The Analyst Verdict: Watts Water Technologies In The Eyes Of 4 Experts

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on Watts Water Technologies WTS in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $223.5, a high estimate of $240.00, and a low estimate of $217.00. Observing a 8.67% increase, the current average has risen from the previous average price target of $205.67.

Analyzing Analyst Ratings: A Detailed Breakdown

The analysis of recent analyst actions sheds light on the perception of Watts Water Technologies by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Watts Water Technologies. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Watts Water Technologies compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Watts Water Technologies's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Watts Water Technologies's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Watts Water Technologies analyst ratings.

Get to Know Watts Water Technologies Better

Watts Water Technologies Inc is a U.S.-based company that provides safety, energy efficiency, and water conservation products. Its product portfolio includes residential and commercial flow control products, which are sold for plumbing and hot water applications; HVAC and gas products, including commercial boilers, water heaters, heating solutions, and heating systems; drainage and water reuse products, including drainage products and engineered rainwater-harvesting solutions; and water quality products, including point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems. The company generates the majority of its revenue from markets in the Americas and in Europe, the Middle East, and Africa.

Watts Water Technologies's Financial Performance

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Watts Water Technologies's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 7.79%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Watts Water Technologies's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 12.71%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Watts Water Technologies's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 4.18%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Watts Water Technologies's ROA stands out, surpassing industry averages. With an impressive ROA of 2.89%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.13.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.