

10% is a common all-equity benchmark for US large-caps

2.5%

Should be ≤ long-run GDP growth (~2.5% nominal)

5

5-year explicit projection + perpetuity terminal

Intrinsic value per share
$317.26
Total enterprise IV
$10.63B
Diluted shares
0.03B
Terminal PV
$8.17B (77% of total)
Year-5 FCF
$963M
YearProjected FCFDiscounted PV
+1$435M$395M
+2$530M$438M
+3$647M$486M
+4$789M$539M
+5$963M$598M
Terminal$13.16B$8.17B

DCF outputs are HIGHLY sensitive to growth + WACC assumptions. A 1pp WACC change can shift IV by 20%+. Use this as a sanity-check vs market price, not a target — and always cross-check the underlying FCF source (EDGAR cashflow statement, latest annual). Margin of safety convention: 30-50% discount to IV before buying.

Capital allocation · trailing 4 quarters

how the company spent its cash
Capex (TTM)
$46M
investment in PP&E
Stock buybacks (TTM)
$16M
share count reduction
Stock-based comp (TTM)
$21M
non-cash dilution

Balance sheet · 2025-12-31

latest filed snapshot
Total assets
$2.88B
everything owned
Stockholders' equity
$2.03B
shareholder claim
Net debt
$-208M
Net cash position ($208M)

Recent performance · 75 quarters

Revenue↑+15.7% +$85M
$625M
Net Income↑+23.8% +$16M
$84M
Free Cash Flow↑+10.0% +$13M
$140M
Operating Margin↑+1.7pts
18.2%

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