What is Watts Water Technologies's earnings per share (EPS)?

Watts Water Technologies (WTS) reported diluted earnings per share of $10.17 for fiscal year 2025. This represents a 17.0% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Watts Water Technologies Financials

WTS

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Watts Water Technologies (WTS) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 61/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

Watts Water Technologies has an operating margin of 18.4%, meaning the company retains $18 of operating profit per $100 of revenue. This results in a moderate score of 63/100, indicating healthy but not exceptional operating efficiency. This is up from 17.3% the prior year.

Growth

Watts Water Technologies's revenue grew 8.3% year-over-year to $2.4B, a solid pace of expansion. This earns a growth score of 47/100.

Leverage

100

Watts Water Technologies carries a low D/E ratio of 0.10, meaning only $0.10 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Watts Water Technologies's current ratio of 2.51 indicates adequate short-term liquidity, earning a score of 47/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow

Watts Water Technologies has a free cash flow margin of 14.6%, earning a moderate score of 62/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns

Watts Water Technologies's ROE of 16.8% shows moderate profitability relative to equity, earning a score of 48/100. This is down from 17.1% the prior year.

Altman Z-Score Safe

9.15

Watts Water Technologies scores 9.15, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($9.6B) relative to total liabilities ($853.5M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral

5/9

Watts Water Technologies passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed

1.18x

For every $1 of reported earnings, Watts Water Technologies generates $1.18 in operating cash flow ($402.0M OCF vs $340.8M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe

41.5x

Watts Water Technologies earns $41.5 in operating income for every $1 of interest expense ($448.1M vs $10.8M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue

$2.4B

YoY+8.3%

5Y CAGR+10.1%

10Y CAGR+5.2%

Watts Water Technologies generated $2.4B in revenue in fiscal year 2025. This represents an increase of 8.3% from the prior year.

EBITDA

$504.9M

YoY+13.5%

5Y CAGR+17.3%

Watts Water Technologies's EBITDA was $504.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 13.5% from the prior year.

Net Income

$340.8M

YoY+17.0%

5Y CAGR+24.4%

Watts Water Technologies reported $340.8M in net income in fiscal year 2025. This represents an increase of 17.0% from the prior year.

EPS (Diluted)

$10.17

YoY+17.0%

5Y CAGR+24.8%

Watts Water Technologies earned $10.17 per diluted share (EPS) in fiscal year 2025. This represents an increase of 17.0% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$356.3M

YoY+9.4%

5Y CAGR+14.0%

10Y CAGR+15.9%

Watts Water Technologies generated $356.3M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 9.4% from the prior year.

Cash & Debt

$405.5M

YoY+4.8%

5Y CAGR+13.1%

10Y CAGR+3.2%

Watts Water Technologies held $405.5M in cash against $197.7M in long-term debt as of fiscal year 2025.

Dividends Per Share

$1.99

YoY+20.6%

5Y CAGR+16.7%

10Y CAGR+11.7%

Watts Water Technologies paid $1.99 per share in dividends in fiscal year 2025. This represents an increase of 20.6% from the prior year.

Shares Outstanding

N/A

Margins & Returns

Gross Margin

49.5%

YoY+2.3pp

5Y CAGR+8.0pp

10Y CAGR+11.8pp

Watts Water Technologies's gross margin was 49.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 2.3 percentage points from the prior year.

Operating Margin

18.4%

YoY+1.0pp

5Y CAGR+6.4pp

10Y CAGR+24.5pp

Watts Water Technologies's operating margin was 18.4% in fiscal year 2025, reflecting core business profitability. This is up 1.0 percentage points from the prior year.

Net Margin

14.0%

YoY+1.1pp

5Y CAGR+6.4pp

10Y CAGR+21.7pp

Watts Water Technologies's net profit margin was 14.0% in fiscal year 2025, showing the share of revenue converted to profit. This is up 1.1 percentage points from the prior year.

Return on Equity

16.8%

YoY-0.2pp

5Y CAGR+6.1pp

10Y CAGR+32.8pp

Watts Water Technologies's ROE was 16.8% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 0.2 percentage points from the prior year.

Capital Allocation

R&D Spending

$73.5M

YoY+4.4%

5Y CAGR+11.7%

10Y CAGR+12.1%

Watts Water Technologies invested $73.5M in research and development in fiscal year 2025. This represents an increase of 4.4% from the prior year.

