WATERS CORP (WAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAT - US9418481035 - Common Stock
383.86 USD
-3.51 (-0.91%)
383.86 USD
0 (0%)
WAT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 57 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 decent growth rate and is not valued too expensively. 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.
- Each year in the past 5 years WAT has been profitable.
- In the past 5 years WAT always reported a positive cash flow from operatings.
1.2 Ratios
- WAT's Return On Assets of 13.34% is amongst the best of the industry. WAT outperforms 94.74% of its industry peers.
- WAT has a better Return On Equity (27.84%) than 92.98% of its industry peers.
- With an excellent Return On Invested Capital value of 19.60%, WAT belongs to the best of the industry, outperforming 92.98% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for WAT is significantly above the industry average of 13.75%.
| 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 better Profit Margin (20.89%) than 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.
- Looking at the Gross Margin, with a value of 58.96%, WAT is in the better half of the industry, outperforming 75.44% 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 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WAT is creating value.
- 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.
- WAT has a better debt/assets ratio than last year.
2.2 Solvency
- WAT has an Altman-Z score of 9.77. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of WAT (9.77) is better than 89.47% 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.
- With an excellent Debt to FCF ratio value of 2.34, WAT belongs to the best 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.
- WAT has a Debt to Equity ratio (0.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 9.77 |
ROIC/WACC1.79
WACC10.98%
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.
- Looking at the Current ratio, with a value of 1.53, WAT is doing worse than 70.18% of the companies in the same industry.
- A Quick Ratio of 1.08 indicates that WAT should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.08, WAT is doing worse than 75.44% of the companies in the same industry.
- 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%.
- WAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
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
- WAT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.30% yearly.
- The Revenue is expected to grow by 6.59% on average over the next years.
EPS Next Y11.59%
EPS Next 2Y10.26%
EPS Next 3Y10.23%
EPS Next 5Y10.3%
Revenue Next Year7.4%
Revenue Next 2Y6.85%
Revenue Next 3Y6.67%
Revenue Next 5Y6.59%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 30.23, the valuation of WAT can be described as expensive.
- WAT's Price/Earnings ratio is a bit cheaper when compared to the industry. WAT is cheaper than 73.68% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.94. WAT is around the same levels.
- Based on the Price/Forward Earnings ratio of 26.60, the valuation of WAT can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 75.44% of the companies listed in the same industry.
- WAT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.23 | ||
| Fwd PE | 26.6 |
4.2 Price Multiples
- WAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WAT is cheaper than 68.42% of the companies in the same industry.
- 68.42% 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 | 37.94 | ||
| EV/EBITDA | 23.39 |
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)2.61
PEG (5Y)5.47
EPS Next 2Y10.26%
EPS Next 3Y10.23%
5. Dividend
5.1 Amount
- No dividends for WAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
383.86
-3.51 (-0.91%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-10 2026-02-10/amc
Inst Owners100.29%
Inst Owner Change0.02%
Ins Owners0.12%
Ins Owner Change0.21%
Market Cap22.85B
Revenue(TTM)3.11B
Net Income(TTM)648.81M
Analysts74.55
Price Target420.04 (9.43%)
Short Float %3.57%
Short Ratio3.9
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)4.66%
PT rev (3m)15.74%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-1.71%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.23 | ||
| Fwd PE | 26.6 | ||
| P/S | 7.36 | ||
| P/FCF | 37.94 | ||
| P/OCF | 31.38 | ||
| P/B | 9.8 | ||
| P/tB | 54.21 | ||
| EV/EBITDA | 23.39 |
EPS(TTM)12.7
EY3.31%
EPS(NY)14.43
Fwd EY3.76%
FCF(TTM)10.12
FCFY2.64%
OCF(TTM)12.23
OCFY3.19%
SpS52.17
BVpS39.15
TBVpS7.08
PEG (NY)2.61
PEG (5Y)5.47
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 | 9.77 |
F-Score4
WACC10.98%
ROIC/WACC1.79
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 Y11.59%
EPS Next 2Y10.26%
EPS Next 3Y10.23%
EPS Next 5Y10.3%
Revenue 1Y (TTM)6.9%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.05%
Revenue Next Year7.4%
Revenue Next 2Y6.85%
Revenue Next 3Y6.67%
Revenue Next 5Y6.59%
EBIT growth 1Y-2.9%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year25.53%
EBIT Next 3Y15.6%
EBIT Next 5Y27.98%
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 for 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.
What are the PE and PB ratios of WATERS CORP (WAT) stock?
The Price/Earnings (PE) ratio for WATERS CORP (WAT) is 30.23 and the Price/Book (PB) ratio is 9.8.
How financially healthy is WATERS CORP?
The financial health rating of WATERS CORP (WAT) is 7 / 10.