WATERS CORP (WAT) Stock Fundamental Analysis
USA - NYSE:WAT - US9418481035 - Common Stock
371.69 USD
+0.53 (+0.14%)
371.69 USD
0 (0%)
Taking everything into account, WAT scores 6 out of 10 in our fundamental rating. WAT was compared to 58 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. This makes WAT very considerable 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.
WAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WAT (14.02%) is better than 93.10% of its industry peers.
With an excellent Return On Equity value of 30.62%, WAT belongs to the best of the industry, outperforming 94.83% 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 94.83% 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 13.50%.
| 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
The Profit Margin of WAT (21.71%) is better than 96.55% of its industry peers.
WAT's Profit Margin has declined in the last couple of years.
WAT has a better Operating Margin (27.73%) than 96.55% 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 59.02% 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WAT is creating value.
The number of shares outstanding for WAT has been increased compared to 1 year ago.
The number of shares outstanding for WAT has been reduced compared to 5 years ago.
The debt/assets ratio for WAT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.60 indicates that WAT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.60, WAT belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
WAT has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as WAT would need 2.35 years to pay back of all of its debts.
WAT has a better Debt to FCF ratio (2.35) than 84.48% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that 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 65.52% 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 | 9.6 |
ROIC/WACC1.88
WACC10.41%
2.3 Liquidity
A Current Ratio of 1.75 indicates that WAT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.75, WAT is doing worse than 60.34% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that WAT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.22, WAT is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
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
WAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.50%, which is quite good.
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 0.07%.
The Revenue has been growing slightly by 4.21% on average over the past years.
EPS 1Y (TTM)11.5%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%16.04%
Revenue 1Y (TTM)0.07%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.05%
3.2 Future
The Earnings Per Share is expected to grow by 8.78% on average over the next years. This is quite good.
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
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
Based on the Price/Earnings ratio of 29.27, 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 70.69% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WAT to the average of the S&P500 Index (25.83), we can say WAT is valued inline with the index average.
With a Price/Forward Earnings ratio of 25.81, WAT can be considered very expensive at the moment.
WAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WAT is cheaper than 72.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WAT to the average of the S&P500 Index (32.68), we can say WAT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 25.81 |
4.2 Price Multiples
WAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WAT is cheaper than 77.59% of the companies in the same industry.
WAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WAT is cheaper than 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.72 | ||
| EV/EBITDA | 22.25 |
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)2.78
PEG (5Y)5.29
EPS Next 2Y10.16%
EPS Next 3Y10.51%
5. Dividend
5.1 Amount
WAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
371.69
+0.53 (+0.14%)
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-0.38%
Ins Owners0.11%
Ins Owner Change0%
Market Cap22.12B
Revenue(TTM)2.96B
Net Income(TTM)661.39M
Analysts72.38
Price Target367.76 (-1.06%)
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)-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)1.33%
PT rev (3m)-6.2%
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)0.62%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 25.81 | ||
| P/S | 7.26 | ||
| P/FCF | 35.72 | ||
| P/OCF | 29.68 | ||
| P/B | 10.24 | ||
| P/tB | 91.12 | ||
| EV/EBITDA | 22.25 |
EPS(TTM)12.7
EY3.42%
EPS(NY)14.4
Fwd EY3.88%
FCF(TTM)10.41
FCFY2.8%
OCF(TTM)12.52
OCFY3.37%
SpS51.18
BVpS36.29
TBVpS4.08
PEG (NY)2.78
PEG (5Y)5.29
Graham Number101.83
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 | 9.6 |
F-Score5
WACC10.41%
ROIC/WACC1.88
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)0.07%
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 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%
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.