Watts Water Technologies (WTS)
Market Price (5/12/2026): $298.02 | Market Cap: $10.0 BilSector: Industrials | Industry: Building Products
Watts Water Technologies (WTS)
Market Price (5/12/2026): $298.02Market Cap: $10.0 BilSector: IndustrialsIndustry: Building Products
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 14%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 12% Low stock price volatilityVol 12M is 23% Megatrend and thematic driversMegatrends include Water Infrastructure, and Smart Buildings & Proptech. Themes include Water Treatment & Delivery, Wastewater Management, Show more. | Weak multi-year price returns3Y Excs Rtn is -1.0% | Key risksWTS key risks include [1] adverse impacts from legal, Show more. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 14%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 12% |
| Low stock price volatilityVol 12M is 23% |
| Megatrend and thematic driversMegatrends include Water Infrastructure, and Smart Buildings & Proptech. Themes include Water Treatment & Delivery, Wastewater Management, Show more. |
| Weak multi-year price returns3Y Excs Rtn is -1.0% |
| Key risksWTS key risks include [1] adverse impacts from legal, Show more. |
Qualitative Assessment
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Watts Water Technologies (WTS) stock has remained largely at the same level since 1/31/2026 because of the following key factors:
1. Strong Earnings Performance Offset by Valuation Dynamics Following an All-Time High.
Watts Water Technologies delivered strong financial results throughout the period, consistently beating analyst expectations. For Q4 2025, released on February 11, 2026, the company reported an EPS of $2.62, surpassing the consensus estimate of $2.36 by $0.26, and revenue of $625.10 million, exceeding the $610.40 million estimate. Similarly, Q1 2026 results, released on May 6, 2026, showed a record EPS of $3.04 against an estimated $2.72 and revenue of $677.30 million compared to the $638.13 million consensus. The company also announced a 21% increase in its quarterly dividend to $0.63 per share. Despite these positive developments, the stock, which reached an all-time high of $335.65 on February 12, 2026, adjusted downwards to open around $293.54 on February 13, 2026. This indicates that the strong earnings and positive outlook may have been largely priced into the stock leading up to the reports, resulting in subsequent stabilization around a new level rather than continued significant upward momentum.
2. Cautious Analyst Sentiment and Moderate Price Targets.
The consensus analyst rating for Watts Water Technologies remained "Hold" throughout the period, with eight out of twelve analysts recommending a "Hold" and only four a "Buy." The average 12-month price target was approximately $331.67, with individual targets ranging from $275.00 to $367.00. While this average target suggested some upside from the prevailing stock price, the overall "Hold" recommendation and the varied price targets from different firms indicated a lack of strong conviction among analysts for substantial short-term appreciation. This tempered outlook likely contributed to the stock's tendency to remain within a relatively tight trading range.
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1. Strong Earnings Performance Offset by Valuation Dynamics Following an All-Time High.
Watts Water Technologies delivered strong financial results throughout the period, consistently beating analyst expectations. For Q4 2025, released on February 11, 2026, the company reported an EPS of $2.62, surpassing the consensus estimate of $2.36 by $0.26, and revenue of $625.10 million, exceeding the $610.40 million estimate. Similarly, Q1 2026 results, released on May 6, 2026, showed a record EPS of $3.04 against an estimated $2.72 and revenue of $677.30 million compared to the $638.13 million consensus. The company also announced a 21% increase in its quarterly dividend to $0.63 per share. Despite these positive developments, the stock, which reached an all-time high of $335.65 on February 12, 2026, adjusted downwards to open around $293.54 on February 13, 2026. This indicates that the strong earnings and positive outlook may have been largely priced into the stock leading up to the reports, resulting in subsequent stabilization around a new level rather than continued significant upward momentum.
2. Cautious Analyst Sentiment and Moderate Price Targets.
The consensus analyst rating for Watts Water Technologies remained "Hold" throughout the period, with eight out of twelve analysts recommending a "Hold" and only four a "Buy." The average 12-month price target was approximately $331.67, with individual targets ranging from $275.00 to $367.00. While this average target suggested some upside from the prevailing stock price, the overall "Hold" recommendation and the varied price targets from different firms indicated a lack of strong conviction among analysts for substantial short-term appreciation. This tempered outlook likely contributed to the stock's tendency to remain within a relatively tight trading range.
