WATERS CORP (WAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAT - US9418481035 - Common Stock
392.75 USD
-2.06 (-0.52%)
392.75 USD
0 (0%)
Taking everything into account, WAT scores 6 out of 10 in our fundamental rating. WAT was compared to 57 industry peers in the Life Sciences Tools & Services industry. Both the health and profitability get an excellent rating, making WAT a very profitable company, without any liquidiy or solvency issues. WAT has a decent growth rate and is not valued too expensively. These ratings could make WAT a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year WAT was profitable.
WAT had a positive operating cash flow in the past year.
Each year in the past 5 years WAT has been profitable.
Each year in the past 5 years WAT had a positive operating cash flow.
1.2 Ratios
WAT has a better Return On Assets (13.34%) than 94.74% of its industry peers.
WAT's Return On Equity of 27.84% is amongst the best of the industry. WAT outperforms 92.98% of its industry peers.
WAT's Return On Invested Capital of 19.60% is amongst the best of the industry. WAT outperforms 92.98% of its industry peers.
WAT had an Average Return On Invested Capital over the past 3 years of 22.94%. This is significantly above the industry average of 13.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.34% | ||
| ROE | 27.84% | ||
| ROIC | 19.6% |
ROA(3y)16.49%
ROA(5y)18.04%
ROE(3y)77%
ROE(5y)128.85%
ROIC(3y)22.94%
ROIC(5y)25.43%
1.3 Margins
The Profit Margin of WAT (20.89%) is better than 96.49% of its industry peers.
In the last couple of years the Profit Margin of WAT has declined.
WAT's Operating Margin of 26.54% is amongst the best of the industry. WAT outperforms 94.74% of its industry peers.
WAT's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 58.96%, WAT is in the better half of the industry, outperforming 75.44% of the companies in the same industry.
WAT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.54% | ||
| PM (TTM) | 20.89% | ||
| GM | 58.96% |
OM growth 3Y-1.6%
OM growth 5Y-0.88%
PM growth 3Y-4.65%
PM growth 5Y-2.61%
GM growth 3Y0.51%
GM growth 5Y0.43%
2. Health
2.1 Basic Checks
WAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
WAT has more shares outstanding than it did 1 year ago.
WAT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WAT has been reduced compared to a year ago.
2.2 Solvency
WAT has an Altman-Z score of 9.84. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
WAT has a better Altman-Z score (9.84) than 89.47% of its industry peers.
The Debt to FCF ratio of WAT is 2.34, which is a good value as it means it would take WAT, 2.34 years of fcf income to pay off all of its debts.
WAT's Debt to FCF ratio of 2.34 is amongst the best of the industry. WAT outperforms 85.96% of its industry peers.
WAT has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.41, WAT is in line with its industry, outperforming 42.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 9.84 |
ROIC/WACC1.9
WACC10.34%
2.3 Liquidity
A Current Ratio of 1.53 indicates that WAT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.53, WAT is not doing good in the industry: 71.93% of the companies in the same industry are doing better.
A Quick Ratio of 1.08 indicates that WAT should not have too much problems paying its short term obligations.
WAT has a Quick ratio of 1.08. This is in the lower half of the industry: WAT underperforms 77.19% of its industry peers.
WAT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.50% over the past year.
WAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
WAT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.90%.
WAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
EPS 1Y (TTM)11.5%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%16.04%
Revenue 1Y (TTM)6.9%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.05%
3.2 Future
Based on estimates for the next years, WAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.36% on average per year.
WAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.46% yearly.
EPS Next Y11.58%
EPS Next 2Y10.28%
EPS Next 3Y10.34%
EPS Next 5Y10.36%
Revenue Next Year7.43%
Revenue Next 2Y6.88%
Revenue Next 3Y6.7%
Revenue Next 5Y6.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WAT is valuated quite expensively with a Price/Earnings ratio of 30.93.
Based on the Price/Earnings ratio, WAT is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WAT to the average of the S&P500 Index (26.34), we can say WAT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 27.20, the valuation of WAT can be described as expensive.
71.93% of the companies in the same industry are more expensive than WAT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WAT to the average of the S&P500 Index (23.56), we can say WAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.93 | ||
| Fwd PE | 27.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WAT is valued a bit cheaper than the industry average as 70.18% of the companies are valued more expensively.
WAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WAT is cheaper than 64.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.82 | ||
| EV/EBITDA | 23.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WAT does not grow enough to justify the current Price/Earnings ratio.
WAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.67
PEG (5Y)5.59
EPS Next 2Y10.28%
EPS Next 3Y10.34%
5. Dividend
5.1 Amount
No dividends for WAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
392.75
-2.06 (-0.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.12%
Inst Owner Change0%
Ins Owners0.12%
Ins Owner Change0.1%
Market Cap23.38B
Revenue(TTM)3.11B
Net Income(TTM)648.81M
Analysts73.33
Price Target401.36 (2.19%)
Short Float %3.86%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.14%
Min EPS beat(2)-0.8%
Max EPS beat(2)5.07%
EPS beat(4)3
Avg EPS beat(4)1.32%
Min EPS beat(4)-0.8%
Max EPS beat(4)5.07%
EPS beat(8)7
Avg EPS beat(8)2.54%
EPS beat(12)10
Avg EPS beat(12)2.85%
EPS beat(16)14
Avg EPS beat(16)3.89%
Revenue beat(2)2
Avg Revenue beat(2)1.71%
Min Revenue beat(2)1.4%
Max Revenue beat(2)2.01%
Revenue beat(4)4
Avg Revenue beat(4)1.07%
Min Revenue beat(4)0.06%
Max Revenue beat(4)2.01%
Revenue beat(8)6
Avg Revenue beat(8)0.75%
Revenue beat(12)7
Avg Revenue beat(12)0.2%
Revenue beat(16)11
Avg Revenue beat(16)0.91%
PT rev (1m)9.13%
PT rev (3m)10.59%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)0.96%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.93 | ||
| Fwd PE | 27.2 | ||
| P/S | 7.53 | ||
| P/FCF | 38.82 | ||
| P/OCF | 32.11 | ||
| P/B | 10.03 | ||
| P/tB | 55.46 | ||
| EV/EBITDA | 23.7 |
EPS(TTM)12.7
EY3.23%
EPS(NY)14.44
Fwd EY3.68%
FCF(TTM)10.12
FCFY2.58%
OCF(TTM)12.23
OCFY3.11%
SpS52.17
BVpS39.15
TBVpS7.08
PEG (NY)2.67
PEG (5Y)5.59
Graham Number105.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.34% | ||
| ROE | 27.84% | ||
| ROCE | 22.83% | ||
| ROIC | 19.6% | ||
| ROICexc | 22.45% | ||
| ROICexgc | 56.94% | ||
| OM | 26.54% | ||
| PM (TTM) | 20.89% | ||
| GM | 58.96% | ||
| FCFM | 19.39% |
ROA(3y)16.49%
ROA(5y)18.04%
ROE(3y)77%
ROE(5y)128.85%
ROIC(3y)22.94%
ROIC(5y)25.43%
ROICexc(3y)26.72%
ROICexc(5y)31.12%
ROICexgc(3y)50.26%
ROICexgc(5y)55.59%
ROCE(3y)26.72%
ROCE(5y)29.62%
ROICexgc growth 3Y-9.19%
ROICexgc growth 5Y-5.06%
ROICexc growth 3Y-18.41%
ROICexc growth 5Y-11.04%
OM growth 3Y-1.6%
OM growth 5Y-0.88%
PM growth 3Y-4.65%
PM growth 5Y-2.61%
GM growth 3Y0.51%
GM growth 5Y0.43%
F-Score4
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.34 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 62.23% | ||
| Cap/Sales | 4.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.93% | ||
| Profit Quality | 92.83% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 9.84 |
F-Score4
WACC10.34%
ROIC/WACC1.9
Cap/Depr(3y)103.92%
Cap/Depr(5y)115.41%
Cap/Sales(3y)5.47%
Cap/Sales(5y)5.95%
Profit Quality(3y)75.5%
Profit Quality(5y)85.71%
High Growth Momentum
Growth
EPS 1Y (TTM)11.5%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%16.04%
EPS Next Y11.58%
EPS Next 2Y10.28%
EPS Next 3Y10.34%
EPS Next 5Y10.36%
Revenue 1Y (TTM)6.9%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.05%
Revenue Next Year7.43%
Revenue Next 2Y6.88%
Revenue Next 3Y6.7%
Revenue Next 5Y6.46%
EBIT growth 1Y-2.9%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year25.2%
EBIT Next 3Y15.82%
EBIT Next 5Y11.27%
FCF growth 1Y54.36%
FCF growth 3Y2.29%
FCF growth 5Y5.27%
OCF growth 1Y27.43%
OCF growth 3Y0.66%
OCF growth 5Y3.45%
WATERS CORP / WAT FAQ
Can you provide the ChartMill fundamental rating for WATERS CORP?
ChartMill assigns a fundamental rating of 6 / 10 to WAT.
What is the valuation status of WATERS CORP (WAT) stock?
ChartMill assigns a valuation rating of 4 / 10 to WATERS CORP (WAT). This can be considered as Fairly Valued.
Can you provide the profitability details for WATERS CORP?
WATERS CORP (WAT) has a profitability rating of 8 / 10.
How financially healthy is WATERS CORP?
The financial health rating of WATERS CORP (WAT) is 7 / 10.