WATERS CORP (WAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAT - US9418481035 - Common Stock
384.83 USD
+1.62 (+0.42%)
384.83 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to WAT. WAT was compared to 57 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 correct valuation and a medium 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.
WAT had a positive operating cash flow in the past year.
In the past 5 years WAT has always 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 13.34%, WAT belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
WAT has a better Return On Equity (27.84%) than 92.98% of its industry peers.
WAT has a better Return On Invested Capital (19.60%) than 92.98% 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 13.99%.
| 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 better Profit Margin (20.89%) than 96.49% of its industry peers.
In the last couple of years the Profit Margin of WAT has declined.
The Operating Margin of WAT (26.54%) is better than 94.74% of its industry peers.
WAT's Operating Margin has been stable in the last couple of years.
WAT's Gross Margin of 58.96% is fine compared to the rest of the industry. WAT outperforms 75.44% of its industry peers.
WAT's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 5 years ago, WAT has less shares outstanding
WAT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.71 indicates that WAT is not in any danger for bankruptcy at the moment.
The Altman-Z score of WAT (9.71) is better than 89.47% 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.
The Debt to FCF ratio of WAT (2.34) is better than 85.96% 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.
WAT's Debt to Equity ratio of 0.41 is in line compared to the rest of the industry. WAT outperforms 40.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 9.71 |
ROIC/WACC1.82
WACC10.78%
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.
Looking at the Current ratio, with a value of 1.53, WAT is doing worse than 71.93% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.08, WAT is doing worse than 77.19% of the companies in the same industry.
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 | 1.53 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.50% 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.
WAT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.90%.
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.
Based on estimates for the next years, WAT will show a small growth in Revenue. The Revenue will grow by 6.46% on average per year.
EPS Next Y11.58%
EPS Next 2Y10.28%
EPS Next 3Y10.34%
EPS Next 5Y10.36%
Revenue Next Year7.43%
Revenue Next 2Y6.88%
Revenue Next 3Y6.7%
Revenue Next 5Y6.46%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.30 indicates a quite expensive valuation of WAT.
71.93% of the companies in the same industry are more expensive than WAT, based on the Price/Earnings ratio.
WAT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 26.66, WAT can be considered very expensive at the moment.
75.44% of the companies in the same industry are more expensive than WAT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of WAT to the average of the S&P500 Index (24.03), we can say WAT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.3 | ||
| Fwd PE | 26.66 |
4.2 Price Multiples
WAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WAT is cheaper than 68.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WAT is valued a bit cheaper than the industry average as 64.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.04 | ||
| EV/EBITDA | 23.14 |
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)2.62
PEG (5Y)5.48
EPS Next 2Y10.28%
EPS Next 3Y10.34%
5. Dividend
5.1 Amount
No dividends for WAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
384.83
+1.62 (+0.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.12%
Inst Owner Change0%
Ins Owners0.12%
Ins Owner Change0.1%
Market Cap22.91B
Revenue(TTM)3.11B
Net Income(TTM)648.81M
Analysts73.33
Price TargetN/A
Short Float %3.97%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)9.13%
PT rev (3m)10.59%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0.96%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.3 | ||
| Fwd PE | 26.66 | ||
| P/S | 7.38 | ||
| P/FCF | 38.04 | ||
| P/OCF | 31.46 | ||
| P/B | 9.83 | ||
| P/tB | 54.34 | ||
| EV/EBITDA | 23.14 |
EPS(TTM)12.7
EY3.3%
EPS(NY)14.44
Fwd EY3.75%
FCF(TTM)10.12
FCFY2.63%
OCF(TTM)12.23
OCFY3.18%
SpS52.17
BVpS39.15
TBVpS7.08
PEG (NY)2.62
PEG (5Y)5.48
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 | 9.71 |
F-Score4
WACC10.78%
ROIC/WACC1.82
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 Y11.58%
EPS Next 2Y10.28%
EPS Next 3Y10.34%
EPS Next 5Y10.36%
Revenue 1Y (TTM)6.9%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.05%
Revenue Next Year7.43%
Revenue Next 2Y6.88%
Revenue Next 3Y6.7%
Revenue Next 5Y6.46%
EBIT growth 1Y-2.9%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year25.2%
EBIT Next 3Y15.82%
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.