<div id="readability-page-1"><div><ul> <li>Recent coverage highlighted that Watts Water Technologies has achieved 9.3% annualized revenue growth over the past five years, paired with an approximately 45.9% gross margin and 21.8% compound annual earnings per share growth, underscoring strong long-term financial performance up to now.</li> <li>This combination of above-industry revenue expansion, high gross margins and rapid earnings per share growth points to meaningful competitive strength and pricing power in Watts Water Technologies' business model.</li> <li>Next, we’ll examine how Watts Water Technologies’ rapid earnings per share growth shapes its existing investment narrative and future expectations.</li> </ul><p>Find companies with promising cash flow potential yet trading below their fair value.</p><h2>Watts Water Technologies Investment Narrative Recap</h2><p>To own Watts Water Technologies, you need to believe its combination of consistent growth, high margins and strong earnings per share can be sustained through cycles. The recent confirmation of 5‑year annualized revenue and EPS growth supports that thesis, but does not materially change the near term focus on how resilient demand and pricing will be if prior pull forward effects fade or Europe remains weak.</p> <p>The company’s raised full year 2025 guidance, calling for 7% to 8% sales growth and an 18.1% to 18.2% operating margin, ties closely to this story of profitable expansion. It reinforces the idea that Watts’ pricing power and product mix are currently offsetting tariff volatility and softer volumes in some regions, which remains an important test for the durability of its recent earnings performance.</p> <p>Yet against this strong track record, investors should be aware of how quickly margins could normalise if the recent price and cost tailwinds begin to...</p> <p>Read the full narrative on Watts Water Technologies (it's free!)</p><p>Watts Water Technologies’ narrative projects $2.6 billion revenue and $395.5 million earnings by 2028. This requires 4.8% yearly revenue growth and an earnings increase of about $83.9 million from $311.6 million today.</p><p>Uncover how Watts Water Technologies' forecasts yield a $292.50 fair value, a 6% upside to its current price.</p><h2>Exploring Other Perspectives</h2><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/bf9feb7e-99b2-4378-976a-57718e9fa29e/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/bf9feb7e-99b2-4378-976a-57718e9fa29e/chart/quote-price"/><figcaption>WTS 1-Year Stock Price Chart</figcaption></figure> <p>Three members of the Simply Wall St Community value Watts Water between US$225 and US$292.50, underscoring how far opinions can spread. You can weigh that diversity against the company’s reliance on continued pricing power to support its current earnings profile and decide which views best frame Watts’ long term potential.</p><p>Explore 3 other fair value estimates on Watts Water Technologies - why the stock might be worth as much as 6% more than the current price!</p><h2>Build Your Own Watts Water Technologies Narrative</h2><p>Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.</p><ul><li>A great starting point for your Watts Water Technologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.</li><li>Our free Watts Water Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Watts Water Technologies' overall financial health at a glance.</li></ul><h2>Ready To Venture Into Other Investment Styles?</h2><p>Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:</p><ul><li>The latest GPUs need a type of rare earth metal called Neodymium and there are only 37 companies in the world exploring or producing it. Find the list for free.</li><li>Uncover the next big thing with financially sound penny stocks that balance risk and reward.</li><li>AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.</li></ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

<p>Watts Water Technologies has shown strong financial performance with 9.3% annualized revenue growth and 21.8% EPS growth over five years. The company projects $2.6 billion revenue and $395.5 million earnings by 2028, requiring 4.8% yearly revenue growth. Its pricing power and product mix are key to sustaining profitability despite market challenges. The stock's fair value is estimated at $292.50, a 6% upside. Investors should consider the company's resilience and potential margin normalization.</p>

Rapid EPS Growth and High Margins Could Be A Game Changer For Watts Water (WTS)