WATTS WATER TECHNOLOGIES Reports Earnings for FY2022 Q4, Ending December 31 2022
February 22, 2023
Earnings Overview
For their fourth quarter ending December 31 2022, WATTS WATER TECHNOLOGIES ($NYSE:WTS) reported total revenue of USD 68.6 million, a noteworthy 71.1% year-over-year increase. Additionally, the company’s net income rose to USD 501.9 million, a 5.9% increase compared to the same period in the prior year. The results were revealed on February 8 2023.
Transcripts Simplified
Watts Water Technologies reported fourth quarter results with sales of $502 million, a 6% increase on a reported basis and 11% organic growth. Adjusted operating profit was $72 million, a 12% increase, with an adjusted operating margin of 14.3%, up 90 basis points. Adjusted earnings per share rose 13% to $1.60.
The Americas had a solid fourth quarter with organic sales up 11%, driven by strong price realization while Europe had organic sales growth of 9%, mainly driven by price. APMEA sales grew organically by 17%.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for WTS. More…
| Total Revenues | Net Income | Net Margin |
| 1.98k | 251.5 | 13.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for WTS. More…
| Operations | Investing | Financing |
| 224 | -22.9 | -121.7 |
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 |
| 1.93k | 630.3 | 39.09 |
Key Ratios Snapshot
Some of the financial key ratios for WTS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.3% | 17.1% | 15.9% |
| FCF Margin | ROE | ROA |
| 9.9% | 15.7% | 10.2% |
Stock Price
On Wednesday, WATTS WATER TECHNOLOGIES reported its earnings for FY2022 Q4, ending December 31 2022. After the market opened, WATTS WATER TECHNOLOGIES stock opened at a price of $169.8. By the end of the day, however, the stock had fallen by 1.8%, closing at $168.8 compared to the prior closing price of $171.8. This dip in the share price could indicate a slight lack of confidence from investors in the company’s future performance. It remains to be seen how the stock will fare in the coming quarter.
Prior to this report, WATTS WATER TECHNOLOGIES had seen a significant year-on-year increase in net income, which likely helped buoy investor optimism. Whether or not such optimism will persist in the wake of its latest report is yet to be determined. With an established history in the water technologies industry, WATTS WATER TECHNOLOGIES is well-positioned to experience further growth in the future if it can maintain its current trajectory. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis on WATTS WATER TECHNOLOGIES’s wellbeing. The results of our Risk Rating showed that it is a medium risk investment in terms of financial and business aspects. That being said, there are potential risks which may be worth looking into further. We highly recommend that you register with us if you are interested in assessing the business and financial areas more thoroughly. We will provide you with more insight into the areas of risk and how to mitigate them. We believe that understanding and addressing these risks is essential to ensure a successful and profitable investment in WATTS WATER TECHNOLOGIES. More…
Peers
The company has a strong presence in North America, Europe, and Asia-Pacific. Its main competitors are Mueller Water Products, Inc., Sanchuan Wisdom Technology Co Ltd, and Quest Water Global Inc.
– Mueller Water Products, Inc. ($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
The fourth quarter of FY2022 for WATTS WATER TECHNOLOGIES saw a substantial 71.1% increase in revenue compared to the same quarter of the prior year, totaling USD 68.6 million. Net income also rose by 5.9% year-over-year to USD 501.9 million. These positive financial figures appear to suggest that the company is performing well and is a good investment opportunity. Additionally, investors should consider the company’s outlook and research the competitive landscape to ensure they are making a sound investment decision.
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