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Watts Water TechnologiesMEX:WTS 82 Interest Coverage is 72.55 as of Jun. 2026, which is 250% above its 10-year median of 20.71. GuruFocus rates MEX:WTS with a GF Score™ of 82/100 and a GF Value™ of MXN4,593.72 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,330 Industrial Products companies, Watts Water Technologies ranks better than 73% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Watts Water Technologies's
Operating Income
for the
three
months ended in Jun. 2026 was MXN2,785 Mil. Watts Water Technologies's Interest Expense for the
three
months ended in Jun. 2026 was MXN-38 Mil.
Watts Water Technologies's interest coverage for the quarter that ended in Jun. 2026 was 72.55.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Watts Water Technologies Inc has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Watts Water Technologies's Interest Coverage or its related term are showing as below:
MEX:WTS'
s Interest Coverage Range Over the Past 10 Years
Min: 6.26 Med: 20.71 Max: 51.07
Current: 51.07
MEX:WTS's Interest Coverage is ranked better than 73% of 2330
companies
in the Industrial Products industry
Industry Median: 14.67
vs MEX:WTS: 51.07
Watts Water Technologies (MEX:WTS) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Watts Water Technologies Interest Coverage Related Terms
Watts Water Technologies Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:WTS vs GNRC, DCI, PNR: Interest Coverage Comparison
For the Specialty Industrial Machinery subindustry, Watts Water Technologies's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Watts Water Technologies's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Watts Water Technologies's Interest Coverage falls into.
Watts Water Technologies Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (MEX:WTS) has a Interest Coverage of 72.55 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Watts Water Technologies and its competitors. This is 250% above median its historical median of 20.71. Over the past decade, Watts Water Technologies' Interest Coverage has ranged from 6.26 to 51.07. According to the industry distribution chart, Watts Water Technologies ranks #629 out of 2330 companies in the Industrial Products industry, placing it in the top 27%.
Is Watts Water Technologies' Interest Coverage too high?
Watts Water Technologies' current Interest Coverage of 72.55 is 250% above median its 10-year median of 20.71. Over the past 10 years, this metric has ranged from a low of 6.26 to a high of 51.07. The Industrial Products industry median Interest Coverage is 14.67. Watts Water Technologies' value of 72.55 is 394.5% above this industry median. Based on the distribution chart, Watts Water Technologies ranks #629 out of 2330 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Watts Water Technologies has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watts Water Technologies' Interest Coverage compare to GNRC and DCI?
According to the Industrial Products industry distribution chart, Watts Water Technologies ranks #629 out of 2330 companies for Interest Coverage. This puts Watts Water Technologies in the upper half of its industry. The industry median Interest Coverage is 14.67. Watts Water Technologies' value of 72.55 is 394.5% above this benchmark. Historically, Watts Water Technologies' own Interest Coverage has ranged from 6.26 to 51.07 over the past decade. While the company's 10-year median is 20.71 vs. the industry median of 14.67, 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 Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.67, based on 2,330 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watts Water Technologies's current Interest Coverage of 72.55 is 394.5% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Watts Water Technologies and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watts Water Technologies's current Interest Coverage is 72.55, which is 250% above median its own 10-year median of 20.71. 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 (MEX:WTS) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN4,593.72, compared to a current price of MXN6,521.36 — trading 42% above its estimated fair value. The current Interest Coverage is 72.55, which is 250% above median its 10-year median of 20.71 and 394.5% above the Industrial Products industry median of 14.67. Watts Water Technologies' overall GF Score™ is 82/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Watts Water Technologies (MEX:WTS), the current Interest Coverage is 72.55 as of Jun. 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 (MEX:WTS) Overvalued in 2026?
Based on GuruFocus' analysis, Watts Water Technologies stock appears to be overvalued.
The current stock price of MXN6,521.36 is trading 42% above its estimated GF Value™ of MXN4,593.72.
GuruFocus considers Watts Water Technologies to be Significantly Overvalued.
Key valuation signals for MEX:WTS:
Interest Coverage: 72.55 (250% above median its 10-year median of 20.71)
GF Value™: MXN4,593.72 vs. price of MXN6,521.36 (42% above fair value)
Industry Position: 394.5% above the Industrial Products median (#629 of 2330)
No single metric tells the full story. See the MEX: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.
82GF Score
Get the complete analysis for MEX:WTS
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