WATERS CORP (WAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAT - US9418481035 - Common Stock
396.75 USD
+0.1 (+0.03%)
396.75 USD
0 (0%)
Overall WAT gets a fundamental rating of 6 out of 10. We evaluated WAT against 57 industry peers in the Life Sciences Tools & Services industry. WAT gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
Each year in the past 5 years WAT has been profitable.
WAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WAT has a Return On Assets of 13.34%. This is amongst the best in the industry. WAT outperforms 94.74% of its industry peers.
WAT has a Return On Equity of 27.84%. This is amongst the best in the industry. WAT outperforms 92.98% of its industry peers.
WAT has a better Return On Invested Capital (19.60%) than 92.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WAT is significantly above the industry average of 13.75%.
| 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
Looking at the Profit Margin, with a value of 20.89%, WAT belongs to the top of the industry, outperforming 96.49% of the companies in the same industry.
In the last couple of years the Profit Margin of WAT has declined.
The Operating Margin of WAT (26.54%) is better than 94.74% 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 has a Gross Margin of 58.96%. This is in the better half of the industry: WAT outperforms 75.44% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WAT is creating value.
The number of shares outstanding for WAT has been increased compared to 1 year ago.
Compared to 5 years ago, WAT has less shares outstanding
The debt/assets ratio for WAT has been reduced compared to a year ago.
2.2 Solvency
WAT has an Altman-Z score of 9.90. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.90, WAT belongs to the best of the industry, outperforming 89.47% 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 85.96% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that WAT is not too dependend on debt financing.
The Debt to Equity ratio of WAT (0.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 9.9 |
ROIC/WACC1.81
WACC10.85%
2.3 Liquidity
A Current Ratio of 1.53 indicates that WAT should not have too much problems paying its short term obligations.
WAT has a worse Current ratio (1.53) than 70.18% of its industry peers.
WAT has a Quick Ratio of 1.08. This is a normal value and indicates that WAT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.08, WAT is not doing good in the industry: 75.44% 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.
WAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
Looking at the last year, WAT shows a small growth in Revenue. The Revenue has grown by 6.90% in the last year.
Measured over the past years, WAT shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
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 10.30% on average per year.
WAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.59% yearly.
EPS Next Y11.59%
EPS Next 2Y10.26%
EPS Next 3Y10.23%
EPS Next 5Y10.3%
Revenue Next Year7.43%
Revenue Next 2Y6.88%
Revenue Next 3Y6.69%
Revenue Next 5Y6.59%
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
The Price/Earnings ratio is 31.24, which means the current valuation is very expensive for WAT.
73.68% of the companies in the same industry are more expensive than WAT, based on the Price/Earnings ratio.
WAT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.49, the valuation of WAT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 77.19% of the companies listed in the same industry.
WAT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.24 | ||
| Fwd PE | 27.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 71.93% of the companies listed in the same industry.
66.67% 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 | 39.22 | ||
| EV/EBITDA | 23.93 |
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)2.7
PEG (5Y)5.65
EPS Next 2Y10.26%
EPS Next 3Y10.23%
5. Dividend
5.1 Amount
No dividends for WAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
396.75
+0.1 (+0.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.29%
Inst Owner Change0.03%
Ins Owners0.12%
Ins Owner Change0.21%
Market Cap23.62B
Revenue(TTM)3.11B
Net Income(TTM)648.81M
Analysts74.55
Price Target416.74 (5.04%)
Short Float %3.89%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)3.83%
PT rev (3m)14.83%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.66%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.24 | ||
| Fwd PE | 27.49 | ||
| P/S | 7.61 | ||
| P/FCF | 39.22 | ||
| P/OCF | 32.44 | ||
| P/B | 10.13 | ||
| P/tB | 56.03 | ||
| EV/EBITDA | 23.93 |
EPS(TTM)12.7
EY3.2%
EPS(NY)14.43
Fwd EY3.64%
FCF(TTM)10.12
FCFY2.55%
OCF(TTM)12.23
OCFY3.08%
SpS52.17
BVpS39.15
TBVpS7.08
PEG (NY)2.7
PEG (5Y)5.65
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 | 9.9 |
F-Score4
WACC10.85%
ROIC/WACC1.81
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 Y11.59%
EPS Next 2Y10.26%
EPS Next 3Y10.23%
EPS Next 5Y10.3%
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 3Y6.69%
Revenue Next 5Y6.59%
EBIT growth 1Y-2.9%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year25.53%
EBIT Next 3Y15.6%
EBIT Next 5Y27.98%
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 for 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.
What are the PE and PB ratios of WATERS CORP (WAT) stock?
The Price/Earnings (PE) ratio for WATERS CORP (WAT) is 31.24 and the Price/Book (PB) ratio is 10.13.
How financially healthy is WATERS CORP?
The financial health rating of WATERS CORP (WAT) is 7 / 10.