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WAT

WatersNYSE:WAT Stock Report

Market Cap

US$24.3b

7D

0.6%

1Y

112.0%

Updated

23 Sep, 2021

Data

Company Financials +
WAT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends0/6

WAT Overview

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

Waters Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Waters
Historical stock prices
Current Share PriceUS$402.11
52 Week HighUS$187.31
52 Week LowUS$428.22
Beta0.80
1 Month Change-0.04%
3 Month Change19.05%
1 Year Change112.04%
3 Year Change105.83%
5 Year Change157.20%
Change since IPO10,534.31%

Recent News & Updates

Sep 17
Waters (NYSE:WAT) Could Easily Take On More Debt

Waters (NYSE:WAT) Could Easily Take On More Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Sep 10

Waters Back On The Right Path, But The Valuation Is Well Down The Road

Waters' new CEO has the company on a much better path and addressing the strategic and execution deficiencies that have led to share loss, missed opportunities, and relative underperformance. New product introductions should restore momentum in QA/QC, as well as provide leverage to growth opportunities in areas like proteomics. Circling back with established customers to drive a refresh of the installed instrument base and improved consumables attach rates is a low-risk opportunity to generate sales and margin leverage. The new plan at Waters should generate above-peer revenue and FCF growth, but the stock already more than anticipates those improvements.

Shareholder Returns

WATUS Life SciencesUS Market
7D0.6%3.2%-0.5%
1Y112.0%59.6%37.5%

Return vs Industry: WAT exceeded the US Life Sciences industry which returned 58.3% over the past year.

Return vs Market: WAT exceeded the US Market which returned 36.2% over the past year.

Price Volatility

Is WAT's price volatile compared to industry and market?
WAT volatility
WAT Beta0.80
Industry Beta0.97
Market Beta1

Stable Share Price: WAT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: WAT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19587,400Udit Batrahttps://www.waters.com

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.

Waters Fundamentals Summary

How do Waters's earnings and revenue compare to its market cap?
WAT fundamental statistics
Market CapUS$24.27b
Earnings (TTM)US$660.50m
Revenue (TTM)US$2.67b

37.4x

P/E Ratio

9.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WAT income statement (TTM)
RevenueUS$2.67b
Cost of RevenueUS$1.12b
Gross ProfitUS$1.55b
ExpensesUS$892.82m
EarningsUS$660.50m

Last Reported Earnings

Jul 03, 2021

Next Earnings Date

n/a

Earnings per share (EPS)10.65
Gross Margin58.16%
Net Profit Margin24.73%
Debt/Equity Ratio606.0%

How did WAT perform over the long term?

See historical performance and comparison

Valuation

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

37.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WAT ($402.11) is trading above our estimate of fair value ($291.67)

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 (37.4x) compared to the US Life Sciences industry average (52.2x).

PE vs Market: WAT is poor value based on its PE Ratio (37.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: WAT is poor value based on its PEG Ratio (7.1x)


Price to Book Ratio

PB vs Industry: WAT is overvalued based on its PB Ratio (92x) compared to the US Life Sciences industry average (6.1x).


Future Growth

How is Waters forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WAT's forecast earnings growth (5.2% per year) is above the savings rate (2%).

Earnings vs Market: WAT's earnings (5.2% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: WAT's revenue (5.5% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: WAT's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WAT's Return on Equity is forecast to be very high in 3 years time (90%).


Past Performance

How has Waters performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAT has high quality earnings.

Growing Profit Margin: WAT's current net profit margins (24.7%) are higher than last year (22.6%).


Past Earnings Growth Analysis

Earnings Trend: WAT's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: WAT's earnings growth over the past year (28.4%) exceeds its 5-year average (9% per year).

Earnings vs Industry: WAT earnings growth over the past year (28.4%) underperformed the Life Sciences industry 56.9%.


Return on Equity

High ROE: Whilst WAT's Return on Equity (246.2%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Waters's financial position?


Financial Position Analysis

Short Term Liabilities: WAT's short term assets ($1.6B) exceed its short term liabilities ($681.0M).

Long Term Liabilities: WAT's short term assets ($1.6B) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: WAT's debt to equity ratio (606%) is considered high.

Reducing Debt: WAT's debt to equity ratio has increased from 81.7% to 606% over the past 5 years.

Debt Coverage: WAT's debt is well covered by operating cash flow (49.3%).

Interest Coverage: WAT's interest payments on its debt are well covered by EBIT (28.5x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WAT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WAT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?

1.5yrs

Average management tenure


CEO

Udit Batra (50 yo)

1

Tenure

US$6,282,747

Compensation

Dr. Udit Batra, PhD, serves as President, Chief Executive Officer and Director at Waters Corporation since September 1, 2020. Dr. Batra served as Chief Executive Officer of Life Science business of Merck a...


CEO Compensation Analysis

Compensation vs Market: Udit's total compensation ($USD6.28M) is below average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Insufficient data to compare Udit's compensation with company performance.


Leadership Team

Experienced Management: WAT's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: WAT's board of directors are considered experienced (3 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 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$24.274b
  • Shares outstanding: 61.36m
  • Website: https://www.waters.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:54
End of Day Share Price2021/09/23 00:00
Earnings2021/07/03
Annual Earnings2020/12/31


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.