Watts Water Technologies, Inc. research snapshot
WTS AI stock analysis currently reads Watts Water Technologies as a high-quality manufacturer of plumbing, heating, and water-quality products with record 2025 results and a strong start to 2026. At the July 12, 2026 data cutoff, the latest verified price reference was a $352.36 close on July 10 with a market cap near $11.77 billion. Full-year 2025 sales were about $2.44 billion, free cash flow reached about $356 million, and Q1 2026 sales rose 21% to $677.3 million with diluted EPS of $2.97. The WTS AI stock forecast uses scenarios, not a price promise, and this page is for information only, not investment advice.
Current price
$352.36 close on July 10, 2026
Market cap
$11.77 billion using July 10 market-data references
AI score
72 / 100
Rating
High-quality water-control manufacturer with solid execution and a full-premium multiple
Trend status
Long-term uptrend intact above the 200-day average, short-term pullback below the 50-day zone
Data cutoff (updated weekly)
July 12, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Watts designs and sells products that control the efficiency, safety, and quality of water in residential, commercial, and institutional buildings, with recurring specification and replacement demand through distributors and OEMs. | High |
| Moat | Code and specification requirements, brand trust in safety-critical water control, distributor relationships, installed-base familiarity, and manufacturing scale support the moat. Network effects are limited, and peers still compete on price, channel, and product breadth. | Medium-high |
| Management | CEO Robert J. Pagano Jr. has emphasized the One Watts Performance System, productivity, bolt-on M&A, dividend growth, and disciplined buybacks while keeping a net-cash balance sheet. | Medium-high |
| Financial trend | 2025 sales rose about 8% to $2.439 billion, adjusted operating margin reached about 19.6%, adjusted EPS rose about 19% to $10.58, and free cash flow was about $356 million. Q1 2026 sales rose 21% to $677.3 million, with organic growth of 12% and diluted EPS of $2.97. | High |
| Valuation | At the July 10 price reference, exact arithmetic gives about 32.2x TTM EPS of $10.94, about 5.6x book value near $62.8 per share, about 4.6x TTM sales near $2.56 billion, and about 3.0% free-cash-flow yield on 2025 FCF. | Medium-high |
| Technical trend | The $352.36 July 10 close sat below the 50-day average near $370 to $373 and above the 200-day average near $336 to $343, inside a 52-week range of $242.77 to $394.54 after a pullback from June highs. | Medium |
| Risk level | Risks include housing and non-residential construction cycles, Europe demand softness, tariffs and trade policy, acquisition integration, dual-class voting control, product liability, commodity inflation, and multiple compression if growth slows. | Medium-high |
| AI confidence | Reported financial and share-count confidence is high, but near-term price path and the correct long-term earnings multiple remain uncertain. | High data confidence |
| Investment certainty | Medium certainty: Watts is a quality compounder with real operating advantages, but the stock already embeds a premium multiple, so valuation and cycle timing still decide attractiveness. | Medium |
WTS AI stock forecast
The WTS AI stock forecast uses the $352.36 July 10 reference, $10.94 TTM EPS, and a three-year scenario model calculated with Pineify financial_rigor.py. The model is a sensitivity exercise, not a target or investment recommendation.
$500 to $540 over 3 years
More likely if sales compound near the high end of the 8% to 12% reported growth outlook for 2026 and beyond, data-center and higher-value product mix keep expanding margins, free cash flow stays strong, and investors accept an earnings multiple near 34x.
$360 to $400 over 3 years
More likely if EPS compounds near 7%, organic growth stays in the low-to-mid single digits after acquisition and FX noise, margins hold near the guided band, and the market values WTS near 28x earnings.
$220 to $250 over 3 years
More likely if construction demand weakens, Europe softens further, tariffs or integration costs pressure margins, organic growth slows toward 2%, or the multiple falls toward 20x earnings.
WTS AI technical analysis
WTS AI technical analysis at the July 12, 2026 cutoff shows a longer-term uptrend with a short-term cool-down. Market data referenced a $352.36 July 10 close, a 50-day average near $370 to $373, a 200-day average near $336 to $343, and RSI readings that had cooled from overbought June levels into the mid-40s to mid-50s range on nearby sessions.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $352.36 close on July 10, 2026 | Latest verified price reference used in the valuation and market-cap checks. |
| Near support | $340 to $350 | The first pullback zone after the June strength, just above the rising 200-day area. |
| Deeper support | $300 to $320 | A break into this band would signal a deeper mean-reversion phase after the 2025-2026 advance. |
| Near resistance | $370 to $380 | The 50-day average and recent supply zone form the first reclaim test for short-term bulls. |
| Major resistance | $390 to $394.54 | The 52-week high near $394.54 is the upper range reference after the June peak. |
| 50-day moving average | About $370 to $373 | Price was below this band on the July 10 reference, so short-term trend follow-through is weaker. |
| 200-day moving average | About $336 to $343 | Holding above this band keeps the medium-term uptrend framework intact. |
| Momentum | RSI roughly mid-40s to mid-50s on nearby sessions | Momentum cooled from overbought readings and is no longer extended by itself. |
| Volume and volatility | Average daily volume roughly 0.4 to 0.5 million shares | Watch volume around the next earnings date, tariff headlines, housing data, and acquisition updates. |
| Invalidation | Sustained close below $336 to $340 | A break under the 200-day zone would reduce confidence in a trend-following long setup. |
WTS AI trading strategy
The WTS AI trading strategy is a non-personalized research framework. It pairs chart confirmation with organic sales, price and productivity, data-center exposure, free cash flow, tariff impacts, acquisition contribution, and construction demand rather than relying on one price level.
