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Waters Corp WAT

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Stock XNYS Rating as of
$275.95 −1.05 (0.38%)
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As of Delayed Price Post-Trading: $275.95 0.00
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Company Report

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Waters Earnings: Margin Expansion Help Profits Withstand China and Currency Headwinds

Julie Utterback

Wide-moat Waters reported weak China demand in the third quarter that was more than offset by margin expansion on the bottom line. However, continued China and currency challenges caused management to push down its 2023 sales and adjusted EPS guidance a bit. At first glance, this reduction in 2023 expectations does not materially affect our $323 fair value estimate, though, and shares look moderately undervalued.

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Price vs Fair Value

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WAT is trading at a 14% discount.
Price
$277.00
Fair Value
$568.00
Uncertainty
Medium
1-Star Price
$518.98
5-Star Price
$116.40
Economic Moat
Jhr
Capital Allocation
Jlmmkhpgwt

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.

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News

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Trading Information

Previous Close Price
$277.00
Day Range
$273.60–277.47
52-Week Range
$231.90–353.71
Bid/Ask
$274.66 / $277.39
Market Cap
$16.32 Bil
Volume/Avg
319,721 / 527,006

Key Statistics

Price/Earnings (Normalized)
23.14
Price/Sales
5.49
Dividend Yield
—
Dividend Yield (Forward)
—
Total Yield
1.34%

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
8,200
Website
https://www.waters.com

Competitors

Valuation

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Metric
WAT
DHR
TMO
Price/Earnings (Normalized)
 23.1423.6623.04
Price/Book Value
 18.083.104.18
Price/Sales
 5.495.514.39
Price/Cash Flow
 19.7118.8620.38
Price/Earnings
WAT
DHR
TMO

Financial Strength

Metric
WAT
DHR
TMO
Quick Ratio
 1.301.761.13
Current Ratio
 2.192.261.63
Interest Coverage
 10.2525.145.48
Quick Ratio
WAT
DHR
TMO

Profitability

Metric
WAT
DHR
TMO
Return on Assets (Normalized)
 19.00%7.50%8.75%
Return on Equity (Normalized)
 112.23%12.81%18.92%
Return on Invested Capital (Normalized)
 28.74%9.02%11.33%
Return on Assets
WAT
DHR
TMO

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