Overall WAT gets a fundamental rating of 6 out of 10. We evaluated WAT against 58 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 has a correct valuation and a medium growth rate. This makes WAT very considerable for quality investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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 94.83% of its industry peers.
WAT has a Return On Equity of 27.84%. This is amongst the best in the industry. WAT outperforms 93.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.60%, WAT belongs to the top of the industry, outperforming 93.10% 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 13.29%.

		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 96.55% of its industry peers.
In the last couple of years the Profit Margin of WAT has declined.
With an excellent Operating Margin value of 26.54%, WAT belongs to the best of the industry, outperforming 94.83% of the companies in the same industry.
In the last couple of years the Operating Margin of WAT has remained more or less at the same level.
With a decent Gross Margin value of 58.96%, WAT is doing good in 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.
Compared to 1 year ago, WAT has an improved debt to assets ratio.

2.2 Solvency

WAT has an Altman-Z score of 9.80. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
WAT has a Altman-Z score of 9.80. This is amongst the best in the industry. WAT outperforms 89.66% 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.
The Debt to FCF ratio of WAT (2.34) is better than 86.21% 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 41.38% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.41
Debt/FCF	2.34
Altman-Z	9.8

ROIC/WACC1.78

WACC10.99%

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.
With a Current ratio value of 1.53, WAT is not doing good in the industry: 70.69% of the companies in the same industry are doing better.
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.
The Quick ratio of WAT (1.08) is worse than 75.86% 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

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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

The Earnings Per Share is expected to grow by 10.30% on average over the next years. This is quite good.
WAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.59% yearly.

EPS Next Y11.55%

EPS Next 2Y10.34%

EPS Next 3Y10.3%

EPS Next 5Y10.3%

Revenue Next Year7.43%

Revenue Next 2Y6.88%

Revenue Next 3Y6.7%

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.
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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 30.32 indicates a quite expensive valuation of WAT.
68.97% of the companies in the same industry are more expensive than WAT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WAT to the average of the S&P500 Index (28.60), we can say WAT is valued inline with the index average.
WAT is valuated quite expensively with a Price/Forward Earnings ratio of 26.64.
Based on the Price/Forward Earnings ratio, WAT is valued a bit cheaper than 75.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, WAT is valued at the same level.

		Industry Rank	Sector Rank
PE	30.32
Fwd PE	26.64

4.2 Price Multiples

WAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WAT is cheaper than 70.69% 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 67.24% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	38.06
EV/EBITDA	23.54

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.