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Waters

NYSE:WAT
Snowflake Description

Mediocre balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WAT
NYSE
$11B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Waters Corporation, a specialty measurement company, provides analytical workflow solutions in Asia, the Americas, and Europe. The last earnings update was 40 days ago. More info.


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  • Waters has significant price volatility in the past 3 months.
WAT Share Price and Events
7 Day Returns
-2.9%
NYSE:WAT
-0.1%
US Life Sciences
-2.8%
US Market
1 Year Returns
-28.7%
NYSE:WAT
-9%
US Life Sciences
-15.9%
US Market
WAT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Waters (WAT) -2.9% -10% -21.4% -28.7% 14.8% 43.1%
US Life Sciences -0.1% -13.2% -17.8% -9% 56.7% 76.3%
US Market -2.8% -18.8% -24% -15.9% 2.8% 13.3%
1 Year Return vs Industry and Market
  • WAT underperformed the Life Sciences industry which returned -9% over the past year.
  • WAT underperformed the Market in United States of America which returned -15.9% over the past year.
Price Volatility
WAT
Industry
5yr Volatility vs Market

WAT Value

 Is Waters undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Waters to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Waters.

NYSE:WAT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:WAT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Life Sciences Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.029 (1 + (1- 21%) (15.93%))
1.106
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.106 * 5.44%)
7.76%

Discounted Cash Flow Calculation for NYSE:WAT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Waters is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:WAT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.76%)
2020 546.00 Analyst x8 506.69
2021 587.24 Analyst x8 505.73
2022 611.30 Analyst x3 488.56
2023 630.31 Est @ 3.11% 467.48
2024 647.32 Est @ 2.7% 445.54
2025 662.93 Est @ 2.41% 423.43
2026 677.57 Est @ 2.21% 401.63
2027 691.59 Est @ 2.07% 380.43
2028 705.22 Est @ 1.97% 360.00
2029 718.62 Est @ 1.9% 340.43
Present value of next 10 years cash flows $4,319.00
NYSE:WAT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $718.62 × (1 + 1.74%) ÷ (7.76% – 1.74%)
$12,150.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $12,150.25 ÷ (1 + 7.76%)10
$5,755.92
NYSE:WAT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,319.00 + $5,755.92
$10,074.92
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $10,074.92 / 61.93
$162.67
NYSE:WAT Discount to Share Price
Calculation Result
Value per share (USD) From above. $162.67
Current discount Discount to share price of $179.94
= -1 x ($179.94 - $162.67) / $162.67
-10.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Waters is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Waters's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Waters's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WAT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $8.76
NYSE:WAT Share Price ** NYSE (2020-04-03) in USD $179.94
United States of America Life Sciences Industry PE Ratio Median Figure of 19 Publicly-Listed Life Sciences Companies 27.61x
United States of America Market PE Ratio Median Figure of 2,947 Publicly-Listed Companies 12.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Waters.

NYSE:WAT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WAT Share Price ÷ EPS (both in USD)

= 179.94 ÷ 8.76

20.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Waters is good value based on earnings compared to the US Life Sciences industry average.
  • Waters is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Waters's expected growth come at a high price?
Raw Data
NYSE:WAT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
1.8%per year
United States of America Life Sciences Industry PEG Ratio Median Figure of 16 Publicly-Listed Life Sciences Companies 2.13x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.88x

*Line of best fit is calculated by linear regression .

NYSE:WAT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.55x ÷ 1.8%

11.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Waters is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Waters's assets?
Raw Data
NYSE:WAT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $-3.46
NYSE:WAT Share Price * NYSE (2020-04-03) in USD $179.94
United States of America Life Sciences Industry PB Ratio Median Figure of 38 Publicly-Listed Life Sciences Companies 4.24x
United States of America Market PB Ratio Median Figure of 5,146 Publicly-Listed Companies 1.2x
NYSE:WAT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WAT Share Price ÷ Book Value per Share (both in USD)

