WATERS CORP (WAT)
US9418481035 - Common Stock
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. While WAT has a great profitability rating, there are some minor concerns on its financial health. WAT has a valuation in line with the averages, 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.
In the past 5 years WAT has always been profitable.
Each year in the past 5 years WAT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.80%, WAT belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
WAT has a better Return On Equity (38.84%) than 98.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.72%, WAT belongs to the top of the industry, outperforming 96.36% 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 10.42%.
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
Looking at the Profit Margin, with a value of 21.43%, WAT belongs to the top of the industry, outperforming 98.18% of the companies in the same industry.
In the last couple of years the Profit Margin of WAT has declined.
WAT's Operating Margin of 29.22% is amongst the best of the industry. WAT outperforms 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.
WAT's Gross Margin of 59.73% is amongst the best of the industry. WAT outperforms 85.45% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WAT is creating value.
The number of shares outstanding for WAT remains at a similar level compared to 1 year ago.
WAT has less shares outstanding than it did 5 years ago.
WAT has a worse debt/assets ratio than last year.
2.2 Solvency
WAT has an Altman-Z score of 8.83. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WAT (8.83) is better than 90.91% 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.
With an excellent Debt to FCF ratio value of 2.94, WAT belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
WAT has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
WAT has a Debt to Equity ratio of 1.14. This is in the lower half of the industry: WAT underperforms 78.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 8.83 |
ROIC/WACC1.77
WACC11.16%
2.3 Liquidity
A Current Ratio of 2.02 indicates that WAT has no problem at all paying its short term obligations.
With a Current ratio value of 2.02, WAT is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
A Quick Ratio of 1.38 indicates that WAT should not have too much problems paying its short term obligations.
WAT's Quick ratio of 1.38 is on the low side compared to the rest of the industry. WAT is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for WAT have decreased by -4.85% in the last year.
The Earnings Per Share has been growing slightly by 7.12% on average over the past years.
Looking at the last year, WAT shows a decrease in Revenue. The Revenue has decreased by -3.01% in the last year.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.04% on average per year.
WAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.33% yearly.
EPS Next Y1.28%
EPS Next 2Y5.3%
EPS Next 3Y6.83%
EPS Next 5Y8.04%
Revenue Next Year-0.4%
Revenue Next 2Y2.53%
Revenue Next 3Y3.64%
Revenue Next 5Y4.33%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.35, the valuation of WAT can be described as expensive.
72.73% 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 28.96. WAT is around the same levels.
Based on the Price/Forward Earnings ratio of 28.28, the valuation of WAT can be described as expensive.
WAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WAT is cheaper than 70.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, WAT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.35 | ||
| Fwd PE | 28.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 74.55% of the companies listed in the same industry.
74.55% of the companies in the same industry are more expensive than WAT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.28 | ||
| EV/EBITDA | 21.86 |
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)25.19
PEG (5Y)4.54
EPS Next 2Y5.3%
EPS Next 3Y6.83%
5. Dividend
5.1 Amount
WAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WATERS CORP
NYSE:WAT (11/21/2024, 8:04:00 PM)
After market: 368.5 0 (0%)368.5
+10.73 (+3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.35 | ||
| Fwd PE | 28.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)25.19
PEG (5Y)4.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.8% | ||
| ROE | 38.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.22% | ||
| PM (TTM) | 21.43% | ||
| GM | 59.73% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-4.85%
EPS 3Y9.05%
EPS 5Y
EPS Q2Q%
EPS Next Y1.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.01%
Revenue growth 3Y7.72%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y