WATERS CORP (WAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAT - US9418481035 - Common Stock
397.79 USD
-5.63 (-1.4%)
397.82 USD
+0.03 (+0.01%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WAT has a correct valuation and a medium growth rate. These ratings would make WAT suitable 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.
WAT had positive earnings in each of the past 5 years.
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.
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.
The Return On Invested Capital of WAT (19.60%) is better than 93.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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.
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%
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.
The number of shares outstanding for WAT has been increased compared to 1 year ago.
WAT has less shares outstanding than it did 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 9.99. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
WAT has a Altman-Z score of 9.99. This is amongst the best in the industry. WAT outperforms 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 has a better Debt to FCF ratio (2.34) 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.
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 | 9.99 |
ROIC/WACC1.94
WACC10.08%
2.3 Liquidity
A Current Ratio of 1.53 indicates that WAT should not have too much problems paying 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.
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 77.59% 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 |
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.
WAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
The Revenue has been growing slightly by 6.90% in the past year.
The Revenue has been growing slightly by 4.21% on average over the past years.
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 10.36% yearly.
The Revenue is expected to grow by 6.46% on average over the next years.
EPS Next Y10.52%
EPS Next 2Y10.16%
EPS Next 3Y10.51%
EPS Next 5Y10.36%
Revenue Next Year6.59%
Revenue Next 2Y6.4%
Revenue Next 3Y6.5%
Revenue Next 5Y6.46%
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
WAT is valuated quite expensively with a Price/Earnings ratio of 31.32.
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 similar valuation than the S&P500 average which is at 26.11.
A Price/Forward Earnings ratio of 27.62 indicates a quite expensive valuation of WAT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 74.14% of the companies listed in the same industry.
WAT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.32 | ||
| Fwd PE | 27.62 |
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.
Based on the Price/Free Cash Flow ratio, WAT is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.32 | ||
| EV/EBITDA | 24.32 |
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.
PEG (NY)2.98
PEG (5Y)5.67
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 |
397.79
-5.63 (-1.4%)
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-0.03%
Ins Owners0.11%
Ins Owner Change0.1%
Market Cap23.68B
Revenue(TTM)3.11B
Net Income(TTM)648.81M
Analysts72.38
Price Target398.65 (0.22%)
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)-1.69%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.32 | ||
| Fwd PE | 27.62 | ||
| P/S | 7.62 | ||
| P/FCF | 39.32 | ||
| P/OCF | 32.52 | ||
| P/B | 10.16 | ||
| P/tB | 56.17 | ||
| EV/EBITDA | 24.32 |
EPS(TTM)12.7
EY3.19%
EPS(NY)14.4
Fwd EY3.62%
FCF(TTM)10.12
FCFY2.54%
OCF(TTM)12.23
OCFY3.07%
SpS52.17
BVpS39.15
TBVpS7.08
PEG (NY)2.98
PEG (5Y)5.67
Graham Number105.77
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 | 9.99 |
F-Score4
WACC10.08%
ROIC/WACC1.94
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 5Y10.36%
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 5Y6.46%
EBIT growth 1Y-2.9%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year23.56%
EBIT Next 3Y15.79%
EBIT Next 5Y11.27%
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.