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Stock Movement Drivers
Fundamental Drivers
The -0.2% change in WTS stock from 1/31/2026 to 5/11/2026 was primarily driven by a -11.6% change in the company's P/E Multiple.| (LTM values as of) | 1312026 | 5112026 | Change |
|---|---|---|---|
| Stock Price ($) | 298.84 | 298.16 | -0.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,354 | 2,558 | 8.7% |
| Net Income Margin (%) | 13.8% | 14.3% | 3.8% |
| P/E Multiple | 30.8 | 27.3 | -11.6% |
| Shares Outstanding (Mil) | 34 | 34 | 0.0% |
| Cumulative Contribution | -0.2% |
Market Drivers
1/31/2026 to 5/11/2026| Return | Correlation | |
|---|---|---|
| WTS | -0.2% | |
| Market (SPY) | 3.6% | 41.8% |
| Sector (XLI) | 6.1% | 50.9% |
Fundamental Drivers
The 9.8% change in WTS stock from 10/31/2025 to 5/11/2026 was primarily driven by a 11.9% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 10312025 | 5112026 | Change |
|---|---|---|---|
| Stock Price ($) | 271.66 | 298.16 | 9.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,286 | 2,558 | 11.9% |
| Net Income Margin (%) | 13.6% | 14.3% | 5.1% |
| P/E Multiple | 29.2 | 27.3 | -6.7% |
| Shares Outstanding (Mil) | 34 | 34 | 0.0% |
| Cumulative Contribution | 9.8% |
Market Drivers
10/31/2025 to 5/11/2026| Return | Correlation | |
|---|---|---|
| WTS | 9.8% | |
| Market (SPY) | 5.5% | 44.7% |
| Sector (XLI) | 13.6% | 54.0% |
Fundamental Drivers
The 44.6% change in WTS stock from 4/30/2025 to 5/11/2026 was primarily driven by a 15.0% change in the company's P/E Multiple.| (LTM values as of) | 4302025 | 5112026 | Change |
|---|---|---|---|
| Stock Price ($) | 206.21 | 298.16 | 44.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,252 | 2,558 | 13.6% |
| Net Income Margin (%) | 12.9% | 14.3% | 10.8% |
| P/E Multiple | 23.7 | 27.3 | 15.0% |
| Shares Outstanding (Mil) | 34 | 34 | 0.0% |
| Cumulative Contribution | 44.6% |
Market Drivers
4/30/2025 to 5/11/2026| Return | Correlation | |
|---|---|---|
| WTS | 44.6% | |
| Market (SPY) | 30.4% | 47.5% |
| Sector (XLI) | 35.2% | 56.3% |
Fundamental Drivers
The 88.8% change in WTS stock from 4/30/2023 to 5/11/2026 was primarily driven by a 29.6% change in the company's P/E Multiple.| (LTM values as of) | 4302023 | 5112026 | Change |
|---|---|---|---|
| Stock Price ($) | 157.95 | 298.16 | 88.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,980 | 2,558 | 29.2% |
| Net Income Margin (%) | 12.7% | 14.3% | 12.7% |
| P/E Multiple | 21.0 | 27.3 | 29.6% |
| Shares Outstanding (Mil) | 34 | 34 | 0.0% |
| Cumulative Contribution | 88.8% |
Market Drivers
4/30/2023 to 5/11/2026| Return | Correlation | |
|---|---|---|
| WTS | 88.8% | |
| Market (SPY) | 78.7% | 55.5% |
| Sector (XLI) | 83.0% | 67.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| WTS Return | 61% | -24% | 44% | -2% | 37% | 8% | 154% |
| Peers Return | 30% | -26% | 36% | 11% | 10% | -8% | 46% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 8% | 97% |
Monthly Win Rates [3] | |||||||
| WTS Win Rate | 67% | 42% | 67% | 50% | 83% | 60% | |
| Peers Win Rate | 73% | 32% | 57% | 58% | 62% | 36% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | |
Max Drawdowns [4] | |||||||
| WTS Max Drawdown | -6% | -40% | -2% | -15% | -11% | 0% | |
| Peers Max Drawdown | -6% | -39% | -6% | -7% | -17% | -13% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: ZWS, AOS, PNR, XYL, FELE. See WTS Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 5/11/2026 (YTD)
How Low Can It Go
| Event | WTS | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -17.3% | -18.8% |
| % Gain to Breakeven | 20.9% | 23.1% |
| Time to Breakeven | 30 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -12.4% | -6.7% |
| % Gain to Breakeven | 14.2% | 7.1% |
| Time to Breakeven | 62 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -38.8% | -24.5% |
| % Gain to Breakeven | 63.4% | 32.4% |
| Time to Breakeven | 414 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -31.4% | -33.7% |
| % Gain to Breakeven | 45.7% | 50.9% |
| Time to Breakeven | 198 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.7% | -19.2% |
| % Gain to Breakeven | 31.1% | 23.7% |
| Time to Breakeven | 46 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -21.5% | -12.2% |
| % Gain to Breakeven | 27.4% | 13.9% |
| Time to Breakeven | 103 days | 62 days |
In The Past
Watts Water Technologies's stock fell -17.3% during the 2025 US Tariff Shock. Such a loss loss requires a 20.9% gain to breakeven.
