Watts Water TechnologiesWTS -0.01%89 FCF Yield % is 2.53 as of Jun. 26, 2026, which is 42% below its 10-year median of 4.39. GuruFocus rates WTS with a GF Score™ of 89/100 and a GF Value™ of $252.92 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 3,068 Industrial Products companies, Watts Water Technologies ranks better than 64.67% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Watts Water Technologies FCF Yield % Related Terms
Watts Water Technologies FCF Yield % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Industrial Machinery subindustry, Watts Water Technologies's FCF Yield %, along with its competitors' market caps and FCF Yield % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Watts Water Technologies FCF Yield % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Watts Water Technologies's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Watts Water Technologies's FCF Yield % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Watts Water Technologies (WTS) has a FCF Yield % of 2.53 as of Jun. 26, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Watts Water Technologies and its competitors. This is 42% below median its historical median of 4.39. Over the past decade, Watts Water Technologies' FCF Yield % has ranged from 1.80 to 7.39. According to the industry distribution chart, Watts Water Technologies ranks #1084 out of 3068 companies in the Industrial Products industry, placing it in the top 35.3%.
Is Watts Water Technologies' FCF Yield % too high?
Watts Water Technologies' current FCF Yield % of 2.53 is 42% below median its 10-year median of 4.39. Over the past 10 years, this metric has ranged from a low of 1.80 to a high of 7.39. The Industrial Products industry median FCF Yield % is 0.55. Watts Water Technologies' value of 2.53 is 360% above this industry median. Based on the distribution chart, Watts Water Technologies ranks #1084 out of 3068 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Watts Water Technologies has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watts Water Technologies' FCF Yield % compare to CR and GTLS?
According to the Industrial Products industry distribution chart, Watts Water Technologies ranks #1084 out of 3068 companies for FCF Yield %. This puts Watts Water Technologies in the upper half of its industry. The industry median FCF Yield % is 0.55. Watts Water Technologies' value of 2.53 is 360% above this benchmark. Historically, Watts Water Technologies' own FCF Yield % has ranged from 1.80 to 7.39 over the past decade. While the company's 10-year median is 4.39 vs. the industry median of 0.55, Watts Water Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for an Industrial Products company?
The median FCF Yield % among Industrial Products companies is 0.55, based on 3,068 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watts Water Technologies's current FCF Yield % of 2.53 is 360% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Watts Water Technologies and its competitors. For the Industrial Products industry, the median FCF Yield % is 0.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watts Water Technologies's current FCF Yield % is 2.53, which is 42% below median its own 10-year median of 4.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watts Water Technologies stock overvalued right now?
Based on GuruFocus' analysis, Watts Water Technologies (WTS) is currently considered Significantly Overvalued. The stock's GF Value™ is $252.92, compared to a current price of $375.04 — trading 48.3% above its estimated fair value. The current FCF Yield % is 2.53, which is 42% below median its 10-year median of 4.39 and 360% above the Industrial Products industry median of 0.55. Watts Water Technologies' overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Watts Water Technologies (WTS), the current FCF Yield % is 2.53 as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Watts Water Technologies (WTS) Overvalued in 2026?
Based on GuruFocus' analysis, Watts Water Technologies stock appears to be overvalued.
The current stock price of $375.04 is trading 48.3% above its estimated GF Value™ of $252.92.
GuruFocus considers Watts Water Technologies to be Significantly Overvalued.
Key valuation signals for WTS:
FCF Yield %: 2.53 (42% below median its 10-year median of 4.39)
GF Value™: $252.92 vs. price of $375.04 (48.3% above fair value)
Industry Position: 360% above the Industrial Products median (#1084 of 3068)
No single metric tells the full story. See the WTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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, etc.; 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. Its products are marketed through brands like Watts, Apex, Bradley, Nexa, and others. Geographically, the company derives its key revenue from the Americas, followed by Europe and the APMEA region.
89GF Score
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