WATERS CORP (WAT) Fundamental Analysis & Valuation
NYSE:WAT • US9418481035
296.17 USD
-3.46 (-1.15%)
Last: Mar 11, 2026, 12:47 PM
This WAT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, WAT scores 6 out of 10 in our fundamental rating. WAT was compared to 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 is quite expensive at the moment. It does show a decent growth rate. These ratings would make WAT suitable for quality investing!
1. WAT Profitability Analysis
1.1 Basic Checks
- In the past year WAT was profitable.
- In the past year WAT had a positive cash flow from operations.
- 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 Return On Assets of 12.66%. This is amongst the best in the industry. WAT outperforms 94.74% of its industry peers.
- WAT has a better Return On Equity (25.09%) than 94.74% of its industry peers.
- WAT has a Return On Invested Capital of 17.74%. This is amongst the best in the industry. WAT outperforms 94.74% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WAT is significantly above the industry average of 11.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.66% | ||
| ROE | 25.09% | ||
| ROIC | 17.74% |
ROA(3y)13.52%
ROA(5y)16.9%
ROE(3y)38.6%
ROE(5y)88.92%
ROIC(3y)18.51%
ROIC(5y)22.96%
1.3 Margins
- WAT has a Profit Margin of 20.30%. This is amongst the best in the industry. WAT outperforms 91.23% of its industry peers.
- In the last couple of years the Profit Margin of WAT has declined.
- With an excellent Operating Margin value of 25.36%, WAT belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
- WAT's Operating Margin has declined in the last couple of years.
- WAT's Gross Margin of 59.28% is fine compared to the rest of the industry. WAT outperforms 77.19% 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 | 25.36% | ||
| PM (TTM) | 20.3% | ||
| GM | 59.28% |
OM growth 3Y-5.37%
OM growth 5Y-2.63%
PM growth 3Y-5.18%
PM growth 5Y-1.64%
GM growth 3Y0.62%
GM growth 5Y0.57%
2. WAT Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WAT is creating some 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
- An Altman-Z score of 11.25 indicates that WAT is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 11.25, WAT belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
- WAT has a debt to FCF ratio of 2.61. This is a good value and a sign of high solvency as WAT would need 2.61 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.61, WAT belongs to the top of the industry, outperforming 85.96% of the companies in the same industry.
- WAT has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.37, WAT perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 11.25 |
ROIC/WACC1.65
WACC10.77%
2.3 Liquidity
- WAT has a Current Ratio of 1.73. 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 Current ratio of 1.73. This is in the lower half of the industry: WAT underperforms 71.93% of its industry peers.
- WAT has a Quick Ratio of 1.27. 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 1.27 is on the low side compared to the rest of the industry. WAT is outperformed by 71.93% of its industry peers.
- 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 | 1.73 | ||
| Quick Ratio | 1.27 |
3. WAT Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 10.61% over the past year.
- The Earnings Per Share has been growing slightly by 7.70% on average over the past years.
- Looking at the last year, WAT shows a small growth in Revenue. The Revenue has grown by 6.99% in the last year.
- The Revenue has been growing slightly by 6.00% on average over the past years.
EPS 1Y (TTM)10.61%
EPS 3Y2.96%
EPS 5Y7.7%
EPS Q2Q%10.49%
Revenue 1Y (TTM)6.99%
Revenue growth 3Y2.12%
Revenue growth 5Y6%
Sales Q2Q%6.83%
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 10.55% yearly.
- The Revenue is expected to grow by 21.25% on average over the next years. This is a very strong growth
EPS Next Y10.67%
EPS Next 2Y11.88%
EPS Next 3Y11.64%
EPS Next 5Y10.55%
Revenue Next Year102.82%
Revenue Next 2Y49.72%
Revenue Next 3Y31.72%
Revenue Next 5Y21.25%
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. WAT Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.56, which indicates a rather expensive current valuation of WAT.
- 75.44% 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 26.25. WAT is around the same levels.
- With a Price/Forward Earnings ratio of 20.38, WAT is valued on the expensive side.
- WAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WAT is cheaper than 77.19% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.39. WAT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 20.38 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as WAT.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.82 | ||
| EV/EBITDA | 29.95 |
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)2.11
PEG (5Y)2.93
EPS Next 2Y11.88%
EPS Next 3Y11.64%
5. WAT Dividend Analysis
5.1 Amount
- No dividends for WAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
WAT Fundamentals: All Metrics, Ratios and Statistics
NYSE:WAT (3/11/2026, 12:47:49 PM)
296.17
-3.46 (-1.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)02-09 2026-02-09/bmo
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners60.64%
Inst Owner Change-0.87%
Ins Owners0.1%
Ins Owner Change0.77%
Market Cap29.05B
Revenue(TTM)3.17B
Net Income(TTM)642.63M
Analysts77.14
Price Target410.74 (38.68%)
Short Float %4.49%
Short Ratio2.72
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)2.29%
Min EPS beat(2)-0.49%
Max EPS beat(2)5.07%
EPS beat(4)2
Avg EPS beat(4)1.03%
Min EPS beat(4)-0.8%
Max EPS beat(4)5.07%
EPS beat(8)6
Avg EPS beat(8)2.37%
EPS beat(12)9
Avg EPS beat(12)2.65%
EPS beat(16)13
Avg EPS beat(16)3.57%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)1.4%
Revenue beat(4)3
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-0.54%
Max Revenue beat(4)2.01%
Revenue beat(8)6
Avg Revenue beat(8)0.74%
Revenue beat(12)6
Avg Revenue beat(12)-0.01%
Revenue beat(16)10
Avg Revenue beat(16)0.83%
PT rev (1m)-2.88%
PT rev (3m)2.34%
EPS NQ rev (1m)-7.69%
EPS NQ rev (3m)-9.17%
EPS NY rev (1m)0.45%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)64.42%
Revenue NQ rev (3m)63.81%
Revenue NY rev (1m)90.64%
Revenue NY rev (3m)90.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 20.38 | ||
| P/S | 9.18 | ||
| P/FCF | 53.82 | ||
| P/OCF | 44.52 | ||
| P/B | 11.34 | ||
| P/tB | 43.82 | ||
| EV/EBITDA | 29.95 |
EPS(TTM)13.13
EY4.43%
EPS(NY)14.53
Fwd EY4.91%
FCF(TTM)5.5
FCFY1.86%
OCF(TTM)6.65
OCFY2.25%
SpS32.27
BVpS26.11
TBVpS6.76
PEG (NY)2.11
PEG (5Y)2.93
Graham Number87.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.66% | ||
| ROE | 25.09% | ||
| ROCE | 20.92% | ||
| ROIC | 17.74% | ||
| ROICexc | 20.95% | ||
| ROICexgc | 50.39% | ||
| OM | 25.36% | ||
| PM (TTM) | 20.3% | ||
| GM | 59.28% | ||
| FCFM | 17.05% |
ROA(3y)13.52%
ROA(5y)16.9%
ROE(3y)38.6%
ROE(5y)88.92%
ROIC(3y)18.51%
ROIC(5y)22.96%
ROICexc(3y)20.91%
ROICexc(5y)27.64%
ROICexgc(3y)47.91%
ROICexgc(5y)51.91%
ROCE(3y)21.83%
ROCE(5y)27.08%
ROICexgc growth 3Y-3.23%
ROICexgc growth 5Y-5.08%
ROICexc growth 3Y-17.6%
ROICexc growth 5Y-10.52%
OM growth 3Y-5.37%
OM growth 5Y-2.63%
PM growth 3Y-5.18%
PM growth 5Y-1.64%
GM growth 3Y0.62%
GM growth 5Y0.57%
F-Score4
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.61 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 54.67% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 17.98 | ||
| Cash Conversion | 64.68% | ||
| Profit Quality | 84% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 11.25 |
F-Score4
WACC10.77%
ROIC/WACC1.65
Cap/Depr(3y)75.26%
Cap/Depr(5y)98.84%
Cap/Sales(3y)4.6%
Cap/Sales(5y)5.2%
Profit Quality(3y)83.33%
Profit Quality(5y)78.81%
High Growth Momentum
Growth
EPS 1Y (TTM)10.61%
EPS 3Y2.96%
EPS 5Y7.7%
EPS Q2Q%10.49%
EPS Next Y10.67%
EPS Next 2Y11.88%
EPS Next 3Y11.64%
EPS Next 5Y10.55%
Revenue 1Y (TTM)6.99%
Revenue growth 3Y2.12%
Revenue growth 5Y6%
Sales Q2Q%6.83%
Revenue Next Year102.82%
Revenue Next 2Y49.72%
Revenue Next 3Y31.72%
Revenue Next 5Y21.25%
EBIT growth 1Y-4.22%
EBIT growth 3Y-3.36%
EBIT growth 5Y3.21%
EBIT Next Year103.92%
EBIT Next 3Y35.98%
EBIT Next 5Y26.08%
FCF growth 1Y-12.88%
FCF growth 3Y8.03%
FCF growth 5Y-2.67%
OCF growth 1Y-14.38%
OCF growth 3Y2.18%
OCF growth 5Y-3.76%
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 3 / 10 to WATERS CORP (WAT). This can be considered as Overvalued.
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 22.56 and the Price/Book (PB) ratio is 11.34.
How financially healthy is WATERS CORP?
The financial health rating of WATERS CORP (WAT) is 7 / 10.