Watts Water Technologies Inc (WTS) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Industrials / Manufacturing / Defense · as of Sep 13, 2026
Watts Water Technologies Inc (WTS)
A forensic read on Watts Water Technologies Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
17.0
Distress distance
Clean
Earnings quality
3
Forensic signals
30.5
P / E (ttm)
16.8%
ROE
$11.9B
Market cap
0.68%
Dividend yield
8.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Watts Water Technologies Inc earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 17.0, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by inventory days.
What the filings flag
136d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 121 to 136 FY2024→FY2025 (against cost of goods sold; inventory +34% vs +4% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
+18.1%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +18.1% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by inventory up +34% against +4% in cost of sales and receivables up +16% against revenue +8%. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 4% of net operating assets, against an accruals ratio of 18.1%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
-0.1%/yr
FY2022–FY2025
Share count.Diluted share count changed 0% over the last 3 years to FY2025 (-0.1%/yr). Roughly flat — buybacks ($16M) are about offsetting stock comp ($21M), not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.
Key fundamentals
Net Margin14.0%
Debt / Equity0.10x
Free Cash Flow$356.3M
Latest Revenue$2.44B
Return on Equity16.8%
Revenue CAGR (3yr)+7.2%
Revenue Growth YoY+8.3%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Watts Water Technologies Inc's actual 10-K/10-Q/8-K filings?