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| Event | WTS | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -38.8% | -24.5% |
| % Gain to Breakeven | 63.4% | 32.4% |
| Time to Breakeven | 414 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -31.4% | -33.7% |
| % Gain to Breakeven | 45.7% | 50.9% |
| Time to Breakeven | 198 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.7% | -19.2% |
| % Gain to Breakeven | 31.1% | 23.7% |
| Time to Breakeven | 46 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -21.5% | -12.2% |
| % Gain to Breakeven | 27.4% | 13.9% |
| Time to Breakeven | 103 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -28.0% | -6.8% |
| % Gain to Breakeven | 38.8% | 7.3% |
| Time to Breakeven | 186 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -31.1% | -17.9% |
| % Gain to Breakeven | 45.2% | 21.8% |
| Time to Breakeven | 76 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -22.7% | -15.4% |
| % Gain to Breakeven | 29.3% | 18.2% |
| Time to Breakeven | 162 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -46.5% | -53.4% |
| % Gain to Breakeven | 87.1% | 114.4% |
| Time to Breakeven | 175 days | 1085 days |
In The Past
Watts Water Technologies's stock fell -17.3% during the 2025 US Tariff Shock. Such a loss loss requires a 20.9% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Watts Water Technologies (WTS)
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.
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Here are two brief analogies to describe Watts Water Technologies:
- Watts Water Technologies is like Honeywell, but specializing in the essential valves, boilers, and water treatment systems that control fluid and energy flow within buildings.
- Think of Watts Water Technologies as A. O. Smith (known for water heaters and boilers), but they also manufacture a comprehensive range of critical flow control, drainage, and water quality products for building systems.
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```html- Flow Control Products: Watts Water Technologies manufactures a range of products including backflow preventers, water pressure regulators, and various valves designed to manage and conserve the flow of fluids and energy within buildings.
- HVAC & Gas Products: The company provides boilers, water heaters, custom heat and hot water solutions, hydronic and electric heating systems, and flexible stainless steel connectors for gas applications.
- Drainage & Water Re-use Products: This category includes drainage products and engineered rainwater harvesting solutions for commercial, industrial, marine, and residential applications.
- Water Quality Products: Watts offers point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems for both commercial and residential markets.
- Smart Mixing Systems: Advanced smart mixing systems, such as those under the IntelliStation name, are provided for precise temperature control.
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Watts Water Technologies (WTS) primarily sells its products to other companies rather than directly to individuals. Based on the provided background information, the major categories of its business-to-business (B2B) customers include:
- Plumbing, heating, and mechanical wholesale distributors and dealers
- Original equipment manufacturers (OEMs)
- Specialty product distributors
- Do-it-yourself (DIY) chains and retail chains
- Wholesalers and private label accounts
The provided background description does not list specific names of these customer companies or their public symbols.
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Robert J. Pagano, Jr., Chief Executive Officer, President, and Chairperson of the Board
Robert J. Pagano, Jr. has served as Chief Executive Officer, President, and a Director of Watts Water Technologies since May 2014, and as Chairperson of the Board of Directors since February 2022. He also served as interim Chief Financial Officer from October 2014 to April 2015 and from April 2018 to July 2018. Prior to joining Watts, Mr. Pagano was Senior Vice President of ITT Corporation and President, ITT Industrial Process from April 2009 to May 2014. He joined ITT in 1997, holding various management roles including Vice President Finance, Corporate Controller, and President of Industrial Products. Mr. Pagano began his career as a CPA at KPMG LLP from 1984 to 1988. He is a Certified Public Accountant. Mr. Pagano has also served on the Board of Directors of Applied Industrial Technologies, Inc. since August 2017 and The Water Council since October 2021.
