WTS · NYSE · STOCK
Watts Water Technologies (WTS) Stock Analysis
$353.19
52W $260.00 – $394.54
65/100
$11.78B
30.8
1.15
Is WTS Bullish or Bearish?
Bullish.
Innellis AI committee rates Watts Water Technologies (WTS) Buy with a composite score of 65/100
, based on 6 analysts with 67% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +10.11 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -9.89 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Risk Analyst sees a compelling case — low leverage (debt-to-equity 0.10) -- balance sheet can absorb a shock. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 18.6% shows genuine earnings power backing the valuation — Value
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Low leverage (debt-to-equity 0.10) -- balance sheet can absorb a shock — Risk
- News sentiment is positive (+0.25 across 8 articles, 14d) — News
Bear Case
- P/E of 30.8 is moderate-to-rich — Value
- Price-to-book of 4.5x prices in significant intangible value — Value
- MACD histogram negative -- bearish momentum — Technical
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
65/100
Agreement
67%
Analysts
6
Conviction
Moderate
Sector Rank
Top 9%
of 227 Industrials peers
Value Analyst
neutral
54
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 18.6% shows genuine earnings power backing the valuation
− P/E of 30.8 is moderate-to-rich
Growth Analyst
bullish
77
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ 5 consecutive earnings beats -- consistent execution
Technical Analyst
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Risk Analyst
bullish
80
/ 100 · Low confidence
Risk profile is manageable -- leverage, volatility, and event exposure all look contained
+ Low leverage (debt-to-equity 0.10) -- balance sheet can absorb a shock
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
66
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.25 across 8 articles, 14d)
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 64.9 to 64.9.
- New bearish signals: 1 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
Analyst-level changes:
- Value Analyst: +1 bearish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
45.3
Neutral
MACD Histogram
-0.294
Bearish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Mixed
Support
$334.77
Resistance
$393.31
Bollinger %B
0.42
Inside Bands
Price vs Moving Averages
EMA 9
$354.89
Below
EMA 21
$356.41
Below
EMA 50
$356.47
Below
EMA 200
$328.20
Above
Fundamental Analysis
Valuation
54
Growth
85
Profitability
82
Financial Health
100
Cash Flow
70
Valuation
P/E Ratio
30.8×
P/B Ratio
5.40×
PEG Ratio
1.33
Dividend Yield
0.65%
52W High
$394.54
52W Low
$260.00
Quality & Growth
ROE
1680.7%
ROA
1182.8%
Gross Margin
4884.8%
Operating Margin
1924.0%
Revenue Growth YoY
—
Debt / Equity
0.05
AI Fundamental Assessment
P/E ratio of 30.8 (rich relative to a 15-40x range); Price-to-book of 5.4x; PEG ratio of 1.3 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 16.8%; Return on assets of 11.8%; Net margin of 14.3%; Gross margin of 48.8%; Current ratio of 2.66 (healthy short-term liquidity); Debt-to-equity of 0.05; Free cash flow per share is positive (10.43); Most recent quarter beat estimates by 8.8%; 5 consecutive earnings beats; EPS growth accelerating (+16.0% -> +20.4% QoQ); Average YoY EPS growth of 18.4%; Analyst estimates rising over recent quarters
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