Watts Water Technologies, Inc. — Earnings Quality Grade D
WTS · Industrials
Significant concerns
Screening Summary
管理层信号
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 44 days, change +3 days YoY
AR growth 16.1% exceeds revenue growth 8.3%
Revenue 8.3%, CFFO 11.3%. Cash follows revenue
Expense Quality
Inventory growth 33.7% far exceeds COGS 3.6%, margin rising. Fraud signal
CapEx growth 29.5% is >2x revenue growth 8.3%
SG&A/Gross Profit = 60.9%. Normal
Gross margin 49.5%, change +2.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.18. Profits backed by cash
FCF $0.4B, FCF/NI = 1.05
Accruals ratio = -2.1%. Low accruals
Cash $0.4B covers debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $1.2B = 57% of equity. Over 50%
Debt/EBITDA = 0.4x. Healthy
Other assets grew 75.0% vs revenue 8.3%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 21% YoY. Normal
Manipulation Score
M-Score = -2.44 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25