Diane McClintock, Chief Financial Officer
Diane McClintock was appointed Chief Financial Officer in November 2025. She originally joined Watts Water Technologies in 2010. Prior to her current role, she served as Senior Vice President, FP&A and Investor Relations from March 2022 to November 2025, Vice President of FP&A from September 2014 to March 2022, and Director, Financial Reporting from 2010 to September 2014. Before joining Watts, Ms. McClintock was Director of Finance and Treasurer of AutoImmune Inc. from 2005 to 2010 and a Transaction Services Director with PricewaterhouseCoopers LLP from 1998 to 2005. She also held a position as Audit Manager at EY. Ms. McClintock is a Certified Public Accountant and holds a Bachelor of Arts in Accounting from the University of New Hampshire.
Andre Dhawan, Chief Operating Officer
Andre Dhawan joined Watts Water Technologies as Chief Operating Officer in August 2022. Previously, Mr. Dhawan served as President, Americas from July 2020 to July 2022 and President, EMEA & APAC from July 2015 to July 2020 for Gilbarco Veeder-Root, a subsidiary of Vontier Corporation. He also served as President, EMEA for Xylem Inc. from 2013 to 2014, following its spin-off from ITT Corporation. From 1998 to 2012, Mr. Dhawan held a number of progressively more senior leadership positions with ITT Corporation.
Kenneth R. Lepage, General Counsel, Chief Sustainability Officer, and Secretary
Kenneth R. Lepage has served as General Counsel and Secretary of Watts Water Technologies since August 2008 and as Chief Sustainability Officer since May 2021. He also previously served as Chief Human Resources Officer of the Company from April 2020 to October 2021 and from December 2009 to October 2015. Mr. Lepage originally joined the Company in September 2003 as Assistant General Counsel and Assistant Secretary. Prior to joining Watts, Mr. Lepage was a Junior Partner at the law firm of Hale and Dorr LLP (now Wilmer Cutler Pickering Hale and Dorr LLP).
Ram Ramakrishnan, Executive Vice President, Strategy and Business Development
Ram Ramakrishnan joined Watts Water Technologies in June 2013 and was appointed Executive Vice President, Strategy and Business Development in October 2013. In this role, he is responsible for leading the development of the company's strategic planning and growth processes, as well as its domestic and international acquisition activities. Previously, Mr. Ramakrishnan was Vice President of New Growth Platforms for Avery Dennison Corporation from January 2011 through June 2012. Prior to Avery Dennison, he served as Vice President, Strategy and Corporate Development at Millipore Corporation from May 2009 until December 2010, when it merged with Merck KGaA. From July 2002 to December 2008, Mr. Ramakrishnan was Senior Vice President, Growth for Pentair, Inc., where he led the strategic transformation of the company and orchestrated and integrated 20 water-related acquisitions. He began his career with McKinsey & Company, a global management consulting firm.
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The key risks to Watts Water Technologies (WTS) are primarily centered around the cyclical nature of its markets, the volatility of its supply chain, and the inherent liabilities associated with its manufactured products.
- Exposure to Construction Cycles and Market Demand Fluctuations: Watts Water Technologies' performance is significantly influenced by the health of the commercial and residential construction markets globally. Downturns or slowdowns in these construction cycles can directly impact the demand for the company's flow control, HVAC, drainage, and water quality products.
- Global Supply Chain Disruptions, Commodity Price Volatility, and Trade Policy Shifts: As a global manufacturer and seller of products, Watts Water Technologies is exposed to risks related to disruptions in its global supply chains, fluctuations in commodity prices (which impact manufacturing costs), and changes in international trade policies and tariffs. These factors can affect the availability of raw materials and components, increase operational costs, and impact profitability.
- Product Liability and Regulatory Compliance: Given that the company designs, manufactures, and sells products critical for water safety, energy efficiency, and fluid management within buildings (such as backflow preventers, pressure regulators, and thermostatic mixing valves), there is an inherent risk of product defects or failures. Such issues could lead to significant product liability claims, reputational damage, and the need to comply with stringent and evolving regulatory building codes and standards across various geographies.
