WATERS CORP (WAT)
US9418481035 - Common Stock
Taking everything into account, WAT scores 6 out of 10 in our fundamental rating. WAT was compared to 57 industry peers in the Life Sciences Tools & Services industry. WAT has an excellent profitability rating, but there are some minor concerns on its financial health. WAT is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WAT was profitable.
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 (13.80%) is better than 96.49% of its industry peers.
WAT has a Return On Equity of 38.84%. This is amongst the best in the industry. WAT outperforms 98.25% of its industry peers.
WAT has a better Return On Invested Capital (19.72%) than 96.49% 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 9.66%.
The 3 year average ROIC (26.39%) for WAT is well above the current ROIC(19.72%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.8% | ||
| ROE | 38.84% | ||
| ROIC | 19.72% |
ROA(3y)19.28%
ROA(5y)19.87%
ROE(3y)128.21%
ROE(5y)N/A
ROIC(3y)26.39%
ROIC(5y)27.83%
1.3 Margins
WAT has a Profit Margin of 21.43%. This is amongst the best in the industry. WAT outperforms 98.25% of its industry peers.
WAT's Profit Margin has declined in the last couple of years.
WAT has a better Operating Margin (29.22%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of WAT has remained more or less at the same level.
Looking at the Gross Margin, with a value of 59.73%, WAT belongs to the top of the industry, outperforming 85.96% 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 | 29.22% | ||
| PM (TTM) | 21.43% | ||
| GM | 59.73% |
OM growth 3Y0.09%
OM growth 5Y-1.23%
PM growth 3Y-0.5%
PM growth 5Y-2.41%
GM growth 3Y1.15%
GM growth 5Y0.1%
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 remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WAT has less shares outstanding
Compared to 1 year ago, WAT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.07 indicates that WAT is not in any danger for bankruptcy at the moment.
The Altman-Z score of WAT (9.07) is better than 89.47% of its industry peers.
The Debt to FCF ratio of WAT is 2.94, which is a good value as it means it would take WAT, 2.94 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.94, WAT belongs to the top of the industry, outperforming 82.46% of the companies in the same industry.
A Debt/Equity ratio of 1.14 is on the high side and indicates that WAT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.14, WAT is doing worse than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 9.07 |
ROIC/WACC1.76
WACC11.22%
2.3 Liquidity
WAT has a Current Ratio of 2.02. This indicates that WAT is financially healthy and has no problem in meeting its short term obligations.
WAT's Current ratio of 2.02 is on the low side compared to the rest of the industry. WAT is outperformed by 63.16% of its industry peers.
A Quick Ratio of 1.38 indicates that WAT should not have too much problems paying its short term obligations.
WAT has a Quick ratio of 1.38. This is in the lower half of the industry: WAT underperforms 61.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
WAT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.85%.
WAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.12% yearly.
WAT shows a decrease in Revenue. In the last year, the revenue decreased by -3.01%.
WAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.09% yearly.
EPS 1Y (TTM)-4.85%
EPS 3Y9.05%
EPS 5Y7.12%
EPS Q2Q%3.17%
Revenue 1Y (TTM)-3.01%
Revenue growth 3Y7.72%
Revenue growth 5Y4.09%
Sales Q2Q%4.02%
3.2 Future
Based on estimates for the next years, WAT will show a small growth in Earnings Per Share. The EPS will grow by 7.89% on average per year.
WAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.41% yearly.
EPS Next Y1.44%
EPS Next 2Y5.44%
EPS Next 3Y6.99%
EPS Next 5Y7.89%
Revenue Next Year-0.37%
Revenue Next 2Y2.6%
Revenue Next 3Y3.71%
Revenue Next 5Y4.41%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.08, the valuation of WAT can be described as expensive.
71.93% of the companies in the same industry are more expensive than WAT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.55. WAT is valued slightly more expensive when compared to this.
WAT is valuated quite expensively with a Price/Forward Earnings ratio of 28.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 70.18% of the companies listed in the same industry.