Look for WTS to reclaim and hold the $370 to $380 zone with improving volume while organic growth, operating margin, and free-cash-flow conversion remain consistent with management guidance.
Invalidate if price loses the $336 to $340 band on sustained weakness or if quarterly data show a sharp organic slowdown, margin miss, or working-capital drag that hurts cash conversion.
If WTS pulls back toward the $340 to $350 area while full-year outlook and balance-sheet strength remain intact, compare the rebound with housing data, industrial peers, and tariff news, not price alone.
Do not assume a lower price is value if organic growth stalls, Europe weakens further, or tariffs and acquisition dilution erase margin gains.
Track reported and organic sales by region, data-center related volume, adjusted operating margin, free cash flow conversion, inventory and receivables, dividend and buyback actions, and Class A versus Class B ownership signals.
Reduce conviction if growth falls below the guided organic range while tariffs, Europe demand, or integration costs compress returns on capital.
Investment research summary
Customers pay Watts for products that keep water systems safer, cleaner, more efficient, and code compliant inside buildings. The core economic engine is a mix of specification-driven products, distributor relationships, pricing power on differentiated SKUs, productivity, and selective bolt-on acquisitions.
The moat rests on brand trust in safety-critical applications, code and specification barriers, channel relationships, manufacturing and distribution scale, and an installed base that favors familiar parts and systems. It is a durable industrial moat, not a winner-take-all network moat.
The thesis can fail if housing and commercial construction weaken, Europe stays soft, tariffs or commodity costs outrun pricing, acquisitions dilute returns, product-liability or quality issues appear, dual-class control leads to poor capital allocation, or a 30x-plus multiple compresses when growth normalizes.
Robert J. Pagano Jr. has run a multi-year productivity and portfolio program with margin expansion, free-cash-flow conversion near or above 100% of net income in 2025, a higher dividend, and limited leverage. Dual-class Class B stock with 10 votes per share means control is concentrated, so minority investors need comfort with governance as much as with operations.
Water safety, efficiency, building code upgrades, and specialized demand such as data-center related water systems are multi-year demand supports. The industry is still cyclical through construction, renovation, and industrial investment, so the secular story does not remove downturn risk.
The three-scenario model produced roughly $523, $375, and $232 in bullish, base, and bearish cases. That spread shows why business quality alone is not a margin of safety at about 32x TTM earnings: organic growth durability, margin quality, and the exit multiple matter as much as recent beat-and-raise optics.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| WTS price and market-cap references | $352.36 close on July 10, 2026; market cap about $11.77 billion; 52-week range $242.77 to $394.54 | Google Finance and StockAnalysis market-cap page | July 12, 2026 |
| Market-cap arithmetic | $11.77 billion calculated from $352.36 x 33,394,931 Class A and Class B shares outstanding; 0.03% variance versus the $11.77 billion reported market-cap reference | Pineify financial_rigor.py using company share counts and market data | July 12, 2026 |
| Share structure | Class A 27,478,641 shares at 1 vote each and Class B 5,916,290 shares at 10 votes each as of March 29, 2026; diluted weighted average shares about 33.5 million in Q1 2026 | Watts Q1 2026 results release and balance sheet | July 12, 2026 |
| FY2025 sales, earnings, and free cash flow | Sales about $2.439 billion (+8%), adjusted operating margin about 19.6%, adjusted diluted EPS $10.58 (+19%), free cash flow about $356.3 million, and free-cash-flow conversion about 105% of net income near $341 million | Watts 2025 Annual Report and Macrotrends | July 12, 2026 |
| Q1 2026 operating results | Net sales $677.3 million (+21% reported, +12% organic), operating margin 19.6%, diluted EPS $2.97, adjusted diluted EPS $3.04, free cash flow about $7 million after working-capital investment | Watts Q1 2026 earnings release | July 12, 2026 |
| Balance sheet cash and debt | Cash and cash equivalents $374.7 million, long-term debt $197.8 million, and net cash about $176.9 million at March 29, 2026 | Watts Q1 2026 balance sheet | July 12, 2026 |
| Valuation arithmetic | About 32.2x TTM EPS of $10.94, about 5.6x book value near $62.8, about 4.6x TTM sales near $2.56 billion, dividend near $2.52 annualized for about 0.72% yield, and about 3.0% FCF yield on 2025 free cash flow | Pineify financial_rigor.py using market and company inputs | July 12, 2026 |
| 2026 outlook and capital returns | Company maintained full-year 2026 sales growth guidance of 8% to 12% reported and 2% to 6% organic; quarterly dividend raised 21% to $0.63; about $125 million remained under the repurchase authorization after small Q1 buybacks | Watts Q1 2026 earnings release | July 12, 2026 |
| Technical reference band | 50-day average near $370 to $373, 200-day average near $336 to $343, RSI cooling from overbought June readings into roughly mid-40s to mid-50s on nearby sessions | Investing.com technicals and nearby market commentary | July 12, 2026 |
This WTS AI stock analysis page is an information tool only and is not investment advice, a recommendation, or a solicitation to buy or sell any security. Forecast ranges are scenario estimates based on publicly available data as of the stated cutoff and can be wrong. Always verify current prices, filings, and risk tolerance before making investment decisions.
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