Watts Water Technologies, Inc.
WTS Industrials Specialty Industrial Machinery
Watts Water Technologies, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $2.4 billion, up 8.27% from fiscal 2024. In the quarter to June 2026, revenue grew 18.6%, EPS grew 17.3%, free cash flow grew 54.0% and total debt fell 45.3%, each against the same quarter a year earlier. Dividend growth for twenty-five consecutive years, revenue growth for five, operating cash flow growth for three.
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Watts Water Technologies, Inc. (WTS) Altman Z-score
Watts Water Technologies, Inc.'s Altman Z-score for fiscal 2025 is 8.88, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 8.88 | 0.45 |
| FY2024 | 8.43 | 0.86 |
| FY2023 | 7.57 | 0.41 |
| FY2022 | 7.16 | (0.81) |
| FY2021 | 7.97 | 2.33 |
| FY2020 | 5.64 | 0.96 |
| FY2019 | 4.68 | 0.98 |
| FY2018 | 3.71 | 0.22 |
| FY2017 | 3.49 | 0.57 |
| FY2016 | 2.92 | 0.54 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.27 | — | 0.32 | |
| Retained earnings / total assets | 0.50 | — | 0.70 | |
| EBIT / total assets | 0.16 | — | 0.51 | |
| Market value of equity / total liabilities | 10.83 | — | 6.50 | |
| Sales / total assets | 0.85 | — | 0.85 | |
| Altman Z-score | Safe zone | 8.88 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 6.92 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| GGG Graco Inc. compare | 15.5× |
| WTS Watts Water Technologies, Inc. | 8.9× |
| AOS A. O. Smith Corporation compare | 8.3× |
| DCI Donaldson Company, Inc. compare | 5.7× |
| PNR Pentair plc compare | 5.1× |
| IEX IDEX Corporation compare | 4.7× |
| FLS Flowserve Corporation compare | 4.0× |
| GNRC Generac Holdings Inc. compare | 3.6× |
| RRX Regal Rexnord Corporation compare | 1.7× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets