WATERS CORP (WAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAT - US9418481035 - Common Stock
393.52 USD
+0.32 (+0.08%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WAT is not valued too expensively and it also shows a decent growth rate. These ratings would make WAT suitable for quality investing!
1. Profitability
1.1 Basic Checks
- WAT had positive earnings in the past year.
- 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 has a better Return On Assets (13.34%) than 94.74% of its industry peers.
- WAT has a Return On Equity of 27.84%. This is amongst the best in 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 13.75%.
| 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
- The Profit Margin of WAT (20.89%) is better than 96.49% of its industry peers.
- In the last couple of years the Profit Margin of WAT has declined.
- The Operating Margin of WAT (26.54%) is better than 94.74% of its industry peers.
- WAT's Operating Margin has been stable in the last couple of years.
- WAT's Gross Margin of 58.96% is fine compared to the rest of the industry. WAT outperforms 75.44% 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 | 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.
- Compared to 1 year ago, WAT has more shares outstanding
- WAT has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, WAT has an improved debt to assets ratio.
2.2 Solvency
- WAT has an Altman-Z score of 9.85. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of WAT (9.85) is better than 89.47% of its industry peers.
- 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.
- 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.
- WAT has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
- 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 | 9.85 |
ROIC/WACC1.8
WACC10.86%
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 has a worse Current ratio (1.53) than 70.18% of its industry peers.
- A Quick Ratio of 1.08 indicates that WAT should not have too much problems paying its short term obligations.
- WAT has a worse Quick ratio (1.08) than 75.44% 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
- WAT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.50%, which is quite good.
- The Earnings Per Share has been growing slightly by 5.53% on average over the past years.
- The Revenue has been growing slightly by 6.90% in the past year.
- 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
- The Earnings Per Share is expected to grow by 10.30% 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 6.59% on average per year.
EPS Next Y11.59%
EPS Next 2Y10.26%
EPS Next 3Y10.23%
EPS Next 5Y10.3%
Revenue Next Year7.43%
Revenue Next 2Y6.88%
Revenue Next 3Y6.69%
Revenue Next 5Y6.59%
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
- With a Price/Earnings ratio of 30.99, WAT can be considered very expensive at the moment.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, WAT is valued at the same level.
- Based on the Price/Forward Earnings ratio of 27.27, the valuation of WAT can be described as expensive.
- 75.44% of the companies in the same industry are more expensive than WAT, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, WAT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.99 | ||
| Fwd PE | 27.27 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WAT is valued a bit cheaper than 71.93% of the companies in the same industry.
- 66.67% 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 | 38.9 | ||
| EV/EBITDA | 23.72 |
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)2.67
PEG (5Y)5.61
EPS Next 2Y10.26%
EPS Next 3Y10.23%
5. Dividend
5.1 Amount
- No dividends for WAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:WAT (1/15/2026, 1:30:06 PM)
393.52
+0.32 (+0.08%)
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 Change0.03%
Ins Owners0.12%
Ins Owner Change0.21%
Market Cap23.43B
Revenue(TTM)3.11B
Net Income(TTM)648.81M
Analysts74.55
Price Target416.74 (5.9%)
Short Float %3.89%
Short Ratio3.88
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)3.83%
PT rev (3m)14.83%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.66%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.99 | ||
| Fwd PE | 27.27 | ||
| P/S | 7.54 | ||
| P/FCF | 38.9 | ||
| P/OCF | 32.17 | ||
| P/B | 10.05 | ||
| P/tB | 55.57 | ||
| EV/EBITDA | 23.72 |
EPS(TTM)12.7
EY3.23%
EPS(NY)14.43
Fwd EY3.67%
FCF(TTM)10.12
FCFY2.57%
OCF(TTM)12.23
OCFY3.11%
SpS52.17
BVpS39.15
TBVpS7.08
PEG (NY)2.67
PEG (5Y)5.61
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 | 9.85 |
F-Score4
WACC10.86%
ROIC/WACC1.8
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 Year7.43%
Revenue Next 2Y6.88%
Revenue Next 3Y6.69%
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 30.99 and the Price/Book (PB) ratio is 10.05.
How financially healthy is WATERS CORP?
The financial health rating of WATERS CORP (WAT) is 7 / 10.