WATERS CORP (WAT) Stock Fundamental Analysis
USA - NYSE:WAT - US9418481035 - Common Stock
379.3 USD
-8.07 (-2.08%)
379.3 USD
0 (0%)
Overall WAT gets a fundamental rating of 6 out of 10. We evaluated WAT against 58 industry peers in the Life Sciences Tools & Services industry. WAT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
WAT had positive earnings in the past year.
In the past year WAT had a positive cash flow from operations.
WAT had positive earnings in each of the past 5 years.
Each year in the past 5 years WAT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.34%, WAT belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
WAT's Return On Equity of 27.84% is amongst the best of the industry. WAT outperforms 93.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.60%, WAT belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WAT is significantly above the industry average of 13.50%.
| 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
With an excellent Profit Margin value of 20.89%, WAT belongs to the best of the industry, outperforming 94.83% of the companies in the same industry.
WAT's Profit Margin has declined in the last couple of years.
WAT has a better Operating Margin (26.54%) than 94.83% of its industry peers.
In the last couple of years the Operating Margin of WAT has remained more or less at the same level.
WAT's Gross Margin of 58.96% is fine compared to the rest of the industry. WAT outperforms 75.86% of its industry peers.
In the last couple of years the Gross Margin of WAT has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WAT 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 9.65. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.65, WAT belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
WAT has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as WAT would need 2.34 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.34, WAT belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
WAT has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
WAT's Debt to Equity ratio of 0.41 is in line compared to the rest of the industry. WAT outperforms 43.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 9.65 |
ROIC/WACC1.93
WACC10.17%
2.3 Liquidity
A Current Ratio of 1.53 indicates that WAT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.53, WAT is doing worse than 70.69% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that WAT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.08, WAT is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
The current and quick ratio evaluation for WAT is rather negative, while it does have 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.
Measured over the past 5 years, WAT shows a small growth in Earnings Per Share. The EPS has been growing by 5.53% on average per year.
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
WAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.78% yearly.
The Revenue is expected to grow by 6.19% on average over the next years.
EPS Next Y10.52%
EPS Next 2Y10.16%
EPS Next 3Y10.51%
EPS Next 5Y8.78%
Revenue Next Year6.59%
Revenue Next 2Y6.4%
Revenue Next 3Y6.5%
Revenue Next 5Y6.19%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.87, which means the current valuation is very expensive for WAT.
Based on the Price/Earnings ratio, WAT is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.91. WAT is around the same levels.
A Price/Forward Earnings ratio of 26.33 indicates a quite expensive valuation of WAT.
Based on the Price/Forward Earnings ratio, WAT is valued a bit cheaper than 74.14% of the companies in the same industry.
WAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.87 | ||
| Fwd PE | 26.33 |
4.2 Price Multiples
77.59% of the companies in the same industry are more expensive than WAT, based on the Enterprise Value to EBITDA ratio.
67.24% of the companies in the same industry are more expensive than WAT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.49 | ||
| EV/EBITDA | 22.91 |
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)2.84
PEG (5Y)5.4
EPS Next 2Y10.16%
EPS Next 3Y10.51%
5. Dividend
5.1 Amount
No dividends for WAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
379.3
-8.07 (-2.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.31%
Inst Owner Change0.8%
Ins Owners0.11%
Ins Owner Change0.09%
Market Cap22.58B
Revenue(TTM)3.11B
Net Income(TTM)648.81M
Analysts72.38
Price Target367.76 (-3.04%)
Short Float %4.01%
Short Ratio3.56
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)1.33%
PT rev (3m)-1.74%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.84%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.87 | ||
| Fwd PE | 26.33 | ||
| P/S | 7.27 | ||
| P/FCF | 37.49 | ||
| P/OCF | 31 | ||
| P/B | 9.69 | ||
| P/tB | 53.55 | ||
| EV/EBITDA | 22.91 |
EPS(TTM)12.7
EY3.35%
EPS(NY)14.4
Fwd EY3.8%
FCF(TTM)10.12
FCFY2.67%
OCF(TTM)12.23
OCFY3.23%
SpS52.18
BVpS39.16
TBVpS7.08
PEG (NY)2.84
PEG (5Y)5.4
Graham Number105.78
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 | 9.65 |
F-Score4
WACC10.17%
ROIC/WACC1.93
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 Y10.52%
EPS Next 2Y10.16%
EPS Next 3Y10.51%
EPS Next 5Y8.78%
Revenue 1Y (TTM)6.9%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.05%
Revenue Next Year6.59%
Revenue Next 2Y6.4%
Revenue Next 3Y6.5%
Revenue Next 5Y6.19%
EBIT growth 1Y-2.9%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year23.56%
EBIT Next 3Y15.79%
EBIT Next 5Y10.88%
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.