WATERS CORP (WAT) Stock Fundamental Analysis
NYSE:WAT - New York Stock Exchange, Inc. - US9418481035 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to WAT. WAT was compared to 54 industry peers in the Life Sciences Tools & Services industry. Both the health and profitability get an excellent rating, making WAT a very profitable company, without any liquidiy or solvency issues. WAT is not valued too expensively and it also shows a decent growth rate. This makes WAT very considerable 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.
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
WAT has a Return On Assets of 14.02%. This is amongst the best in the industry. WAT outperforms 92.59% of its industry peers.
WAT's Return On Equity of 30.62% is amongst the best of the industry. WAT outperforms 96.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.59%, WAT belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WAT is significantly above the industry average of 16.00%.
| 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 100.00% of its industry peers.
WAT's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 27.73%, WAT belongs to the best of the industry, outperforming 98.15% 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.
The Gross Margin of WAT (59.02%) is better than 75.93% 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
WAT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
WAT has an Altman-Z score of 8.30. This indicates that WAT is financially healthy and has little risk of bankruptcy at the moment.
WAT has a better Altman-Z score (8.30) than 90.74% of its industry peers.
The Debt to FCF ratio of WAT is 2.35, which is a good value as it means it would take WAT, 2.35 years of fcf income to pay off all of its debts.
WAT has a Debt to FCF ratio of 2.35. This is amongst the best in the industry. WAT outperforms 81.48% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that WAT is somewhat dependend on debt financing.
WAT's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. WAT is outperformed by 64.81% 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 | 8.3 |
ROIC/WACC1.93
WACC10.17%
2.3 Liquidity
A Current Ratio of 1.75 indicates that WAT should not have too much problems paying its short term obligations.
WAT has a Current ratio of 1.75. This is in the lower half of the industry: WAT underperforms 66.67% of its industry peers.
A Quick Ratio of 1.22 indicates that WAT should not have too much problems paying its short term obligations.
WAT has a worse Quick ratio (1.22) than 75.93% 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
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
Based on estimates for the next years, WAT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.85% on average per year.
WAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.13% yearly.
EPS Next Y9.97%
EPS Next 2Y9.88%
EPS Next 3Y10.31%
EPS Next 5Y10.85%
Revenue Next Year5.75%
Revenue Next 2Y6.12%
Revenue Next 3Y6.3%
Revenue Next 5Y6.13%
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 rather expensively with a Price/Earnings ratio of 22.90.
Based on the Price/Earnings ratio, WAT is valued a bit cheaper than 75.93% of the companies in the same industry.
WAT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.54.
The Price/Forward Earnings ratio is 19.54, which indicates a rather expensive current valuation of WAT.
Based on the Price/Forward Earnings ratio, WAT is valued a bit cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.28. WAT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 19.54 |
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 79.63% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAT indicates a somewhat cheap valuation: WAT is cheaper than 75.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.91 | ||
| EV/EBITDA | 16.93 |
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)2.3
PEG (5Y)4.14
EPS Next 2Y9.88%
EPS Next 3Y10.31%
5. Dividend
5.1 Amount
No dividends for WAT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:WAT (8/8/2025, 2:50:51 PM)
280.02
+2.02 (+0.73%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.11%
Inst Owner Change-2.5%
Ins Owners0.11%
Ins Owner Change0.59%
Market Cap16.67B
Analysts73.04
Price Target374.28 (33.66%)
Short Float %3.4%
Short Ratio2.84
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)0.35%
Revenue beat(16)10
Avg Revenue beat(16)0.79%
PT rev (1m)-2.54%
PT rev (3m)-2.91%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 19.54 | ||
| P/S | 5.47 | ||
| P/FCF | 26.91 | ||
| P/OCF | 22.36 | ||
| P/B | 7.72 | ||
| P/tB | 68.65 | ||
| EV/EBITDA | 16.93 |
EPS(TTM)12.23
EY4.37%
EPS(NY)14.33
Fwd EY5.12%
FCF(TTM)10.41
FCFY3.72%
OCF(TTM)12.52
OCFY4.47%
SpS51.18
BVpS36.29
TBVpS4.08
PEG (NY)2.3
PEG (5Y)4.14
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 | 8.3 |
F-Score5
WACC10.17%
ROIC/WACC1.93
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 Y9.97%
EPS Next 2Y9.88%
EPS Next 3Y10.31%
EPS Next 5Y10.85%
Revenue 1Y (TTM)5.89%
Revenue growth 3Y2.02%
Revenue growth 5Y4.21%
Sales Q2Q%8.86%
Revenue Next Year5.75%
Revenue Next 2Y6.12%
Revenue Next 3Y6.3%
Revenue Next 5Y6.13%
EBIT growth 1Y3.53%
EBIT growth 3Y0.39%
EBIT growth 5Y3.3%
EBIT Next Year21.58%
EBIT Next 3Y11.4%
EBIT Next 5Y11.57%
FCF growth 1Y60.1%
FCF growth 3Y2.29%
FCF growth 5Y5.27%
OCF growth 1Y30.39%
OCF growth 3Y0.66%
OCF growth 5Y3.45%