WAT

Waters Corporation

Fundamental data last updated:August 15, 2026

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company profile

SECTOR

Healthcare

industry

Medical - Diagnostics & Research

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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.

 


VALUATION

P/E

69.94

Market Cap ($M USD)

$24.93B

Forward P/E

17.99

PEG

0.06

PRICE TO SALES

6.61

PRICE TO BOOK

2.05

EV / EBITDA

32.50

5-Year Average P/E

Free Cash Flow Yield

1.06%

DCF Value

$253.59

Graham Number

$151.36

Price to FCF

94.45

EV to FCF

113.80

Earnings Yield

1.43%

FCF Yield

1.06%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.47

Next Year EPS Growth Estimate

$21.27

Next Year Revenue Growth Estimate

$8.36B

Return on Equity (ROE)

8.04%

FREE CASH FLOW

Operating Margin

17.08%

Debt-to-Equity

0.58

Piotroski F-Score

3

Altman Z-Score

2.35

Return on Invested Capital (ROIC)

2.89%

Current Ratio

1.79

Quick Ratio

1.13

Net Debt to EBITDA

5.53

Interest Coverage

7.03

Gross Profit margin

55.02%

FCF PER SHARE

$3.21

REVENUE PER SHARE

$45.90

Gainseekers Quantitative Analysis

Summary

The market seems to have priced Waters Corporation with a sense of optimism, yet the numbers tell a different story. With a Price/Earnings ratio of 64.93, the stock appears overvalued, especially when juxtaposed against its DCF Value and Graham Number, both suggesting a more conservative valuation. The Forward P/E of 16.69 hints at expected growth, but the low Earnings Yield of 1.54% and an Altman Z-score of 1.92 raise red flags about financial stability. The stock’s valuation is stretched, and the market may be overlooking potential risks.

AI Exposure / Tech Reliance

Operating in the Medical - Diagnostics & Research industry, Waters Corporation is well-positioned to leverage AI advancements. The sector's inherent demand for precision and data analytics aligns with AI capabilities, potentially enhancing research and diagnostic processes. This alignment could bolster the company's competitive edge in a rapidly evolving tech landscape.

The Bull Case

For the discerning GARP investor, Waters Corporation presents a compelling case with its robust Operating Margin of 17.08% and a manageable Debt/Equity ratio of 0.55. The company's ROIC of 2.62% and FCF Yield, albeit modest, suggest efficient capital allocation. Despite a low Piotroski F-Score of 3, the company's ability to maintain solid margins indicates pricing power and operational resilience, making it an attractive long-term play.

The Bear Case

Despite some strengths, Waters Corporation faces significant structural risks. The Price/Sales ratio of 6.14 and Price/Book of 1.91 suggest a premium valuation that may not be justified by its fundamentals. The EV to FCF ratio of 105.69 and a Price to FCF of 87.68 highlight poor cash flow efficiency. Additionally, the stock's proximity to its 52-week high indicates potential overextension, raising concerns about future price corrections.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$402.75

Institutional Ownership %

1-Year Beta

1.14

Insider Buying % (6 Mo)

Distance to 52-Week High

8.27%

Distance to 52-Week Low

28.10%

EARNINGS SURPRISE %

16.88%

50-DAY SMA

$321.03

200-DAY SMA

$339.46

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.