D/E 0.10 — least levered decile in Industrials (≈10th pctile)
P/E32.8xB
P/E 32.8 — near the Industrials median (≈60th pctile)
PEG3.83D
PEG 3.83 — very expensive; pricing in best-case scenarios
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 54.9
Quality80.7
Growth87.5
Value23.5
Why this score
Raising its dividend
Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
5% off the 12-month high
vs DCF fair value133% aboveest. fair value ~$161
What the price assumes: free cash flow compounding at ~29% a year for the next decade — vs the ~9% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability44% · A-gross profit ÷ total assets (Novy-Marx)
ROIC17.0% · A-return on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
Watts Water Technologies is a compelling growth compounder, capitalizing on the essential demand for fluid and energy management solutions in critical infrastructure. The company's robust 17.1% FY YoY revenue growth, coupled with a healthy 14.3% profit margin, underscores its operational strength. Our model's "Growth" pillar scores an impressive 87/100, reflecting this strong performance and the persistent demand for its flow control and protection products. The crux of the thesis rests on Watts' ability to consistently raise its dividend and deliver durable high returns, as signaled by our model, driven by the non-discretionary nature of its offerings.
Moat
The durable edge for Watts Water Technologies stems from its specialized product portfolio, including critical backflow preventers, water pressure regulators, and thermostatic mixing valves, which are indispensable for safety and compliance in commercial, industrial, and residential buildings. This creates high switching costs and regulatory barriers to entry, ensuring sticky demand. Our model's "Quality" pillar, scoring 81/100, affirms the inherent durability and essential nature of Watts' solutions, making them difficult for competitors to quickly replicate or displace.
Risk
The primary concern for Watts Water Technologies is its stretched valuation, which leaves little room for error in a potentially cyclical Specialty Industrial Machinery sector. With a P/E TTM of 32.2 and a PEG ratio of 3.83, the stock appears expensive, a sentiment echoed by our model's "Value" pillar, which scores a weak 23/100 relative to sector peers. Furthermore, our reverse DCF analysis implies an aggressive ~28%/yr free-cash-flow growth sustained for 10 years, significantly outpacing the reported 17.1% revenue growth. A concrete signal confirming the bear case would be a sustained deceleration in revenue growth or a contraction in profit margins, failing to justify the current premium.
Horizon
1-3 yr $393.00 (9-analyst consensus) — fundamentals + valuation re-rating. 5 yr $575.39 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $853.55 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
WTS vs the Top Picks average
Pillar
WTS
Book avg
Diff
Quality
0.81
0.84
-0.03
Growth
0.87
0.84
+0.04
Value
0.23
0.78
-0.55
Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · WTS
Trend
+2.3 over 47 daily scores
From 52.6 (Jun 22) → 54.9 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Analyst estimate revisions
30-day change
+6.8%
90-day change
+8.3%
Forward EPS estimate
$14.09
Over the last 90 days, what analysts expect WTS to earn is materially higher (+8.3%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.
A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →
Position sizing · WTS
$
%
%
Shares to buy
5
Position size
$1,878
3.8% of portfolio
Stop price
$281.68
25% below $375.57
$ at risk if stopped
$469.46
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Watts Water Technologies, Inc. (WTS): score, valuation & FAQ
Watts Water Technologies, Inc. (WTS) is a Specialty Industrial Machinery company that scores 54.9 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are D/E (A) and Rev (B+), while PEG (D) rate weaker. On valuation, WTS sits about 133% above our discounted-cash-flow fair value — the current price implies roughly 29% annual free-cash-flow growth over the next decade.
Is WTS a good stock to buy?
Bull Rankings scores WTS 54.9 out of 100 on its quality-growth model, which is a middling reading. That is driven by D/E (A) and Rev (B+). A score is a quantitative screen of Watts Water Technologies, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does WTS score 54.9 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). WTS earns its highest marks on D/E (A) and Rev (B+), and is held back by PEG (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is WTS overvalued or undervalued?
Based on $375.57, WTS sits about 133% above our discounted-cash-flow fair value — the current price implies roughly 29% annual free-cash-flow growth over the next decade. It trades at a 32.8x P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in WTS?
The primary concern for Watts Water Technologies is its stretched valuation, which leaves little room for error in a potentially cyclical Specialty Industrial Machinery sector. With a P/E TTM of 32.2 and a PEG ratio of 3.83, the stock appears expensive, a sentiment echoed by our model's "Value" pillar, which scores a weak 23/100 relative to sector peers. Furthermore, our reverse DCF analysis implies an aggressive ~28%/yr free-cash-flow growth sustained for 10 years, significantly outpacing the reported 17.1% revenue growth. A concrete signal confirming the bear case would be a sustained deceleration in revenue growth or a contraction in profit margins, failing to justify the current premium.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.