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Watts Water Technologies, Inc. (WTS) operates within several significant addressable markets globally for its diverse range of fluid and energy management products and solutions. The company estimates its total available market opportunity to be $20 billion globally. Additionally, the addressable market for data centers alone is estimated to exceed $1 billion.
Addressable Markets for Main Products and Services:
- Residential and Commercial Flow Control Products:
- The global flow control market was valued at approximately $60.2 billion in 2024 and is projected to reach $73.8 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 3.30%. Other estimates place the global market at $59.65 billion in 2024, expected to reach $85.98 billion by 2035 with a CAGR of 3.38%. Another report estimates the global flow control market at about $100 billion in 2023, expected to reach approximately $150 billion by 2028 with an 8% CAGR.
- In North America, the flow control market held a majority share of $23.09 billion in 2024, with projections to reach $33.3 billion by 2035.
- Europe's flow control market was valued at $15.12 billion in 2024 and is expected to increase to $21.68 billion.
- The Asia-Pacific (APAC) flow control market was valued at $12.15 billion in 2024, growing to $18.24 billion. Asia Pacific accounted for 41.55% of the flow control equipment market share in 2025 and is projected to show a 9.6% CAGR through 2031.
- Heating, Ventilation, and Air Conditioning (HVAC) and Gas Products:
- The global HVAC system market is projected to grow from $299.28 billion in 2025 to $407.77 billion by 2030, at a CAGR of 6.4%. Other estimates show the global HVAC systems market size at $258.96 billion in 2025, reaching $445.73 billion by 2033 with a CAGR of 7.0% from 2026 to 2033.
- The North American HVAC system market is anticipated to reach $57.6 billion by 2030, from $42.2 billion in 2025, with a CAGR of 6.4%. The U.S. HVAC systems industry is projected to expand at a CAGR of 6.9%.
- The European HVAC system market is expected to reach $48.1 billion by 2030, increasing from $36.4 billion in 2025, with a CAGR of 5.8%.
- The global residential HVAC market is expected to grow from $82.93 billion in 2025 to $119.26 billion by 2031, at a 6.24% CAGR.
- Drainage and Water Re-use Products:
- The global water recycle and reuse market was estimated at $17.77 billion in 2025 and is expected to reach $38.77 billion by 2033, with a CAGR of 10.24%. Other forecasts suggest the market size of $17.6 billion in 2024, increasing to approximately $44.54 billion by 2034 with a CAGR of 9.73%. Another source valued the global water recycle and reuse market at $18.3 billion in 2024, expecting it to reach $56.8 billion by 2034, registering a CAGR of 12.1% from 2025 to 2034.
- The U.S. water recycle and reuse market size was valued at an estimated $7.85 billion in 2025 and is projected to reach $17.30 billion by 2033, growing at a CAGR of 9.21%. The U.S. market is likely to reach $15 billion by 2034.
- The Asia-Pacific market for water recycle and reuse commanded a 46.45% share in 2024 and is forecast to maintain the fastest 13.34% CAGR through 2030.
- Water Quality Products:
- The global water quality instrument market was valued at $4.4 billion in 2022 and is projected to reach $7.4 billion by 2032, growing at a CAGR of 5.5% from 2023 to 2032. Another estimate places the global market at $4.6152 billion in 2024, with expected sales to boost to $6.93955 billion by 2031 at a CAGR of 6.00%.
- The global water quality sensor market size was estimated at $5,737.5 million in 2024 and is projected to reach $9,101.9 million by 2030, growing at a CAGR of 8.1% from 2025 to 2030.
- The global water quality analyzer market was estimated at $4.5 billion in 2025, and is expected to grow from $4.7 billion in 2026 to $7.3 billion in 2035, at a CAGR of 5%.
- North America held more than 40% of the global water quality instrument market revenue in 2024, with a market size of $1846.08 million, and is expected to grow at a CAGR of 4.2% from 2024 to 2031.
- Europe accounted for over 30% of the global revenue with a market size of $1384.56 million.
- Smart Mixing Systems (IntelliStation):
- The global automatic mixing system market was valued at $1.7 billion in 2024 and is projected to reach $4.9 billion by 2030, expanding at a CAGR of 18.9%.
