NYSE:WAT

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Executive Summary

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


Snowflake Analysis

Questionable track record with limited growth.


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

3.5%

WAT

4.4%

US Life Sciences

4.0%

US Market


1 Year Return

-17.9%

WAT

10.4%

US Life Sciences

5.0%

US Market

Return vs Industry: WAT underperformed the US Life Sciences industry which returned 10.4% over the past year.

Return vs Market: WAT underperformed the US Market which returned 4.9% over the past year.


Shareholder returns

WATIndustryMarket
7 Day3.5%4.4%4.0%
30 Day-13.5%1.5%-1.1%
90 Day-4.3%24.2%21.1%
1 Year-17.9%-17.9%10.6%10.4%7.2%5.0%
3 Year-1.8%-1.8%84.0%82.8%36.0%27.1%
5 Year40.7%40.7%130.0%127.1%65.3%46.9%

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?

21.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WAT ($180.82) is trading above our estimate of fair value ($170.22)

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 (22x) compared to the Life Sciences industry average (36.3x).

PE vs Market: WAT is poor value based on its PE Ratio (22x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: WAT is poor value based on its PEG Ratio (2.1x)


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 15 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WAT's forecast earnings growth (10.4% per year) is above the savings rate (2.2%).

Earnings vs Market: WAT's earnings (10.4% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: WAT's revenue (5.6% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: WAT's revenue (5.6% 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 (231.1%).


Next Steps

Past Performance

How has Waters performed over the past 5 years?

0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAT has high quality earnings.

Growing Profit Margin: WAT's current net profit margins (22.8%) are lower than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: WAT's earnings have grown by 0.1% 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 (-9.2%) over the past year, making it difficult to compare to the Life Sciences industry average (9.7%).


Return on Equity

High ROE: WAT's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


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 (32.6%).

Interest Coverage: WAT's interest payments on its debt are well covered by EBIT (20.4x coverage).


Balance Sheet


Next Steps

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?

3.3yrs

Average management tenure


CEO

Chris O'Connell (53yo)

4.83yrs

Tenure

US$1,084,859

Compensation

Mr. Christopher James O’Connell, also known as Chris, has been the Chief Executive Officer of Waters Corporation since September 8, 2015, its President since September 8, 2015 and also served as its Chairm ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD1.08M) is below average for companies of similar size in the US market ($USD11.50M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher O'Connell
President4.83yrsUS$1.08mno data
Sherry Buck
Senior VP & CFO3.5yrsUS$559.22k0.0060% $672.8k
Keeley Aleman
Senior VP0.75yrUS$1.07m0.0012% $135.5k
Michael Harrington
Senior Vice President of Global Markets4.42yrsUS$521.97k0.0037% $413.1k
Jonathan Pratt
Senior VP & President of TA Instruments0.83yrUS$872.26k0.0020% $220.5k
Bryan Brokmeier
Senior Director of Investor Relationsno datano datano data
Kevin Kempskie
Senior Director of Public Relationsno datano datano data
Robert Carson
Senior Vice President of Corporate Development2.42yrsUS$3.78m0.0019% $212.7k
Elizabeth Rae
Senior Vice President of Global Human Resources4.42yrsUS$1.58m0.022% $2.5m
Ian King
Senior Vice President of Global Products3yrsUS$2.17m0.0084% $940.3k

3.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: WAT's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher O'Connell
President4.83yrsUS$1.08mno data
Edward Conard
Independent Director25.92yrsUS$314.86k0.11% $12.3m
Linda Baddour
Independent Director1.83yrsUS$298.86k0.0022% $245.2k
Christopher Kuebler
Independent Director14.17yrsUS$323.36k0.026% $2.9m
Laurie Glimcher
Independent Director22.5yrsUS$300.86k0.051% $5.7m
Michael Berendt
Independent Director22.33yrsUS$306.36k0.035% $4.0m
Thomas Salice
Lead Independent Director16.42yrsUS$324.36k0.16% $17.9m
JoAnn Reed
Independent Director14.17yrsUS$325.86k0.052% $5.8m
Gary Hendrickson
Independent Director1.83yrsUS$300.36k0.0022% $245.2k
Flemming Ornskov
Independent Chairman0.33yrUS$318.86k0.0036% $401.9k

14.2yrs

Average Tenure

63yo

Average Age

Experienced Board: WAT's board of directors are seasoned and experienced ( 14.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$11.194b
  • Shares outstanding: 61.91m
  • 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, 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. Waters Corporation was founded in 1958 and is headquartered in Milford, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 23:48
End of Day Share Price2020/07/02 00:00
Earnings2020/03/28
Annual Earnings2019/12/31


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.