WATERS CORP (WAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAT - US9418481035 - Common Stock
379.83 USD
-4.16 (-1.08%)
379.83 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to WAT. WAT was compared to 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make WAT suitable for quality investing!
1. Profitability
1.1 Basic Checks
WAT had positive earnings in the past year.
WAT had a positive operating cash flow in the past year.
In the past 5 years WAT has always 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.
The Return On Equity of WAT (27.84%) is better than 92.98% of its industry peers.
WAT has a better Return On Invested Capital (19.60%) than 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
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.
WAT's Profit Margin has declined in the last couple of years.
The Operating Margin of WAT (26.54%) is better than 94.74% of its industry peers.
WAT's Operating Margin has been stable in the last couple of years.
WAT has a better Gross Margin (58.96%) than 75.44% 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
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 9.66. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
WAT has a Altman-Z score of 9.66. This is amongst the best in the industry. WAT outperforms 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 has a Debt to FCF ratio of 2.34. This is amongst the best in the industry. WAT outperforms 85.96% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that WAT is not too dependend on debt financing.
WAT's Debt to Equity ratio of 0.41 is in line compared to the rest of the industry. WAT outperforms 42.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 9.66 |
ROIC/WACC1.83
WACC10.71%
2.3 Liquidity
A Current Ratio of 1.53 indicates that WAT should not have too much problems paying its short term obligations.
The Current ratio of WAT (1.53) is worse than 71.93% of its industry peers.
A Quick Ratio of 1.08 indicates that WAT should not have too much problems paying its short term obligations.
WAT's Quick ratio of 1.08 is on the low side compared to the rest of the industry. WAT is outperformed by 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.
The Earnings Per Share has been growing slightly by 5.53% on average over the past years.
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
The Earnings Per Share is expected to grow by 10.36% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.46% on average over the next years.
EPS Next Y11.59%
EPS Next 2Y10.26%
EPS Next 3Y10.23%
EPS Next 5Y10.36%
Revenue Next Year7.43%
Revenue Next 2Y6.88%
Revenue Next 3Y6.69%
Revenue Next 5Y6.46%
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
With a Price/Earnings ratio of 29.91, WAT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, WAT is valued a bit cheaper than the industry average as 71.93% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.51. WAT is around the same levels.
Based on the Price/Forward Earnings ratio of 26.32, the valuation of WAT can be described as expensive.
Based on the Price/Forward Earnings ratio, WAT is valued a bit cheaper than 73.68% of the companies in the same industry.
WAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.91 | ||
| Fwd PE | 26.32 |
4.2 Price Multiples
68.42% of the companies in the same industry are more expensive than WAT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.54 | ||
| EV/EBITDA | 22.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WAT may justify a higher PE ratio.
PEG (NY)2.58
PEG (5Y)5.41
EPS Next 2Y10.26%
EPS Next 3Y10.23%
5. Dividend
5.1 Amount
No dividends for WAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
379.83
-4.16 (-1.08%)
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 Cap22.61B
Revenue(TTM)3.11B
Net Income(TTM)648.81M
Analysts73.33
Price Target416.74 (9.72%)
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)4.54%
PT rev (3m)14.83%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.66%
EPS NY rev (1m)0.97%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.91 | ||
| Fwd PE | 26.32 | ||
| P/S | 7.28 | ||
| P/FCF | 37.54 | ||
| P/OCF | 31.05 | ||
| P/B | 9.7 | ||
| P/tB | 53.64 | ||
| EV/EBITDA | 22.95 |
EPS(TTM)12.7
EY3.34%
EPS(NY)14.43
Fwd EY3.8%
FCF(TTM)10.12
FCFY2.66%
OCF(TTM)12.23
OCFY3.22%
SpS52.17
BVpS39.15
TBVpS7.08
PEG (NY)2.58
PEG (5Y)5.41
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 | 9.66 |
F-Score4
WACC10.71%
ROIC/WACC1.83
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 5Y10.36%
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 3Y6.69%
Revenue Next 5Y6.46%
EBIT growth 1Y-2.9%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year25.53%
EBIT Next 3Y15.6%
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 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 29.91 and the Price/Book (PB) ratio is 9.7.
How financially healthy is WATERS CORP?
The financial health rating of WATERS CORP (WAT) is 7 / 10.