WATTS WATER TECHNOLOGIES Reports Fourth Quarter Fiscal Year 2022 Earnings Results on December 31, 2022

Earnings Overview

WATTS WATER TECHNOLOGIES ($NYSE:WTS) released its fiscal year 2022 fourth quarter earnings results on December 31, 2022, showcasing a total revenue of USD 68.6 million – a growth of 71.1% compared to the same quarter in the previous year. Net income also increased by 5.9% year-over-year to USD 501.9 million.

Transcripts Simplified

Q4 2021 results saw sales at $502 million, up 6% reported and 11% organically. Adjusted operating profit was $72 million, a 12% increase and an adjusted operating margin of 14.3%, up 90 basis points year-over-year. Earnings per share of $1.60 grew 13%. The Americas saw organic sales growth of 11%, driven by strong price realization.

Europe saw organic sales growth of 9% and operating margins decline by 320 basis points. APMEA sales grew organically by 17%.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for WTS. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for WTS. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for WTS. More…

Key Ratios Snapshot

Some of the financial key ratios for WTS are shown below. More…

Price History

The company opened the day at $169.8, but closed the day at $168.8, a 1.8% decline from its previous closing price of 171.8. The company engaged in activities such as product launches, cost-cutting measures, and strategic partnerships during the fourth quarter which helped contribute to its overall financial performance. WATTS WATER TECHNOLOGIES also revealed plans to invest in advanced technologies such as robotics and automation that will help improve their products and services. These investments have been part of WATTS WATER TECHNOLOGIES strategy to remain competitive and maintain its leadership position in the water industry. The company is also looking to grow its customer base by expanding into new markets and developing more efficient and cost-effective solutions for their clients.

WATTS WATER TECHNOLOGIES has been very successful in its strategies so far and the fourth quarter results are a testament to its success. With this trend expected to continue in the future, investors can remain confident that the company will continue to succeed in delivering quality products and services. Live Quote…

Analysis

At GoodWhale, we have conducted a comprehensive analysis of WATTS WATER TECHNOLOGIES’ wellbeing. Our findings show that WATTS WATER TECHNOLOGIES is strong in both assets, dividends, growth, and profitability. This can be seen through its high health score of 10/10 with regards to its cashflows and debt, which indicates that the company is capable of sustaining operations even during difficult times. Furthermore, WATTS WATER TECHNOLOGIES is classified as a ‘gorilla’ company, meaning that it has been able to achieve strong and stable revenue or earnings growth due to its competitive advantage. This makes WATTS WATER TECHNOLOGIES an attractive option for investors who are seeking a reliable portfolio addition. The company’s robust competitive edge allows it to stand firm against economic downturns and other obstacles that may otherwise threaten their success. Thus, investors who are looking for a safe investment with a high rate of return may be interested in what WATTS WATER TECHNOLOGIES has to offer. 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 ended their fiscal year 2022 with strong quarterly results. Total revenue for the fourth quarter was USD 68.6 million, a 71.1% year-over-year increase. Net income rose 5.9% to USD 501.9 million.

Investing in WATTS WATER TECHNOLOGIES is a sound decision, given the company’s ability to generate healthy returns in the face of adverse economic conditions. Furthermore, their consistent growth indicates they are well-positioned to further advance their market presence in the future.