5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Watts Water Technologies's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 26.68%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Watts Water Technologies's 5-Year ROIIC % or its related term are showing as below:
MEX:WTS's 5-Year ROIIC % is ranked better than 83.09% of 2785
companies
in the Industrial Products industry
Industry Median: 4.52
vs MEX:WTS: 26.68
Watts Water Technologies (MEX:WTS) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Watts Water Technologies 5-Year ROIIC % Related Terms
Watts Water Technologies 5-Year ROIIC % 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.
MEX:WTS vs PNR, CR, GGG: 5-Year ROIIC % Comparison
For the Specialty Industrial Machinery subindustry, Watts Water Technologies's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Watts Water Technologies's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Watts Water Technologies's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Watts Water Technologies (MEX:WTS) has a 5-Year ROIIC % of 26.68 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Watts Water Technologies and its competitors. According to the industry distribution chart, Watts Water Technologies ranks #471 out of 2785 companies in the Industrial Products industry, placing it in the top 16.9%.
Is Watts Water Technologies' 5-Year ROIIC % too high?
Watts Water Technologies' current 5-Year ROIIC % is 26.68. The Industrial Products industry median 5-Year ROIIC % is 4.52. Watts Water Technologies' value of 26.68 is 490.3% above this industry median. Based on the distribution chart, Watts Water Technologies ranks #471 out of 2785 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 93/100, reflecting its overall financial health beyond just this single metric.
How does Watts Water Technologies' 5-Year ROIIC % compare to PNR and CR?
According to the Industrial Products industry distribution chart, Watts Water Technologies ranks #471 out of 2785 companies for 5-Year ROIIC %. This places Watts Water Technologies in the top 17% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 4.52. Watts Water Technologies' value of 26.68 is 490.3% 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 5-Year ROIIC % for an Industrial Products company?
The median 5-Year ROIIC % among Industrial Products companies is 4.52, based on 2,785 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watts Water Technologies's current 5-Year ROIIC % of 26.68 is 490.3% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Watts Water Technologies and its competitors. For the Industrial Products industry, the median 5-Year ROIIC % is 4.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watts Water Technologies's current 5-Year ROIIC % is 26.68. 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?
Watts Water Technologies (MEX:WTS) has a current 5-Year ROIIC % of 26.68. The stock's GF Value™ is MXN3,789.51, compared to a current price of MXN5,253.46 — trading 38.6% above its estimated fair value. The current 5-Year ROIIC % is 26.68 and 490.3% above the Industrial Products industry median of 4.52. Watts Water Technologies' overall GF Score™ is 93/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Watts Water Technologies (MEX:WTS), the current 5-Year ROIIC % is 26.68 as of Dec. 2025. 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 MXN5,253.46 is trading 38.6% above its estimated GF Value™ of MXN3,789.51.
Key valuation signals for MEX:WTS:
5-Year ROIIC %: 26.68
GF Value™: MXN3,789.51 vs. price of MXN5,253.46 (38.6% above fair value)
Industry Position: 490.3% above the Industrial Products median (#471 of 2785)
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.
93GF Score
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