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
Debt/Capital0.440.45
Interest Expense12.19.21
Interest Coverage17.5320.81


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)80.0281.47
Div / share0.00.0
EPS2.151.83
Book value / share28.7725.27
Institutional Own % n/a n/a
Avg Daily Volume621370.0618604.0

Valuation


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.


Price/Earnings
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
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.

 
Price/Book
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.

 
Price/Sales
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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