Waters Corp

Find Ratings Reports
WAT : NYSE : Health Care
$178.07 | %
Today's Range: 177.725 - 178.81
Avg. Daily Volume: 486100.0
05/26/17 - 4:02 PM ET

Financial Analysis


WATERS CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. WATERS CORP is extremely liquid. Currently, the Quick Ratio is 5.42 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 13.94% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)497.97475.25
EBITDA ($mil)156.17146.79
EBIT ($mil)133.22123.36
Net Income ($mil)105.5694.05


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)2966.462505.17
Total Assets ($mil)4810.74368.4
Total Debt ($mil)1867.381718.8
Equity ($mil)2394.812101.69


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin61.8762.05
EBITDA Margin31.3630.88
Operating Margin26.7525.96
Sales Turnover0.460.47
Return on Assets11.0710.69
Return on Equity22.2522.22
Debt Q1 FY17 Q1 FY16
Current Ratio5.986.32
Debt/Capital0.440.45
Interest Expense12.7310.12
Interest Coverage10.4712.19


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)80.080.92
Div / share0.00.0
EPS1.311.15
Book value / share29.9325.97
Institutional Own % n/a n/a
Avg Daily Volume485124.0650969.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 50.40 for the Life Sciences Tools & Services industry and a value on par with the S&P 500 average of 25.54. For additional comparison, its price-to-book ratio of 5.97 indicates a significant premium versus the S&P 500 average of 3.06 and a discount versus the industry average of 6.54. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, WATERS CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WAT 27.23 Peers 50.40   WAT 22.15 Peers 25.01

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

WAT is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

WAT is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WAT 22.49 Peers 28.49   WAT 1.96 Peers 0.95

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

WAT is trading at a discount to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

WAT trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WAT 5.97 Peers 6.54   WAT 16.10 Peers 13.89

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WAT is trading at a valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

WAT is expected to have an earnings growth rate that exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WAT 6.52 Peers 21.35   WAT 6.46 Peers 10.89

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

WAT is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WAT significantly trails its peers on the basis of sales growth

 

 

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