Forensic Analysis · Industrials / Manufacturing / Defense · as of Aug 11, 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

Forensic signals

32.6

P / E (ttm)

16.8%

ROE

$12.9B

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). 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 total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). 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%. The cash-flow cross-check is more mixed: reported earnings ran in line with operating cash by 4% of net operating assets, diverging from the balance-sheet accrual read.

-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

Latest Revenue$2.44B

Revenue Growth YoY+8.3%

Revenue CAGR (3yr)+7.2%

Net Margin14.0%

Free Cash Flow$356.3M

Return on Equity16.8%

Debt / Equity0.10x

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?

Generate the AI investment read →

No credit card · informational only, not investment advice · see the track record

← Browse all forensic stock analyses

Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.