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Watts Water Technologies WTS

Watts Water Technologies scores good on business quality (7.2 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$352.72Oct 9, 2026
Business qualityGood
Next earningsNov 4, 2026
Insiders, 90 daysSelling

Why it matters

  1. What Watts Water Technologies does

    Watts Water Technologies designs and sells valves, drainage systems, and water quality solutions, collecting revenue from commercial and residential plumbing markets. The business is executing executive leadership transitions following the planned retirement of its long-serving general counsel Kenneth R. Lepage.

  2. What it does best

    Watts achieves a gross margin of 48.9%, outperforming peer SWK at 31.4% through specialized flow control engineering and entrenched distributor relationships that resist low-cost substitution.

  3. The main risk

    Executive succession risks threaten operational continuity following the announced retirement of Kenneth R. Lepage, creating potential stability hurdles for governance and compliance.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margin stands at 19.5% with a net margin of 14.3%. Margins are stable, driven by disciplined pricing power that scales nicely as volume expands.

MoatStrong

Switching costs and a top-decile gross margin ranking in the 80th sector percentile lock in commercial builders and municipal specifiers who cannot risk plumbing failure.

GrowthSteady

Revenue grew to $2.7 billion with an annual growth rate of 8.3%, putting it in the top quartile of its sector at the 69th percentile.

Financial healthStrong

Debt-to-equity sits near 0.1 with interest coverage over 51x, meaning debt costs are a non-issue. Free cash flow reached $350.0 million, and the balance sheet is getting stronger.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

2 sold $1.7M outside pre-planned sales.

Our sealed record on WTS

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is WTS a good business?

Watts Water Technologies scores good on the Cluenex quality check (7.2 of 10), measured against its own industry. Profitability is fair, moat strong, growth steady and financial health strong.

Are insiders buying WTS?

In the last 90 days of SEC Form 4 filings: 2 sold $1.7M outside pre-planned sales.

When does WTS report earnings?

Nov 4, 2026.

For members

See WTS today

  • Today's verdict on WTS, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Watts Water Technologies (WTS)”, https://cluenex.com/stocks/wts/, data as of Oct 10, 2026.