Watts Water Technologies
WTSNYSEUSD
- Source valuation snapshot. Not a live recalculation.
- Latest filed annual earnings; price snapshot date unavailable. Not forward P/E.
- Diluted earnings per share from the latest filed annual.
- $359.31 Prior regular-session close from the quote source.
- $357.98–$363.50 Regular-session low and high so far today.
- 200.3K Regular-session shares traded · Nov 11, 4:00 PM ET.
- Not yet confirmed The company has not confirmed its next report date. Reported quarters are available in the chart’s Earnings view.
- $262.96–$394.54 52-week trading low and high returned by the quote source.
Understand the Business
Why the Stock Moved
Period-matched expectations history is not yet available. Current metrics are not a substitute for a historical explanation.
The core investment thesis
Own WTS if its specified water-safety and flow-control products keep pricing power while management reinvests cash into higher-value water platforms.
WTS price history
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Investment thesis
What must happen next
Code compliance, water safety, and replacement needs keep Watts’ specified flow-control and plumbing products in demand even when new construction is uneven.StrengtheningMateriality: High
GAAP annual revenue increased from $1.8092 billion in FY2021 to $2.4385 billion in FY2025. If this holds, revenue is supported by recurring repair/replacement and compliance spending; if it breaks, Watts becomes more exposed to cyclical construction volumes.
Watch: Building-code changes, product redesigns by OEMs, or alternative system architectures reduce the need for Watts-style valves, backflow prevention, or flow-control products.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
GAAP annual revenue increased from $1.8092 billion in FY2021 to $2.4385 billion in FY2025.
Open source ↗Specification, brand trust, and installer familiarity allow Watts to defend price and mix better than a commodity fabricated-products manufacturer.StrengtheningMateriality: High
GAAP annual gross profit increased from $767.1 million in FY2021 to $1.2060 billion in FY2025. Sustained pricing power turns modest volume growth into high-quality gross profit; losing it would compress the economic spread before revenue visibly rolls over.
Watch: Zurn Elkay, Reliance Worldwide, Aalberts/Apollo, Pentair, or other water-product competitors force price concessions to win specifications.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
GAAP annual gross profit increased from $767.1 million in FY2021 to $1.2060 billion in FY2025.
Open source ↗Watts’ manufacturing scale and productivity programs can convert incremental gross profit into operating income rather than being absorbed by overhead growth.StrengtheningMateriality: Medium
GAAP annual operating income increased from $239.6 million in FY2021 to $448.1 million in FY2025. If operating leverage persists, shareholders get earnings growth above revenue growth; if it fails, Watts remains a cyclical manufacturer with limited margin upside.
Watch: Manufacturing footprint complexity, wage inflation, or supply-chain disruptions absorb pricing and mix benefits.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
GAAP annual operating income increased from $239.6 million in FY2021 to $448.1 million in FY2025.
Open source ↗The business generates enough cash to fund product investment and bolt-on acquisitions without relying on financial leverage as the main value driver.StrengtheningMateriality: Medium
GAAP annual operating cash flow increased from $224.0 million in FY2022 to $402.0 million in FY2025. Self-funded reinvestment lowers balance-sheet risk and gives management optionality; weak cash conversion would make growth more fragile and acquisition-dependent.
Watch: Working-capital needs rise because distributors destock, customers stretch payments, or inventory must be rebuilt ahead of uncertain demand.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
GAAP annual operating cash flow increased from $224.0 million in FY2022 to $402.0 million in FY2025.
Open source ↗Disciplined reinvestment and margin expansion can continue compounding per-share earnings without needing aggressive dilution-funded growth.StrengtheningMateriality: Medium
GAAP diluted EPS increased from $7.48 in FY2022 to $10.17 in FY2025. Owners ultimately benefit from per-share value creation, not just larger revenue; dilution or low-return deals would weaken the compounding case.
Watch: Management uses stock-heavy acquisitions or compensation that materially dilutes owners faster than acquired earnings accrete.
Supporting sources
Source notes are factual paraphrases; read the original disclosures below.
GAAP diluted EPS increased from $7.48 in FY2022 to $10.17 in FY2025.
Open source ↗
Full investment case & evidence
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Original research
Code compliance, water safety, and replacement needs keep Watts’ specified flow-control and plumbing products in demand even when new construction is uneven. If this holds, revenue is supported by recurring repair/replacement and compliance spending; if it breaks, Watts becomes more exposed to cyclical construction volumes.
Specification, brand trust, and installer familiarity allow Watts to defend price and mix better than a commodity fabricated-products manufacturer. Sustained pricing power turns modest volume growth into high-quality gross profit; losing it would compress the economic spread before revenue visibly rolls over.
Watts’ manufacturing scale and productivity programs can convert incremental gross profit into operating income rather than being absorbed by overhead growth. If operating leverage persists, shareholders get earnings growth above revenue growth; if it fails, Watts remains a cyclical manufacturer with limited margin upside.