- The global industrial mixers market is projected to rise from $2,839.4 million in 2025 to $4,297.7 million by 2032, witnessing a CAGR of 6.1%. Another report projects the global industrial mixers market to reach approximately $12.5 billion by 2033, growing at a CAGR of 5.8% from 2025 to 2033.
- North America is poised to hold a 34.7% share of the industrial mixers market in 2025. The United States leads the industrial mixers market with a current market size of approximately $2.5 billion and a forecasted CAGR of 4.5%.
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Watts Water Technologies (WTS) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:- Strategic Acquisitions: The company has been actively pursuing and integrating strategic acquisitions, such as EasyWater, I-CON Systems, Haws Corporation, Superior Boiler, and Saudi Cast. These acquisitions are anticipated to contribute incremental revenue and expand Watts Water Technologies' product offerings and market reach, notably in water conditioning, filtration, emergency safety, and drainage products, as well as new geographical footprints like the Middle East.
- Expansion in Data Center Solutions: Watts Water Technologies forecasts double-digit growth in its data center solutions segment. This growth is supported by secular trends in cloud infrastructure and the increasing adoption of liquid cooling technologies. Management views this as one of the company's fastest-growing initiatives, particularly in the Americas and Asia-Pacific regions.
- Innovation and Development of Smart & Connected Offerings: A core element of the company's strategy involves fostering innovation and expanding its product portfolio, with a focus on water quality, safety, flow control, and drainage solutions. The deployment of advanced digital initiatives, such as the Nexa intelligent water management platform, is highlighted as an important growth vector. This includes developing higher-value, innovation-led offerings that address water safety, conservation, and energy efficiency.
- Favorable Pricing Initiatives: Watts Water Technologies has effectively implemented pricing actions to mitigate inflationary pressures and drive revenue and margin expansion. These initiatives are expected to continue contributing positively to the company's top line.
- Organic Sales Growth in Key Regions: The company anticipates continued organic sales growth, particularly driven by strong performance in the Americas region. This growth is attributed to sustained demand for its diverse product portfolio and effective business strategies in these markets.
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Share Repurchases
- Watts Water Technologies repurchased approximately 67,000 shares of Class A common stock at a cost of $16.0 million for the full year 2025.
- In 2024, the company repurchased 85,435 shares of Class A common stock for $17.0 million.
- Approximately $129 million remains available under the stock repurchase program authorized in 2023, which has no expiration date.
Share Issuance
- As of January 25, 2026, Watts Water Technologies had 27,426,533 shares of Class A common stock and 5,916,290 shares of Class B common stock outstanding.
- The company's share count decreased by 1.2% over the last five years.
Outbound Investments
- During the fourth quarter of 2025, Watts Water Technologies completed the acquisitions of Haws Corporation, Superior Boiler, and Saudi Cast.
- In 2024, the company acquired Josam Industries, LLC for approximately $99.0 million and I-CON Systems for $70.6 million, both funded with cash on hand.
- Watts Water Technologies acquired EasyWater in June 2025, which designs and manufactures water conditioning and filtration solutions.
Capital Expenditures
- Net capital expenditures for the full year 2025 totaled $46 million.
- Net capital expenditures for the full year 2024 were $29 million.
- The company continues to invest in strategic priorities, including expanding integrated equipment and SaaS capabilities.
