Watts Water Technologies Inc. Class A
Find Ratings ReportsWATTS WATER TECHNOLOGIES INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. WATTS WATER TECHNOLOGIES INC has strong liquidity. Currently, the Quick Ratio is 1.50 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 16.35% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 547.5 | 501.9 |
EBITDA ($mil) | 95.0 | 80.7 |
EBIT ($mil) | 82.5 | 71.6 |
Net Income ($mil) | 55.7 | 68.6 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 350.1 | 310.8 |
Total Assets ($mil) | 2309.4 | 1930.9 |
Total Debt ($mil) | 354.8 | 199.2 |
Equity ($mil) | 1513.3 | 1300.6 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 48.97 | 45.37 |
EBITDA Margin | 17.35 | 16.07 |
Operating Margin | 15.07 | 14.27 |
Sales Turnover | 0.89 | 1.03 |
Return on Assets | 11.34 | 13.02 |
Return on Equity | 17.32 | 19.34 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.61 | 2.51 |
Debt/Capital | 0.19 | 0.13 |
Interest Expense | 3.8 | 2.0 |
Interest Coverage | 21.71 | 35.8 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 33.31 | 33.27 |
Div / share | 0.36 | 0.3 |
EPS | 1.67 | 2.04 |
Book value / share | 45.43 | 39.09 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 125126.0 | 125460.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 43.07 for the Fabricated Metal Product Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 4.46 indicates valuation on par with the S&P 500 average of 4.68 and a discount versus the subsector average of 5.58. The current price-to-sales ratio is above the S&P 500 average, but below the subsector average. Upon assessment of these and other key valuation criteria, WATTS WATER TECHNOLOGIES INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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WTS 25.88 | Peers 43.07 | WTS 21.69 | Peers 25.53 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. WTS is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. WTS is trading at a discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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WTS 22.23 | Peers 21.13 | WTS 2.77 | Peers 2.46 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. WTS is trading at a premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. WTS trades at a premium to its peers. |
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Price/Book |
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Earnings Growth |
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WTS 4.46 | Peers 5.58 | WTS 4.68 | Peers 31.55 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. WTS is trading at a discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, WTS is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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WTS 3.28 | Peers 3.60 | WTS 3.87 | Peers 9.90 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. WTS is trading at a valuation on par with its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. WTS significantly trails its peers on the basis of sales growth. |
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