Waters Corp

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WAT : NYSE : Health Care
$173.18 up 0.6 | 0.35%
Today's Range: 171.58 - 173.81
Avg. Daily Volume: 482800.0
07/27/17 - 3:36 PM ET

Financial Analysis


WATERS CORP's gross profit margin for the second quarter of its fiscal year 2017 has decreased 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.

During the same period, stockholders' equity ("net worth") has increased by 17.18% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)558.25536.56
EBITDA ($mil)0.0178.24
EBIT ($mil)165.47153.59
Net Income ($mil)131.82128.22


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)3125.952599.79
Total Assets ($mil)4996.754448.07
Total Debt ($mil)1912.471756.96
Equity ($mil)2518.642149.34


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin58.5663.07
EBITDA Margin0.033.21
Operating Margin29.6428.63
Sales Turnover0.440.47
Return on Assets10.7311.0
Return on Equity21.322.77
Debt Q2 FY17 Q2 FY16
Current Ratio0.06.52
Debt/Capital0.430.45
Interest Expense0.010.98
Interest Coverage0.013.98


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)80.080.54
Div / share0.00.0
EPS1.631.57
Book value / share31.4826.69
Institutional Own % n/a n/a
Avg Daily Volume495309.0504140.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 52.86 for the Life Sciences Tools & Services industry and a value on par with the S&P 500 average of 24.70. For additional comparison, its price-to-book ratio of 5.56 indicates a significant premium versus the S&P 500 average of 3.08 and a discount versus the industry average of 6.71. 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 26.45 Peers 52.86   WAT NA Peers 31.86

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.

 

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

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WAT 21.82 Peers 29.40   WAT 1.78 Peers 0.94

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 5.56 Peers 6.71   WAT 11.26 Peers 14.65

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 trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WAT 6.33 Peers 19.67   WAT 5.37 Peers 9.94

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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