WATERS CORP (WAT) Stock Fundamental Analysis
USA - NYSE:WAT - US9418481035 - Common Stock
376.63 USD
-1.35 (-0.36%)
376.63 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 correct valuation and a medium growth rate. 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.
Each year in the past 5 years WAT has been profitable.
In the past 5 years WAT always reported a positive cash flow from operatings.
1.2 Ratios
WAT has a Return On Assets of 13.34%. This is amongst the best in the industry. WAT outperforms 94.83% of its industry peers.
Looking at the Return On Equity, with a value of 27.84%, WAT belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.60%, WAT belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WAT is significantly above the industry average of 13.56%.
| 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 96.55% of the companies in the same industry.
WAT's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 26.54%, WAT belongs to the best of the industry, outperforming 94.83% of the companies in the same industry.
In the last couple of years the Operating Margin of WAT has remained more or less at the same level.
WAT has a better Gross Margin (58.96%) than 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
WAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
WAT has a better debt/assets ratio than last year.
2.2 Solvency
WAT has an Altman-Z score of 9.61. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WAT (9.61) is better than 93.10% 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 86.21% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that WAT is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.41, WAT perfoms like the industry average, outperforming 43.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 9.61 |
ROIC/WACC1.94
WACC10.11%
2.3 Liquidity
WAT has a Current Ratio of 1.53. This is a normal value and indicates that WAT is financially healthy and should not expect problems in meeting its short term obligations.
WAT has a worse Current ratio (1.53) than 68.97% 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.
Looking at the Quick ratio, with a value of 1.08, WAT is doing worse than 75.86% of the companies in the same industry.
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
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.
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.
The Revenue has been growing slightly by 6.90% in the past 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
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
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
WAT is valuated quite expensively with a Price/Earnings ratio of 29.66.
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 (25.51), we can say WAT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 26.15, the valuation of WAT can be described as expensive.
Based on the Price/Forward Earnings ratio, WAT is valued a bit cheaper than 74.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, WAT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.66 | ||
| Fwd PE | 26.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WAT is valued a bit cheaper than 77.59% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 67.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.22 | ||
| EV/EBITDA | 22.76 |
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)2.82
PEG (5Y)5.36
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 |
376.63
-1.35 (-0.36%)
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 Change0.02%
Ins Owners0.11%
Ins Owner Change1.21%
Market Cap22.42B
Revenue(TTM)3.11B
Net Income(TTM)648.81M
Analysts72.38
Price Target367.76 (-2.36%)
Short Float %3.79%
Short Ratio3.21
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)-1.3%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.66 | ||
| Fwd PE | 26.15 | ||
| P/S | 7.22 | ||
| P/FCF | 37.22 | ||
| P/OCF | 30.79 | ||
| P/B | 9.62 | ||
| P/tB | 53.18 | ||
| EV/EBITDA | 22.76 |
EPS(TTM)12.7
EY3.37%
EPS(NY)14.4
Fwd EY3.82%
FCF(TTM)10.12
FCFY2.69%
OCF(TTM)12.23
OCFY3.25%
SpS52.18
BVpS39.16
TBVpS7.08
PEG (NY)2.82
PEG (5Y)5.36
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 | 9.61 |
F-Score4
WACC10.11%
ROIC/WACC1.94
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.