WATTS WATER TECHNOLOGIES INC(WTS)Stock Analysis
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Rank #297 of 2,879 stocksTOP 25%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
WTS Stock Analysis & AI Quality Score
AI stock analysis and institutional research for WATTS WATER TECHNOLOGIES INC (WTS), a Industrials sector company. 13F Pro's AI-powered ranking engine scores WTS at 70.7/100 on a 32-signal composite quality model, placing it at rank #297 of 2,879 stocks — the top 25% of the AI-ranked universe. WTS scores in the top quartile across balance sheet strength (90.5), profitability (78.0). Based on the latest XBRL financial filings (Q1 2026), WATTS WATER TECHNOLOGIES INC reports quarterly revenue of $677.3M, net income of $99.6M, an operating margin of 19.6%. Top institutional holders of WTS by reported 13-F value include BlackRock,, KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. WTS trades on the NYSE exchange and files with the SEC under CIK 795403. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate WTS daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for WATTS WATER TECHNOLOGIES INC directly from SEC EDGAR. WATTS WATER TECHNOLOGIES INC's 13F Pro composite quality score has ranged between 8 and 72 since 2021, currently 70.7 — an improving long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving WTS's Business? Latest 10-Q Breakdown
AI-extracted from WATTS WATER TECHNOLOGIES INC's 10-Q filed 2026-05-07 — Q1 2026 (quarter ended March 29, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Net sales grew 21.4% YoY to $677.3M; organic growth of 11.9% driven by Americas price and data center volume; operating income surged 51.7% to $133.0M.
Biggest Revenue Drivers
Total revenue: $677.3M+21.4% YoY
Organic growth of 15.5% driven by favorable price realization and incremental volume from data center growth; acquired sales of $30.7M from 2025 acquisitions
Organic growth of 0.5% from favorable price realization offset by slight volume decline; foreign exchange favorable impact of $12.5M
Organic growth of 3.4% from China, Australia and New Zealand; acquired sales of $5.9M; favorable FX of $2.3M
Largest Expense Items
Increased due to higher sales volume; inflation and tariffs partially offset by price realization and productivity
Organic increase of $10.0M from inflation, strategic investments, and variable costs; foreign exchange and acquired SG&A added $15.4M combined
Margins: Gross margin declined 70 basis points to 48.1% despite strong price realization and productivity, primarily due to acquisition dilution and tariff impacts. Operating margin expanded substantially driven by 11.9% organic sales growth, lower restructuring charges, and operational leverage.
Watch Items from the Filing
- Tariff exposure: Company is importer of record for materials previously subject to IEEPA tariffs invalidated Feb 2026; recovery timing and amount uncertain, no benefit recorded yet.
- Working capital elevation: Q1 operating cash flow declined to $17.9M from $55.2M YoY due to higher receivables, inventory buildup (tariff and strategic), and customer rebate timing.
- Organic growth concentration: Americas drove 98% of organic growth ($65.0M of $66.6M); Europe nearly flat at 0.5% organic; reliance on single region and data center vertical.
