Market Cap
US$13.1b
Last Updated
2020/02/27 01:18 UTC
Data Sources
Company Financials +
Executive Summary
Waters Corporation, a specialty measurement company, provides analytical workflow solutions in Asia, the Americas, and Europe.
Snowflake Analysis
Questionable track record with imperfect balance sheet.
Similar Companies
Share Price & News
How has Waters's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WAT has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-6.8%
WAT
-8.4%
US Life Sciences
-7.6%
US Market
1 Year Return
-16.4%
WAT
7.3%
US Life Sciences
10.2%
US Market
Return vs Industry: WAT underperformed the US Life Sciences industry which returned 7.3% over the past year.
Return vs Market: WAT underperformed the US Market which returned 10.5% over the past year.
Shareholder returns
| WAT | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.8% | -8.4% | -7.6% |
| 30 Day | -14.1% | -8.9% | -4.5% |
| 90 Day | -8.8% | -3.4% | -0.6% |
| 1 Year | -16.4%-16.4% | 7.5%7.3% | 12.5%10.2% |
| 3 Year | 31.4%31.4% | 77.1%75.9% | 37.1%28.3% |
| 5 Year | 66.2%66.2% | 103.1%100.3% | 60.8%43.2% |
Price Volatility Vs. Market
How volatile is Waters's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Waters Corporation Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?4 weeks ago | Simply Wall St
Why Waters Corporation (NYSE:WAT) Could Be Worth Watching1 month ago | Simply Wall St
Are Waters Corporation (NYSE:WAT) Investors Paying Above The Intrinsic Value?Valuation
Is Waters undervalued compared to its fair value and its price relative to the market?
23.14x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WAT ($203.37) is trading above our estimate of fair value ($159.33)
Significantly Below Fair Value: WAT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WAT is good value based on its PE Ratio (23.2x) compared to the Life Sciences industry average (34.8x).
PE vs Market: WAT is poor value based on its PE Ratio (23.2x) compared to the US market (17.2x).
Price to Earnings Growth Ratio
PEG Ratio: WAT is poor value based on its PEG Ratio (11.1x)
Price to Book Ratio
PB vs Industry: WAT has negative assets, so we can't compare its PB Ratio to the US Life Sciences industry average.
Next Steps
Future Growth
How is Waters forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
2.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WAT's forecast earnings growth (2.1% per year) is above the savings rate (1.7%).
Earnings vs Market: WAT's earnings (2.1% per year) are forecast to grow slower than the US market (13.2% per year).
High Growth Earnings: WAT's earnings are forecast to grow, but not significantly.
Revenue vs Market: WAT's revenue (3.4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: WAT's revenue (3.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if WAT's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Waters performed over the past 5 years?
-1.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WAT has high quality earnings.
Growing Profit Margin: WAT's current net profit margins (24.6%) are higher than last year (24.5%).
Past Earnings Growth Analysis
Earnings Trend: WAT's earnings have declined by -1.3% per year over the past 5 years.
Accelerating Growth: WAT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WAT had negative earnings growth (-0.3%) over the past year, making it difficult to compare to the Life Sciences industry average (15.3%).
Return on Equity
High ROE: WAT's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Waters's financial position?
Financial Position Analysis
Short Term Liabilities: WAT has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: WAT has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: WAT has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: WAT's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: WAT's debt is well covered by operating cash flow (40.3%).
Interest Coverage: WAT's interest payments on its debt are well covered by EBIT (27.1x coverage).
Balance Sheet
Inventory Level: WAT has a high level of physical assets or inventory.
Debt Coverage by Assets: WAT has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Next Steps
Dividend
What is Waters's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate WAT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate WAT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if WAT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if WAT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WAT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Chris O'Connell (52yo)
4.4yrs
Tenure
US$8,258,221
Compensation
Mr. Christopher James O’Connell, also known as Chris, has been the Chief Executive Officer of Waters Corporation since September 8, 2015 and has been its Chairman since December 2017 and also serves as its ...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD8.26M) is about average for companies of similar size in the US market ($USD10.82M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.4yrs | US$8.26m | no data | |
| Senior VP & CFO | 3.1yrs | US$2.63m | 0.0022% $285.9k | |
| Senior Vice President of Global Operations | 2yrs | US$2.42m | 0.0020% $266.3k | |
| Senior Vice President of Corporate Development | 2yrs | US$3.78m | 0.0018% $237.6k | |
| Senior Vice President of Global Markets | 4yrs | US$2.42m | no data | |
| Senior Director of Investor Relations | 0yrs | no data | no data | |
| Senior VP | 0.3yrs | no data | 0.00023% $30.0k | |
| Senior Vice President of Global Human Resources | 4yrs | US$1.58m | 0.018% $2.4m | |
| Senior Vice President of Global Products | 2.6yrs | US$2.17m | 0.0051% $668.4k | |
| Senior VP & President of TA Instruments | 0.4yrs | no data | 0.0019% $246.7k |
2.6yrs
Average Tenure
55yo
Average Age
Experienced Management: WAT's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.4yrs | US$8.26m | no data | |
| Independent Director | 25.5yrs | US$314.97k | 0.11% $13.7m | |
| Independent Director | 1.4yrs | US$134.29k | 0.0021% $275.4k | |
| Independent Director | 13.8yrs | US$307.47k | 0.025% $3.2m | |
| Independent Director | 22.1yrs | US$289.97k | 0.030% $3.9m | |
| Independent Director | 21.9yrs | US$297.97k | 0.034% $4.5m | |
| Lead Director | 16yrs | US$336.47k | 0.15% $20.1m | |
| Independent Director | 13.8yrs | US$319.97k | 0.051% $6.6m | |
| Independent Director | 1.4yrs | US$132.79k | 0.0021% $275.4k | |
| Independent Director | 2.7yrs | US$294.47k | 0.0034% $450.4k |
13.8yrs
Average Tenure
62yo
Average Age
Experienced Board: WAT's board of directors are seasoned and experienced ( 13.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WAT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Waters Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Waters Corporation
- Ticker: WAT
- Exchange: NYSE
- Founded: 1958
- Industry: Life Sciences Tools and Services
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$13.054b
- Shares outstanding: 64.43m
- Website: https://www.waters.com
Number of Employees
Location
- Waters Corporation
- 34 Maple Street
- Milford
- Massachusetts
- 1757
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WAT | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Nov 1995 |
| WAZ | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Nov 1995 |
| 0LTI | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Nov 1995 |
| WAT * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Nov 1995 |
| WATC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REP 0.25 COM USD0.01 | BR | BRL | May 2019 |
Biography
Waters Corporation, a specialty measurement company, provides analytical workflow solutions in Asia, the Americas, and Europe. It operates through two segments, Waters and TA. The company designs, manufactures, sells, and services high and ultra-performance liquid chromatography, as well as mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products, and post-warranty service plans. It also designs, manufactures, sells, and services thermal analysis, rheometry, and calorimetry instruments; and develops and supplies software-based products that interface with its instruments, as well as other manufacturers' instruments. Its MS technology instruments are used in drug discovery and development comprising clinical trial testing, the analysis of proteins in disease processes, nutritional safety analysis, and environmental testing. The company's offers thermal analysis, rheometry, and calorimetry instruments for use in predicting the suitability and stability of fine chemicals, pharmaceuticals, water, polymers, metals, and viscous liquids for various industrial, consumer good, and healthcare products, as well as for life science research. Its products are used by pharmaceutical, biochemical, industrial, nutritional safety, environmental, academic, and governmental customers working in research and development, quality assurance, and other laboratory applications. The company has a collaboration agreement with The Human Glycome Project, Genos, and New England Biolabs, Inc. to accelerate glycomics research by providing goods and services to glycan analysis. Waters Corporation was founded in 1958 and is headquartered in Milford, Massachusetts.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/27 01:18 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.