Waters (WAT) AI Stock Analysis

• Market Cap: $20.94B
• Dividend Yield: N/A
• Average Volume (3M): 476.60K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 0.81
• Revenue Growth: 2.57%
• EPS Growth: 8.31%
• Country: US
• Employees: 7,600
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 2.25
• Shares Outstanding: 59,509,090
• 10 Day Avg. Volume: 560,843
• 30 Day Avg. Volume: 476,603
• PEG Ratio: 5.94
• Price to Book (P/B): 40.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 47.99
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 11.73
• Enterprise Value/Ebitda: 5.32
• 1Y Price Target: $392.40
• Price Target Upside: 11.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: $387.00 ▲(9.97%Upside)

Waters Corporation scores well overall due to strong financial performance and positive earnings guidance. However, the valuation concerns and neutral technical indicators slightly dampen the overall score. The strategic flexibility gained from recent corporate events also contributes positively.

Positive Factors

Market Expansion

India's market, which contributes around 9% of revenues, showed a 20% increase, validating Waters Corp's leadership in the generics market.

Product Innovation

Waters Corp's Wyatt's MALS platform is now compatible with Empower, which could be key to another expansion phase for the business.

Strategic Growth

The acquisition of Halo Labs is seen as positive and supportive of Waters Corp's expanding position in process development for large and complex molecules.

Negative Factors

Market Volatility

End markets continue to be volatile, particularly in China where Pharma, which makes up a significant portion of revenue, isn't showing signs of recovery.

Sector Weakness

Biotech, CROs, and branded generics are showing softness, which could impact the company's performance.

Valuation Concerns

The analyst maintains a Neutral rating, citing the premium valuation and uncertain market fundamentals.

Waters Business Overview & Revenue Model

Company Description

Waters Corporation, a specialty measurement company, provides analytical workflow solutions in Asia, the Americas, and Europe. It operates through two segments, Waters and TA. The company designs, manufactures, sells, and services high and ultra-performance liquid chromatography, as well as mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products, and post-warranty service plans. It also designs, manufactures, sells, and services thermal analysis, rheometry, and calorimetry instruments; and develops and supplies software-based products that interface with its instruments, as well as other manufacturers' instruments. Its MS technology instruments are used in drug discovery and development comprising clinical trial testing, the analysis of proteins in disease processes, nutritional safety analysis, and environmental testing. The company offers thermal analysis, rheometry, and calorimetry instruments for use in predicting the suitability and stability of fine chemicals, pharmaceuticals, water, polymers, metals, and viscous liquids for various industrial, consumer good, and healthcare products, as well as for life science research. Its products are used by life science, pharmaceutical, biochemical, industrial, nutritional safety, environmental, academic, and governmental customers working in research and development, quality assurance, and other laboratory applications. Waters Corporation was founded in 1958 and is headquartered in Milford, Massachusetts.

How the Company Makes Money

Waters Corporation generates revenue primarily through the sale of its analytical instruments and the provision of complementary services. The company sells advanced laboratory equipment, including chromatography and mass spectrometry systems, which are essential for precise measurement and analysis in various scientific fields. Additionally, Waters offers consumables, software solutions, and ongoing maintenance services, all of which contribute to recurring revenue streams. The company often engages in strategic partnerships and collaborations with leading research institutions and corporations to enhance its market reach and drive innovation, further supporting its revenue growth.

Waters Financial Statement Overview

Summary

Waters exhibits strong profitability with high gross and net profit margins, and effective cash flow generation. The balance sheet is stable, though leverage management could improve. Overall, financial performance is robust, but revenue growth is stagnant.

Income Statement

Waters exhibits strong profitability with a gross profit margin of 62.1% and a net profit margin of 22.0% in the TTM period. The EBIT margin of 28.4% and EBITDA margin of 33.4% further highlight operational efficiency. However, revenue growth has been relatively flat in recent years, indicating a need for revitalization in growth strategies.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.78, suggesting a balanced capital structure. The equity ratio of 42.7% reflects a relatively stable financial position, though improvements can be made in leverage management. Return on Equity at 33.5% is impressive, driven by high net income relative to equity.

