Watts Water Technologies, Inc. (WTS) Stock

Watts Water Technologies, Inc. (WTS) is a Materials stock trading at $369.71 (as of 2026-08-20), with a market capitalization of $12.39B and a trailing P/E of 33.8. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

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.

Understand Watts Water Technologies, Inc.: how it makes money

Watts Water Technologies designs, manufactures, and sells flow-control, temperature and pressure relief, and related HVAC and gas products that manage the flow of fluids and energy into, through, and out of buildings, and it makes money by selling these products to commercial and residential markets.

With Repair and replacement share of sales at 60%, a large part of the profit engine is tied to replacement demand, so results depend not only on new activity but also on maintaining replacement-driven sales while growing organic sales.

Revenue by segment (latest quarter)
Americas$0.5B
Europe$0.1B
APMA$0.0B

Business quality (Solid): The business is tied to building fluid and energy management products, with profitability supported by strong gross and operating margins and a large repair and replacement mix, but investor focus should include organic sales momentum and how region and market demand shifts can affect volume.

Valuation: At 28× earnings, WTS trades 18% above the Construction Materials average (24×). Note: one-time items can distort reported P/E.

Bull case

  • Replacement mix is large: Repair and replacement share of sales is 60%, meaning a meaningful portion of sales is linked to repair and replacement activity rather than purely new installs.
  • Profitability is relatively strong: For the period ended 2026-03-29, gross margin was 48.1% and operating margin was 19.6%.
  • Organic sales are positive: Acme organic sales were 6.0%.

Bear case

  • Market and regional exposure: Net sales are concentrated by geography, with the Americas at 0.52B (out of 0.68B net sales shown in the candidates), so changes in construction or building activity in key regions can affect results.
  • Replacement mix could change over time: Because Repair and replacement share of sales is a key mix driver at 60%, any decline in that share would be a risk to the stability implied by the current mix.
  • Potential supply and trading disruptions: The dataset includes an estimated revenue impact from stopping direct shipments to Russia at 0.0B, which signals management may still face trade or distribution risks even when the current estimated impact is immaterial.
Valuation — source: SEC EDGAR (first-party)
Price$369.71
Market Cap$12.39B
P/E Ratio33.8
EV / EBITDA22.1
Price / Book5.91
Price / Sales4.84
FCF Yield2.6%
DCF Value (model)$195.69
DCF Upside vs Price-47.1%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$2.44B
Net Margin14.0%
Revenue Growth (YoY)21.4%
EPS Growth (YoY)34.4%
FCF Growth (YoY)-85.5%
Financial Health — source: SEC EDGAR
Altman Z-Score11.08 (safe)
Piotroski F-Score6/9 (moderate)
Valuation vs Sector & Industry
Stock P/E33.8
Sector P/E (Materials)25.1
Industry P/E (Construction Materials)22.6
vs Sector34.8%
vs Industry49.8%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($1.07B)
Institutional Holders Tracked10
Company
SectorMaterials
IndustryConstruction Materials
CEORobert J. Pagano Jr.
Employees4,800
CountryUS
IPO Date1986-08-21

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WTS earnings history · WTS institutional & insider holders · WTS KPIs & operating metrics · WTS financials · WTS investor presentations & press releases · WTS SEC filings · WTS peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.