Watts Water Technologies Stock Return On Equity

WTS Stock

USD 218.46 3.29 1.53%

Watts Water Technologies fundamentals help investors to digest information that contributes to Watts Water's financial success or failures. It also enables traders to predict the movement of Watts Stock. The fundamental analysis module provides a way to measure Watts Water's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Watts Water stock.

		Last Reported	Projected for Next Year
	Return On Equity	0.17	0.11

Return On Equity is likely to drop to 0.11 in 2024.

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

Watts Water Technologies Company Return On Equity Analysis

Watts Water's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current Watts Water Return On Equity

0.18

Most of Watts Water's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Watts Water Technologies is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Watts Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Watts Water is extremely important. It helps to project a fair market value of Watts Stock properly, considering its historical fundamentals such as Return On Equity. Since Watts Water's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Watts Water's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Watts Water's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Good Will	Common Stock	Long Term Debt	Property Plant Equipment	Current Deferred Revenue	Short Term Investments	Net Tangible Assets	Long Term Debt Total	Capital Surpluse	Deferred Long Term Liab	Short Long Term Debt	Long Term Investments	Cash And Equivalents	Net Invested Capital	Accumulated Depreciation	Net Working Capital	Capital Stock
Total Assets		0.63	0.08	0.49	0.98	0.8	0.98	0.13	0.79	0.9	0.97	0.79	0.32	0.79	-0.04	-0.87	0.0	-0.09	0.56	0.06	0.28	-0.2	-0.07	0.27	-0.2	0.24	0.01
Total Stockholder Equity	0.63		-0.49	0.97	0.69	0.24	0.65	-0.09	0.48	0.63	0.64	0.8	-0.09	0.74	-0.58	-0.54	0.68	-0.66	0.72	-0.41	0.58	-0.65	-0.47	0.6	-0.6	0.45	-0.68
Net Debt	0.08	-0.49		-0.59	0.0	0.64	0.06	0.34	0.49	-0.04	0.03	0.05	0.86	-0.06	0.84	-0.33	-0.9	0.91	-0.49	0.85	-0.44	0.73	0.39	-0.41	0.79	-0.38	0.41
Retained Earnings	0.49	0.97	-0.59		0.54	0.07	0.52	-0.15	0.35	0.47	0.5	0.71	-0.18	0.63	-0.67	-0.35	0.81	-0.72	0.71	-0.49	0.6	-0.71	-0.43	0.71	-0.62	0.56	-0.78
Net Receivables	0.98	0.69	0.0	0.54		0.73	0.96	0.15	0.74	0.95	0.95	0.81	0.23	0.83	-0.05	-0.87	0.08	-0.2	0.57	-0.06	0.29	-0.23	-0.17	0.24	-0.24	0.18	-0.03
Total Liab	0.8	0.24	0.64	0.07	0.73		0.78	0.31	0.91	0.65	0.74	0.65	0.78	0.55	0.41	-0.9	-0.51	0.46	0.16	0.59	0.02	0.23	0.15	-0.05	0.25	-0.04	0.18
Total Current Assets	0.98	0.65	0.06	0.52	0.96	0.78		0.11	0.76	0.9	0.92	0.8	0.34	0.78	-0.05	-0.87	0.05	-0.08	0.52	0.06	0.25	-0.19	0.04	0.32	-0.17	0.34	-0.04
Short Term Debt	0.13	-0.09	0.34	-0.15	0.15	0.31	0.11		0.23	0.06	0.12	0.05	0.1	0.03	0.3	-0.21	-0.32	0.07	0.01	0.26	0.39	0.03	-0.04	-0.18	0.16	-0.34	0.14
