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Watts CoTSE:2735 +1.12%55 5-Year Yield-on-Cost % is 2.80 as of Sep. 07, 2026, which is 2% above its 10-year median of 2.74. GuruFocus rates TSE:2735 with a GF Score™ of 55/100 and a GF Value™ of 円696.63 (Fairly Valued). The stock has 3 warning signs investors should review. Among 198 Retail - Defensive companies, Watts Co ranks worse than 60.1% on this metric.
Watts Co's yield on cost for the quarter that ended in Feb. 2026 was 2.80.
The historical rank and industry rank for Watts Co's 5-Year Yield-on-Cost % or its related term are showing as below:
TSE:2735'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.27 Med: 2.74 Max: 4.58
Current: 2.8
During the past 13 years, Watts Co's highest Yield on Cost was 4.58. The lowest was 1.27. And the median was 2.74.
TSE:2735's 5-Year Yield-on-Cost % is ranked worse than 60.1% of 198
companies
in the Retail - Defensive industry
Industry Median: 3.54
vs TSE:2735: 2.80
Watts Co (TSE:2735) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Watts Co 5-Year Yield-on-Cost % Related Terms
TSE:2735 vs KR: 5-Year Yield-on-Cost % Comparison
For the Grocery Stores subindustry, Watts Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 Co 5-Year Yield-on-Cost % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Watts Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Watts Co's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Watts Co is calculated as
Watts Co (TSE:2735) has a 5-Year Yield-on-Cost % of 2.80 as of Sep. 07, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Watts Co and its competitors. This is near median its historical median of 2.74. Over the past decade, Watts Co's 5-Year Yield-on-Cost % has ranged from 1.27 to 4.58. According to the industry distribution chart, Watts Co ranks #119 out of 198 companies in the Retail - Defensive industry, placing it in the top 60.1%.
Is Watts Co's 5-Year Yield-on-Cost % too high?
Watts Co's current 5-Year Yield-on-Cost % of 2.80 is near median its 10-year median of 2.74. Over the past 10 years, this metric has ranged from a low of 1.27 to a high of 4.58. The Retail - Defensive industry median 5-Year Yield-on-Cost % is 3.54. Watts Co's value of 2.80 is 20.9% below this industry median. Based on the distribution chart, Watts Co ranks #119 out of 198 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Watts Co has a GF Score™ of 55/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Watts Co's 5-Year Yield-on-Cost % compare to KR?
According to the Retail - Defensive industry distribution chart, Watts Co ranks #119 out of 198 companies for 5-Year Yield-on-Cost %. This places Watts Co in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.54. Watts Co's value of 2.80 is 20.9% below this benchmark. Historically, Watts Co's own 5-Year Yield-on-Cost % has ranged from 1.27 to 4.58 over the past decade. While the company's 10-year median is 2.74 vs. the industry median of 3.54, Watts Co has consistently been below 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 5-Year Yield-on-Cost % for a Retail - Defensive company?
The median 5-Year Yield-on-Cost % among Retail - Defensive companies is 3.54, based on 198 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watts Co's current 5-Year Yield-on-Cost % of 2.80 is 20.9% below 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 Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Watts Co and its competitors. For the Retail - Defensive industry, the median 5-Year Yield-on-Cost % is 3.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watts Co's current 5-Year Yield-on-Cost % is 2.80, which is near median its own 10-year median of 2.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watts Co stock overvalued right now?
Based on GuruFocus' analysis, Watts Co (TSE:2735) is currently considered Fairly Valued. The stock's GF Value™ is 円696.63, compared to a current price of 円724.00 — trading 3.9% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.80, which is near median its 10-year median of 2.74 and 20.9% below the Retail - Defensive industry median of 3.54. Watts Co's overall GF Score™ is 55/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Watts Co (TSE:2735), the current 5-Year Yield-on-Cost % is 2.80 as of Sep. 07, 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 Co (TSE:2735) Overvalued in 2026?
Based on GuruFocus' analysis, Watts Co stock appears to be overvalued.
The current stock price of 円724.00 is trading 3.9% above its estimated GF Value™ of 円696.63.
GuruFocus considers Watts Co to be Fairly Valued.
Key valuation signals for TSE:2735:
5-Year Yield-on-Cost %: 2.80 (near median its 10-year median of 2.74)
GF Value™: 円696.63 vs. price of 円724.00 (3.9% above fair value)
Industry Position: 20.9% below the Retail - Defensive median (#119 of 198)
No single metric tells the full story. See the TSE:2735 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watts Co Ltd is engaged in the wholesale of daily necessities, grocery and food products, and other goods. The company's product profile includes Sanitary goods, Cleaning sheet, Water supply equipment, Lunch supplies, and other related products.
55GF Score
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