WTS (Watts Water Technologies) ROCE %: 22.27% (As of Mar. 2026)


WTS Watts Water Technologies Inc WTS
89 GF Score
Price $364.04
GF Value $252.92
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Watts Water Technologies ROCE %?

Watts Water Technologies WTS -2.95% 89 ROCE % is 22.27% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Watts Water Technologies's annualized ROCE % for the quarter that ended in Mar. 2026 was 22.27%.

Watts Water Technologies  (NYSE:WTS) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Watts Water Technologies ROCE % Related Terms

Watts Water Technologies ROCE % Historical Data

* Premium members only.

The historical data trend for Watts Water Technologies's ROCE % can be seen below:

* 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 ROCE % Chart

Watts Water Technologies Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.74 20.98 20.70 20.64 21.00

Watts Water Technologies Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.79 26.00 20.50 20.02 22.27
WTS
89GF Score
Watts Water Technologies Inc WTS
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Watts Water Technologies ROCE % Calculation

Watts Water Technologies's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=456.6/( ( (2397 - 417.9) + (2881.2 - 512.4) )/ 2 )
=456.6/( (1979.1+2368.8)/ 2 )
=456.6/2173.95
=21.00 %

Watts Water Technologies's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=536/( ( (2881.2 - 512.4) + (2939.8 - 496) )/ 2 )
=536/( ( 2368.8 + 2443.8 )/ 2 )
=536/2406.3
=22.27 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 22.27% mean?
Watts Water Technologies (WTS) has a ROCE % of 22.27% as of Mar. 2026.
Is Watts Water Technologies' ROCE % too high?
Watts Water Technologies' current ROCE % is 22.27%. The Industrial Products industry median ROCE % is 7.10. Watts Water Technologies' value of 22.27% is 213.7% above this industry median. 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' ROCE % compare to CR and GTLS?
Watts Water Technologies' ROCE % of 22.27% can be compared against companies in the Industrial Products industry. The industry median ROCE % is 7.10. Watts Water Technologies' value of 22.27% is 213.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Industrial Products company?
The median ROCE % among Industrial Products companies is 7.10, based on 3,032 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watts Water Technologies's current ROCE % of 22.27% is 213.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median ROCE % is 7.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watts Water Technologies's current ROCE % is 22.27%. 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 (WTS) is currently considered Significantly Overvalued. The stock's GF Value™ is $252.92, compared to a current price of $364.04 — trading 43.9% above its estimated fair value. The current ROCE % is 22.27% and 213.7% above the Industrial Products industry median of 7.10. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Watts Water Technologies (WTS), the current ROCE % is 22.27% as of Mar. 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 $364.04 is trading 43.9% above its estimated GF Value™ of $252.92. GuruFocus considers Watts Water Technologies to be Significantly Overvalued.

Key valuation signals for WTS:

  • ROCE %: 22.27%
  • GF Value™: $252.92 vs. price of $364.04 (43.9% above fair value)
  • GF Score™: 89/100 with 6 warning signs
  • Industry Position: 213.7% above the Industrial Products median

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 Business Description

Other Exchanges W3W:Germany
Address 815 Chestnut Street, North Andover, MA, USA, 01845
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$364.04
Price
$252.92
GF Value