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 adequate 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


Market Performance


7 Day Return

-2.7%

NYSE:WAT

1.2%

US Life Sciences

0.3%

US Market


1 Year Return

1.0%

NYSE:WAT

21.6%

US Life Sciences

0.7%

US Market

WAT underperformed the Life Sciences industry which returned 21.7% over the past year.

WAT matched the United States of America Market (0.8%) over the past year.


Share holder returns

WATIndustryMarket
7 Day-2.7%1.2%0.3%
30 Day-2.4%7.7%0.4%
90 Day-17.2%2.6%0.6%
1 Year1.0%1.0%21.8%21.6%2.9%0.7%
3 Year51.6%51.6%95.4%93.8%47.0%37.2%
5 Year91.6%91.6%118.9%108.2%54.7%37.4%

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 based on future cash flows and its price relative to the stock market?

25.86x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Waters's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Waters's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Waters is good value based on earnings compared to the US Life Sciences industry average.

Waters is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Waters is poor value based on expected growth next year.


Price Based on Value of Assets

Waters is overvalued based on assets compared to the US Life Sciences industry average.


Next Steps

Future Growth

How is Waters expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Waters's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Waters's earnings are expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Waters's revenue growth is positive but not above the United States of America market average.

Waters's earnings growth is positive but not above the United States of America market average.

Waters's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Waters will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Waters performed over the past 5 years?

-7.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Waters's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Waters's 1-year earnings growth exceeds its 5-year average (2118.3% vs -7.9%)

Waters's earnings growth has exceeded the US Life Sciences industry average in the past year (2118.3% vs 45.3%).


Return on Equity

Whilst Waters made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Waters used its assets more efficiently than the US Life Sciences industry average last year based on Return on Assets.


Return on Capital Employed

Waters has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Waters's financial position?


Financial Position Analysis

Waters is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Waters's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Waters's level of debt (118.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (73.3% vs 118.7% today).

Debt is well covered by operating cash flow (52.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 81.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Waters's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Waters's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Waters has not reported any payouts.

Unable to verify if Waters's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Waters has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Waters's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Laurie Glimcher (66yo)

3.8yrs

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

3.3yrs

Average Tenure

55yo

Average Age

The tenure for the Waters management team is about average.


Board Age and Tenure

7.5yrs

Average Tenure

61yo

Average Age

The tenure for the Waters board of directors is about average.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

SellUS$480,81812 Mar 19
Terrence Kelly
EntityIndividual
Role
Senior Advisor
Shares2,006
Max PriceUS$239.69
SellUS$354,45527 Feb 19
Laurie Glimcher
EntityIndividual
Role
Director
Chairman of the Board
Shares1,485
Max PriceUS$238.69
SellUS$718,92026 Feb 19
Michael Berendt
EntityIndividual
Role
Member of the Board of Directors
Shares3,000
Max PriceUS$239.64
SellUS$214,35817 Dec 18
Michael Harrington
EntityIndividual
Role
Senior Vice President of Global Markets
Shares1,131
Max PriceUS$189.53
SellUS$453,64012 Dec 18
Terrence Kelly
EntityIndividual
Role
Senior Advisor
Shares2,429
Max PriceUS$186.76

Ownership Breakdown


Management Team

  • Elizabeth Rae (60yo)

    Senior Vice President of Global Human Resources

    • Tenure: 3.3yrs
    • Compensation: $1.58m
  • Laurie Glimcher (66yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: $289.97k
  • Terry Kelly (55yo)

    Senior Advisor

    • Tenure: 0.2yrs
  • Sherry Buck (54yo)

    Senior VP & CFO

    • Tenure: 2.4yrs
    • Compensation: $2.63m
  • Robert Carson (44yo)

    Senior VP of Corporate Development & Interim President of TA Business

    • Tenure: 1.3yrs
    • Compensation: $3.78m
  • Mark Beaudouin (63yo)

    Senior VP

    • Tenure: 16.2yrs
    • Compensation: $2.11m
  • Michael Harrington (57yo)

    Senior Vice President of Global Markets

    • Tenure: 3.3yrs
    • Compensation: $2.42m
  • Francis Kim (51yo)

    Senior Vice President of Global Operations

    • Tenure: 1.3yrs
    • Compensation: $2.42m
  • Bryan Brokmeier

    Senior Director of Investor Relations

  • Chris O'Connell (51yo)

    Chairman & CEO

    • Tenure: 3.8yrs
    • Compensation: $8.26m

Board Members

  • Christopher Kuebler (64yo)

    Director

    • Tenure: 13.1yrs
    • Compensation: $307.47k
  • Laurie Glimcher (66yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: $289.97k
  • Tom Salice (58yo)

    Lead Director

    • Tenure: 15.3yrs
    • Compensation: $336.47k
  • Linda Baddour (60yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: $134.29k
  • Ed Conard (61yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: $314.97k
  • Gary Hendrickson (61yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: $132.79k
  • Flemming Ornskov (60yo)

    Director

    • Tenure: 2.0yrs
    • Compensation: $294.47k
  • Michael Berendt (69yo)

    Independent Director

    • Tenure: 21.3yrs
    • Compensation: $297.97k
  • Chris O'Connell (51yo)

    Chairman & CEO

    • Tenure: 1.5yrs
    • Compensation: $8.26m
  • JoAnn Reed (62yo)

    Director

    • Tenure: 13.1yrs
    • Compensation: $319.97k

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$14.117b
  • Shares outstanding: 69.48m
  • Website: Click here

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 SharesUSUSDJan 1970
WAZDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1970
0LTILSE (London Stock Exchange)YesCommon SharesGBUSDJan 1970
WATC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.25 COM USD0.01BRBRLJan 1970

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 Analysis2019/06/16 23:47
End of Day Share Price2019/06/14 00:00
Earnings2019/03/30
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.