WTS
Watts Water Technologies·NYSE
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4.58 / 10
Netural
Corporate fundamentals are rated neutral with a 4.6/10 score. Key positives include revenue growth of 5.9353% YoY and a favorable cash-to-liabilities ratio of 0.3218, placing them in performance groups 2 and 4 respectively. However, asset overvaluation (Asset-MV -0.5007) and high leverage (long-term debt-to-working-capital 0.3585) pull the rating down. Historical back-tests show mixed monthly returns (e.g., 6.48% for Revenue-MV group 1) and confidence levels around 60-70%, underscoring uncertainty. The PB-ROE factor of 2.3749 falls in group 4, hinting at potential upside if valuation normalizes.
Analysis Checks(7/10)
Revenue-MV
Value-0.44
Score2/3
Weight17.93%
1M Return6.48%
Value-0.44
Score2/3
Weight17.93%
1M Return6.48%
PB-ROE
Value2.37
Score3/3
Weight23.30%
1M Return7.84%
Value2.37
Score3/3
Weight23.30%
1M Return7.84%
Cash-UP
Value0.29
Score3/3
Weight15.63%
1M Return6.11%
Value0.29
Score3/3
Weight15.63%
1M Return6.11%
Long-term debt to working capital ratio (%)
Value0.36
Score0/3
Weight-0.02%
1M Return-0.01%
Value0.36
Score0/3
Weight-0.02%
1M Return-0.01%
Asset-MV
Value-0.50
Score0/3
Weight1.79%
1M Return0.82%
Value-0.50
Score0/3
Weight1.79%
1M Return0.82%
Total operating revenue (YoY growth rate %)
Value5.94
Score2/3
Weight8.18%
1M Return3.41%
Value5.94
Score2/3
Weight8.18%
1M Return3.41%
Total profit / EBIT (%)
Value99.70
Score1/3
Weight6.00%
1M Return2.64%
Value99.70
Score1/3
Weight6.00%
1M Return2.64%
Net cash flow from operating activities / Total liabilities (%)
Value0.32
Score2/3
Weight7.50%
1M Return3.17%
Value0.32
Score2/3
Weight7.50%
1M Return3.17%
Operating revenue (YoY growth rate %)
Value5.94
Score2/3
Weight8.11%
1M Return3.38%
Value5.94
Score2/3
Weight8.11%
1M Return3.38%
Cash-MV
Value-0.56
Score2/3
Weight11.57%
1M Return4.21%
Value-0.56
Score2/3
Weight11.57%
1M Return4.21%
Revenue-MV
Value-0.44
Score2/3
Weight17.93%
1M Return6.48%
Value-0.44
Score2/3
Weight17.93%
1M Return6.48%
Total operating revenue (YoY growth rate %)
Value5.94
Score2/3
Weight8.18%
1M Return3.41%
Value5.94
Score2/3
Weight8.18%
1M Return3.41%
PB-ROE
Value2.37
Score3/3
Weight23.30%
1M Return7.84%
Value2.37
Score3/3
Weight23.30%
1M Return7.84%
Total profit / EBIT (%)
Value99.70
Score1/3
Weight6.00%
1M Return2.64%
Value99.70
Score1/3
Weight6.00%
1M Return2.64%
Cash-UP
Value0.29
Score3/3
Weight15.63%
1M Return6.11%
Value0.29
Score3/3
Weight15.63%
1M Return6.11%
Net cash flow from operating activities / Total liabilities (%)
Value0.32
Score2/3
Weight7.50%
1M Return3.17%
Value0.32
Score2/3
Weight7.50%
1M Return3.17%
Long-term debt to working capital ratio (%)
Value0.36
Score0/3
Weight-0.02%
1M Return-0.01%
Value0.36
Score0/3
Weight-0.02%
1M Return-0.01%
Operating revenue (YoY growth rate %)
Value5.94
Score2/3
Weight8.11%
1M Return3.38%
Value5.94
Score2/3
Weight8.11%
1M Return3.38%
Asset-MV
Value-0.50
Score0/3
Weight1.79%
1M Return0.82%
Value-0.50
Score0/3
Weight1.79%
1M Return0.82%
Cash-MV
Value-0.56
Score2/3
Weight11.57%
1M Return4.21%
Value-0.56
Score2/3
Weight11.57%
1M Return4.21%
Is WTS undervalued or overvalued?
- WTS scores 4.58/10 on fundamentals and holds a Fair valuation at present. Backed by its 14.03% ROE, 13.79% net margin, 32.80 P/E ratio, 5.44 P/B ratio, and 15.91% earnings growth, these metrics solidify its Netural investment rating.
