WWTSWatts Water Technologies, Inc.

Watts Water makes valves, regulators and safety fittings for building water systems.

The products are invisible and obligatory: backflow preventers, safety fittings, mixing valves. Requirements for them are written into building codes, the product is certified for a specific application, and the designer specifies it in the drawings — hence a supplier position that holds.

Demand splits between new construction and replacement in existing buildings, and the second is larger and steadier: a leak is fixed in any economic weather. The growing line is smart valves that shut off water on a leak, and equipment for heat pumps. Risks: the construction cycle, brass and copper prices. A dividend is paid and raised.