Cash Flow

Positive cash flow metrics are evident with a stable free cash flow to net income ratio of 0.94 and a robust operating cash flow to net income ratio of 1.15 in the TTM. Free cash flow growth is evident, albeit modest, suggesting effective capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.98B	2.96B	2.96B	2.97B	2.79B	2.37B
Gross Profit	1.85B	2.21B	1.76B	1.72B	1.63B	1.36B
EBITDA	995.26M	1.04B	1.00B	1.01B	958.42M	777.97M
Net Income	657.02M	637.83M	642.23M	707.75M	692.84M	521.57M
Balance Sheet
Total Assets	4.59B	4.55B	4.63B	3.28B	3.09B	2.84B
Cash, Cash Equivalents and Short-Term Investments	382.87M	325.36M	395.97M	481.39M	569.28M	443.15M
Total Debt	1.54B	1.70B	2.44B	1.65B	1.51B	1.36B
Total Liabilities	1.67B	2.73B	3.48B	2.78B	2.73B	2.61B
Stockholders Equity	1.96B	1.83B	1.15B	504.49M	367.55M	232.14M
Cash Flow
Free Cash Flow	619.24M	619.64M	442.18M	428.20M	579.01M	618.12M
Operating Cash Flow	758.81M	762.12M	602.81M	611.66M	747.27M	790.51M
Investing Cash Flow	-140.53M	-144.02M	-1.44B	-107.97M	-231.63M	-264.09M
Financing Cash Flow	-577.75M	-696.67M	754.95M	-509.63M	-438.27M	-440.50M

Waters Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 351.92
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAT, the sentiment is Positive. The current price of 351.92 is above the 20-day moving average (MA) of 348.13, above the 50-day MA of 348.22, and below the 200-day MA of 363.77, indicating a neutral trend. The MACD of 0.97 indicates Negative momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 60.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WAT.

Waters Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDXX	82 Outperform	$43.65B	50.15	59.33%	―	5.56%	4.66%
A	79 Outperform	$34.22B	29.71	18.88%	0.82%	0.56%	-4.08%
WAT	73 Outperform	$20.94B	31.91	40.82%	―	2.57%	8.31%
TMO	73 Outperform	$161.48B	25.10	13.73%	0.40%	0.96%	9.19%
DHR	72 Outperform	$144.92B	39.26	7.22%	0.63%	-9.19%	-12.75%
MTD	64 Neutral	$25.06B	30.07	-680.23%	―	1.18%	12.34%
Sector *	51 Neutral	$7.50B	0.32	-61.87%	2.27%	17.10%	1.59%

Waters Corporate Events

Waters Corporation Amends Credit Agreement for Flexibility

On May 22, 2025, Waters Corporation amended its existing credit agreement, removing a $200 million term loan facility while retaining a $1.8 billion senior unsecured revolving credit facility, which matures in 2030. This strategic financial restructuring allows Waters Corporation to maintain flexibility for general corporate purposes, including debt repayment and acquisitions, and positions the company to manage its leverage ratio effectively, ensuring compliance with financial covenants and enhancing its operational capabilities.

The most recent analyst rating on (WAT) stock is a Hold with a $325.00 price target. To see the full list of analyst forecasts on Waters stock, see the WAT Stock Forecast page.

Waters Corporation Re-elects Board at Annual Meeting

On May 22, 2025, Waters Corporation held its annual meeting of stockholders, with approximately 94.12% of shares entitled to vote being represented. During the meeting, all nominated directors were re-elected to the Board, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the fiscal year.

The most recent analyst rating on (WAT) stock is a Hold with a $325.00 price target. To see the full list of analyst forecasts on Waters stock, see the WAT Stock Forecast page.