Watts Water Technologies, Inc. cash flow to debt ratio of 203.34% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Watts Water Technologies, Inc.'s free cash flow has increased 9.36% from $325.80M last year to $356.30M, signaling increasing performance

Watts Water Technologies, Inc.'s debt to equity ratio is 0.05, which means that the company's assets are healthy financed, signaling financial stability.

Watts Water Technologies, Inc.'s debt has decreased relative to shareholder equity from 0.12 last year to 0.05 today, signaling strengthened financials

Watts Water Technologies, Inc. has a net cash position, so leverage is healthy.

Watts Water Technologies, Inc.'s interest coverage ratio of 50.50 indicates that earnings with good margin can cover interest payments on company debt

Watts Water Technologies, Inc.'s profit margin has increased (10.87%) in the last year from 12.93% to 14.34%, signaling increasing performance

Watts Water Technologies, Inc.'s short-term assets of $1.29B exceed its short-term liabilities of $512.40M

Watts Water Technologies, Inc.'s return on assets of 13.00% is higher than the 5.00% threshold, indicating efficient asset utilization

Watts Water Technologies, Inc.'s return on equity of 18.56%, is higher than 15.00%, indicating good performance

Watts Water Technologies, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Watts Water Technologies, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Watts Water Technologies, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Watts Water Technologies, Inc. has a free cash flow yield of 2.78%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Watts Water Technologies, Inc.'s yearly earnings has increased 17.03% since last year from $291.20M to $340.80M, signaling increasing performance

Watts Water Technologies, Inc.'s yearly revenue has increased 8.27% since last year from $2.25B to $2.44B, signaling increasing performance

ROIC 15.92% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Watts Water Technologies, Inc.'s 3-year revenue CAGR of 7.20% is positive, indicating growing revenue over the past 3 years

Watts Water Technologies, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Watts Water Technologies, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Watts Water Technologies, Inc. is overvalued relative to its fair value price of 195.94 based on Discounted Cash Flow model

Watts Water Technologies, Inc. has an earnings yield of 2.98%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Watts Water Technologies, Inc. is overvalued relative to its fair value price of 114.03 based on EBITDA multiple model

Watts Water Technologies, Inc. has an EV/EBITDA ratio of 24.58x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Watts Water Technologies, Inc. is overvalued relative to its fair value price of 230.43 based on Earnings Fair Value model

Watts Water Technologies, Inc. has a PEG-ratio over 1 which is considered overvalued

Watts Water Technologies, Inc. has a price-to-book ratio of 5.88x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Watts Water Technologies, Inc. has a price-to-sales ratio of 4.81x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue