NYSE:WAT

Stock Analysis Report

Executive Summary

Waters Corporation, a specialty measurement company, provides analytical workflow solutions in Asia, the Americas, and Europe.

Snowflake

Fundamentals

Proven track record with mediocre 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

0.6%

WAT

1.9%

US Life Sciences

-0.2%

US Market


1 Year Return

11.2%

WAT

20.6%

US Life Sciences

16.1%

US Market

Return vs Industry: WAT underperformed the US Life Sciences industry which returned 20.6% over the past year.

Return vs Market: WAT underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

WATIndustryMarket
7 Day0.6%1.9%-0.2%
30 Day2.0%6.8%3.7%
90 Day6.7%7.5%8.5%
1 Year11.2%11.2%20.9%20.6%18.7%16.1%
3 Year57.7%57.7%95.5%93.8%46.9%37.4%
5 Year88.7%88.7%117.8%114.7%61.8%44.0%

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

Valuation

Is Waters undervalued compared to its fair value and its price relative to the market?

26.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WAT ($218.72) is trading above our estimate of fair value ($165.2)

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 (26.7x) compared to the Life Sciences industry average (33x).

PE vs Market: WAT is poor value based on its PE Ratio (26.7x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: WAT is poor value based on its PEG Ratio (11.9x)


Price to Book Ratio

PB vs Industry: WAT is overvalued based on its PB Ratio (123.3x) compared to the US Life Sciences industry average (5x).


Next Steps

Future Growth

How is Waters forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WAT's forecast earnings growth (2.2% per year) is below the savings rate (2.7%).

Earnings vs Market: WAT's earnings (2.2% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: WAT's earnings are forecast to grow, but not significantly.

Revenue vs Market: WAT's revenue (3.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WAT's revenue (3.9% 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?

-3.5%

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%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: WAT's earnings have declined by -3.5% per year over the past 5 years.

Accelerating Growth: WAT's earnings growth over the past year (940.6%) exceeds its 5-year average (-3.5% per year).

Earnings vs Industry: WAT earnings growth over the past year (940.6%) exceeded the Life Sciences industry 37.2%.


Return on Equity

High ROE: Whilst WAT's Return on Equity (499.29%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Waters's financial position?


Financial Position Analysis

Short Term Liabilities: WAT's short term assets ($1.3B) exceeds its short term liabilities ($597.2M)

Long Term Liabilities: WAT's short term assets ($1.3B) do not cover its long term liabilities (1.8B)


Debt to Equity History and Analysis

Debt Level: WAT's debt to equity ratio (1173.7%) is considered high.

Reducing Debt: WAT's debt to equity ratio has increased from 77.6% to 1173.7% over the past 5 years.

Debt Coverage: WAT's debt is well covered by operating cash flow (46.7%).

Interest Coverage: WAT's interest payments on its debt are well covered by EBIT (40.3x coverage).


Balance Sheet

Inventory Level: WAT has a high level of physical assets or inventory.

Debt Coverage by Assets: WAT's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Waters's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0%

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

What is the CEO of Waters's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Laurie Glimcher (67yo)

4.2yrs

Tenure

US$289,973

Compensation

Dr. Laurie H. Glimcher, M.D., has been the Chief Executive Officer and President of Dana-Farber Cancer Institute, Inc. since October 1, 2016. Dr. Glimcher has been Richard and Susan Smith Professor of Medi ...


Management Age and Tenure

2.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: WAT's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

62yo

Average Age

Experienced Board: WAT's board of directors are considered experienced (8 years average tenure).


Insider Trading

Insider Buying: WAT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$682,62518 Nov 19
Mark Beaudouin
EntityIndividual
Role
Senior Key Executive
Shares3,175
Max PriceUS$215.00
SellUS$177,37514 Nov 19
Mark Beaudouin
EntityIndividual
Role
Senior Key Executive
Shares825
Max PriceUS$215.00
SellUS$472,20804 Nov 19
Laurie Glimcher
EntityIndividual
Role
Chief Executive Officer
Independent Director
Shares2,200
Max PriceUS$214.64
SellUS$480,81812 Mar 19
Terrence Kelly
EntityIndividual
Shares2,006
Max PriceUS$239.69
SellUS$354,45527 Feb 19
Laurie Glimcher
EntityIndividual
Role
Chief Executive Officer
Independent Director
Shares1,485
Max PriceUS$238.69
SellUS$718,92026 Feb 19
Michael Berendt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$239.64
SellUS$214,35817 Dec 18
Michael Harrington
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Markets
Shares1,131
Max PriceUS$189.53
SellUS$453,64012 Dec 18
Terrence Kelly
EntityIndividual
Shares2,429
Max PriceUS$186.76

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mark Beaudouin (64yo)

    • Tenure: 0.08yrs
    • Compensation: US$2.11m
  • Laurie Glimcher (67yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$289.97k
  • Elizabeth Rae (61yo)

    Senior Vice President of Global Human Resources

    • Tenure: 3.8yrs
    • Compensation: US$1.58m
  • Chris O'Connell (52yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$8.26m
  • Bryan Brokmeier

    Senior Director of Investor Relations

    • Tenure: 0yrs
  • Sherry Buck (55yo)

    Senior VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$2.63m
  • Michael Harrington (58yo)

    Senior Vice President of Global Markets

    • Tenure: 3.8yrs
    • Compensation: US$2.42m
  • Rob Carson (45yo)

    Senior Vice President of Corporate Development

    • Tenure: 1.8yrs
    • Compensation: US$3.78m
  • Francis Kim (52yo)

    Senior Vice President of Global Operations

    • Tenure: 1.8yrs
    • Compensation: US$2.42m
  • Keeley Aleman

    Senior VP

    • Tenure: 0.08yrs

Board Members

  • Ed Conard (62yo)

    Independent Director

    • Tenure: 25.3yrs
    • Compensation: US$314.97k
  • Linda Baddour (61yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$134.29k
  • Christopher Kuebler (65yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$307.47k
  • Laurie Glimcher (67yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$289.97k
  • Michael Berendt (70yo)

    Independent Director

    • Tenure: 21.7yrs
    • Compensation: US$297.97k
  • Tom Salice (59yo)

    Lead Director

    • Tenure: 15.8yrs
    • Compensation: US$336.47k
  • JoAnn Reed (63yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$319.97k
  • Gary Hendrickson (62yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$132.79k
  • Chris O'Connell (52yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$8.26m
  • Flemming Ornskov (61yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$294.47k

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$14.029b
  • Shares outstanding: 64.43m
  • Website: https://www.waters.com

Number of Employees


Location

  • Waters Corporation
  • 34 Maple Street
  • Milford
  • Massachusetts
  • 1757
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WATNYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 1995
WAZDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1995
0LTILSE (London Stock Exchange)YesCommon SharesGBUSDNov 1995
WAT *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNNov 1995
WATC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.25 COM USD0.01BRBRLMay 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, manufact ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 23:48
End of Day Share Price2019/11/22 00:00
Earnings2019/09/28
Annual Earnings2018/12/31


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.