Waters Stock Analysis, Valuation (NYSE:WAT)

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$179.7 $0.52 (0.29%) WAT stock closing price Aug 18, 2017 (Closing)
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Waters
Updated on : Aug 18, 2017
previous close
WAT 179.7 (0%)
NASDAQ 6216.5 (0%)
Closing Price On: Aug 18, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Instruments-Scientific
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
28.6%
Sector Average:
5.9%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.81B
Debt/Equity Ratio:
 0.72
Compared to the industry
Cash Flow
Operating cash flow:
$177.1M
Net Income:
$131.8M
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
WAT PS :
6.5
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
59.3%
Return on Equity:
23.1%
Free Cash Flow Margin:
28.6%
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Waters Analysis Video

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View Waters stock analysis video. This is our WAT analyst opinion covering the buy and sell arguments for WAT stock.

Waters Corporation Stock Rating (3.7/5)

Our Waters stock opinion is based on fundamentals of the company. This Waters stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy WAT stock?

  • Waters had a healthy average operating margin of 28.6% over the last 4 quarters.
  • LTM Net margins were good at 24.3% for Waters.
  • Waters generates a high return on invested capital of 59.3%.
  • Waters has a good Return On Equity (ROE) of 23.1%.
  • Waters has a healthy FCF (Free Cash Flow) margin of 28.6%.

Should you sell WAT stock?

  • With a debt/equity ratio of  0.72, Waters is highly leveraged in comparison to Computer and Technology peers.
  • The company is trading at a price to sales multiple of 6.5, which is overvalued in comparison to the Instruments-Scientific industry average multiple of 2.6.

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