Logo image of WAT

WATERS CORP (WAT) Stock Fundamental Analysis

NYSE:WAT - New York Stock Exchange, Inc. - US9418481035 - Common Stock - Currency: USD

419.18  +15.01 (+3.71%)

Fundamental Rating

6

WAT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 57 industry peers in the Life Sciences Tools & Services industry. While WAT has a great profitability rating, there are some minor concerns on its financial health. WAT has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

Quickly go to:

9

1. Profitability

1.1 Basic Checks

In the past year WAT was profitable.
WAT had a positive operating cash flow in the past year.
WAT had positive earnings in each of the past 5 years.
In the past 5 years WAT always reported a positive cash flow from operatings.
WAT Yearly Net Income VS EBIT VS OCF VS FCFWAT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

1.2 Ratios

Looking at the Return On Assets, with a value of 13.80%, WAT belongs to the top of the industry, outperforming 96.49% of the companies in the same industry.
WAT's Return On Equity of 38.84% is amongst the best of the industry. WAT outperforms 98.25% of its industry peers.
The Return On Invested Capital of WAT (19.72%) is better than 96.49% of its industry peers.
WAT had an Average Return On Invested Capital over the past 3 years of 26.39%. This is significantly above the industry average of 9.61%.
The last Return On Invested Capital (19.72%) for WAT is well below the 3 year average (26.39%), which needs to be investigated, but indicates that WAT had better years and this may not be a problem.
Industry RankSector Rank
ROA 13.8%
ROE 38.84%
ROIC 19.72%
ROA(3y)19.28%
ROA(5y)19.87%
ROE(3y)128.21%
ROE(5y)N/A
ROIC(3y)26.39%
ROIC(5y)27.83%
WAT Yearly ROA, ROE, ROICWAT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200 -200

1.3 Margins

WAT has a Profit Margin of 21.43%. This is amongst the best in the industry. WAT outperforms 100.00% of its industry peers.
WAT's Profit Margin has declined in the last couple of years.
WAT has a Operating Margin of 29.22%. This is amongst the best in the industry. WAT outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of WAT has remained more or less at the same level.
Looking at the Gross Margin, with a value of 59.73%, WAT belongs to the top of the industry, outperforming 85.96% of the companies in the same industry.
WAT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 29.22%
PM (TTM) 21.43%
GM 59.73%
OM growth 3Y0.09%
OM growth 5Y-1.23%
PM growth 3Y-0.5%
PM growth 5Y-2.41%
GM growth 3Y1.15%
GM growth 5Y0.1%
WAT Yearly Profit, Operating, Gross MarginsWAT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40 50

More info and screens

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WAT is creating value.
WAT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, WAT has less shares outstanding
The debt/assets ratio for WAT is higher compared to a year ago.
WAT Yearly Shares OutstandingWAT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
WAT Yearly Total Debt VS Total AssetsWAT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 9.40 indicates that WAT is not in any danger for bankruptcy at the moment.
WAT has a better Altman-Z score (9.40) than 91.23% of its industry peers.
The Debt to FCF ratio of WAT is 2.94, which is a good value as it means it would take WAT, 2.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WAT (2.94) is better than 82.46% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that WAT has dependencies on debt financing.
The Debt to Equity ratio of WAT (1.14) is worse than 77.19% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.14
Debt/FCF 2.94
Altman-Z 9.4
ROIC/WACC1.93
WACC10.2%
WAT Yearly LT Debt VS Equity VS FCFWAT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

WAT has a Current Ratio of 2.02. This indicates that WAT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WAT (2.02) is worse than 66.67% of its industry peers.
WAT has a Quick Ratio of 1.38. This is a normal value and indicates that WAT is financially healthy and should not expect problems in meeting its short term obligations.
WAT's Quick ratio of 1.38 is on the low side compared to the rest of the industry. WAT is outperformed by 63.16% of its industry peers.
Industry RankSector Rank
Current Ratio 2.02
Quick Ratio 1.38
WAT Yearly Current Assets VS Current LiabilitesWAT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

More info and screens

3

3. Growth

3.1 Past

The earnings per share for WAT have decreased by -4.85% in the last year.
WAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.12% yearly.
Looking at the last year, WAT shows a decrease in Revenue. The Revenue has decreased by -3.01% in the last year.
The Revenue has been growing slightly by 4.09% on average over the past years.
EPS 1Y (TTM)-4.85%
EPS 3Y9.05%
EPS 5Y7.12%
EPS Q2Q%3.17%
Revenue 1Y (TTM)-3.01%
Revenue growth 3Y7.72%
Revenue growth 5Y4.09%
Sales Q2Q%4.02%

3.2 Future

WAT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.89% yearly.
WAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.41% yearly.
EPS Next Y1.44%
EPS Next 2Y5.44%
EPS Next 3Y6.99%
EPS Next 5Y7.89%
Revenue Next Year-0.37%
Revenue Next 2Y2.52%
Revenue Next 3Y3.69%
Revenue Next 5Y4.41%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
WAT Yearly Revenue VS EstimatesWAT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
WAT Yearly EPS VS EstimatesWAT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15