Share Buybacks

$16.0M

YoY-5.9%

5Y CAGR-11.2%

10Y CAGR-9.7%

Watts Water Technologies spent $16.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 5.9% from the prior year.

Capital Expenditures

$45.7M

YoY+29.5%

5Y CAGR+0.9%

10Y CAGR+5.1%

Watts Water Technologies invested $45.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 29.5% from the prior year.

WTS Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$2.4B+8.3%	$2.3B+9.5%	$2.1B+3.9%	$2.0B+9.4%	$1.8B+19.9%	$1.5B
Cost of Revenue	$1.2B+3.6%	$1.2B+8.7%	$1.1B-0.9%	$1.1B+6.1%	$1.0B+18.0%	$883.2M
Gross Profit	$1.2B+13.6%	$1.1B+10.5%	$960.9M+9.9%	$874.3M+14.0%	$767.1M+22.7%	$625.4M
R&D Expenses	$73.5M+4.4%	$70.4M+4.9%	$67.1M+13.0%	$59.4M+30.3%	$45.6M+8.1%	$42.2M
SG&A Expenses	$734.2M+10.5%	$664.4M+9.9%	$604.5M+10.2%	$548.7M+8.0%	$508.2M+17.0%	$434.4M
Operating Income	$448.1M+14.8%	$390.4M+11.3%	$350.9M+11.4%	$315.0M+31.5%	$239.6M+32.3%	$181.1M
Interest Expense	$10.8M-26.5%	$14.7M+79.3%	$8.2M+17.1%	$7.0M+11.1%	$6.3M-52.6%	$13.3M
Income Tax	$105.0M+10.8%	$94.8M+8.5%	$87.4M+55.8%	$56.1M-18.0%	$68.4M+29.8%	$52.7M
Net Income	$340.8M+17.0%	$291.2M+11.1%	$262.1M+4.2%	$251.5M+51.8%	$165.7M+45.0%	$114.3M
EPS (Diluted)	$10.17+17.0%	$8.69+11.1%	$7.82+4.5%	$7.48+53.3%	$4.88+45.2%	$3.36

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Revenue	$625.1M+2.2%	$611.7M-5.0%	$643.7M+15.4%	$558.0M+3.3%	$540.4M-0.6%	$543.6M-9.0%	$597.3M+4.6%	$570.9M
Cost of Revenue	$315.9M+0.8%	$313.3M-1.4%	$317.8M+11.3%	$285.5M-0.8%	$287.8M+0.5%	$286.5M-8.3%	$312.5M+3.0%	$303.4M
Gross Profit	$309.2M+3.6%	$298.4M-8.4%	$325.9M+19.6%	$272.5M+7.9%	$252.6M-1.8%	$257.1M-9.7%	$284.8M+6.5%	$267.5M
R&D Expenses	$20.5M+9.0%	$18.8M+8.0%	$17.4M+3.6%	$16.8M+2.4%	$16.4M-6.8%	$17.6M-1.7%	$17.9M-3.2%	$18.5M
SG&A Expenses	$194.4M+5.0%	$185.1M-1.1%	$187.2M+11.8%	$167.5M+3.0%	$162.7M+2.3%	$159.0M-8.1%	$173.1M+2.1%	$169.6M
Operating Income	$113.7M+2.1%	$111.4M-17.7%	$135.3M+54.3%	$87.7M-1.5%	$89.0M-4.5%	$93.2M-16.4%	$111.5M+15.3%	$96.7M
Interest Expense	$2.7M0.0%	$2.7M0.0%	$2.7M0.0%	$2.7M-3.6%	$2.8M-22.2%	$3.6M-12.2%	$4.1M-2.4%	$4.2M
Income Tax	$29.5M+2.4%	$28.8M-14.8%	$33.8M+162.0%	$12.9M-40.0%	$21.5M-7.3%	$23.2M-15.6%	$27.5M+21.7%	$22.6M
Net Income	$83.7M+1.8%	$82.2M-18.5%	$100.9M+36.4%	$74.0M+9.6%	$67.5M-2.3%	$69.1M-15.7%	$82.0M+12.9%	$72.6M
EPS (Diluted)	N/A	$2.45-18.6%	$3.01+36.2%	$2.21	N/A	$2.06-15.6%	$2.44+12.4%	$2.17

