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WATERS CORP (WAT) Stock Fundamental Analysis

NYSE:WAT - New York Stock Exchange, Inc. - US9418481035 - Common Stock - Currency: USD

375.105  -2.23 (-0.59%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to WAT. WAT was compared to 55 industry peers in the Life Sciences Tools & Services industry. WAT scores excellent on profitability, but there are concerns on its financial health. WAT has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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7

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.
In the past 5 years WAT always reported a positive cash flow from operatings.
WAT Yearly Net Income VS EBIT VS OCF VS FCFWAT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

1.2 Ratios

WAT has a better Return On Assets (14.01%) than 96.36% of its industry peers.
The Return On Equity of WAT (34.88%) is better than 98.18% of its industry peers.
Industry RankSector Rank
ROA 14.01%
ROE 34.88%
ROIC N/A
ROA(3y)16.49%
ROA(5y)18.04%
ROE(3y)77%
ROE(5y)128.85%
ROIC(3y)N/A
ROIC(5y)N/A
WAT Yearly ROA, ROE, ROICWAT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 200 -200

1.3 Margins

WAT's Profit Margin of 21.56% is amongst the best of the industry. WAT outperforms 98.18% of its industry peers.
WAT's Profit Margin has declined in the last couple of years.
WAT's Operating Margin of 28.32% is amongst the best of the industry. WAT outperforms 98.18% 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 59.43%, WAT belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Gross Margin of WAT has remained more or less at the same level.
Industry RankSector Rank
OM 28.32%
PM (TTM) 21.56%
GM 59.43%
OM growth 3Y-1.64%
OM growth 5Y-0.9%
PM growth 3Y-4.65%
PM growth 5Y-2.61%
GM growth 3Y0.49%
GM growth 5Y0.42%
WAT Yearly Profit, Operating, Gross MarginsWAT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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3

2. Health

2.1 Basic Checks

WAT does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for WAT has been increased compared to 1 year ago.
WAT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WAT has been reduced compared to a year ago.
WAT Yearly Shares OutstandingWAT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
WAT Yearly Total Debt VS Total AssetsWAT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

The Debt to FCF ratio of WAT is 2.62, which is a good value as it means it would take WAT, 2.62 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.62, WAT belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that WAT is somewhat dependend on debt financing.
The Debt to Equity ratio of WAT (0.89) is worse than 76.36% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 2.62
Altman-Z N/A
ROIC/WACCN/A
WACC11.06%
WAT Yearly LT Debt VS Equity VS FCFWAT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
WAT Yearly Current Assets VS Current LiabilitesWAT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.02% over the past year.
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.
Looking at the last year, WAT shows a small growth in Revenue. The Revenue has grown by 0.07% in the last year.
The Revenue has been growing slightly by 4.21% on average over the past years.
EPS 1Y (TTM)1.02%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%13.26%
Revenue 1Y (TTM)0.07%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%6.5%

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 9.80% yearly.
The Revenue is expected to grow by 5.61% on average over the next years.
EPS Next Y9.44%
EPS Next 2Y9.54%
EPS Next 3Y9.71%
EPS Next 5Y9.8%
Revenue Next Year4.57%
Revenue Next 2Y5.32%
Revenue Next 3Y5.48%
Revenue Next 5Y5.61%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
WAT Yearly Revenue VS EstimatesWAT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
WAT Yearly EPS VS EstimatesWAT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 31.60, which means the current valuation is very expensive for WAT.
Based on the Price/Earnings ratio, WAT is valued a bit cheaper than 70.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.98, WAT is valued at the same level.
A Price/Forward Earnings ratio of 28.87 indicates a quite expensive valuation of WAT.
67.27% of the companies in the same industry are more expensive than WAT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, WAT is valued a bit more expensive.
Industry RankSector Rank
PE 31.6
Fwd PE 28.87
WAT Price Earnings VS Forward Price EarningsWAT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, WAT is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, WAT is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 35.95
EV/EBITDA 23.02
WAT Per share dataWAT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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.
The decent profitability rating of WAT may justify a higher PE ratio.
PEG (NY)3.35
PEG (5Y)5.72
EPS Next 2Y9.54%
EPS Next 3Y9.71%

