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Waters Corp WAT

Morningstar Rating
$346.76 +0.72 (0.21%)
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Company Report

Waters Earnings: 2024 Outlook Constrained by Ongoing Headwinds, but No Fair Value Estimate Change

Wide-moat Waters turned in a solid end to what wound up being a very challenging year for most life science companies and guided for more constraints in 2024. While management's 2024 outlook was weaker than we had anticipated, cash flows generated since our last valuation change offset that in our model, and we are maintaining our $323 fair value estimate. Waters shares remain about fairly valued, in our opinion.

Price vs Fair Value

WAT is trading at a 7% premium.
Price
$346.76
Fair Value
$288.00
Uncertainty
Medium
1-Star Price
$724.26
5-Star Price
$885.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Waters' analytical instruments remain the gold standard in several applications, especially LC-MS for pharmaceutical firms, where regulations preserve consistent recurring sales for many years.

Bears

Waters remains an extremely focused organization, which creates the potential for cash flow variability if its products fall out of favor or if its end markets face disruption.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
$346.04
Day Range
$346.29352.27
52-Week Range
$231.90352.27
Bid/Ask
$240.00 / $390.00
Market Cap
$20.50 Bil
Volume/Avg
528,020 / 440,400

Key Statistics

Price/Earnings (Normalized)
29.51
Price/Sales
6.95
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.34%

Company Profile

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 2022, Waters generated 59% from pharmaceutical customers, 31% from industrial clients, and 10% from academic/government institutions.
Sector
Healthcare
Industry
Diagnostics & Research
Stock Style Box
Mid Growth
Total Number of Employees
7,900

Competitors

Valuation

Metric
WAT
DHR
TMO
Price/Earnings (Normalized)
29.5130.0727.00
Price/Book Value
17.843.544.81
Price/Sales
6.957.975.27
Price/Cash Flow
24.3827.6625.35
Price/Earnings
WAT
DHR
TMO

Financial Strength

Metric
WAT
DHR
TMO
Quick Ratio
1.391.181.27
Current Ratio
2.221.681.75
Interest Coverage
8.2817.584.94
Quick Ratio
WAT
DHR
TMO

Profitability

Metric
WAT
DHR
TMO
Return on Assets (Normalized)
17.19%5.68%8.68%
Return on Equity (Normalized)
88.59%9.47%18.83%
Return on Invested Capital (Normalized)
25.75%6.69%11.14%
Return on Assets
WAT
DHR
TMO
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Diagnostics & Research Industry Comparables

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Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
TMO
Thermo Fisher Scientific IncZkt$221.8 Bil
DHR
Danaher CorpQpdcnmt$189.5 Bil
IDXX
IDEXX Laboratories IncMmbczdn$47.4 Bil
IQV
IQVIA Holdings IncYbzfmc$45.8 Bil
A
Agilent Technologies IncKzlc$41.9 Bil
MTD
Mettler-Toledo International IncRyshn$27.6 Bil
ICLR
Icon PLCRxtxqq$27.3 Bil
ILMN
Illumina IncNrfgc$21.9 Bil
LH
Laboratory Corp of America HoldingsNpfztj$18.4 Bil

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