Intangible Assets	0.79	0.48	0.49	0.35	0.74	0.91	0.76	0.23		0.59	0.75	0.82	0.74	0.64	0.2	-0.84	-0.23	0.25	0.37	0.41	0.2	0.05	-0.08	0.27	0.14	0.15	-0.2
Accounts Payable	0.9	0.63	-0.04	0.47	0.95	0.65	0.9	0.06	0.59		0.87	0.76	0.15	0.85	0.02	-0.85	0.07	-0.22	0.4	-0.1	0.12	-0.13	-0.15	0.07	-0.22	0.07	0.07
Good Will	0.97	0.64	0.03	0.5	0.95	0.74	0.92	0.12	0.75	0.87		0.74	0.23	0.75	-0.08	-0.83	0.01	-0.16	0.63	0.01	0.34	-0.28	-0.23	0.21	-0.31	0.14	0.02
Common Stock	0.79	0.8	0.05	0.71	0.81	0.65	0.8	0.05	0.82	0.76	0.74		0.4	0.92	-0.09	-0.8	0.23	-0.2	0.43	0.02	0.27	-0.24	-0.21	0.44	-0.11	0.28	-0.44
Long Term Debt	0.32	-0.09	0.86	-0.18	0.23	0.78	0.34	0.1	0.74	0.15	0.23	0.4		0.2	0.58	-0.56	-0.62	0.79	-0.25	0.8	-0.31	0.54	0.37	-0.06	0.62	0.0	0.05
Property Plant Equipment	0.79	0.74	-0.06	0.63	0.83	0.55	0.78	0.03	0.64	0.85	0.75	0.92	0.2		-0.07	-0.76	0.24	-0.29	0.31	-0.09	0.15	-0.2	-0.18	0.26	-0.15	0.16	-0.23
Current Deferred Revenue	-0.04	-0.58	0.84	-0.67	-0.05	0.41	-0.05	0.3	0.2	0.02	-0.08	-0.09	0.58	-0.07		-0.18	-0.82	0.77	-0.65	0.56	-0.66	0.81	0.4	-0.55	0.86	-0.54	0.57
Short Term Investments	-0.87	-0.54	-0.33	-0.35	-0.87	-0.9	-0.87	-0.21	-0.84	-0.85	-0.83	-0.8	-0.56	-0.76	-0.18		0.21	-0.12	-0.31	-0.32	-0.14	0.0	0.07	0.0	0.03	0.0	-0.02
Net Tangible Assets	0.0	0.68	-0.9	0.81	0.08	-0.51	0.05	-0.32	-0.23	0.07	0.01	0.23	-0.62	0.24	-0.82	0.21		-0.88	0.52	-0.8	0.48	-0.72	-0.35	0.7	-0.64	0.59	-0.74
Long Term Debt Total	-0.09	-0.66	0.91	-0.72	-0.2	0.46	-0.08	0.07	0.25	-0.22	-0.16	-0.2	0.79	-0.29	0.77	-0.12	-0.88		-0.61	0.85	-0.61	0.79	0.61	-0.43	0.78	-0.24	0.51
Capital Surpluse	0.56	0.72	-0.49	0.71	0.57	0.16	0.52	0.01	0.37	0.4	0.63	0.43	-0.25	0.31	-0.65	-0.31	0.52	-0.61		-0.48	0.77	-0.68	-0.58	0.6	-0.69	0.42	-0.45
Deferred Long Term Liab	0.06	-0.41	0.85	-0.49	-0.06	0.59	0.06	0.26	0.41	-0.1	0.01	0.02	0.8	-0.09	0.56	-0.32	-0.8	0.85	-0.48		-0.24	0.49	0.45	-0.45	0.51	-0.3	0.37
Short Long Term Debt	0.28	0.58	-0.44	0.6	0.29	0.02	0.25	0.39	0.2	0.12	0.34	0.27	-0.31	0.15	-0.66	-0.14	0.48	-0.61	0.77	-0.24		-0.76	-0.54	0.42	-0.7	0.23	-0.49
Long Term Investments	-0.2	-0.65	0.73	-0.71	-0.23	0.23	-0.19	0.03	0.05	-0.13	-0.28	-0.24	0.54	-0.2	0.81	0.0	-0.72	0.79	-0.68	0.49	-0.76		0.46	-0.49	0.85	-0.3	0.51
Cash And Equivalents	-0.07	-0.47	0.39	-0.43	-0.17	0.15	0.04	-0.04	-0.08	-0.15	-0.23	-0.21	0.37	-0.18	0.4	0.07	-0.35	0.61	-0.58	0.45	-0.54	0.46		-0.03	0.59	0.29	0.37
Net Invested Capital	0.27	0.6	-0.41	0.71	0.24	-0.05	0.32	-0.18	0.27	0.07	0.21	0.44	-0.06	0.26	-0.55	0.0	0.7	-0.43	0.6	-0.45	0.42	-0.49	-0.03		-0.22	0.87	-0.77
Accumulated Depreciation	-0.2	-0.6	0.79	-0.62	-0.24	0.25	-0.17	0.16	0.14	-0.22	-0.31	-0.11	0.62	-0.15	0.86	0.03	-0.64	0.78	-0.69	0.51	-0.7	0.85	0.59	-0.22		-0.18	0.31
Net Working Capital	0.24	0.45	-0.38	0.56	0.18	-0.04	0.34	-0.34	0.15	0.07	0.14	0.28	0.0	0.16	-0.54	0.0	0.59	-0.24	0.42	-0.3	0.23	-0.3	0.29	0.87	-0.18		-0.56
Capital Stock	0.01	-0.68	0.41	-0.78	-0.03	0.18	-0.04	0.14	-0.2	0.07	0.02	-0.44	0.05	-0.23	0.57	-0.02	-0.74	0.51	-0.45	0.37	-0.49	0.51	0.37	-0.77	0.31	-0.56