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0

5. Dividend

5.1 Amount

No dividends for WAT!.
Industry RankSector Rank
Dividend Yield N/A

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WATERS CORP

NYSE:WAT (3/3/2025, 2:43:06 PM)

375.105

-2.23 (-0.59%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)02-12 2025-02-12/bmo
Earnings (Next)07-29 2025-07-29/bmo
Inst Owners96.92%
Inst Owner Change5.8%
Ins Owners0.05%
Ins Owner Change0.88%
Market Cap22.27B
Analysts67.69
Price Target410.16 (9.35%)
Short Float %2.7%
Short Ratio3.54
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
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)4.47%
Min EPS beat(2)0.65%
Max EPS beat(2)8.29%
EPS beat(4)4
Avg EPS beat(4)3.71%
Min EPS beat(4)0.65%
Max EPS beat(4)8.29%
EPS beat(8)7
Avg EPS beat(8)3.46%
EPS beat(12)11
Avg EPS beat(12)4.41%
EPS beat(16)15
Avg EPS beat(16)8.05%
Revenue beat(2)2
Avg Revenue beat(2)1.8%
Min Revenue beat(2)0.8%
Max Revenue beat(2)2.8%
Revenue beat(4)3
Avg Revenue beat(4)0.75%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)2.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.38%
Revenue beat(12)7
Avg Revenue beat(12)0.86%
Revenue beat(16)10
Avg Revenue beat(16)2.11%
PT rev (1m)2.23%
PT rev (3m)6.27%
EPS NQ rev (1m)-8.35%
EPS NQ rev (3m)-9.24%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)-2.83%
Revenue NQ rev (3m)-3.62%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-0.92%
Valuation
Industry RankSector Rank
PE 31.6
Fwd PE 28.87
P/S 7.53
P/FCF 35.95
P/OCF 29.23
P/B 12.18
P/tB N/A
EV/EBITDA 23.02
EPS(TTM)11.87
EY3.16%
EPS(NY)12.99
Fwd EY3.46%
FCF(TTM)10.44
FCFY2.78%
OCF(TTM)12.83
OCFY3.42%
SpS49.82
BVpS30.79
TBVpS-0.59
PEG (NY)3.35
PEG (5Y)5.72
Profitability
Industry RankSector Rank
ROA 14.01%
ROE 34.88%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 28.32%
PM (TTM) 21.56%
GM 59.43%
FCFM 20.95%
ROA(3y)16.49%
ROA(5y)18.04%
ROE(3y)77%
ROE(5y)128.85%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-1.64%
OM growth 5Y-0.9%
PM growth 3Y-4.65%
PM growth 5Y-2.61%
GM growth 3Y0.49%
GM growth 5Y0.42%
F-Score7
Asset Turnover0.65
Health
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 2.62
Debt/EBITDA 1.58
Cap/Depr 74.28%
Cap/Sales 4.82%
Interest Coverage 250
Cash Conversion 74.01%
Profit Quality 97.15%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC11.06%
ROIC/WACCN/A
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)1.02%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%13.26%
EPS Next Y9.44%
EPS Next 2Y9.54%
EPS Next 3Y9.71%
EPS Next 5Y9.8%
Revenue 1Y (TTM)0.07%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%6.5%
Revenue Next Year4.57%
Revenue Next 2Y5.32%
Revenue Next 3Y5.48%
Revenue Next 5Y5.61%
EBIT growth 1Y-2.2%
EBIT growth 3Y0.35%
EBIT growth 5Y3.27%
EBIT Next Year24.87%
EBIT Next 3Y13.88%
EBIT Next 5Y13.09%
FCF growth 1Y40.13%
FCF growth 3Y2.29%
FCF growth 5Y5.27%
OCF growth 1Y26.43%
OCF growth 3Y0.66%
OCF growth 5Y3.45%