WATERS CORP (WAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAT - US9418481035 - Common Stock
386.06 USD
+1.23 (+0.32%)
386.1 USD
+0.04 (+0.01%)
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 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. These ratings could make WAT a good candidate for quality investing.
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.
In the past 5 years WAT has always been profitable.
In the past 5 years WAT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.34%, WAT belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
With an excellent Return On Equity value of 27.84%, WAT belongs to the best of the industry, outperforming 92.98% of the companies in the same industry.
The Return On Invested Capital of WAT (19.60%) is better 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
WAT has a Profit Margin of 20.89%. This is amongst the best in the industry. WAT outperforms 96.49% of its industry peers.
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 94.74% of the companies in the same industry.
WAT's Operating Margin has been stable in the last couple of years.
The Gross Margin of WAT (58.96%) is better than 75.44% of its industry peers.
WAT's Gross Margin has been stable in the last couple of years.
| 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.
WAT has more shares outstanding than it did 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.
2.2 Solvency
WAT has an Altman-Z score of 9.73. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.73, WAT belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.34, WAT belongs to the top of the industry, outperforming 85.96% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that WAT is not too dependend on debt financing.
The Debt to Equity ratio of WAT (0.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 9.73 |
ROIC/WACC1.82
WACC10.76%
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.
The Quick ratio of WAT (1.08) is worse than 77.19% of its industry peers.
The current and quick ratio evaluation for WAT is rather negative, while it does have 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.
WAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
WAT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.90%.
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)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.
WAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.46% yearly.
EPS Next Y11.58%
EPS Next 2Y10.28%
EPS Next 3Y10.34%
EPS Next 5Y10.36%
Revenue Next Year7.43%
Revenue Next 2Y6.88%
Revenue Next 3Y6.7%
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
WAT is valuated quite expensively with a Price/Earnings ratio of 30.40.
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.
When comparing the Price/Earnings ratio of WAT to the average of the S&P500 Index (26.57), we can say WAT is valued inline with the index average.
A Price/Forward Earnings ratio of 26.74 indicates a quite expensive valuation of WAT.
73.68% of the companies in the same industry are more expensive than WAT, based on the Price/Forward Earnings ratio.
WAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.4 | ||
| Fwd PE | 26.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WAT is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 64.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.16 | ||
| EV/EBITDA | 23.24 |
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)2.63
PEG (5Y)5.5
EPS Next 2Y10.28%
EPS Next 3Y10.34%
5. Dividend
5.1 Amount
No dividends for WAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
386.06
+1.23 (+0.32%)
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 Cap22.98B
Revenue(TTM)3.11B
Net Income(TTM)648.81M
Analysts73.33
Price TargetN/A
Short Float %3.97%
Short Ratio3.78
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)9.13%
PT rev (3m)10.59%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0.96%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.4 | ||
| Fwd PE | 26.74 | ||
| P/S | 7.4 | ||
| P/FCF | 38.16 | ||
| P/OCF | 31.56 | ||
| P/B | 9.86 | ||
| P/tB | 54.52 | ||
| EV/EBITDA | 23.24 |
EPS(TTM)12.7
EY3.29%
EPS(NY)14.44
Fwd EY3.74%
FCF(TTM)10.12
FCFY2.62%
OCF(TTM)12.23
OCFY3.17%
SpS52.17
BVpS39.15
TBVpS7.08
PEG (NY)2.63
PEG (5Y)5.5
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 | 9.73 |
F-Score4
WACC10.76%
ROIC/WACC1.82
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 Y11.58%
EPS Next 2Y10.28%
EPS Next 3Y10.34%
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 3Y6.7%
Revenue Next 5Y6.46%
EBIT growth 1Y-2.9%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year25.2%
EBIT Next 3Y15.82%
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 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.