Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Watts Water Technologies's 3-Year RORE % for the quarter that ended in Mar. 2026 was 12.77%.
The industry rank for Watts Water Technologies's 3-Year RORE % or its related term are showing as below:
WTS's 3-Year RORE % is ranked better than 58.87% of 2903
companies
in the Industrial Products industry
Industry Median: 5.18
vs WTS: 12.77
Watts Water Technologies (NYSE:WTS) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Watts Water Technologies 3-Year RORE % Related Terms
Watts Water Technologies 3-Year RORE % 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.
For the Specialty Industrial Machinery subindustry, Watts Water Technologies's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Watts Water Technologies's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Watts Water Technologies's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Watts Water Technologies (WTS) has a 3-Year RORE % of 12.77 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Watts Water Technologies and its competitors. According to the industry distribution chart, Watts Water Technologies ranks #1194 out of 2903 companies in the Industrial Products industry, placing it in the top 41.1%.
Is Watts Water Technologies' 3-Year RORE % too high?
Watts Water Technologies' current 3-Year RORE % is 12.77. The Industrial Products industry median 3-Year RORE % is 5.18. Watts Water Technologies' value of 12.77 is 146.5% above this industry median. Based on the distribution chart, Watts Water Technologies ranks #1194 out of 2903 companies in the Industrial Products industry, which is above the industry midpoint. 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' 3-Year RORE % compare to CR and GTLS?
According to the Industrial Products industry distribution chart, Watts Water Technologies ranks #1194 out of 2903 companies for 3-Year RORE %. This puts Watts Water Technologies in the upper half of its industry. The industry median 3-Year RORE % is 5.18. Watts Water Technologies' value of 12.77 is 146.5% 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 3-Year RORE % for an Industrial Products company?
The median 3-Year RORE % among Industrial Products companies is 5.18, based on 2,903 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watts Water Technologies's current 3-Year RORE % of 12.77 is 146.5% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Watts Water Technologies and its competitors. For the Industrial Products industry, the median 3-Year RORE % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watts Water Technologies's current 3-Year RORE % is 12.77. 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 $370.10 — trading 46.3% above its estimated fair value. The current 3-Year RORE % is 12.77 and 146.5% above the Industrial Products industry median of 5.18. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Watts Water Technologies (WTS), the current 3-Year RORE % is 12.77 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 $370.10 is trading 46.3% above its estimated GF Value™ of $252.92.
GuruFocus considers Watts Water Technologies to be Significantly Overvalued.
Key valuation signals for WTS:
3-Year RORE %: 12.77
GF Value™: $252.92 vs. price of $370.10 (46.3% above fair value)
Industry Position: 146.5% above the Industrial Products median (#1194 of 2903)
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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