WTSWATTS WATER TECHNOLOGIES INC

Miscellaneous Fabricated Metal Products

Revenue: $2.4B; 8.3% YoY
Operating margin: 18.4%; 6.0% YoY
EBITDA: $505M; 14% YoY
Market cap: $11.6B
Employees: 5,700; $428K revenue each
Net debt / EBITDA: -0.3×; −$148M net debt
AI in 10-K: 1.6; mentions per 10K words

Takeover score 2 of 13

Fixable underperformance 0 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
118% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
4% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
29% of assets
Over 40% of assets
Shareholder dissentNo
86% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$428K · 59th pct
Bottom quartile of its SIC industry
Quiet on AINo
1.6 per 10K words · 47th pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 0.3× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedNo
$11.6B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$17M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$1.8B	$2.0B	$2.1B	$2.3B	$2.4B	8.3%
Operating income	$240M	$315M	$351M	$390M	$448M	15%
Net income	$166M	$252M	$262M	$291M	$341M	17%
Operating cash flow	$181M	$224M	$311M	$361M	$402M	11%
Capex	$27M	$28M	$30M	$35M	$46M	29%
Stock-based comp	$23M	$18M	$20M	$20M	$21M	8.7%
Buybacks	$16M	$69M	$16M	$17M	$16M	5.9%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
May 24, 2019	GAMCO INVESTORS, INC. ET AL	SC 13D/A	5.7%	Passive

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $17M · 23
Net: −$17M

Pay vs performance

No pay-versus-performance disclosure yet.