WAT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.08 | ||
| Fwd PE | 28.84 |
4.2 Price Multiples
WAT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WAT is cheaper than 80.70% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WAT is valued a bit cheaper than 77.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.08 | ||
| EV/EBITDA | 22.94 |
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)23.05
PEG (5Y)4.64
EPS Next 2Y5.44%
EPS Next 3Y6.99%
5. Dividend
5.1 Amount
WAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WATERS CORP
NYSE:WAT (12/26/2024, 8:04:00 PM)
After market: 376.78 0 (0%)376.78
+3.63 (+0.97%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.08%
Inst Owner Change-0.06%
Ins Owners0.01%
Ins Owner Change0.1%
Market Cap22.37B
Analysts66.4
Price Target385.96 (2.44%)
Short Float %3.57%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.92%
Min EPS beat(2)1.54%
Max EPS beat(2)8.29%
EPS beat(4)4
Avg EPS beat(4)3.75%
Min EPS beat(4)0.82%
Max EPS beat(4)8.29%
EPS beat(8)7
Avg EPS beat(8)3.61%
EPS beat(12)11
Avg EPS beat(12)4.74%
EPS beat(16)15
Avg EPS beat(16)9.59%
Revenue beat(2)2
Avg Revenue beat(2)1.5%
Min Revenue beat(2)0.2%
Max Revenue beat(2)2.8%
Revenue beat(4)2
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)2.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.23%
Revenue beat(12)7
Avg Revenue beat(12)0.86%
Revenue beat(16)10
Avg Revenue beat(16)2.63%
PT rev (1m)7.85%
PT rev (3m)11.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.76%
EPS NY rev (1m)0.15%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.08 | ||
| Fwd PE | 28.84 | ||
| P/S | 7.7 | ||
| P/FCF | 36.08 | ||
| P/OCF | 29.75 | ||
| P/B | 13.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.94 |
EPS(TTM)11.39
EY3.02%
EPS(NY)13.06
Fwd EY3.47%
FCF(TTM)10.44
FCFY2.77%
OCF(TTM)12.67
OCFY3.36%
SpS48.92
BVpS27
TBVpS-4.97
PEG (NY)23.05
PEG (5Y)4.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.8% | ||
| ROE | 38.84% | ||
| ROCE | 22.97% | ||
| ROIC | 19.72% | ||
| ROICexc | 21.67% | ||
| ROICexgc | 49.73% | ||
| OM | 29.22% | ||
| PM (TTM) | 21.43% | ||
| GM | 59.73% | ||
| FCFM | 21.35% |
ROA(3y)19.28%
ROA(5y)19.87%
ROE(3y)128.21%
ROE(5y)N/A
ROIC(3y)26.39%
ROIC(5y)27.83%
ROICexc(3y)32.59%
ROICexc(5y)34.45%
ROICexgc(3y)55.37%
ROICexgc(5y)58.29%
ROCE(3y)30.74%
ROCE(5y)32.42%
ROICexcg growth 3Y-9.56%
ROICexcg growth 5Y-6.43%
ROICexc growth 3Y-16.61%
ROICexc growth 5Y-12.43%
OM growth 3Y0.09%
OM growth 5Y-1.23%
PM growth 3Y-0.5%
PM growth 5Y-2.41%
GM growth 3Y1.15%
GM growth 5Y0.1%
F-Score5
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 68.98% | ||
| Cap/Sales | 4.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.3% | ||
| Profit Quality | 99.6% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 9.07 |
F-Score5
WACC11.22%
ROIC/WACC1.76
Cap/Depr(3y)121.76%
Cap/Depr(5y)131.66%
Cap/Sales(3y)5.88%
Cap/Sales(5y)6.35%
Profit Quality(3y)70.97%
Profit Quality(5y)82.47%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.85%
EPS 3Y9.05%
EPS 5Y7.12%
EPS Q2Q%3.17%
EPS Next Y1.44%
EPS Next 2Y5.44%
EPS Next 3Y6.99%
EPS Next 5Y7.89%
Revenue 1Y (TTM)-3.01%
Revenue growth 3Y7.72%
Revenue growth 5Y4.09%
Sales Q2Q%4.02%
Revenue Next Year-0.37%
Revenue Next 2Y2.6%
Revenue Next 3Y3.71%
Revenue Next 5Y4.41%
EBIT growth 1Y1.1%
EBIT growth 3Y7.81%
EBIT growth 5Y2.8%
EBIT Next Year18.7%
EBIT Next 3Y10.42%
EBIT Next 5Y10.34%
FCF growth 1Y33.37%
FCF growth 3Y-10.56%
FCF growth 5Y-1.5%
OCF growth 1Y19.21%
OCF growth 3Y-8.64%
OCF growth 5Y-0.05%