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The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.27 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Watts Water Technologies's Beneish M-Score or its related term are showing as below:
STU:W3W'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.86 Med: -2.53 Max: -2.21
Current: -2.27
During the past 13 years, the highest Beneish M-Score of Watts Water Technologies was -2.21. The lowest was -2.86. And the median was -2.53.
* 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.
STU:W3W vs GNRC, DCI, PNR: Beneish M-Score Comparison
For the Specialty Industrial Machinery subindustry, Watts Water Technologies's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Watts Water Technologies's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Watts Water Technologies's Beneish M-Score falls into.
Watts Water Technologies Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Watts Water Technologies for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.0833
+
0.528 * 0.9915
+
0.404 * 0.9921
+
0.892 * 1.1073
+
0.115 * 1.0464
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9923
+
4.679 * -0.000869
-
0.327 * 0.8364
=
-2.26
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(50.935 / (50.935 + 230.015))
/
(53.75 / (53.75 + 256.494))
=
0.181296
/
0.173251
=
1.0464
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(330.352 - -8.62
-
341.199)
/
2561.902
=
-0.000869
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Watts Water Technologies has a M-score of -2.26 suggests that the company is unlikely to be a manipulator.
Watts Water Technologies (STU:W3W) has a Beneish M-Score of -2.27 as of Aug. 10, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Watts Water Technologies and its competitors. According to the industry distribution chart, Watts Water Technologies ranks #1879 out of 2906 companies in the Industrial Products industry, placing it in the top 64.7%.
Is Watts Water Technologies' Beneish M-Score too high?
Watts Water Technologies' current Beneish M-Score is -2.27. Based on the distribution chart, Watts Water Technologies ranks #1879 out of 2906 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Watts Water Technologies has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watts Water Technologies' Beneish M-Score compare to GNRC and DCI?
According to the Industrial Products industry distribution chart, Watts Water Technologies ranks #1879 out of 2906 companies for Beneish M-Score. This places Watts Water Technologies in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Industrial Products company?
A good Beneish M-Score depends on the Industrial Products industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Watts Water Technologies and its competitors. Watts Water Technologies's current Beneish M-Score is -2.27. 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 (STU:W3W) is currently considered Significantly Overvalued. The stock's GF Value™ is €218.54, compared to a current price of €338.00 — trading 54.7% above its estimated fair value. The current Beneish M-Score is -2.27. Watts Water Technologies' overall GF Score™ is 80/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Watts Water Technologies (STU:W3W), the current Beneish M-Score is -2.27 as of Aug. 10, 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 (STU:W3W) Overvalued in 2026?
Based on GuruFocus' analysis, Watts Water Technologies stock appears to be overvalued.
The current stock price of €338.00 is trading 54.7% above its estimated GF Value™ of €218.54.
GuruFocus considers Watts Water Technologies to be Significantly Overvalued.
Key valuation signals for STU:W3W:
Beneish M-Score: -2.27
GF Value™: €218.54 vs. price of €338.00 (54.7% above fair value)
No single metric tells the full story. See the STU:W3W 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.
80GF Score
Get the complete analysis for STU:W3W
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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