WATERS CORP (WAT)
US9418481035 - Common Stock
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 has an excellent profitability rating, but there are some minor concerns on its financial health. WAT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WAT had positive earnings in the past year.
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
With an excellent Return On Assets value of 13.88%, WAT belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
WAT has a better Return On Equity (55.83%) than 100.00% of its industry peers.
WAT has a better Return On Invested Capital (18.29%) than 94.83% 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 9.91%.
The last Return On Invested Capital (18.29%) for WAT is well below the 3 year average (26.28%), which needs to be investigated, but indicates that WAT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.88% | ||
| ROE | 55.83% | ||
| ROIC | 18.29% |
ROA(3y)19.28%
ROA(5y)19.87%
ROE(3y)128.21%
ROE(5y)N/A
ROIC(3y)26.28%
ROIC(5y)27.77%
1.3 Margins
WAT has a better Profit Margin (21.72%) than 98.28% of its industry peers.
In the last couple of years the Profit Margin of WAT has declined.
Looking at the Operating Margin, with a value of 27.66%, WAT belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
WAT's Operating Margin has been stable in the last couple of years.
WAT has a Gross Margin of 59.57%. This is amongst the best in the industry. WAT outperforms 81.03% 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 | 27.66% | ||
| PM (TTM) | 21.72% | ||
| GM | 59.57% |
OM growth 3Y0.09%
OM growth 5Y-1.23%
PM growth 3Y-0.5%
PM growth 5Y-2.41%
GM growth 3Y1.15%
GM growth 5Y0.1%
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 about the same amout of 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 a worse debt to assets ratio.
2.2 Solvency
WAT has an Altman-Z score of 7.46. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
WAT's Altman-Z score of 7.46 is amongst the best of the industry. WAT outperforms 87.93% of its industry peers.
WAT has a debt to FCF ratio of 5.33. This is a neutral value as WAT would need 5.33 years to pay back of all of its debts.
The Debt to FCF ratio of WAT (5.33) is better than 72.41% of its industry peers.
WAT has a Debt/Equity ratio of 2.00. This is a high value indicating a heavy dependency on external financing.
WAT has a worse Debt to Equity ratio (2.00) than 87.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 7.46 |
ROIC/WACC1.5
WACC12.18%
2.3 Liquidity
A Current Ratio of 2.22 indicates that WAT has no problem at all paying its short term obligations.
The Current ratio of WAT (2.22) is comparable to the rest of the industry.
WAT has a Quick Ratio of 1.57. 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 (1.57) is worse than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
WAT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.33%.
The Earnings Per Share has been growing slightly by 7.12% on average over the past years.
Looking at the last year, WAT shows a decrease in Revenue. The Revenue has decreased by -0.52% in the last year.
Measured over the past years, WAT shows a small growth in Revenue. The Revenue has been growing by 4.09% on average per year.
EPS 1Y (TTM)-2.33%
EPS 3Y9.05%
EPS 5Y7.12%
EPS growth Q2Q-5.73%
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y7.72%
Revenue growth 5Y4.09%
Revenue growth Q2Q-4.55%
3.2 Future
Based on estimates for the next years, WAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.36% on average per year.
The Revenue is expected to grow by 5.75% on average over the next years.
EPS Next Y2.22%
EPS Next 2Y6.29%
EPS Next 3Y7.24%
EPS Next 5Y9.36%
Revenue Next Year0.91%
Revenue Next 2Y3.54%
Revenue Next 3Y4.23%
Revenue Next 5Y5.75%
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
With a Price/Earnings ratio of 26.82, WAT can be considered very expensive at the moment.
WAT's Price/Earnings ratio is rather cheap when compared to the industry. WAT is cheaper than 81.03% of the companies in the same industry.
WAT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.02, which is the current average of the S&P500 Index.
WAT is valuated quite expensively with a Price/Forward Earnings ratio of 26.23.
WAT's Price/Forward Earnings ratio is rather cheap when compared to the industry. WAT is cheaper than 82.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.32. WAT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 26.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WAT is valued cheaply inside the industry as 81.03% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, WAT is valued a bit cheaper than 72.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.19 | ||
| EV/EBITDA | 20.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WAT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)12.07
PEG (5Y)3.77
EPS Next 2Y6.29%
EPS Next 3Y7.24%
5. Dividend
5.1 Amount
No dividends for WAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WATERS CORP
NYSE:WAT (4/29/2024, 7:04:00 PM)
After market: 315.09 0 (0%)315.09
+3.79 (+1.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 26.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)12.07
PEG (5Y)3.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.88% | ||
| ROE | 55.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.66% | ||
| PM (TTM) | 21.72% | ||
| GM | 59.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-2.33%
EPS 3Y9.05%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y7.72%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y