Watts Water Technologies (WTS)
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
$363.13+2.14%
Close 2026-09-04 · 1-day change
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
QuarterlyIQ Insights · WTS
What must go right, what could break, what the price assumes, and what evidence comes next.
The current health of the standing investment case.
Recent financial performance is holding in the top half of its industry — the reason to own it looks intact.
One-year growth currently built into the price, compared with our model's estimate.
| Measure | Marker shape | Value |
|---|---|---|
| Growth built into the price | circle | 26.8% |
| Our one-year growth estimate | diamond | 8.9% |
For each item: what to watch, what would become a concern, and what would make it less concerning.
A reporting-risk estimate, not a forecast of the stock-price response.
Historical relationships that met the evidence threshold. They do not prove cause or forecast a move.
Usually moved in the same direction.
Price observations: 365 days
Most sensitive to the broad stock market.
Based on historical daily prices through 2026-09-04.
Past price behavior in dollars on a $10,000 position. This does not measure permanent business risk.
How much price usually moves either way.
A larger daily loss that occurred about once in every 20 trading days.
Use the underlying financial and sector pages to investigate the cause.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Growth built into the price is above our model estimate.
The price assumes 17.9 percentage points more one-year growth.
The one-year revenue growth assumption on Valuation.
Model as of 2026-09-04 · Compared with 63 industry peers · Company calendar date is not available
WTS — CFO transition
Dated 2025-11-17
CFO — Ryan Lada: The CFO resigned to pursue another opportunity, but the company immediately appointed a long-tenured internal executive (Diane McClintock) as successor, indicating an orderly succession rather than a sudden loss of leadership.
Why it matters: The data center market is a key growth area for Watts. Continued growth supports revenue and margin goals.
Supportive ifManagement says there is strong demand from data centers.
Worry ifManagement says demand for data centers is slowing.
Why it matters: This would show that Watts is gaining momentum in a slowing sector. Strong growth would support management's goal of increasing revenue.
Supportive ifQ2 revenue growth reported above 10% year over year.
Worry ifQ2 revenue growth reported below 5% year over year.
Why it matters: Growth in this market is a key driver for Watts' future revenue and profitability.
Supportive ifNew contracts or partnerships in the data center sector announced.
Worry ifNo new developments or contracts in the data center market.
Why it matters: Better cash flow shows good use of capital and efficiency in operations.
Supportive ifOperating cash flow in Q3 exceeds $121 million.
Worry ifOperating cash flow in Q3 falls below $100 million.
Deepest peak-to-trough drop in the last year.
| Measure | Value | Meaning |
|---|---|---|
| Typical day | ±$119 on $10,000 · ±1.2% | How much price usually moves either way. |
| Bad day | $247 loss on $10,000 · 2.5% | A larger daily loss that occurred about once in every 20 trading days. |
| Largest peak-to-trough drop in the past year | $1,545 loss on $10,000 · 15.4% | Deepest peak-to-trough drop in the last year. |
Past year. 1.00 means similar movement; 1.20 means about 20% more.
Past year. 1.00 means similar movement to the sector. This is secondary context.
Latest 30 trading days, shown as an annual percentage.
Latest 252 trading days, shown as an annual percentage.
20-trading-day average in US dollars.
Trading days used by the source risk snapshot.
Past results, not a forecast. Not investment advice.
Why it matters: If the industrial sector shows renewed growth, it could benefit Watts. This is important as the sector is currently maturing.
Watch forSector growth reported above 10% year over year.
Also watch forSector growth reported below 5% year over year.
Why it matters: A drop in free cash flow may show problems in cash generation. This affects capital allocation.
Worry ifFree cash flow reported below $90 million.
Less concerning ifFree cash flow reported above $100 million.
Why it matters: Negative effects could harm production and sales. This is true in global markets.
Worry ifThere are reports of big supply chain problems due to geopolitical tensions.
Less concerning ifNo big supply chain issues reported. This is true despite geopolitical tensions.
Why it matters: Earnings below this level may show weak performance. This can affect stock sentiment.
Worry ifQ2 diluted EPS reported below $2.50.
Less concerning ifQ2 diluted EPS reported above $2.70.
Why it matters: An increase in gross profit margin shows better cost control and pricing strategies. This aligns with management's focus on improving margins.
Supportive ifGross profit margin reported above 35% in Q2.
Worry ifGross profit margin reported below 30% in Q2.
Why it matters: This shows that costs are managed well. It helps the company make more money.
Supportive ifOperating income grew more than 20% compared to last year.
Worry ifOperating income grew less than 10% compared to last year.
Why it matters: Operating margin shows how profitable a company is. A drop means higher costs or problems.
Worry ifOperating margin was less than 19.4%.
Less concerning ifOperating margin was more than 20.0%.
Why it matters: A drop in organic sales growth means lower demand. This is important for data centers.
Worry ifQ3 organic sales growth was below 8%.
Less concerning ifQ3 organic sales growth was above 11%.