- Acquisition integration: Eight acquisitions in past three years including Superior ($90M), Bradley, Haws, and EasyWater; goodwill at $859.6M with accumulated impairment losses of $167.1M.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q1 2026
$677.3M
Net Income
Q1 2026
$99.6M
Free Cash Flow
Q1 2026
$6.6M
Operating Margin
Q1 2026
19.6%
D/E Ratio
Q1 2026
0.09
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+8.3% YoYNet Income
+17.0% YoYOperating Income
+14.8% YoYEPS (Diluted)
+17.0% YoYTotal Assets
+20.2% YoYTotal Debt
+0.4% YoYOp. Cash Flow
+11.3% YoY| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2019 |
|---|---|---|---|---|---|---|
| Revenue | $2.44B +8.3% | $2.25B +9.5% | $2.06B +3.9% | $1.98B +9.4% | $1.81B +13.0% | $1.60B |
| Net Income | $340.8M +17.0% | $291.2M +11.1% | $262.1M +4.2% | $251.5M +51.8% | $165.7M +26.0% | $131.5M |
| Operating Income | $448.1M +14.8% | $390.4M +11.3% | $350.9M +11.4% | $315.0M +31.5% | $239.6M +21.6% | $197.1M |
| EPS (Diluted) | $10.17 +17.0% | $8.69 +11.1% | $7.82 +4.5% | $7.48 +53.3% | $4.88 +26.8% | $3.85 |
| Total Assets | $2.88B +20.2% | $2.40B +3.8% | $2.31B +19.6% | $1.93B +4.1% | $1.86B +7.7% | $1.72B |
| Total Debt | $197.7M +0.4% | $197.0M -34.0% | $298.3M +102.1% | $147.6M +4.0% | $141.9M -65.8% | $415.0M |
| Operating Cash Flow | $402.0M +11.3% | $361.1M +16.2% | $310.8M +38.8% | $224.0M +23.9% | $180.8M -6.8% | $194.0M |
AI Insight: WTS Financial Trends
Q1 2026 revenue of $677M and net income of $100M mark new highs, even as operating cash flow slumped to $18M — the weakest in eight quarters.
• Revenue grew 21.3% year-over-year from $558M in Q1 2025 to $677M in Q1 2026, the strongest quarterly top-line in the dataset.
• Operating margin expanded from 15.8% in Q1 2025 to 19.6% in Q1 2026, reflecting meaningful operating leverage.
• Total debt held flat at $198M across all of 2025 and Q1 2026 while equity rose steadily from $1,708M to $2,096M, reducing leverage.
• Operating cash flow collapsed to $18M in Q1 2026 from $55M in Q1 2025, the lowest reading across all eight quarters shown.
⚠ Q1 2026 operating CF of $18M versus $100M net income implies a large working-capital build; conversion must normalize in coming quarters.
⚠ Seasonal revenue step-up from Q1 to Q2 has been consistent; whether Q2 2026 sustains the $644M–$677M base will test demand durability.
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Top Institutional Holders of WTS
BlackRock, Inc.
$1.1B3,673,720 shKAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC
$617.5M2,127,314 shVANGUARD PORTFOLIO MANAGEMENT LLC
$482.1M1,660,725 shVANGUARD CAPITAL MANAGEMENT LLC
$356.0M1,226,383 shSTATE STREET CORP
$287.7M991,144 shGEODE CAPITAL MANAGEMENT, LLC
$266.8M918,925 shBoston Partners
$219.1M755,904 shImpax Asset Management Group plc
$170.7M588,022 shFIRST TRUST ADVISORS LP
$158.3M545,404 shDIMENSIONAL FUND ADVISORS LP
$151.3M521,286 sh
| Fund | Value | Shares |
|---|---|---|
| BlackRock, Inc. | $1.1B | 3,673,720 |
| KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC | $617.5M | 2,127,314 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $482.1M | 1,660,725 |
| VANGUARD CAPITAL MANAGEMENT LLC | $356.0M | 1,226,383 |
| STATE STREET CORP | $287.7M | 991,144 |
| GEODE CAPITAL MANAGEMENT, LLC | $266.8M | 918,925 |
| Boston Partners | $219.1M | 755,904 |
| Impax Asset Management Group plc | $170.7M | 588,022 |
| FIRST TRUST ADVISORS LP | $158.3M | 545,404 |
| DIMENSIONAL FUND ADVISORS LP | $151.3M | 521,286 |
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Is WTS a good stock to buy?
13F Pro's AI-powered analysis of WATTS WATER TECHNOLOGIES INC (WTS) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Industrials sector (listed on NYSE). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for WTS are available on the WTS stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own WTS?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling WTS. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of WATTS WATER TECHNOLOGIES INC's investment landscape.