Waters (WAT) AI Stock Analysis

• Market Cap: $21.87B
• Dividend Yield: N/A
• Average Volume (3M): 686.58K
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.79
• 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: 59,534,740
• 10 Day Avg. Volume: 666,480
• 30 Day Avg. Volume: 686,577
• 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: 0.84
• Enterprise Value/Revenue: 5.93
• Enterprise Value/Gross Profit: 10.06
• Enterprise Value/Ebitda: 17.64
• 1Y Price Target: $392.50
• Price Target Upside: 5.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 13.1
• Revenue Forecast (FY): $3.16B

• Rating: 76 Outperform
• Price Target: $415.00 ▲(11.81% Upside)

Waters Corporation's strong financial performance and positive technical indicators are the primary drivers of its high score. The company's strategic initiatives and raised guidance further bolster its outlook. However, the high P/E ratio and cash flow challenges slightly temper the overall score.

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 through multiple streams, primarily by selling its analytical instruments, which include chromatography and mass spectrometry systems, along with the associated consumables and accessories. Additionally, the company offers software solutions that facilitate data analysis and instrument management, contributing to its income. Service contracts and maintenance agreements for its instruments also provide a steady revenue stream. Significant partnerships with research institutions, pharmaceutical companies, and regulatory agencies further bolster its earnings, as these collaborations often lead to the adoption of Waters' technologies in critical applications across various industries.

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: 371.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 371.16 is above the 20-day moving average (MA) of 347.42, above the 50-day MA of 321.83, and above the 200-day MA of 339.99, indicating a bullish trend. The MACD of 12.16 indicates Negative momentum. The RSI at 71.00 is Negative, neither overbought nor oversold. The STOCH value of 71.72 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
A	79 Outperform	$41.41B	34.26	19.88%	0.67%	4.48%	-11.52%
IDXX	78 Outperform	$57.66B	57.09	64.63%	―	8.39%	21.44%
WAT	76 Outperform	$21.87B	34.20	32.99%	―	6.90%	3.86%
DHR	75 Outperform	$151.04B	44.01	6.84%	0.58%	2.22%	-7.60%
TMO	73 Outperform	$212.37B	32.66	13.14%	0.30%	3.22%	8.26%
MTD	69 Neutral	$29.66B	36.46	―	―	3.11%	8.50%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Waters Corporate Events

Waters Corp Maintains Legal Stability Amid Potential Risks

Waters Corp has not experienced any significant changes in its legal proceedings for the nine months ending September 27, 2025. This stability in legal affairs suggests that the company is currently not facing any new or escalating legal challenges that could impact its financial standing. However, stakeholders should remain vigilant as legal environments can change rapidly, potentially introducing unforeseen risks. Continuous monitoring of legal proceedings is essential to ensure that any emerging issues are promptly addressed.

Waters Corporation Reports Strong Q3 2025 Results

Waters Corporation is a global leader in analytical instruments, separations technologies, and software, serving diverse sectors such as life sciences, materials, food, and environmental sciences. The company has been instrumental in ensuring the efficacy of medicines, safety of food, and purity of water for over 65 years.

Waters Corp Earnings Call Highlights Growth and Optimism

The recent earnings call for Waters Corp painted a picture of robust financial health and strategic optimism. The company showcased strong financial performance, buoyed by product innovation and significant regional growth, particularly in the pharmaceutical sector and the Chinese market. Despite facing some challenges in specific segments and external factors such as tariffs, Waters Corp’s raised guidance and strategic initiatives, including a pending combination with BD, indicate a positive outlook for the future.

Waters Corp Earnings Call: Strong Growth and Raised Guidance

In the recent earnings call, Waters Corp delivered a positive sentiment, highlighting a strong quarter marked by significant growth in sales and recurring revenue. The company excelled particularly in the pharma segment and the China market, leading to an upward revision of its full-year guidance. Despite some challenges in the TA division and the academic and government segments, the overall performance was commendable, with the highlights significantly outweighing the lowlights.

Waters Corp Maintains Stable Market Risk Profile in Early 2025: Insights from Annual Report

Waters Corp has not experienced any significant changes in its market risk profile during the first half of 2025. Stakeholders seeking detailed insights into the company’s market risk exposure are advised to consult Item 7A of Part II in the Annual Report on Form 10-K for the fiscal year ending December 31, 2024. This document, filed with the SEC on February 25, 2025, provides comprehensive information on the company’s risk management strategies and potential vulnerabilities. Such transparency is crucial for investors and analysts to assess the financial stability and future prospects of Waters Corp.

Waters Corp Reports Strong Q2 2025 Earnings

Waters Corporation is a global leader in analytical instruments, separations technologies, and software, serving various scientific sectors including life, materials, food, and environmental sciences. The company has been operating for over 65 years, ensuring the efficacy of medicines, safety of food, and purity of water across more than 100 countries.