Waters Corp

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WAT : NYSE : Health Care
$155.51 -0.4 | -0.26%
Today's Range: 154.75 - 156.75
Avg. Daily Volume: 624700.0
03/28/17 - 3:59 PM ET

Financial Analysis

WATERS CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. WATERS CORP is extremely liquid. Currently, the Quick Ratio is 6.35 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 increased by 11.80% 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 FY16 Q4 FY15
Net Sales ($mil)628.79586.61
EBITDA ($mil)236.25214.63
EBIT ($mil)212.16191.54
Net Income ($mil)174.38151.05

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)2813.032399.26
Total Assets ($mil)4662.064268.68
Total Debt ($mil)1827.261668.34
Equity ($mil)2301.952058.85

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin63.4562.94
EBITDA Margin37.5736.58
Operating Margin33.7432.65
Sales Turnover0.460.48
Return on Assets11.1810.98
Return on Equity22.6522.78
Debt Q4 FY16 Q4 FY15
Current Ratio6.995.7
Interest Expense12.19.21
Interest Coverage17.5320.81

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)80.0281.47
Div / share0.00.0
Book value / share28.7725.27
Institutional Own % n/a n/a
Avg Daily Volume621370.0618604.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 47.17 for the Life Sciences Tools & Services industry and a discount compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 5.41 indicates a significant premium versus the S&P 500 average of 2.93 and a discount versus the industry average of 6.06. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WAT 24.32 Peers 47.17   WAT 19.80 Peers 22.55

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WAT 20.46 Peers 26.21   WAT 2.64 Peers 1.05

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WAT 5.41 Peers 6.06   WAT 13.27 Peers -5.96

Discount. 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 discount to 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 significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WAT 5.75 Peers 33.08   WAT 6.12 Peers 9.12

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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