Is the business good?
How good a business is WTS?
Watts Water Technologies, Inc. earns 20% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
20%
Return on invested capital · cost of capital 9.0% · 11 points above what the capital costs: growth creates value
- Operating margin
- 19%
Operating margin · Specialty Industrial Machinery median 15% · 12 months to Q1 2026
- Cash conversion
- 0.87×
Cash conversion · 1.15× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- 0.00%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 13% |
| FY2022 | 16% |
| FY2023 | 17% |
| FY2024 | 17% |
| FY2025 | 18% |
Details›
- Gross margin12 months to Q1 2026
- 49%
- Operating margin12 months to Q1 2026
- 19%
- Net margin12 months to Q1 2026
- 14%
- Free cash flow margin
- 12%
- R&D as % of revenue
- 3.0%
- Revenue, trailing twelve months
- $2.56B
- Free cash flow, trailing twelve months
- $317M
- Net income, trailing twelve months
- $366M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 20%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Industrial Machinery
Ranks #17 of 44 by Smart Score