WATERS CORP (WAT) Stock Fundamental Analysis
USA - NYSE:WAT - US9418481035 - Common Stock
303.12 USD
+4.08 (+1.36%)
WAT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Life Sciences Tools & Services industry. Both the health and profitability get an excellent rating, making WAT a very profitable company, without any liquidiy or solvency issues. WAT has a correct valuation and a medium growth rate. These ratings would make WAT suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year WAT was profitable.
WAT had a positive operating cash flow in the past year.
WAT had positive earnings in each of the past 5 years.
Each year in the past 5 years WAT had a positive operating cash flow.
1.2 Ratios
WAT has a better Return On Assets (14.02%) than 90.91% of its industry peers.
WAT has a better Return On Equity (30.62%) than 94.55% of its industry peers.
With an excellent Return On Invested Capital value of 19.59%, WAT belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
WAT had an Average Return On Invested Capital over the past 3 years of 22.94%. This is significantly above the industry average of 15.96%.
| 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
WAT's Profit Margin of 21.71% is amongst the best of the industry. WAT outperforms 96.36% of its industry peers.
In the last couple of years the Profit Margin of WAT has declined.
WAT's Operating Margin of 27.73% is amongst the best of the industry. WAT outperforms 96.36% 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 has a Gross Margin of 59.02%. This is in the better half of the industry: WAT outperforms 74.55% of its industry peers.
WAT's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 5 years ago, WAT has less shares outstanding
The debt/assets ratio for WAT has been reduced compared to a year ago.
2.2 Solvency
WAT has an Altman-Z score of 8.59. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
WAT has a better Altman-Z score (8.59) than 90.91% of its industry peers.
The Debt to FCF ratio of WAT is 2.35, which is a good value as it means it would take WAT, 2.35 years of fcf income to pay off all of its debts.
WAT has a Debt to FCF ratio of 2.35. This is amongst the best in the industry. WAT outperforms 83.64% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that WAT is somewhat dependend on debt financing.
WAT has a worse Debt to Equity ratio (0.55) than 67.27% 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 | 8.59 |
ROIC/WACC1.91
WACC10.25%
2.3 Liquidity
WAT has a Current Ratio of 1.75. This is a normal value and indicates that WAT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WAT (1.75) is worse than 65.45% of its industry peers.
A Quick Ratio of 1.22 indicates that WAT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.22, WAT is doing worse than 76.36% 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 | 1.75 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.23% over the past year.
The Earnings Per Share has been growing slightly by 5.53% on average over the past years.
The Revenue has been growing slightly by 5.89% in the past year.
The Revenue has been growing slightly by 4.21% on average over the past years.
EPS 1Y (TTM)8.23%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%12.17%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.86%
3.2 Future
The Earnings Per Share is expected to grow by 8.78% on average over the next years. This is quite good.
Based on estimates for the next years, WAT will show a small growth in Revenue. The Revenue will grow by 6.19% on average per year.
EPS Next Y10.64%
EPS Next 2Y10.24%
EPS Next 3Y10.51%
EPS Next 5Y8.78%
Revenue Next Year6.63%
Revenue Next 2Y6.48%
Revenue Next 3Y6.51%
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
A Price/Earnings ratio of 24.78 indicates a rather expensive valuation of WAT.
Compared to the rest of the industry, the Price/Earnings ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 74.55% of the companies listed in the same industry.
WAT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.01, the valuation of WAT can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 76.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, WAT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.78 | ||
| Fwd PE | 21.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WAT is valued a bit cheaper than the industry average as 78.18% 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 76.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.13 | ||
| EV/EBITDA | 18.13 |
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)2.33
PEG (5Y)4.48
EPS Next 2Y10.24%
EPS Next 3Y10.51%
5. Dividend
5.1 Amount
WAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:WAT (9/16/2025, 12:02:38 PM)
303.12
+4.08 (+1.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.15%
Inst Owner Change-0.73%
Ins Owners0.11%
Ins Owner Change-0.02%
Market Cap18.04B
Analysts73.64
Price Target362.92 (19.73%)
Short Float %3.94%
Short Ratio2.69
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)-3.03%
PT rev (3m)-9.63%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)0.62%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.78 | ||
| Fwd PE | 21.01 | ||
| P/S | 5.92 | ||
| P/FCF | 29.13 | ||
| P/OCF | 24.2 | ||
| P/B | 8.35 | ||
| P/tB | 74.31 | ||
| EV/EBITDA | 18.13 |
EPS(TTM)12.23
EY4.03%
EPS(NY)14.43
Fwd EY4.76%
FCF(TTM)10.41
FCFY3.43%
OCF(TTM)12.52
OCFY4.13%
SpS51.18
BVpS36.29
TBVpS4.08
PEG (NY)2.33
PEG (5Y)4.48
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%
ROICexcg growth 3Y-9.19%
ROICexcg 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 | 8.59 |
F-Score5
WACC10.25%
ROIC/WACC1.91
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)8.23%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%12.17%
EPS Next Y10.64%
EPS Next 2Y10.24%
EPS Next 3Y10.51%
EPS Next 5Y8.78%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.86%
Revenue Next Year6.63%
Revenue Next 2Y6.48%
Revenue Next 3Y6.51%
Revenue Next 5Y6.19%
EBIT growth 1Y3.53%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year21.58%
EBIT Next 3Y11.4%
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%