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| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 04302026 | GEO | GEO | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 04302026 | RUN | Sunrun | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | 0.0% | 0.0% | 0.0% |
| 04172026 | RSG | Republic Services | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.8% | 0.8% | -1.1% |
| 04102026 | VRSK | Verisk Analytics | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 12.3% | 12.3% | 0.0% |
| 04102026 | UHAL | U-Haul | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.3% | 0.3% | -1.0% |
| 11302021 | WTS | Watts Water Technologies | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | -30.4% | -15.4% | -37.8% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 87.42 |
| Mkt Cap | 9.3 |
| Rev LTM | 3,185 |
| Op Inc LTM | 604 |
| FCF LTM | 484 |
| FCF 3Y Avg | 428 |
| CFO LTM | 536 |
| CFO 3Y Avg | 489 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 6.9% |
| Rev Chg 3Y Avg | 4.4% |
| Rev Chg Q | 6.3% |
| QoQ Delta Rev Chg LTM | 1.4% |
| Op Inc Chg LTM | 15.1% |
| Op Inc Chg 3Y Avg | 13.8% |
| Op Mgn LTM | 18.1% |
| Op Mgn 3Y Avg | 17.4% |
| QoQ Delta Op Mgn LTM | 0.2% |
| CFO/Rev LTM | 16.5% |
| CFO/Rev 3Y Avg | 15.8% |
| FCF/Rev LTM | 14.7% |
| FCF/Rev 3Y Avg | 13.9% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 9.3 |
| P/S | 3.0 |
| P/Op Inc | 17.9 |
| P/EBIT | 20.4 |
| P/E | 27.5 |
| P/CFO | 20.4 |
| Total Yield | 4.7% |
| Dividend Yield | 1.1% |
| FCF Yield 3Y Avg | 4.7% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -6.1% |
| 3M Rtn | -13.9% |
| 6M Rtn | -2.7% |
| 12M Rtn | 3.7% |
| 3Y Rtn | 22.3% |
| 1M Excs Rtn | -14.9% |
| 3M Excs Rtn | -20.4% |
| 6M Excs Rtn | -12.9% |
| 12M Excs Rtn | -27.8% |
| 3Y Excs Rtn | -59.3% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Residential & Commercial Flow Control | 1,357 | 1,156 | 1,035 | 953 | 786 |
| Heating, Ventilation and Air Conditioning (HVAC) and Gas Products | 544 | 596 | 615 | 558 | 460 |
| Drainage and Water Re-use Products | 241 | 194 | 200 | 183 | 156 |
| Water Quality Products | 110 | 110 | 130 | 114 | 106 |
| Total | 2,252 | 2,056 | 1,980 | 1,809 | 1,509 |
Price Behavior
Price Behavior
| Market Price | $298.16 | |
| Market Cap ($ Bil) | 10.0 | |
| First Trading Date | 01/02/1986 | |
| Distance from 52W High | -11.2% | |
| 50 Days | 200 Days | |
| DMA Price | $299.55 | $286.72 |
| DMA Trend | up | down |
| Distance from DMA | -0.5% | 4.0% |
| 3M | 1YR | |
| Volatility | 25.4% | 22.6% |
| Downside Capture | 0.47 | 0.41 |
| Upside Capture | 45.23 | 85.45 |
| Correlation (SPY) | 38.4% | 49.4% |
WTS Betas & Captures as of 4/30/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.00 | 1.02 | 0.72 | 0.84 | 0.97 | 0.94 |
| Up Beta | 1.23 | 1.28 | 1.42 | 1.14 | 1.30 | 1.00 |
| Down Beta | -4.49 | 0.88 | 0.11 | 0.45 | 0.75 | 0.77 |
| Up Capture | 59% | 55% | 60% | 95% | 98% | 104% |
| Bmk +ve Days | 15 | 22 | 31 | 66 | 141 | 428 |
| Stock +ve Days | 12 | 18 | 29 | 58 | 126 | 381 |
| Down Capture | 108% | 130% | 57% | 81% | 82% | 99% |
| Bmk -ve Days | 4 | 18 | 30 | 56 | 108 | 321 |
| Stock -ve Days | 10 | 25 | 35 | 67 | 126 | 372 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with WTS | |
|---|---|---|---|---|
| WTS | 28.0% | 22.9% | 1.00 | - |
| Sector ETF (XLI) | 30.6% | 15.6% | 1.51 | 58.2% |
| Equity (SPY) | 28.1% | 12.5% | 1.78 | 49.8% |
| Gold (GLD) | 42.9% | 26.9% | 1.30 | -1.0% |
| Commodities (DBC) | 48.6% | 18.0% | 2.14 | -21.7% |
| Real Estate (VNQ) | 13.6% | 13.5% | 0.70 | 38.3% |
