Should You Consider Watts Water Technologies, Inc. (NYSE:WTS)?
Attractive stocks have exceptional fundamentals. In the case of Watts Water Technologies, Inc. (NYSE:WTS), there’s is a financially-healthy , dividend-paying company with a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Watts Water Technologies here.
Excellent balance sheet with solid track record and pays a dividend
Over the past year, WTS has grown its earnings by 75%, with its most recent figure exceeding its annual average over the past five years. Not only did WTS outperformed its past performance, its growth also surpassed the Machinery industry expansion, which generated a 31% earnings growth. This is an optimistic signal for the future. WTS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that WTS has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. WTS’s has produced operating cash levels of 0.48x total debt over the past year, which implies that WTS’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For those seeking income streams from their portfolio, WTS is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.0%.
Next Steps:
For Watts Water Technologies, I’ve put together three important factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for WTS’s future growth? Take a look at our free research report of analyst consensus for WTS’s outlook.
Valuation: What is WTS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WTS is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WTS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