= 179.94 ÷ -3.46

-52.07x

* Primary Listing of Waters.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Waters has negative assets, we can't compare the value of its assets to the US Life Sciences industry average.
X
Value checks
We assess Waters's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Life Sciences industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Life Sciences industry average (and greater than 0)? (1 check)
  5. Waters has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WAT Future Performance

 How is Waters expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Waters expected to grow at an attractive rate?
  • Waters's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Waters's earnings growth is positive but not above the United States of America market average.
  • Waters's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WAT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WAT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 1.8%
NYSE:WAT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 2.3%
United States of America Life Sciences Industry Earnings Growth Rate Market Cap Weighted Average 16.9%
United States of America Life Sciences Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:WAT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WAT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 2,626 1
2023-12-31 2,523 1
2022-12-31 2,610 716 640 6
2021-12-31 2,503 696 593 15
2020-12-31 2,395 682 564 15
2020-04-05
NYSE:WAT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 2,407 643 592
2019-09-28 2,405 633 577
2019-06-29 2,406 631 580
2019-03-30 2,403 604 591
2018-12-31 2,420 604 594
2018-09-29 2,392 615 55
2018-06-30 2,380 623 51
2018-03-31 2,342 699 27
2017-12-31 2,309 698 20
2017-09-30 2,251 679 548
2017-07-01 2,212 674 537
2017-04-01 2,190 656 533

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Waters's earnings are expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).
  • Waters's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:WAT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Waters Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WAT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 11.40 11.41 11.40 2.00
2021-12-31 9.88 10.28 9.43 7.00
2020-12-31 8.89 9.23 8.21 7.00
2020-04-05
NYSE:WAT Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 8.76
2019-09-28 8.19
2019-06-29 7.94
2019-03-30 7.86
2018-12-31 7.71
2018-09-29 0.71
2018-06-30 0.64
2018-03-31 0.34
2017-12-31 0.25
2017-09-30 6.85
2017-07-01 6.68
2017-04-01 6.62

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Waters will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Waters's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Waters has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WAT Past Performance

  How has Waters performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Waters's growth in the last year to its industry (Life Sciences).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Waters's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Waters's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Waters's 1-year earnings growth is negative, it can't be compared to the US Life Sciences industry average.
Earnings and Revenue History
Waters's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Waters Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WAT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 2,406.60 592.20 526.45 142.96
2019-09-28 2,405.32 576.68 525.24 143.99
2019-06-29 2,406.06 579.56 526.94 144.83
2019-03-30 2,403.12 590.83 533.16 143.98
2018-12-31 2,419.93 593.79 585.02 143.40
2018-09-29 2,392.19 55.47 543.35 140.42
2018-06-30 2,379.75 50.56 550.13 139.03
2018-03-31 2,341.78 26.71 539.90 136.32
2017-12-31 2,309.08 20.31 544.70 132.59
2017-09-30 2,250.59 547.86 511.52 130.22
2017-07-01 2,211.84 536.61 500.87 126.86
2017-04-01 2,190.15 533.01 502.20 126.50
2016-12-31 2,167.42 521.50 512.33 125.19
2016-10-01 2,125.25 498.18 508.47 120.77
2016-07-02 2,098.99 489.60 509.27 121.06
2016-04-02 2,057.17 467.04 502.35 119.03
2015-12-31 2,042.33 469.05 492.75 118.55
2015-10-03 2,039.59 469.29 498.26 118.93
2015-07-04 2,032.18 466.51 495.84 115.51
2015-04-04 2,019.24 457.38 501.11 111.93
2014-12-31 1,989.34 431.62 501.99 107.73
2014-09-27 1,970.92 421.91 501.47 105.98
2014-06-28 1,935.07 406.46 499.81 102.30
2014-03-29 1,904.39 399.25 494.94 99.97
2013-12-31 1,904.22 450.00 492.97 100.54
2013-09-28 1,860.54 484.37 484.43 98.52
2013-06-29 1,853.17 485.43 479.19 98.68

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Waters has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Waters used its assets more efficiently than the US Life Sciences industry average last year based on Return on Assets.
  • Waters has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Waters's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Life Sciences industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Waters has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WAT Health

 How is Waters's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Waters's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Waters is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Waters's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Waters's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Waters has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Waters Company Filings, last reported 3 months ago.