The business generates enough cash to fund product investment and bolt-on acquisitions without relying on financial leverage as the main value driver. Self-funded reinvestment lowers balance-sheet risk and gives management optionality; weak cash conversion would make growth more fragile and acquisition-dependent.
Disciplined reinvestment and margin expansion can continue compounding per-share earnings without needing aggressive dilution-funded growth. Owners ultimately benefit from per-share value creation, not just larger revenue; dilution or low-return deals would weaken the compounding case.
All standing thesis claims
Original report summary
its specified water-safety and flow-control products keep pricing power while management reinvests cash into higher-value water platforms.
Bull case and bear case
Bull case and bear case for Watts Water Technologies
Where the evidence on Watts Water Technologies stands: Strengthening on the latest evidence (Oct 21, 2026). Of its 5 thesis points, 5 strengthening.
Bull case: what the evidence supports
Code compliance, water safety, and replacement needs keep Watts’ specified flow-control and plumbing products in demand even when new construction is uneven.
Specification, brand trust, and installer familiarity allow Watts to defend price and mix better than a commodity fabricated-products manufacturer.
Watts’ manufacturing scale and productivity programs can convert incremental gross profit into operating income rather than being absorbed by overhead growth.
The business generates enough cash to fund product investment and bolt-on acquisitions without relying on financial leverage as the main value driver.
Disciplined reinvestment and margin expansion can continue compounding per-share earnings without needing aggressive dilution-funded growth.
Bear case: what would count against it
Building-code changes, product redesigns by OEMs, or alternative system architectures reduce the need for Watts-style valves, backflow prevention, or flow-control products.
Zurn Elkay, Reliance Worldwide, Aalberts/Apollo, Pentair, or other water-product competitors force price concessions to win specifications.
Manufacturing footprint complexity, wage inflation, or supply-chain disruptions absorb pricing and mix benefits.
Thesis-Break Engine
What has broken in Watts Water Technologies’s thesis
Each break OptimistFi flagged on Watts Water Technologies, dated — with what has historically followed the same kind of break across the market, not a forecast for Watts Water Technologies.
- CEO / officer changecondition set before this filing
Across all companies, this kind of break has happened 16,849 times before. Those stocks trailed comparable companies by a median of 2% over the next six months, and 38% of them trailed it by 10 points or more.
MARKET + FINANCIAL SNAPSHOT
The numbers behind the thesis
What Changed
- MixedDirector or principal officer change.
Watts Water Technologies filed an SEC 8-K on 2026-10-01: Director or principal officer change. It is a dated development that tests the current thesis.
- MixedReported results of operations (earnings release).
Watts Water Technologies filed an SEC 8-K on 2026-08-05: Reported results of operations (earnings release). It is a dated development that tests the current thesis.
- MixedReported results of operations (earnings release).
Watts Water Technologies filed an SEC 8-K on 2026-05-06: Reported results of operations (earnings release). It is a dated development that tests the current thesis.
Risks / falsifiers
What could break the thesis
- Building-code changes, product redesigns by OEMs, or alternative system architectures reduce the need for Watts-style valves, backflow prevention, or flow-control products.
- Zurn Elkay, Reliance Worldwide, Aalberts/Apollo, Pentair, or other water-product competitors force price concessions to win specifications.
- Manufacturing footprint complexity, wage inflation, or supply-chain disruptions absorb pricing and mix benefits.
- Working-capital needs rise because distributors destock, customers stretch payments, or inventory must be rebuilt ahead of uncertain demand.
- Management uses stock-heavy acquisitions or compensation that materially dilutes owners faster than acquired earnings accrete.
WTS news
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Financial statements
WTS income statement
Annual filed results · USD · Oldest to newest. Margins are calculated from the reported figures.
WTS: quick answers
- Have members of Congress traded WTS?
- 3 trades in WTS have been disclosed under the STOCK Act by members of Congress, the President or senior officials, none in reports made public in the last 90 days. Every disclosed WTS trade
- Which well-known investors own WTS?
- 2 of the 37 well-known funds tracked here reported WTS shares in their latest 13F filings. By share of the fund's portfolio: Bridgewater Associates (Ray Dalio), 0.0%; Markel Group (Tom Gayner), 0.0%. Fund portfolios
WTS in well-known investors’ portfolios
2 of 37 funds reported WTS shares in their latest 13F filing. A 13F shows quarter-end positions and arrives up to 45 days later.
| Fund | Of its portfolio | Value | Change | Quarter |
|---|---|---|---|---|
| Ray DalioBridgewater Associates | 0.02% | $4.8M | +13.8% | Q2 2026 |
| Tom GaynerMarkel Group | 0.01% | $1.2M | New | Q3 2026 |