Waters Corp

Industrials
Biotechnology: Laboratory Analytical Instruments
www.waters.com

Earnings Score
Moat Score
Safety Score

Market Cap $22.78B
PE 37
Debt $1.83B
Cash $330.51M
EV $24.28B
FCF $620.14M

Earnings

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Sales & Net Margins

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Earnings	$622.64M
EBIT	$798.31M
ROE	39%
ROA	18%
FCF	$620.14M
Equity	$1.60B
Growth Stability	4%
PE	36.59
PEG	2.55
PB	14.21
P/FCF	36.73
P/S	7.84
Price/Cash	0.01
Debt/Equity	1.14
Debt/FCF	2.94
Net Margins	19%
Op. Margins	27%
Earnings CAGR	1%
Sales Growth YoY	4%
Sales Growth QoQ	4%
Sales CAGR	-2%
FCF CAGR	-0%
Equity CAGR	-8%
Earnings Stability	0
Earnings Growth YoY	20%

Earnings Growth QoQ	13%
Earnings CAGR 5Y	14%
Sales CAGR 5Y	22%
FCF CAGR 5Y	10%
Equity CAGR 5Y	51%
Earnings CAGR 3Y	161%
Sales CAGR 3Y	161%
Equity CAGR 3Y	79%
Market Cap	$22.78B
Revenue	$2.91B
Assets	$4.51B
Total Debt	$1.83B
Cash	$330.51M
Shares Outstanding	59.31M
EV	24.28B
Earnings Score	6%
Moat Score	96%
Safety Score	59%
Final Score	54%
Working Capital	831.68M
Current Ratio	2.02
Shares Growth 3y	-0%
Equity Growth QoQ	14%
Equity Growth YoY	77%

Assets & ROA

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Stockholders Equity & ROE

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Water sells liquid chromatography, mass spectrometry, and thermal analysis tools. These analytical instruments provide essential information on various products, such as their molecular structures and physical properties, to help clients enhance the health and well-being of end users. As a percentage of sales in 2020, Waters generated 59% from pharmaceutical customers, 30% from industrial clients, and 11% from academic/government institutions.

SEC Filings

Direct access to Waters Corp (WAT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01
2022
- 10-K Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02

Sector Comparison

How does Waters Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Waters Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability 0%

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Waters Corp Discounted Cash Flow

Fully customizable DCF calculator online for Waters Corp .

Years

Calculation mode

= $6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$620M	$617M	$614M	$611M	$608M	$605M	$602M	$599M	$596M	$593M	$590M	$5.9B
DCF		$561M	$507M	$459M	$415M	$376M	$340M	$307M	$278M	$252M	$228M	$2.3B
Value	$6B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	22%	23%	24%	1%	25%	25%	22%	25%	24%	22%	19%
ROA	-	13%	13%	12%	20%	28%	23%	27%	27%	18%	18%
ROE	-	23%	23%	1%	38%	-274%	225%	189%	140%	56%	39%

Good Net Margins (19.49%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.62	3.57	-	2.26	3.73	2.44	-	-	-	2.94
Debt over Equity	0.77	0.81	0.85	0.94	0.73	-8.26	6.5	4.14	3.23	2.1	1.14
Growth Stability	-	-	-	4%	100%	100%	100%	100%	100%	100%	4%

Neutral Debt/FCF ratio (2.94)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (1.14)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (4%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	3%	6%	7%	5%	-1%	-2%	18%	7%	-1%	22%
Earnings YoY growth	-	9%	11%	-96%	3K%	-0%	-12%	33%	2%	-9%	14%
Equity YoY growth	-	9%	12%	-3%	-30%	-114%	-207%	58%	37%	128%	51%
FCF YoY growth	-	9%	19%	12%	-17%	-6%	29%	-5%	-26%	1%	10%