Waters Corp (WAT) stock analysis

P/E above its 5-year median

Waters's P/E of 202.1 is above its own 5-year median of 29.8.

P/E above the industry

Waters's P/E of 202.1 is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 36.5.

EV/EBITDA above its 5-year median

Waters's EV/EBITDA of 188.9 is above its 5-year median of 25.0.

P/B below the industry

Waters's price-to-book of 3.03 is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 3.17.

Trading above fair value

The share price of $470.90 is above our fair value estimate of $54.03.

Margin of safety under 20%

The price is 772% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 2.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -2.8% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 80.7% over the last twelve months; the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median is 8.4%.

Guidance raised

Waters raised its third quarter 2026 Total Company reported revenue outlook on Aug 4, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 1.1% over the last twelve months and averaged 78.0% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 2.2%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Waters's return on equity of 1.1% is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 1.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 1.8% over the last twelve months, against a 5-year average of 21.9%.

Net margin above the industry

Waters's net margin of 1.8% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of -1.3%.

Low debt

Debt is 29.3% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 584% five years ago to 29.3%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 10.7% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 1.5 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.89 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.11; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Waters has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.