Watts Water TechnologiesWTS -2.95%89 ROE % is 19.32% as of Mar. 2026, which is 30% above its 10-year median of 14.83. 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 3,009 Industrial Products companies, Watts Water Technologies ranks better than 88.07% on this metric.
The historical rank and industry rank for Watts Water Technologies's ROE % or its related term are showing as below:
WTS'
s ROE % Range Over the Past 10 Years
Min: 9.34 Med: 14.83 Max: 20.33
Current: 18.8
During the past 13 years, Watts Water Technologies's highest ROE % was 20.33%. The lowest was 9.34%. And the median was 14.83%.
WTS's ROE % is ranked better than 88.07% of 3009
companies
in the Industrial Products industry
Industry Median: 5.91
vs WTS: 18.80
Watts Water Technologies (NYSE:WTS) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Watts Water Technologies's ROE % distribution charts can be found below:
* The bar in red indicates where Watts Water Technologies's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Watts Water Technologies (WTS) has a ROE % of 19.32% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Watts Water Technologies and its competitors. This is 30% above median its historical median of 14.83. Over the past decade, Watts Water Technologies' ROE % has ranged from 9.34 to 20.33. According to the industry distribution chart, Watts Water Technologies ranks #359 out of 3009 companies in the Industrial Products industry, placing it in the top 11.9%.
Is Watts Water Technologies' ROE % too high?
Watts Water Technologies' current ROE % of 19.32% is 30% above median its 10-year median of 14.83. Over the past 10 years, this metric has ranged from a low of 9.34 to a high of 20.33. The Industrial Products industry median ROE % is 5.91. Watts Water Technologies' value of 19.32% is 226.9% above this industry median. Based on the distribution chart, Watts Water Technologies ranks #359 out of 3009 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. 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' ROE % compare to CR and GTLS?
According to the Industrial Products industry distribution chart, Watts Water Technologies ranks #359 out of 3009 companies for ROE %. This places Watts Water Technologies in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 5.91. Watts Water Technologies' value of 19.32% is 226.9% above this benchmark. Historically, Watts Water Technologies' own ROE % has ranged from 9.34 to 20.33 over the past decade. While the company's 10-year median is 14.83 vs. the industry median of 5.91, 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 ROE % for an Industrial Products company?
The median ROE % among Industrial Products companies is 5.91, based on 3,009 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watts Water Technologies's current ROE % of 19.32% is 226.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Watts Water Technologies and its competitors. For the Industrial Products industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watts Water Technologies's current ROE % is 19.32%, which is 30% above median its own 10-year median of 14.83. 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 ROE % is 19.32%, which is 30% above median its 10-year median of 14.83 and 226.9% above the Industrial Products industry median of 5.91. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Watts Water Technologies (WTS), the current ROE % is 19.32% 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:
ROE %: 19.32% (30% above median its 10-year median of 14.83)
GF Value™: $252.92 vs. price of $364.04 (43.9% above fair value)
Industry Position: 226.9% above the Industrial Products median (#359 of 3009)
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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