Waters CorpFind Ratings Reports
WATERS CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. WATERS CORP is extremely liquid. Currently, the Quick Ratio is 5.83 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 11.21% 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||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||536.56||494.74|
|Net Income ($mil)||128.22||105.66|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||2599.79||2208.89|
|Total Assets ($mil)||4448.07||4028.84|
|Total Debt ($mil)||1756.96||1560.3|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||63.07||61.88|
|Return on Assets||11.0||11.57|
|Return on Equity||22.77||24.13|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||80.54||82.26|
|Div / share||0.0||0.0|
|Book value / share||26.69||23.49|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||446175.0||536041.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 37.86 for the Life Sciences Tools & Services industry and a value on par with the S&P 500 average of 25.30. To use another comparison, its price-to-book ratio of 5.96 indicates a significant premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 7.64. 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.
|WAT 26.74||Peers 37.86||WAT 21.05||Peers 22.03|
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.
Average. 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 valuation on par to its peers.
|WAT 22.36||Peers 26.39||WAT 1.64||Peers 1.26|
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.
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.
|WAT 5.96||Peers 7.64||WAT 7.01||Peers 36.19|
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.
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.
|WAT 6.10||Peers 28.09||WAT 3.28||Peers 6.12|
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