WATERS CORP (WAT) Stock Fundamental Analysis
USA - NYSE:WAT - US9418481035 - Common Stock
333.14 USD
-3.19 (-0.95%)
333.14 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to WAT. WAT was compared to 56 industry peers in the Life Sciences Tools & Services industry. WAT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WAT is not valued too expensively and it also shows a decent growth rate. With these ratings, WAT could be worth investigating further 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.
In the past 5 years WAT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.02%, WAT belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
WAT has a Return On Equity of 30.62%. This is amongst the best in the industry. WAT outperforms 94.64% of its industry peers.
WAT's Return On Invested Capital of 19.59% is amongst the best of the industry. WAT outperforms 94.64% 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 14.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.02% | ||
| ROE | 30.62% | ||
| ROIC | 19.59% |
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 21.71%. This is amongst the best in the industry. WAT outperforms 96.43% of its industry peers.
WAT's Profit Margin has declined in the last couple of years.
WAT's Operating Margin of 27.73% is amongst the best of the industry. WAT outperforms 96.43% 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's Gross Margin of 59.02% is fine compared to the rest of the industry. WAT outperforms 75.00% 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 | 27.73% | ||
| PM (TTM) | 21.71% | ||
| GM | 59.02% |
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.
WAT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WAT has less shares outstanding
Compared to 1 year ago, WAT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.07 indicates that WAT is not in any danger for bankruptcy at the moment.
WAT has a Altman-Z score of 9.07. This is amongst the best in the industry. WAT outperforms 91.07% of its industry peers.
WAT has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as WAT would need 2.35 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.35, WAT belongs to the top of the industry, outperforming 83.93% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that WAT is somewhat dependend on debt financing.
The Debt to Equity ratio of WAT (0.55) is worse than 67.86% of its industry peers.
Even though the debt/equity ratio score it not favorable for WAT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 9.07 |
ROIC/WACC1.89
WACC10.37%
2.3 Liquidity
A Current Ratio of 1.75 indicates that WAT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.75, WAT is doing worse than 64.29% of the companies in the same industry.
WAT has a Quick Ratio of 1.22. 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 Quick ratio value of 1.22, WAT is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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 | 1.75 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.23% over the past year.
WAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
Looking at the last year, WAT shows a small growth in Revenue. The Revenue has grown by 5.89% in the last 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)8.23%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%12.17%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.86%
3.2 Future
The Earnings Per Share is expected to grow by 8.78% 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 6.19% yearly.
EPS Next Y10.54%
EPS Next 2Y10.18%
EPS Next 3Y10.52%
EPS Next 5Y8.78%
Revenue Next Year6.63%
Revenue Next 2Y6.48%
Revenue Next 3Y6.51%
Revenue Next 5Y6.19%
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
Based on the Price/Earnings ratio of 27.24, 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 73.21% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. WAT is around the same levels.
Based on the Price/Forward Earnings ratio of 23.12, the valuation of WAT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, WAT is valued a bit cheaper than 76.79% of the companies in the same industry.
WAT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.24 | ||
| Fwd PE | 23.12 |
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 78.57% of the companies listed in the same industry.
69.64% 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 | 32.01 | ||
| EV/EBITDA | 20.08 |
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.
The excellent profitability rating of WAT may justify a higher PE ratio.
PEG (NY)2.58
PEG (5Y)4.93
EPS Next 2Y10.18%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
WAT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
333.14
-3.19 (-0.95%)
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-0.16%
Ins Owners0.11%
Ins Owner Change0%
Market Cap19.83B
Analysts73.64
Price Target362.92 (8.94%)
Short Float %3.85%
Short Ratio2.86
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)-0.22%
Min EPS beat(2)-0.8%
Max EPS beat(2)0.35%
EPS beat(4)3
Avg EPS beat(4)2.12%
Min EPS beat(4)-0.8%
Max EPS beat(4)8.29%
EPS beat(8)7
Avg EPS beat(8)3.19%
EPS beat(12)10
Avg EPS beat(12)2.57%
EPS beat(16)14
Avg EPS beat(16)4.32%
Revenue beat(2)2
Avg Revenue beat(2)1.03%
Min Revenue beat(2)0.06%
Max Revenue beat(2)2.01%
Revenue beat(4)4
Avg Revenue beat(4)1.42%
Min Revenue beat(4)0.06%
Max Revenue beat(4)2.8%
Revenue beat(8)5
Avg Revenue beat(8)0.26%
Revenue beat(12)7
Avg Revenue beat(12)0.36%
Revenue beat(16)10
Avg Revenue beat(16)0.79%
PT rev (1m)0%
PT rev (3m)-9.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.24 | ||
| Fwd PE | 23.12 | ||
| P/S | 6.51 | ||
| P/FCF | 32.01 | ||
| P/OCF | 26.6 | ||
| P/B | 9.18 | ||
| P/tB | 81.67 | ||
| EV/EBITDA | 20.08 |
EPS(TTM)12.23
EY3.67%
EPS(NY)14.41
Fwd EY4.33%
FCF(TTM)10.41
FCFY3.12%
OCF(TTM)12.52
OCFY3.76%
SpS51.18
BVpS36.29
TBVpS4.08
PEG (NY)2.58
PEG (5Y)4.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.02% | ||
| ROE | 30.62% | ||
| ROCE | 22.82% | ||
| ROIC | 19.59% | ||
| ROICexc | 21.75% | ||
| ROICexgc | 51.16% | ||
| OM | 27.73% | ||
| PM (TTM) | 21.71% | ||
| GM | 59.02% | ||
| FCFM | 20.33% |
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-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.35 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 63.96% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.55% | ||
| Profit Quality | 93.64% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 9.07 |
F-Score5
WACC10.37%
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)8.23%
EPS 3Y1.89%
EPS 5Y5.53%
EPS Q2Q%12.17%
EPS Next Y10.54%
EPS Next 2Y10.18%
EPS Next 3Y10.52%
EPS Next 5Y8.78%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.86%
Revenue Next Year6.63%
Revenue Next 2Y6.48%
Revenue Next 3Y6.51%
Revenue Next 5Y6.19%
EBIT growth 1Y3.53%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year23.56%
EBIT Next 3Y15.79%
EBIT Next 5Y10.88%
FCF growth 1Y60.1%
FCF growth 3Y2.29%
FCF growth 5Y5.27%
OCF growth 1Y30.39%
OCF growth 3Y0.66%
OCF growth 5Y3.45%