WTS Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$2.9B+20.2%	$2.4B+3.8%	$2.3B+19.6%	$1.9B+4.1%	$1.9B+6.8%	$1.7B
Current Assets	$1.3B+18.7%	$1.1B+2.1%	$1.1B+11.6%	$950.6M+10.3%	$861.5M+21.4%	$709.5M
Cash & Equivalents	$405.5M+4.8%	$386.9M+10.5%	$350.1M+12.6%	$310.8M+28.4%	$242.0M+10.6%	$218.9M
Inventory	$524.3M+33.7%	$392.1M-1.8%	$399.3M+6.3%	$375.6M+1.3%	$370.7M+40.6%	$263.6M
Accounts Receivable	$294.0M+16.1%	$253.2M-2.5%	$259.8M+11.1%	$233.8M+5.8%	$220.9M+11.8%	$197.6M
Goodwill	$859.0M+20.1%	$715.0M+3.2%	$693.0M+17.0%	$592.4M-1.4%	$600.7M-0.3%	$602.4M
Total Liabilities	$853.5M+23.9%	$689.1M-13.4%	$796.1M+26.3%	$630.3M-7.6%	$682.4M+2.1%	$668.4M
Current Liabilities	$512.4M+22.6%	$417.9M+3.0%	$405.8M+7.2%	$378.7M-7.3%	$408.5M+30.6%	$312.8M
Long-Term Debt	$197.7M+0.4%	$197.0M-34.0%	$298.3M+102.1%	$147.6M+4.0%	$141.9M-28.4%	$198.2M
Total Equity	$2.0B+18.7%	$1.7B+12.9%	$1.5B+16.4%	$1.3B+10.9%	$1.2B+9.7%	$1.1B
Retained Earnings	$1.4B+20.8%	$1.2B+21.0%	$979.1M+23.1%	$795.3M+19.4%	$665.9M+18.9%	$560.1M

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Total Assets	$2.9B+5.7%	$2.7B+3.0%	$2.6B+5.8%	$2.5B+4.3%	$2.4B-0.1%	$2.4B+0.7%	$2.4B+2.2%	$2.3B
Current Assets	$1.3B-2.1%	$1.3B+8.2%	$1.2B+9.6%	$1.1B+2.2%	$1.1B+1.7%	$1.1B+0.4%	$1.1B+5.0%	$1.0B
Cash & Equivalents	$405.5M-11.4%	$457.7M+23.9%	$369.3M+9.6%	$336.8M-12.9%	$386.9M+27.3%	$303.9M+8.8%	$279.4M+17.8%	$237.1M
Inventory	$524.3M+14.3%	$458.7M+2.3%	$448.5M+7.0%	$419.1M+6.9%	$392.1M-6.7%	$420.4M-1.4%	$426.4M+0.7%	$423.6M
Accounts Receivable	$294.0M-9.2%	$323.9M-4.0%	$337.5M+12.1%	$301.1M+18.9%	$253.2M-13.2%	$291.6M-6.1%	$310.6M+1.6%	$305.7M
Goodwill	$859.0M+9.9%	$781.3M-0.1%	$781.9M+2.8%	$760.5M+6.4%	$715.0M-1.4%	$725.5M+0.8%	$719.6M-0.6%	$724.3M
Total Liabilities	$853.5M+11.0%	$768.6M+2.1%	$752.5M+3.3%	$728.5M+5.7%	$689.1M-2.9%	$710.0M-7.2%	$765.1M-2.0%	$780.6M
Current Liabilities	$512.4M+10.5%	$463.9M-1.0%	$468.4M+4.2%	$449.5M+7.6%	$417.9M+0.1%	$417.5M-1.7%	$424.6M+4.2%	$407.3M
Long-Term Debt	$197.7M+0.1%	$197.5M+0.1%	$197.3M+0.1%	$197.2M+0.1%	$197.0M-7.0%	$211.8M-18.1%	$258.7M-8.7%	$283.5M
Total Equity	$2.0B+3.6%	$2.0B+3.4%	$1.9B+6.8%	$1.8B+3.8%	$1.7B+1.1%	$1.7B+4.4%	$1.6B+4.3%	$1.6B
Retained Earnings	$1.4B+4.5%	$1.4B+4.6%	$1.3B+6.4%	$1.2B+3.8%	$1.2B+4.3%	$1.1B+4.6%	$1.1B+6.2%	$1.0B

