Waters Stock Analysis, Valuation (NYSE:WAT)

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$208.47 $4 (1.96%) WAT stock closing price Feb 23, 2018 (Closing)
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Waters
Updated on : Feb 23, 2018
previous close
WAT 208.5 (0%)
NASDAQ 7337.4 (0%)
Closing Price On: Feb 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Instruments-Scientific
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
4.6%
Operating Profit
Operating Margin:
28.7%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2B
Debt/Equity Ratio:
 0.89
Compared to the industry
Cash Flow
Operating cash flow:
$192.2M
Net Income:
-$353.2M
PROS      CONS
Long Term Growth
Operating Margins
Net Margins
FCF Margin
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
WAT PS :
7.2
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
1.4%
Return on Equity:
0.8%
Free Cash Flow Margin:
23.6%
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Waters Stock Analysis

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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?

  • The company saw a significant growth in revenue with a 5 year CAGR of 4.6%.
  • The TTM operating margin was good at 28.7% for Waters.
  • Net margins stood at a healthy 0.9% (average) for Waters in the Trailing Twelve Months.
  • The company has a good Free Cash Flow (FCF) margin of 23.6%.

Should you sell WAT stock?

  • Waters is debt laden and has a high debt/equity ratio of  0.89.
  • WAT stock is trading at a PS multiple of 7.2, which is a negative when compared to the Instruments-Scientific industry 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.