Waters Stock Analysis, Valuation (NYSE:WAT)

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$201.25 $0.98 (0.49%) WAT stock closing price Jun 15, 2018 (Closing)

Watch the robo advisor video of Waters stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for WAT stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Waters Corporation Stock Rating 3.4/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for WAT stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for Waters valuation analysis. Our Waters stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy WAT stock?

  • Waters had a healthy average operating margin of 29.35 over the last 4 quarters.
  • Net margins came in at average 1.1% for Waters over the last twelve months.
  • The company has an operating cash flow which is 1.5703 times the net income. We see this as a positive signal.
  • Waters has a healthy FCF (Free Cash Flow) margin of 30.1.

Should you sell WAT stock?

  • Long term revenue growth of 4.8 over the past 5 years has been disappointing.
  • Waters is debt laden and has a high debt/equity ratio of 0.64.
  • WAT stock is trading at a PS multiple of 6.8, which is a negative when compared to the Computer and Technology sector average multiple of 2.8.

Comments on this video and Waters stock

Amigobulls Waters stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of WAT stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

Waters revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Investors could make use of WAT technical analysis to check whether the fundamental story is reflected in the market sentiment.