WATERS CORP (WAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAT - US9418481035 - Common Stock
383.26 USD
-2.07 (-0.54%)
We assign a fundamental rating of 6 out of 10 to WAT. 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 correct valuation and a medium growth rate. With these ratings, WAT could be worth investigating further 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.
Each year in the past 5 years WAT has been profitable.
WAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WAT has a better Return On Assets (13.34%) than 94.74% of its industry peers.
WAT's Return On Equity of 27.84% is amongst the best of the industry. WAT outperforms 92.98% of its industry peers.
WAT has a better Return On Invested Capital (19.60%) 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's Profit Margin of 20.89% is amongst the best of the industry. WAT outperforms 96.49% of its industry peers.
WAT's Profit Margin has declined in the last couple of years.
WAT has a Operating Margin of 26.54%. This is amongst the best in the industry. WAT outperforms 94.74% 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 better Gross Margin (58.96%) 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.
The number of shares outstanding for WAT has been increased compared to 1 year ago.
The number of shares outstanding for WAT has been reduced compared to 5 years ago.
WAT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.74 indicates that WAT is not in any danger for bankruptcy at the moment.
WAT has a better Altman-Z score (9.74) than 91.23% of its industry peers.
WAT has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as WAT would need 2.34 years to pay back of all of its debts.
WAT has a Debt to FCF ratio of 2.34. This is amongst the best in the industry. WAT outperforms 85.96% of its industry peers.
WAT has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.41, WAT perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 9.74 |
ROIC/WACC1.89
WACC10.37%
2.3 Liquidity
WAT has a Current Ratio of 1.53. This is a normal value and indicates that WAT is financially healthy and should not expect problems in meeting its short term obligations.
WAT's Current ratio of 1.53 is on the low side compared to the rest of the industry. WAT is outperformed by 71.93% of its industry peers.
WAT has a Quick Ratio of 1.08. This is a normal value and indicates that WAT is financially healthy and should not expect problems in meeting its short term obligations.
WAT's Quick ratio of 1.08 is on the low side compared to the rest of the industry. WAT is outperformed by 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.
The Earnings Per Share has been growing slightly by 5.53% on average over the past years.
WAT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.90%.
Measured over the past years, WAT shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
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.
The Revenue is expected to grow by 6.46% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
WAT is valuated quite expensively with a Price/Earnings ratio of 30.18.
Based on the Price/Earnings ratio, WAT is valued a bit cheaper than the industry average as 70.18% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.56. WAT is around the same levels.
With a Price/Forward Earnings ratio of 26.55, WAT can be considered very expensive at the moment.
WAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WAT is cheaper than 71.93% of the companies in the same industry.
WAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.18 | ||
| Fwd PE | 26.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WAT is valued a bit cheaper than 70.18% of the companies in the same industry.
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 | 37.88 | ||
| EV/EBITDA | 23.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WAT may justify a higher PE ratio.
PEG (NY)2.61
PEG (5Y)5.46
EPS Next 2Y10.28%
EPS Next 3Y10.34%
5. Dividend
5.1 Amount
WAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:WAT (12/15/2025, 12:43:47 PM)
383.26
-2.07 (-0.54%)
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 Cap22.82B
Revenue(TTM)3.11B
Net Income(TTM)648.81M
Analysts73.33
Price Target401.36 (4.72%)
Short Float %3.86%
Short Ratio3.53
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)-0.29%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)0.96%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.18 | ||
| Fwd PE | 26.55 | ||
| P/S | 7.35 | ||
| P/FCF | 37.88 | ||
| P/OCF | 31.33 | ||
| P/B | 9.79 | ||
| P/tB | 54.12 | ||
| EV/EBITDA | 23.27 |
EPS(TTM)12.7
EY3.31%
EPS(NY)14.44
Fwd EY3.77%
FCF(TTM)10.12
FCFY2.64%
OCF(TTM)12.23
OCFY3.19%
SpS52.17
BVpS39.15
TBVpS7.08
PEG (NY)2.61
PEG (5Y)5.46
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 | 9.74 |
F-Score4
WACC10.37%
ROIC/WACC1.89
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.