Waters Corp.

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WAT : NYSE : Health Technology
$213.18 | %
Today's Range: 211.615 - 213.88
Avg. Daily Volume: 454700.0
03/16/18 - 4:08 PM ET

Financial Analysis

WATERS CORP's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. WATERS CORP is extremely liquid. Currently, the Quick Ratio is 6.48 which clearly shows the ability to cover any short-term cash needs. WAT managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.96% 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 Q4 FY17 Q4 FY16
Net Sales ($mil)687.28628.79
EBITDA ($mil)261.85236.25
EBIT ($mil)234.1212.16
Net Income ($mil)-353.17174.38

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)3393.72813.03
Total Assets ($mil)5324.354662.06
Total Debt ($mil)1997.771827.26
Equity ($mil)2233.792301.95

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin64.4563.45
EBITDA Margin38.0937.57
Operating Margin34.0633.74
Sales Turnover0.430.46
Return on Assets0.3811.18
Return on Equity0.922.65
Debt Q4 FY17 Q4 FY16
Current Ratio7.046.99
Interest Expense15.2812.1
Interest Coverage15.3217.53

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)79.3480.02
Div / share0.00.0
Book value / share28.1628.77
Institutional Own % n/a n/a
Avg Daily Volume475060.0456144.0


HOLD. WATERS CORP's P/E ratio indicates a significant premium compared to an average of 120.34 for the Life Sciences Tools & Services industry and a significant premium compared to the S&P 500 average of 25.58. Conducting a second comparison, its price-to-book ratio of 7.42 indicates a significant premium versus the S&P 500 average of 3.27 and a premium versus the industry average of 6.65. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. After reviewing these and other key valuation criteria, WATERS CORP proves to trade at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WAT 1099.79 Peers 120.34   WAT 23.76 Peers 29.26

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

WAT is trading at a significant premium 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WAT 23.31 Peers 27.87   WAT 0.35 Peers 0.97

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

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


Discount. 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 discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WAT 7.42 Peers 6.65   WAT -97.04 Peers 34.62

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

WAT is trading at a premium to its peers.


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

However, WAT is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WAT 7.18 Peers 7.34   WAT 6.53 Peers 22.67

Average. 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 valuation on par with 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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