More info and screens

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 36.80, the valuation of WAT can be described as expensive.
WAT's Price/Earnings ratio is a bit cheaper when compared to the industry. WAT is cheaper than 71.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. WAT is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 32.09 indicates a quite expensive valuation of WAT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 68.42% of the companies listed in the same industry.
WAT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
Industry RankSector Rank
PE 36.8
Fwd PE 32.09
WAT Price Earnings VS Forward Price EarningsWAT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, WAT is valued a bit cheaper than 78.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WAT is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 40.14
EV/EBITDA 24.51
WAT Per share dataWAT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)25.64
PEG (5Y)5.17
EPS Next 2Y5.44%
EPS Next 3Y6.99%

More info and screens

0

5. Dividend

5.1 Amount

WAT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

WATERS CORP

NYSE:WAT (1/30/2025, 1:34:56 PM)

419.18

+15.01 (+3.71%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)11-01 2024-11-01/bmo
Earnings (Next)02-12 2025-02-12/amc
Inst Owners98.08%
Inst Owner Change0.07%
Ins Owners0.01%
Ins Owner Change0.02%
Market Cap24.89B
Analysts66.4
Price Target389.86 (-6.99%)
Short Float %3.11%
Short Ratio3.52
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.92%
Min EPS beat(2)1.54%
Max EPS beat(2)8.29%
EPS beat(4)4
Avg EPS beat(4)3.75%
Min EPS beat(4)0.82%
Max EPS beat(4)8.29%
EPS beat(8)7
Avg EPS beat(8)3.61%
EPS beat(12)11
Avg EPS beat(12)4.74%
EPS beat(16)15
Avg EPS beat(16)9.59%
Revenue beat(2)2
Avg Revenue beat(2)1.5%
Min Revenue beat(2)0.2%
Max Revenue beat(2)2.8%
Revenue beat(4)2
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)2.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.23%
Revenue beat(12)7
Avg Revenue beat(12)0.86%
Revenue beat(16)10
Avg Revenue beat(16)2.63%
PT rev (1m)1.01%
PT rev (3m)8.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.76%
EPS NY rev (1m)0%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.12%
Valuation
Industry RankSector Rank
PE 36.8
Fwd PE 32.09
P/S 8.57
P/FCF 40.14
P/OCF 33.09
P/B 15.53
P/tB N/A
EV/EBITDA 24.51
EPS(TTM)11.39
EY2.72%
EPS(NY)13.06
Fwd EY3.12%
FCF(TTM)10.44
FCFY2.49%
OCF(TTM)12.67
OCFY3.02%
SpS48.92
BVpS27
TBVpS-4.97
PEG (NY)25.64
PEG (5Y)5.17
Profitability
Industry RankSector Rank
ROA 13.8%
ROE 38.84%
ROCE 22.97%
ROIC 19.72%
ROICexc 21.67%
ROICexgc 49.73%
OM 29.22%
PM (TTM) 21.43%
GM 59.73%
FCFM 21.35%
ROA(3y)19.28%
ROA(5y)19.87%
ROE(3y)128.21%
ROE(5y)N/A
ROIC(3y)26.39%
ROIC(5y)27.83%
ROICexc(3y)32.59%
ROICexc(5y)34.45%
ROICexgc(3y)55.37%
ROICexgc(5y)58.29%
ROCE(3y)30.74%
ROCE(5y)32.42%
ROICexcg growth 3Y-9.56%
ROICexcg growth 5Y-6.43%
ROICexc growth 3Y-16.61%
ROICexc growth 5Y-12.43%
OM growth 3Y0.09%
OM growth 5Y-1.23%
PM growth 3Y-0.5%
PM growth 5Y-2.41%
GM growth 3Y1.15%
GM growth 5Y0.1%
F-Score5
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 1.14
Debt/FCF 2.94
Debt/EBITDA 1.76
Cap/Depr 68.98%
Cap/Sales 4.54%
Interest Coverage 250
Cash Conversion 72.3%
Profit Quality 99.6%
Current Ratio 2.02
Quick Ratio 1.38
Altman-Z 9.4
F-Score5
WACC10.2%
ROIC/WACC1.93
Cap/Depr(3y)121.76%
Cap/Depr(5y)131.66%
Cap/Sales(3y)5.88%
Cap/Sales(5y)6.35%
Profit Quality(3y)70.97%
Profit Quality(5y)82.47%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.85%
EPS 3Y9.05%
EPS 5Y7.12%
EPS Q2Q%3.17%
EPS Next Y1.44%
EPS Next 2Y5.44%
EPS Next 3Y6.99%
EPS Next 5Y7.89%
Revenue 1Y (TTM)-3.01%
Revenue growth 3Y7.72%
Revenue growth 5Y4.09%
Sales Q2Q%4.02%
Revenue Next Year-0.37%
Revenue Next 2Y2.52%
Revenue Next 3Y3.69%
Revenue Next 5Y4.41%
EBIT growth 1Y1.1%
EBIT growth 3Y7.81%
EBIT growth 5Y2.8%
EBIT Next Year19.25%
EBIT Next 3Y10.63%
EBIT Next 5Y10.34%
FCF growth 1Y33.37%
FCF growth 3Y-10.56%
FCF growth 5Y-1.5%
OCF growth 1Y19.21%
OCF growth 3Y-8.64%
OCF growth 5Y-0.05%