Is WATTS WATER TECHNOLOGIES INC (WTS) Halal?

NYSE Industrials United States $9.6B
✓ HALAL
Confidence: 95/100
WATTS WATER TECHNOLOGIES INC (WTS) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 1.9% against the AAOIFI threshold of 30%, WATTS WATER TECHNOLOGIES INC comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Specialty Industrial Machinery), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1.9%
/ 30%
4.0%
/ 30%
2.9%
/ 30%
0.4%
/ 5%
✓ HALAL
DJIM 1.9%
/ 33%
4.0%
/ 33%
2.9%
/ 33%
0.4%
/ 5%
✓ HALAL
MSCI 6.9%
/ 33%
14.1%
/ 33%
10.2%
/ 33%
0.4%
/ 5%
✓ HALAL
S&P 1.9%
/ 33%
4.0%
/ 33%
2.9%
/ 33%
0.4%
/ 5%
✓ HALAL
FTSE 6.9%
/ 33%
14.1%
/ 33%
10.2%
/ 50%
0.4%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
28.2
Forward: 22.5
EPS
$10.16
Dividend Yield
72.0%
Payout: 19.6%
P/B Ratio
4.7
EV/EBITDA
17.9
EV: $9.5B
Revenue
$2.4B
Growth: 15.7%
Beta
1.2
High volatility
Current Ratio
2.5

Profitability

Gross Margin 49.5%
Operating Margin 18.4%
Net Margin 14.0%
Return on Equity (ROE) 18.2%
Return on Assets (ROA) 11.2%

Cash Flow & Balance Sheet

Operating Cash Flow$402M
Free Cash Flow$356M
Total Debt$198M
Debt-to-Equity14.4
Current Ratio2.5
Total Assets$2.9B

Price & Trading

Last Close$290.30
50-Day MA$309.03
200-Day MA$279.99
Avg Volume187K
Beta1.2
52-Week Range
$177.59
$345.17

About WATTS WATER TECHNOLOGIES INC (WTS)

CEO
Mr. Robert J. Pagano Jr., C.M.A., CPA
Employees
5,700
Sector
Industrials
Industry
Specialty Industrial Machinery
Country
United States
Exchange
NYSE
Market Cap
$9.6B
Currency
USD

Watts Water Technologies, Inc., together with its subsidiaries, supplies products and solutions that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial, industrial, and residential markets. The company offers residential and commercial flow control and protection products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak detection and protection products, commercial washroom solutions, hydration solutions, and emergency safety products and equipment for plumbing and hot water applications. It also provides heating, ventilation, and air conditioning and gas products comprising commercial, institutional, and industrial boilers; water heaters and heating solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless-steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, the company offers drainage and water re-use products, such as drainage products, engineered rainwater harvesting solutions for commercial, industrial, marine, and residential applications; connected roof drain systems; and water quality products, including point-of-use and point-of-entry, closed loop, cooling tower, and other water applications for commercial, marine, and residential applications. It sells its products to plumbing, heating, and mechanical wholesale distributors and dealers; original equipment manufacturers; specialty product distributors; and do-it-yourself and retail chains, as well as wholesalers and private label accounts in the Americas, Europe, Asia-Pacific, Middle East, and Africa. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.

Purification Calculator

As a halal stock with 0.40% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is WATTS WATER TECHNOLOGIES INC (WTS) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), WATTS WATER TECHNOLOGIES INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is WATTS WATER TECHNOLOGIES INC's debt ratio?

WATTS WATER TECHNOLOGIES INC's debt ratio is 1.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 6.9%.

Does WATTS WATER TECHNOLOGIES INC require dividend purification?

Yes, WATTS WATER TECHNOLOGIES INC has an impermissible income ratio of 0.40%, which means 0.40% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are WATTS WATER TECHNOLOGIES INC's key financial metrics?

WATTS WATER TECHNOLOGIES INC has a market capitalization of $9.6B, trailing P/E ratio of 28.2, and revenue of $2.4B. The company maintains a gross margin of 49.5% and a net margin of 14.0%. Return on equity stands at 18.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.