WATERS CORP (WAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAT - US9418481035 - Common Stock
410.185 USD
+10.64 (+2.66%)
We assign a fundamental rating of 6 out of 10 to WAT. WAT was compared to 58 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 decent growth rate and is not valued too expensively. These ratings could make WAT a good candidate for quality investing.
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.
Each year in the past 5 years WAT has been profitable.
Each year in the past 5 years WAT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.34%, WAT belongs to the top of the industry, outperforming 94.83% of the companies in the same industry.
With an excellent Return On Equity value of 27.84%, WAT belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
WAT's Return On Invested Capital of 19.60% is amongst the best of the industry. WAT outperforms 93.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WAT is significantly above the industry average of 13.53%.
| 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 Profit Margin of 20.89%. This is amongst the best in the industry. WAT outperforms 96.55% of its industry peers.
WAT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.54%, WAT belongs to the top of the industry, outperforming 94.83% 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 75.86% 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.
Compared to 1 year ago, WAT has more shares outstanding
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 9.94 indicates that WAT is not in any danger for bankruptcy at the moment.
The Altman-Z score of WAT (9.94) is better than 91.38% 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.
WAT's Debt to FCF ratio of 2.34 is amongst the best of the industry. WAT outperforms 86.21% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that WAT is not too dependend on debt financing.
The Debt to Equity ratio of WAT (0.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 9.94 |
ROIC/WACC1.96
WACC9.99%
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 70.69% of its industry peers.
A Quick Ratio of 1.08 indicates that WAT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.08, WAT is not doing good in the industry: 77.59% of the companies in the same industry are doing better.
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 | 1.53 | ||
| 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.
Measured over the past 5 years, WAT shows a small growth in Earnings Per Share. The EPS has been growing by 5.53% on average per year.
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 8.78% yearly.
Based on estimates for the next years, WAT will show a small growth in Revenue. The Revenue will grow by 6.19% on average per year.
EPS Next Y10.52%
EPS Next 2Y10.16%
EPS Next 3Y10.51%
EPS Next 5Y8.78%
Revenue Next Year6.59%
Revenue Next 2Y6.4%
Revenue Next 3Y6.5%
Revenue Next 5Y6.19%
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
Based on the Price/Earnings ratio of 32.30, 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 67.24% of the companies in the same industry.
WAT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.65.
WAT is valuated quite expensively with a Price/Forward Earnings ratio of 28.48.
Based on the Price/Forward Earnings ratio, WAT is valued a bit cheaper than the industry average as 74.14% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WAT to the average of the S&P500 Index (34.45), we can say WAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.3 | ||
| Fwd PE | 28.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WAT is valued a bit cheaper than the industry average as 74.14% of the companies are valued more expensively.
67.24% 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 | 40.54 | ||
| EV/EBITDA | 24.09 |
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)3.07
PEG (5Y)5.84
EPS Next 2Y10.16%
EPS Next 3Y10.51%
5. Dividend
5.1 Amount
WAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:WAT (11/25/2025, 2:43:56 PM)
410.185
+10.64 (+2.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.31%
Inst Owner Change-0.05%
Ins Owners0.11%
Ins Owner Change0.1%
Market Cap24.41B
Revenue(TTM)3.11B
Net Income(TTM)648.81M
Analysts72.38
Price Target398.65 (-2.81%)
Short Float %3.79%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)9.84%
PT rev (3m)9.84%
EPS NQ rev (1m)-1.77%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.3 | ||
| Fwd PE | 28.48 | ||
| P/S | 7.86 | ||
| P/FCF | 40.54 | ||
| P/OCF | 33.53 | ||
| P/B | 10.48 | ||
| P/tB | 57.91 | ||
| EV/EBITDA | 24.09 |
EPS(TTM)12.7
EY3.1%
EPS(NY)14.4
Fwd EY3.51%
FCF(TTM)10.12
FCFY2.47%
OCF(TTM)12.23
OCFY2.98%
SpS52.18
BVpS39.16
TBVpS7.08
PEG (NY)3.07
PEG (5Y)5.84
Graham Number105.78
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 | 9.94 |
F-Score4
WACC9.99%
ROIC/WACC1.96
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 Y10.52%
EPS Next 2Y10.16%
EPS Next 3Y10.51%
EPS Next 5Y8.78%
Revenue 1Y (TTM)6.9%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.05%
Revenue Next Year6.59%
Revenue Next 2Y6.4%
Revenue Next 3Y6.5%
Revenue Next 5Y6.19%
EBIT growth 1Y-2.9%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year23.56%
EBIT Next 3Y15.79%
EBIT Next 5Y10.88%
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.