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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

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Return On Equity Over Time

Watts Total Stockholder Equity

Total Stockholder Equity

1.59 Billion

At this time, Watts Water's Total Stockholder Equity is comparatively stable compared to the past year.

Based on the latest financial disclosure, Watts Water Technologies has a Return On Equity of 0.1778. This is 59.59% lower than that of the Machinery sector and significantly higher than that of the Industrials industry. The return on equity for all United States stocks is 157.35% lower than that of the firm.

Watts Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Watts Water's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Watts Water could also be used in its relative valuation, which is a method of valuing Watts Water by comparing valuation metrics of similar companies.

Watts Water is currently under evaluation in return on equity category among its peers.

Watts Water ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Watts Water's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Watts Water's managers, analysts, and investors.

Environmental

Governance

Social

Watts Fundamentals

	Return On Equity	0.18
	Return On Asset	0.11
	Profit Margin	0.12 %
	Operating Margin	0.18 %
	Current Valuation	7.08 B
	Shares Outstanding	27.38 M
	Shares Owned By Insiders	1.03 %
	Shares Owned By Institutions	98.97 %
	Number Of Shares Shorted	844.41 K
	Price To Earning	46.45 X
	Price To Book	4.25 X
	Price To Sales	3.17 X
	Revenue	2.06 B
	Gross Profit	874.3 M
	EBITDA	401 M
	Net Income	262.1 M
	Cash And Equivalents	310.8 M
	Cash Per Share	6.96 X
	Total Debt	298.3 M
	Debt To Equity	0.17 %
	Current Ratio	2.30 X
	Book Value Per Share	50.66 X
	Cash Flow From Operations	310.8 M
	Short Ratio	7.18 X
	Earnings Per Share	8.35 X
	Price To Earnings To Growth	2.98 X
	Target Price	201.2
	Number Of Employees	5.1 K
	Beta	0.9
	Market Capitalization	7.17 B
	Total Asset	2.31 B
	Retained Earnings	979.1 M
	Working Capital	655.2 M
	Current Asset	809 M
	Current Liabilities	295 M
	Annual Yield	0.01 %
	Five Year Return	0.90 %
	Net Asset	2.31 B
	Last Dividend Paid	1.58

About Watts Water Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Watts Water Technologies's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Watts Water using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Watts Water Technologies based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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