WTS Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$402.0M+11.3%	$361.1M+16.2%	$310.8M+38.8%	$224.0M+23.9%	$180.8M-21.0%	$228.8M
Capital Expenditures	$45.7M+29.5%	$35.3M+18.9%	$29.7M+5.7%	$28.1M+5.2%	$26.7M-39.0%	$43.8M
Free Cash Flow	$356.3M+9.4%	$325.8M+15.9%	$281.1M+43.5%	$195.9M+27.1%	$154.1M-16.7%	$185.0M
Investing Cash Flow	-$302.8M-142.8%	-$124.7M+63.7%	-$343.1M-1398.3%	-$22.9M+25.4%	-$30.7M+44.0%	-$54.8M
Financing Cash Flow	-$96.9M+49.1%	-$190.5M-376.1%	$69.0M+156.7%	-$121.7M-2.6%	-$118.6M+34.8%	-$181.9M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	$16.0M-5.9%	$17.0M+6.3%	$16.0M-76.9%	$69.4M+333.8%	$16.0M-44.6%	$28.9M

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Operating Cash Flow	$154.7M+26.4%	$122.4M+75.6%	$69.7M+26.3%	$55.2M-60.4%	$139.5M+53.8%	$90.7M+6.3%	$85.3M+87.1%	$45.6M
Capital Expenditures	$14.4M+25.2%	$11.5M+12.7%	$10.2M+6.3%	$9.6M-20.0%	$12.0M+87.5%	$6.4M-5.9%	$6.8M-32.7%	$10.1M
Free Cash Flow	$140.3M+26.5%	$110.9M+86.4%	$59.5M+30.5%	$45.6M-64.2%	$127.5M+51.2%	$84.3M+7.4%	$78.5M+121.1%	$35.5M
Investing Cash Flow	-$185.8M-1515.7%	-$11.5M+55.1%	-$25.6M+68.0%	-$79.9M-565.8%	-$12.0M-130.8%	-$5.2M-326.1%	$2.3M+102.1%	-$109.8M
Financing Cash Flow	-$22.4M-0.9%	-$22.2M+0.9%	-$22.4M+25.1%	-$29.9M+12.8%	-$34.3M+49.0%	-$67.3M-51.9%	-$44.3M+0.7%	-$44.6M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	$4.2M+7.7%	$3.9M-2.5%	$4.0M+2.6%	$3.9M-2.5%	$4.0M-18.4%	$4.9M+19.5%	$4.1M+2.5%	$4.0M

WTS Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	49.5%+2.3pp	47.1%+0.4pp	46.7%+2.6pp	44.2%+1.8pp	42.4%+0.9pp	41.5%
Operating Margin	18.4%+1.0pp	17.3%+0.3pp	17.1%+1.2pp	15.9%+2.7pp	13.2%+1.2pp	12.0%
Net Margin	14.0%+1.1pp	12.9%+0.2pp	12.8%+0.0pp	12.7%+3.5pp	9.2%+1.6pp	7.6%
Return on Equity	16.8%-0.2pp	17.1%-0.3pp	17.3%-2.0pp	19.3%+5.2pp	14.1%+3.4pp	10.7%
Return on Assets	11.8%-0.3pp	12.2%+0.8pp	11.3%-1.7pp	13.0%+4.1pp	8.9%+2.4pp	6.6%
Current Ratio	2.51-0.1	2.59-0.0	2.61+0.1	2.51+0.4	2.11-0.2	2.27
Debt-to-Equity	0.10-0.0	0.12-0.1	0.20+0.1	0.110.0	0.12-0.1	0.19
FCF Margin	14.6%+0.1pp	14.5%+0.8pp	13.7%+3.8pp	9.9%+1.4pp	8.5%-3.7pp	12.3%

