WATERS CORP (WAT) Stock Fundamental Analysis
USA - NYSE:WAT - US9418481035 - Common Stock
348.67 USD
-0.56 (-0.16%)
348.67 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WAT has a correct valuation and a medium growth rate. With these ratings, WAT could be worth investigating further 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.
In the past 5 years WAT has always been profitable.
In the past 5 years WAT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.02%, WAT belongs to the top of the industry, outperforming 92.98% of the companies in the same industry.
Looking at the Return On Equity, with a value of 30.62%, WAT belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
WAT's Return On Invested Capital of 19.59% is amongst the best of the industry. WAT outperforms 94.74% 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 14.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.02% | ||
| ROE | 30.62% | ||
| ROIC | 19.59% |
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
WAT's Profit Margin of 21.71% is amongst the best of the industry. WAT outperforms 96.49% of its industry peers.
WAT's Profit Margin has declined in the last couple of years.
WAT's Operating Margin of 27.73% is amongst the best of the industry. WAT outperforms 96.49% 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 59.02%, 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 | 27.73% | ||
| PM (TTM) | 21.71% | ||
| GM | 59.02% |
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.
Compared to 1 year ago, WAT has more shares outstanding
WAT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WAT has an improved debt to assets ratio.
2.2 Solvency
WAT has an Altman-Z score of 9.29. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
WAT has a better Altman-Z score (9.29) than 91.23% of its industry peers.
The Debt to FCF ratio of WAT is 2.35, which is a good value as it means it would take WAT, 2.35 years of fcf income to pay off all of its debts.
WAT has a better Debt to FCF ratio (2.35) than 84.21% of its industry peers.
WAT has a Debt/Equity ratio of 0.55. This is a neutral value indicating WAT is somewhat dependend on debt financing.
WAT's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. WAT is outperformed by 66.67% of its industry peers.
Even though the debt/equity ratio score it not favorable for WAT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 9.29 |
ROIC/WACC1.89
WACC10.38%
2.3 Liquidity
WAT has a Current Ratio of 1.75. 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 Current ratio value of 1.75, WAT is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
A Quick Ratio of 1.22 indicates that WAT should not have too much problems paying its short term obligations.
WAT's Quick ratio of 1.22 is on the low side compared to the rest of the industry. WAT is outperformed by 73.68% 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 | 1.75 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.23% 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 5.89% in the last year.
WAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
EPS 1Y (TTM)8.23%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%12.17%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.86%
3.2 Future
The Earnings Per Share is expected to grow by 8.78% on average over the next years. This is quite good.
Based on estimates for the next years, WAT will show a small growth in Revenue. The Revenue will grow by 6.19% on average per year.
EPS Next Y10.54%
EPS Next 2Y10.18%
EPS Next 3Y10.52%
EPS Next 5Y8.78%
Revenue Next Year6.63%
Revenue Next 2Y6.48%
Revenue Next 3Y6.51%
Revenue Next 5Y6.19%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.51, the valuation of WAT can be described as expensive.
Based on the Price/Earnings ratio, WAT is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WAT to the average of the S&P500 Index (27.57), we can say WAT is valued inline with the index average.
WAT is valuated rather expensively with a Price/Forward Earnings ratio of 24.20.
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.
When comparing the Price/Forward Earnings ratio of WAT to the average of the S&P500 Index (23.09), we can say WAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.51 | ||
| Fwd PE | 24.2 |
4.2 Price Multiples
WAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WAT is 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 71.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.51 | ||
| EV/EBITDA | 21 |
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)5.16
EPS Next 2Y10.18%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
WAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
348.67
-0.56 (-0.16%)
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 Change-0.16%
Ins Owners0.11%
Ins Owner Change0%
Market Cap20.75B
Revenue(TTM)3.05B
Net Income(TTM)661.39M
Analysts73.64
Price Target362.92 (4.09%)
Short Float %3.85%
Short Ratio2.86
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)-0.22%
Min EPS beat(2)-0.8%
Max EPS beat(2)0.35%
EPS beat(4)3
Avg EPS beat(4)2.12%
Min EPS beat(4)-0.8%
Max EPS beat(4)8.29%
EPS beat(8)7
Avg EPS beat(8)3.19%
EPS beat(12)10
Avg EPS beat(12)2.57%
EPS beat(16)14
Avg EPS beat(16)4.32%
Revenue beat(2)2
Avg Revenue beat(2)1.03%
Min Revenue beat(2)0.06%
Max Revenue beat(2)2.01%
Revenue beat(4)4
Avg Revenue beat(4)1.42%
Min Revenue beat(4)0.06%
Max Revenue beat(4)2.8%
Revenue beat(8)5
Avg Revenue beat(8)0.26%
Revenue beat(12)7
Avg Revenue beat(12)0.36%
Revenue beat(16)10
Avg Revenue beat(16)0.79%
PT rev (1m)0%
PT rev (3m)-7.43%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-0.95%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.51 | ||
| Fwd PE | 24.2 | ||
| P/S | 6.81 | ||
| P/FCF | 33.51 | ||
| P/OCF | 27.84 | ||
| P/B | 9.61 | ||
| P/tB | 85.48 | ||
| EV/EBITDA | 21 |
EPS(TTM)12.23
EY3.51%
EPS(NY)14.41
Fwd EY4.13%
FCF(TTM)10.41
FCFY2.98%
OCF(TTM)12.52
OCFY3.59%
SpS51.18
BVpS36.29
TBVpS4.08
PEG (NY)2.7
PEG (5Y)5.16
Graham Number99.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.02% | ||
| ROE | 30.62% | ||
| ROCE | 22.82% | ||
| ROIC | 19.59% | ||
| ROICexc | 21.75% | ||
| ROICexgc | 51.16% | ||
| OM | 27.73% | ||
| PM (TTM) | 21.71% | ||
| GM | 59.02% | ||
| FCFM | 20.33% |
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-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.35 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 63.96% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.55% | ||
| Profit Quality | 93.64% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 9.29 |
F-Score5
WACC10.38%
ROIC/WACC1.89
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)8.23%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%12.17%
EPS Next Y10.54%
EPS Next 2Y10.18%
EPS Next 3Y10.52%
EPS Next 5Y8.78%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.86%
Revenue Next Year6.63%
Revenue Next 2Y6.48%
Revenue Next 3Y6.51%
Revenue Next 5Y6.19%
EBIT growth 1Y3.53%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year23.56%
EBIT Next 3Y15.79%
EBIT Next 5Y10.88%
FCF growth 1Y60.1%
FCF growth 3Y2.29%
FCF growth 5Y5.27%
OCF growth 1Y30.39%
OCF growth 3Y0.66%
OCF growth 5Y3.45%