Watts Water Technologies Acquisition of Josam Company to Spur Expansion
December 19, 2023
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Watts Water Technologies ($NYSE:WTS), a leading manufacturer of water safety, flow control, and water quality products, has recently acquired the Josam Company to enhance their growth prospects. Watts Water Technologies provides a comprehensive line of products for both residential and commercial applications, ranging from backflow preventers and pressure regulators to complex water filtration systems. The acquisition of Josam Company, a global leader in the production of sewer and drain cleaning equipment, will further strengthen Watts Water Technologies’ position as a leading provider of water safety and flow control solutions. WATTS WATER TECHNOLOGIES is a publicly traded company, specializing in water technology and engineering solutions. Established over a century ago, Watts Water Technologies has grown to become a global leader in providing water safety and flow control solutions for residential, commercial and industrial applications. The company operates in several countries across the world, serving customers in a variety of industries including general plumbing, HVAC, fire protection and waterworks.
Their core product lines include flow control and water safety products, such as backflow preventers, pressure regulator valves, thermostatic mixing valves, and other products designed to protect the safety of water systems. The acquisition of Josam Company by Watts Water Technologies will further strengthen the company’s growth trajectory. The acquisition will provide Watts Water Technologies with access to a wide range of sewer and drain cleaning products, including industrial-strength solids handling products. By incorporating these products into its product line, Watts Water Technologies hopes to expand its customer base and improve its competitive position in the marketplace. This acquisition is expected to provide a boost to the company’s top-line growth as they introduce their enhanced product range worldwide.
Stock Price
On Wednesday, Watts Water Technologies made a major strategic move to expand its presence in the water technology and plumbing systems sector, announcing its acquisition of Josam Company. This acquisition is expected to significantly bolster the product portfolio and capabilities of Watts Water Technologies, allowing them to further their reach in the industry. The news of the acquisition pushed the stock price of Watts Water Technologies up from the previous day’s closing price of $198.4 to a closing price of $201.3 on Wednesday, representing a 1.5% increase. Investors are optimistic about the potential benefits that the acquisition could bring, and are expecting a strong performance from Watts Water Technologies in the coming months as they move ahead with their expansion plans. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for WTS. More…
| Total Revenues | Net Income | Net Margin |
| 2.01k | 275 | 13.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for WTS. More…
| Operations | Investing | Financing |
| 338.6 | -34.7 | -166.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for WTS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.02k | 565.6 | 43.56 |
Key Ratios Snapshot
Some of the financial key ratios for WTS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.1% | 22.9% | 17.1% |
| FCF Margin | ROE | ROA |
| 15.5% | 15.0% | 10.6% |
Analysis
GoodWhale has conducted an analysis of the fundamentals of WATTS WATER TECHNOLOGIES, using the Star Chart to assess the company’s health. The results show that WATTS WATER TECHNOLOGIES has a very high health score of 10/10, indicating that it is well-positioned to sustain operations in times of crisis. Our assessment also reveals that WATTS WATER TECHNOLOGIES is particularly strong in terms of assets, dividends and profitability, and medium in terms of growth. We classify WATTS WATER TECHNOLOGIES as a ‘gorilla’, a type of company which has achieved stable and high revenue or earnings growth due to its strong competitive advantage. As such, investors who are looking for a company with a strong and resilient business model that can provide a steady return may be interested in WATTS WATER TECHNOLOGIES. They may also be drawn to the company’s solid fundamentals and positive outlook for future growth. More…
Peers
The company has a strong presence in North America, Europe, and Asia-Pacific. Its main competitors are Mueller Water Products, Inc., Sanchuan Wisdom Technology Co Ltd, and Quest Water Global Inc.
– Mueller Water Products, Inc. ($NYSE:MWA)
Mueller Water Products, Inc. is a manufacturer and marketer of water infrastructure and flow control products in the United States. The Company’s products include valves, hydrants, pipe fittings, pipe, meters and controls, and other products. Mueller Water Products, Inc. has a market cap of 1.78B as of 2022 and a Return on Equity of 10.51%. The company’s products are used in the water distribution systems of municipalities and water and wastewater utilities.
– Sanchuan Wisdom Technology Co Ltd ($SZSE:300066)
Sanchuan Wisdom Technology Co Ltd is a Chinese company that specializes in providing technology solutions for the automotive industry. The company has a market capitalization of 5.72 billion as of 2022 and a return on equity of 5.98%. Sanchuan Wisdom Technology Co Ltd is headquartered in Beijing, China.
– Quest Water Global Inc ($OTCPK:QWTR)
Return on equity is a key metric used to assess a company’s profitability. It measures how much profit a company generates for every dollar of shareholder equity. A higher ROE means that a company is more profitable and is generating more return for its shareholders.
Wabtec Corporation is a publicly traded company that provides technology products and services for the rail industry. The company has a market cap of 12.93M and a return on equity of 9.24%. Wabtec’s products and services are used by railroads around the world to improve safety, efficiency and productivity.
Summary
Watts Water Technologies, Inc. is making a significant move to bolster its growth with the acquisition of Josam Company, a major manufacturer of long-lasting drainage systems, roof drains, and specialty products. From an investing perspective, this move should strengthen Watts Water Technologies’s competitive position as a leading global provider of plumbing and water quality solutions. The company has a strong balance sheet and ample liquidity to fund the acquisition, making it a safe bet for investors. Overall, the acquisition is a great move for Watts Water Technologies that should drive improved financial performance and shareholder value in the long run.
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