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Gross Margin	49.5%+0.7pp	48.8%-1.8pp	50.6%+1.8pp	48.8%+2.1pp	46.7%-0.6pp	47.3%-0.4pp	47.7%+0.8pp	46.9%
Operating Margin	18.2%-0.0pp	18.2%-2.8pp	21.0%+5.3pp	15.7%-0.8pp	16.5%-0.7pp	17.1%-1.5pp	18.7%+1.7pp	16.9%
Net Margin	13.4%-0.1pp	13.4%-2.2pp	15.7%+2.4pp	13.3%+0.8pp	12.5%-0.2pp	12.7%-1.0pp	13.7%+1.0pp	12.7%
Return on Equity	4.1%-0.1pp	4.2%-1.1pp	5.3%+1.2pp	4.2%+0.2pp	4.0%-0.1pp	4.1%-1.0pp	5.1%+0.4pp	4.7%
Return on Assets	2.9%-0.1pp	3.0%-0.8pp	3.8%+0.9pp	3.0%+0.1pp	2.8%-0.1pp	2.9%-0.6pp	3.4%+0.3pp	3.1%
Current Ratio	2.51-0.3	2.83+0.2	2.59+0.1	2.46-0.1	2.59+0.0	2.55+0.1	2.50+0.0	2.48
Debt-to-Equity	0.100.0	0.100.0	0.100.0	0.110.0	0.12-0.0	0.13-0.0	0.16-0.0	0.18
FCF Margin	22.4%+4.3pp	18.1%+8.9pp	9.2%+1.1pp	8.2%-15.4pp	23.6%+8.1pp	15.5%+2.4pp	13.1%+6.9pp	6.2%

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Frequently Asked Questions

What is Watts Water Technologies's annual revenue?

Watts Water Technologies (WTS) reported $2.4B in total revenue for fiscal year 2025. This represents a 8.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Watts Water Technologies's revenue growing?

Watts Water Technologies (WTS) revenue grew by 8.3% year-over-year, from $2.3B to $2.4B in fiscal year 2025.

Is Watts Water Technologies profitable?

Yes, Watts Water Technologies (WTS) reported a net income of $340.8M in fiscal year 2025, with a net profit margin of 14.0%.

What is Watts Water Technologies's EBITDA?

Watts Water Technologies (WTS) had EBITDA of $504.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Watts Water Technologies have?

As of fiscal year 2025, Watts Water Technologies (WTS) had $405.5M in cash and equivalents against $197.7M in long-term debt.

What is Watts Water Technologies's gross margin?

Watts Water Technologies (WTS) had a gross margin of 49.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Watts Water Technologies's operating margin?

Watts Water Technologies (WTS) had an operating margin of 18.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Watts Water Technologies's net profit margin?

Watts Water Technologies (WTS) had a net profit margin of 14.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Does Watts Water Technologies pay dividends?

Yes, Watts Water Technologies (WTS) paid $1.99 per share in dividends during fiscal year 2025.

What is Watts Water Technologies's return on equity (ROE)?

Watts Water Technologies (WTS) has a return on equity of 16.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Watts Water Technologies's free cash flow?

Watts Water Technologies (WTS) generated $356.3M in free cash flow during fiscal year 2025. This represents a 9.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Watts Water Technologies's operating cash flow?

Watts Water Technologies (WTS) generated $402.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Watts Water Technologies's total assets?

Watts Water Technologies (WTS) had $2.9B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Watts Water Technologies's capital expenditures?

Watts Water Technologies (WTS) invested $45.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Watts Water Technologies spend on research and development?

Watts Water Technologies (WTS) invested $73.5M in research and development during fiscal year 2025.

Does Watts Water Technologies buy back shares?

Yes, Watts Water Technologies (WTS) spent $16.0M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

What is Watts Water Technologies's current ratio?

Watts Water Technologies (WTS) had a current ratio of 2.51 as of fiscal year 2025, which is generally considered healthy.

What is Watts Water Technologies's debt-to-equity ratio?

Watts Water Technologies (WTS) had a debt-to-equity ratio of 0.10 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Watts Water Technologies's return on assets (ROA)?

Watts Water Technologies (WTS) had a return on assets of 11.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Watts Water Technologies's Altman Z-Score?

Watts Water Technologies (WTS) has an Altman Z-Score of 9.15, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Watts Water Technologies's Piotroski F-Score?

Watts Water Technologies (WTS) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Watts Water Technologies's earnings high quality?

Watts Water Technologies (WTS) has an earnings quality ratio of 1.18x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Watts Water Technologies cover its interest payments?

Watts Water Technologies (WTS) has an interest coverage ratio of 41.5x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Watts Water Technologies?

Watts Water Technologies (WTS) scores 61 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.