| Bitcoin (BTCUSD) | -22.4% | 41.7% | -0.50 | 20.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with WTS | |
|---|---|---|---|---|
| WTS | 19.7% | 27.9% | 0.66 | - |
| Sector ETF (XLI) | 12.8% | 17.4% | 0.58 | 70.7% |
| Equity (SPY) | 12.9% | 17.1% | 0.59 | 63.1% |
| Gold (GLD) | 21.2% | 17.9% | 0.96 | 6.1% |
| Commodities (DBC) | 13.5% | 19.1% | 0.58 | 10.3% |
| Real Estate (VNQ) | 3.6% | 18.8% | 0.09 | 55.9% |
| Bitcoin (BTCUSD) | 8.5% | 56.0% | 0.36 | 22.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with WTS | |
|---|---|---|---|---|
| WTS | 19.1% | 28.2% | 0.66 | - |
| Sector ETF (XLI) | 14.0% | 20.0% | 0.62 | 72.2% |
| Equity (SPY) | 15.0% | 17.9% | 0.72 | 66.6% |
| Gold (GLD) | 13.4% | 15.9% | 0.70 | 3.0% |
| Commodities (DBC) | 9.5% | 17.7% | 0.45 | 20.8% |
| Real Estate (VNQ) | 5.6% | 20.7% | 0.24 | 57.2% |
| Bitcoin (BTCUSD) | 68.1% | 66.9% | 1.07 | 17.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/6/2026 | 0.7% | ||
| 2/11/2026 | 6.8% | 4.6% | -5.2% |
| 11/5/2025 | -6.6% | -2.1% | -3.8% |
| 8/6/2025 | -1.2% | 5.1% | 6.5% |
| 5/7/2025 | 11.1% | 13.5% | 15.9% |
| 2/10/2025 | 7.6% | 4.5% | 0.4% |
| 10/30/2024 | -3.6% | 7.3% | 9.3% |
| 8/7/2024 | -4.3% | -6.1% | -2.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 15 | 18 | 15 |
| # Negative | 10 | 6 | 9 |
| Median Positive | 4.5% | 5.2% | 8.3% |
| Median Negative | -3.6% | -7.1% | -4.1% |
| Max Positive | 11.1% | 13.5% | 15.9% |
| Max Negative | -8.7% | -9.8% | -11.7% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/07/2026 | 10-Q |
| 12/31/2025 | 02/23/2026 | 10-K |
| 09/30/2025 | 11/06/2025 | 10-Q |
| 06/30/2025 | 08/07/2025 | 10-Q |
| 03/31/2025 | 05/08/2025 | 10-Q |
| 12/31/2024 | 02/18/2025 | 10-K |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/08/2024 | 10-Q |
| 03/31/2024 | 05/09/2024 | 10-Q |
| 12/31/2023 | 02/21/2024 | 10-K |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 02/21/2023 | 10-K |
| 09/30/2022 | 11/03/2022 | 10-Q |
| 06/30/2022 | 08/04/2022 | 10-Q |
Recent Forward Guidance [BETA]
Latest: Q1 2026 Earnings Reported 5/6/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Net Sales Growth | 8.0% | 10.0% | 12.0% | 0 | 0 | Affirmed | Guidance: 10.0% for 2026 |
| 2026 Organic Sales Growth | 2.0% | 4.0% | 6.0% | 0 | 0 | Affirmed | Guidance: 4.0% for 2026 |
| 2026 Operating Margin | 18.8% | 19.1% | 19.4% | 0 | 0 | Affirmed | Guidance: 19.1% for 2026 |
| 2026 Adjusted Operating Margin | 19.1% | 19.4% | 19.7% | 0 | 0 | Affirmed | Guidance: 19.4% for 2026 |
Prior: Q4 2025 Earnings Reported 2/11/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue Growth | 2.0% | 4.0% | 6.0% | -11.1% | -0.5% | Lower New | Actual: 4.5% for 2025 |
| 2026 Operating Margin | 19.1% | 19.4% | 19.7% | 1.3% | 0.2% | Higher New | Actual: 19.15% for 2025 |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Melhem, Elie | President- APAC, M. East, Afr. | Direct | Sell | 3182026 | 300.03 | 379 | 113,711 | 3,477,948 | Form |
| 2 | Melhem, Elie | President- APAC, M. East, Afr. | Direct | Sell | 3182026 | 303.05 | 3,029 | 917,938 | 3,627,812 | Form |
| 3 | Dubose, Michael J | Direct | Sell | 3122026 | 301.70 | 332 | 100,164 | 667,360 | Form | |
| 4 | Horne, Timothy P | Revocable Trust | Sell | 2232026 | 330.04 | 7,500 | 2,475,300 | 2,475,300 | Form | |
| 5 | Pagano, Robert J JR | President and CEO | Direct | Sell | 2202026 | 327.31 | 16,066 | 5,258,486 | 62,581,411 | Form |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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