WATERS CORP (WAT) Stock Fundamental Analysis
USA - NYSE:WAT - US9418481035 - Common Stock
376.81 USD
+5.12 (+1.38%)
Taking everything into account, WAT scores 6 out of 10 in our fundamental rating. WAT was compared to 58 industry peers in the Life Sciences Tools & Services industry. WAT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WAT is not valued too expensively and it also shows a decent growth rate. These ratings could make WAT a good candidate 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.
WAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WAT (14.02%) is better than 93.10% of its industry peers.
WAT has a better Return On Equity (30.62%) than 94.83% of its industry peers.
WAT's Return On Invested Capital of 19.59% is amongst the best of the industry. WAT outperforms 93.10% 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 13.58%.
| 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
With an excellent Profit Margin value of 21.71%, WAT belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
WAT's Profit Margin has declined in the last couple of years.
WAT has a Operating Margin of 27.73%. This is amongst the best in the industry. WAT outperforms 96.55% of its industry peers.
WAT's Operating Margin has been stable in the last couple of years.
The Gross Margin of WAT (59.02%) is better than 75.86% of its industry peers.
WAT's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WAT is creating value.
Compared to 1 year ago, WAT has more shares outstanding
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 9.60 indicates that WAT is not in any danger for bankruptcy at the moment.
WAT has a Altman-Z score of 9.60. This is amongst the best in the industry. WAT outperforms 91.38% 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.
With an excellent Debt to FCF ratio value of 2.35, WAT belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
WAT has a Debt/Equity ratio of 0.55. This is a neutral value indicating WAT is somewhat dependend on debt financing.
WAT has a worse Debt to Equity ratio (0.55) than 65.52% of its industry peers.
Although WAT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 9.6 |
ROIC/WACC1.91
WACC10.28%
2.3 Liquidity
WAT has a Current Ratio of 1.75. 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 1.75, WAT is doing worse than 60.34% 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.
WAT's Quick ratio of 1.22 is on the low side compared to the rest of the industry. WAT is outperformed by 68.97% 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 | 1.75 | ||
| Quick Ratio | 1.22 |
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.
Looking at the last year, WAT shows a small growth in Revenue. The Revenue has grown by 0.07% in the last 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)0.07%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.05%
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 8.78% on average per year.
The Revenue is expected to grow by 6.19% on average over the next years.
EPS Next Y10.52%
EPS Next 2Y10.16%
EPS Next 3Y10.51%
EPS Next 5Y8.78%
Revenue Next Year6.59%
Revenue Next 2Y6.4%
Revenue Next 3Y6.5%
Revenue Next 5Y6.19%
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 29.67 indicates a quite expensive valuation of WAT.
Compared to the rest of the industry, the Price/Earnings ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 70.69% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.06. WAT is around the same levels.
Based on the Price/Forward Earnings ratio of 26.16, the valuation of WAT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 72.41% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.73. WAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.67 | ||
| Fwd PE | 26.16 |
4.2 Price Multiples
WAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WAT is cheaper than 77.59% of the companies in the same industry.
65.52% 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 | 36.21 | ||
| EV/EBITDA | 22.28 |
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)2.82
PEG (5Y)5.37
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 |
NYSE:WAT (11/10/2025, 1:45:55 PM)
376.81
+5.12 (+1.38%)
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 Change0.8%
Ins Owners0.11%
Ins Owner Change0.09%
Market Cap22.43B
Revenue(TTM)2.96B
Net Income(TTM)661.39M
Analysts72.38
Price Target367.76 (-2.4%)
Short Float %4.01%
Short Ratio3.56
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)1.33%
PT rev (3m)-1.74%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.84%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.67 | ||
| Fwd PE | 26.16 | ||
| P/S | 7.36 | ||
| P/FCF | 36.21 | ||
| P/OCF | 30.09 | ||
| P/B | 10.38 | ||
| P/tB | 92.38 | ||
| EV/EBITDA | 22.28 |
EPS(TTM)12.7
EY3.37%
EPS(NY)14.4
Fwd EY3.82%
FCF(TTM)10.41
FCFY2.76%
OCF(TTM)12.52
OCFY3.32%
SpS51.18
BVpS36.29
TBVpS4.08
PEG (NY)2.82
PEG (5Y)5.37
Graham Number101.83
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%
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-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 | 9.6 |
F-Score5
WACC10.28%
ROIC/WACC1.91
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 5Y8.78%
Revenue 1Y (TTM)0.07%
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 5Y6.19%
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%
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.