WATERS CORP (WAT) Stock Fundamental Analysis
NYSE:WAT - New York Stock Exchange, Inc. - US9418481035 - Common Stock - Currency: USD
Taking everything into account, WAT scores 6 out of 10 in our fundamental rating. WAT was compared to 56 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
WAT had positive earnings in the past year.
WAT had a positive operating cash flow in the past year.
In the past 5 years WAT has always 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 14.01%. This is amongst the best in the industry. WAT outperforms 94.64% of its industry peers.
Looking at the Return On Equity, with a value of 34.88%, WAT belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
WAT has a Return On Invested Capital of 19.11%. This is amongst the best in the industry. WAT outperforms 94.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WAT is significantly above the industry average of 12.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.01% | ||
| ROE | 34.88% | ||
| ROIC | 19.11% |
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
Looking at the Profit Margin, with a value of 21.56%, WAT belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
In the last couple of years the Profit Margin of WAT has declined.
WAT's Operating Margin of 28.32% is amongst the best of the industry. WAT outperforms 98.21% of its industry peers.
In the last couple of years the Operating Margin of WAT has remained more or less at the same level.
WAT has a Gross Margin of 59.43%. This is in the better half of the industry: WAT outperforms 78.57% 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 | 28.32% | ||
| PM (TTM) | 21.56% | ||
| GM | 59.43% |
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.
WAT has more shares outstanding than it did 1 year ago.
WAT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WAT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.05 indicates that WAT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.05, WAT belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
The Debt to FCF ratio of WAT is 2.62, which is a good value as it means it would take WAT, 2.62 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.62, WAT belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
WAT has a Debt/Equity ratio of 0.89. This is a neutral value indicating WAT is somewhat dependend on debt financing.
WAT has a Debt to Equity ratio of 0.89. This is in the lower half of the industry: WAT underperforms 76.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 9.05 |
ROIC/WACC1.89
WACC10.11%
2.3 Liquidity
A Current Ratio of 2.11 indicates that WAT has no problem at all paying its short term obligations.
The Current ratio of WAT (2.11) is worse than 62.50% of its industry peers.
A Quick Ratio of 1.51 indicates that WAT should not have too much problems paying its short term obligations.
WAT's Quick ratio of 1.51 is on the low side compared to the rest of the industry. WAT is outperformed by 64.29% 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 | 2.11 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
WAT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.02%.
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 0.07%.
The Revenue has been growing slightly by 4.21% on average over the past years.
EPS 1Y (TTM)1.02%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%13.26%
Revenue 1Y (TTM)0.07%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%6.5%
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 10.51% yearly.
Based on estimates for the next years, WAT will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
EPS Next Y9.45%
EPS Next 2Y9.91%
EPS Next 3Y10.35%
EPS Next 5Y10.51%
Revenue Next Year4.64%
Revenue Next 2Y5.61%
Revenue Next 3Y5.79%
Revenue Next 5Y5.95%
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.
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
The Price/Earnings ratio is 28.80, which means the current valuation is very expensive for WAT.
Compared to the rest of the industry, the Price/Earnings ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 64.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WAT to the average of the S&P500 Index (28.88), we can say WAT is valued inline with the index average.
WAT is valuated quite expensively with a Price/Forward Earnings ratio of 26.31.
Based on the Price/Forward Earnings ratio, WAT is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
WAT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.8 | ||
| Fwd PE | 26.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 67.86% of the companies listed in the same industry.
67.86% 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 | 32.82 | ||
| EV/EBITDA | 21.35 |
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)3.05
PEG (5Y)5.21
EPS Next 2Y9.91%
EPS Next 3Y10.35%
5. Dividend
5.1 Amount
No dividends for WAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
341.83
-5.9 (-1.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.92%
Inst Owner Change1.24%
Ins Owners0.05%
Ins Owner Change0.61%
Market Cap20.34B
Analysts71.85
Price Target403.8 (18.13%)
Short Float %2.65%
Short Ratio2.88
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)2
Avg EPS beat(2)4.47%
Min EPS beat(2)0.65%
Max EPS beat(2)8.29%
EPS beat(4)4
Avg EPS beat(4)3.71%
Min EPS beat(4)0.65%
Max EPS beat(4)8.29%
EPS beat(8)7
Avg EPS beat(8)3.46%
EPS beat(12)11
Avg EPS beat(12)4.41%
EPS beat(16)15
Avg EPS beat(16)8.05%
Revenue beat(2)2
Avg Revenue beat(2)1.8%
Min Revenue beat(2)0.8%
Max Revenue beat(2)2.8%
Revenue beat(4)3
Avg Revenue beat(4)0.75%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)2.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.38%
Revenue beat(12)7
Avg Revenue beat(12)0.86%
Revenue beat(16)10
Avg Revenue beat(16)2.11%
PT rev (1m)-1.56%
PT rev (3m)3.57%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-9.29%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.67%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.8 | ||
| Fwd PE | 26.31 | ||
| P/S | 6.87 | ||
| P/FCF | 32.82 | ||
| P/OCF | 26.69 | ||
| P/B | 11.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.35 |
EPS(TTM)11.87
EY3.47%
EPS(NY)12.99
Fwd EY3.8%
FCF(TTM)10.41
FCFY3.05%
OCF(TTM)12.81
OCFY3.75%
SpS49.72
BVpS30.73
TBVpS-0.59
PEG (NY)3.05
PEG (5Y)5.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.01% | ||
| ROE | 34.88% | ||
| ROCE | 22.26% | ||
| ROIC | 19.11% | ||
| ROICexc | 20.93% | ||
| ROICexgc | 45.71% | ||
| OM | 28.32% | ||
| PM (TTM) | 21.56% | ||
| GM | 59.43% | ||
| FCFM | 20.95% |
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%
ROICexcg growth 3Y-9.19%
ROICexcg 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-Score6
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 74.28% | ||
| Cap/Sales | 4.82% | ||
| Interest Coverage | 9.1 | ||
| Cash Conversion | 74.01% | ||
| Profit Quality | 97.15% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 9.05 |
F-Score6
WACC10.11%
ROIC/WACC1.89
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)1.02%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%13.26%
EPS Next Y9.45%
EPS Next 2Y9.91%
EPS Next 3Y10.35%
EPS Next 5Y10.51%
Revenue 1Y (TTM)0.07%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%6.5%
Revenue Next Year4.64%
Revenue Next 2Y5.61%
Revenue Next 3Y5.79%
Revenue Next 5Y5.95%
EBIT growth 1Y-2.2%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year22.9%
EBIT Next 3Y12.34%
EBIT Next 5Y11.2%
FCF growth 1Y40.13%
FCF growth 3Y2.29%
FCF growth 5Y5.27%
OCF growth 1Y26.43%
OCF growth 3Y0.66%
OCF growth 5Y3.45%