Waters (WAT) AI Stock Analysis

• Market Cap: $23.41B
• Dividend Yield: N/A
• Average Volume (3M): 490.05K
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.64
• Revenue Growth: 6.90%
• EPS Growth: 3.86%
• Country: US
• Employees: 7,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 3.40
• Shares Outstanding: 59,547,680
• 10 Day Avg. Volume: 414,193
• 30 Day Avg. Volume: 490,053
• PEG Ratio: -31.26
• Price to Book (P/B): 12.04
• Price to Sales (P/S): 7.44
• P/FCF Ratio: 35.52
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 5.93
• Enterprise Value/Gross Profit: 10.06
• Enterprise Value/Ebitda: 17.64
• 1Y Price Target: $419.78
• Price Target Upside: 6.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 14.27
• Revenue Forecast (FY): $3.36B

• Rating: 73 Outperform
• Price Target: $442.00 ▲(12.41% Upside)

The score is driven by solid underlying financial performance and constructive technical momentum, reinforced by a strong earnings update with raised guidance. These positives are partly offset by premium valuation and some cash-flow/segment softness and external headwinds (tariffs/currency).

Positive Factors

Product Innovation

Waters' focus on product innovation, such as the Xevo CDMS, enhances its competitive edge and supports long-term revenue growth through advanced solutions.

Regional Growth

Strong growth in China, a key market, indicates robust demand and positions Waters well for sustained expansion in the pharma sector.

Revenue Growth

Consistent sales growth reflects Waters' ability to capture market share and drive revenue through its diverse product offerings.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth may hinder Waters' ability to invest in future growth opportunities and manage financial obligations effectively.

Profit Margin Pressure

A decrease in net profit margin suggests potential challenges in maintaining profitability, which could impact long-term financial health.

Segment Challenges

Challenges in specific segments like China generics and pharma discovery may limit growth potential and require strategic adjustments.

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 generates revenue primarily through the sale of its analytical instruments, consumables, and software solutions. Key revenue streams include the sale of mass spectrometers and chromatographic systems, which are critical for various applications in pharmaceuticals, environmental testing, and food safety. Additionally, Waters earns revenue from ongoing services and support, including maintenance contracts and training for its products. The company has established significant partnerships with research institutions and pharmaceutical companies, enhancing its market presence and driving sales through collaborative product development and innovative applications. Furthermore, Waters benefits from a strong focus on research and development, allowing it to introduce new technologies that meet the evolving needs of its customers, thereby contributing to its financial growth.

Waters Financial Statement Overview

Summary

Waters demonstrates strong financial performance with consistent revenue growth and efficient operations. The balance sheet shows improved leverage and strong returns on equity, while cash flow management presents some challenges.

Income Statement

Waters shows a solid financial performance with a consistent revenue growth trend, particularly in the TTM period with a 1.96% increase. The gross profit margin is strong at 62.7%, indicating efficient cost management. However, the net profit margin has slightly decreased to 20.9% in the TTM, suggesting some pressure on profitability. The EBIT and EBITDA margins remain robust, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.64 in the TTM, showing improved leverage compared to previous years. Return on equity is healthy at 31.3%, indicating effective use of equity capital. However, the equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth by -2.76% in the TTM, which could indicate potential cash management challenges. The operating cash flow to net income ratio is 0.58, suggesting a need for improvement in cash generation relative to earnings. The free cash flow to net income ratio remains strong at 82.7%, indicating good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.11B	2.96B	2.96B	2.97B	2.79B	2.37B
Gross Profit	1.83B	1.76B	1.76B	1.72B	1.63B	1.36B
EBITDA	1.04B	1.04B	1.00B	1.02B	982.81M	785.35M
Net Income	648.81M	637.83M	642.23M	707.75M	692.84M	521.57M
Balance Sheet
Total Assets	4.86B	4.55B	4.63B	3.28B	3.09B	2.84B
Cash, Cash Equivalents and Short-Term Investments	459.12M	325.36M	395.97M	481.39M	569.28M	443.15M
Total Debt	1.49B	1.70B	2.44B	1.66B	1.60B	1.45B
Total Liabilities	2.53B	2.73B	3.48B	2.78B	2.73B	2.61B
Stockholders Equity	2.33B	1.83B	1.15B	504.49M	367.55M	232.14M
Cash Flow
Free Cash Flow	602.26M	619.64M	442.18M	428.20M	579.01M	618.12M
Operating Cash Flow	728.14M	762.12M	602.81M	611.66M	747.27M	790.51M
Investing Cash Flow	-162.23M	-144.02M	-1.44B	-107.97M	-231.63M	-264.09M
Financing Cash Flow	-434.12M	-696.67M	754.95M	-509.63M	-438.27M	-440.50M

Waters Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 393.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 393.2 is above the 20-day moving average (MA) of 387.42, above the 50-day MA of 386.68, and above the 200-day MA of 340.49, indicating a bullish trend. The MACD of 3.34 indicates Negative momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 57.21 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	77 Outperform	$56.73B	56.32	64.63%	―	8.39%	21.44%
DHR	75 Outperform	$168.08B	48.97	6.84%	0.53%	2.22%	-7.60%
WAT	73 Outperform	$23.41B	36.15	32.99%	―	6.90%	3.86%
A	73 Outperform	$41.37B	31.92	20.62%	0.72%	6.73%	3.34%
TMO	72 Outperform	$233.63B	35.93	13.14%	0.30%	3.22%	8.26%
MTD	64 Neutral	$30.35B	37.05	―	―	4.77%	7.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Waters Corporate Events

Waters Highlights Investor Update and Spin-Off Transaction Progress

Waters Corporation plans to present an investor presentation at the J.P. Morgan Healthcare Conference on January 12, 2026, where President and CEO Udit Batra will provide high-level commentary on the company’s business performance, with a transcript to be made available on its website afterward. The company also detailed the progress of its proposed transaction with Becton, Dickinson and Company and Augusta SpinCo Corporation, noting that the SEC declared effective Waters’ Form S-4 registration statement and SpinCo’s Form 10 on December 23 and December 31, 2025, respectively, and that a definitive proxy statement/prospectus was mailed to Waters shareholders of record as of December 19, 2025, signaling an advanced stage in the regulatory and shareholder communication process for the deal.

The most recent analyst rating on (WAT) stock is a Hold with a $400.00 price target. To see the full list of analyst forecasts on Waters stock, see the WAT Stock Forecast page.