NYSE:WAT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 -216.28 1,681.16 337.14
2019-09-28 115.50 1,355.66 404.65
2019-06-29 556.25 1,148.69 675.77
2019-03-30 967.74 1,148.55 1,167.26
2018-12-31 1,567.26 1,148.35 1,735.22
2018-09-29 1,876.43 1,148.35 2,084.26
2018-06-30 1,975.09 1,148.45 2,248.49
2018-03-31 2,114.89 1,247.98 2,551.87
2017-12-31 2,233.79 1,997.77 3,393.70
2017-09-30 2,629.10 1,957.79 3,254.96
2017-07-01 2,518.64 1,912.47 3,125.95
2017-04-01 2,394.81 1,867.38 2,966.46
2016-12-31 2,301.95 1,827.26 2,813.03
2016-10-01 2,259.14 1,782.01 2,713.02
2016-07-02 2,149.34 1,756.96 2,599.79
2016-04-02 2,101.69 1,718.80 2,505.17
2015-12-31 2,058.85 1,668.34 2,399.26
2015-10-03 1,968.56 1,630.18 2,310.73
2015-07-04 1,932.60 1,560.30 2,208.89
2015-04-04 1,862.24 1,485.32 2,109.05
2014-12-31 1,894.67 1,462.69 2,055.39
2014-09-27 1,841.82 1,430.01 1,946.36
2014-06-28 1,843.49 1,393.40 1,917.56
2014-03-29 1,819.37 1,332.10 1,853.20
2013-12-31 1,763.17 1,323.35 1,803.67
2013-09-28 1,618.63 1,293.76 1,699.11
2013-06-29 1,520.11 1,267.91 1,649.72
  • Waters has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Waters's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (38.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 26.9x coverage).
X
Financial health checks
We assess Waters's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Waters has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WAT Dividends

 What is Waters's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Waters dividends. Estimated to be 0% next year.
If you bought $2,000 of Waters shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Waters's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Waters's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:WAT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Life Sciences Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 0.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1936 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2.1%
United States of America Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:WAT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.00 2.00
2021-12-31 0.00 3.00
2020-12-31 0.00 3.00
2020-04-05

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Waters has not reported any payouts.
  • Unable to verify if Waters's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Waters's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Waters has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Waters's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Waters's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Waters afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Waters has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WAT Management

 What is the CEO of Waters's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chris O'Connell
COMPENSATION $8,258,221
AGE 52
TENURE AS CEO 4.6 years
CEO Bio

Mr. Christopher James O’Connell, also known as Chris, has been the Chief Executive Officer of Waters Corporation since September 8, 2015, its President since September 8, 2015 and also served as its Chairman from January 2018 to March 2020. Mr. O’Connell has wide range of experiences across all aspects of a technology focused global organization. Mr. O’Connell served as an Executive Vice President and Group President of Restorative Therapies Group at Medtronic plc from August 2009 to August 2015. He provided overall strategic direction and operational management of Restorative Therapies‘s five divisions, as well as led the integration of its activities within the overall strategy. Mr. O’Connell has global responsibility for Medtronic’s Spine and Biologics, Neuromodulation, Surgical Technologies and Orthopedics business units. Over his 21 years at Medtronic, he held a variety of leadership positions. Mr. O’Connell provides overall strategic direction and global operational oversight for this group of related businesses, as well as leading the integration of Medtronic’s activities with the overall strategy of Medtronic. He served as Group President of Spinal & Biologics Neuromodulation Diabetes and Surgical Technologies at Medtronic, Inc. since August 2009. He served as President of Diabetes and Senior Vice President of Medtronic, Inc. from joining in 1994 to August 2009, where he was responsible for the business unit’s research, development, operations and product sales and marketing. He served in variety of leadership positions at Medtronic. From 2005 to 2006, Mr. O’Connell served as President of Medtronic’s Emergency Response Systems division. He served in leadership positions in Medtronic’s Cardiac Rhythm Disease Management division, including Vice President of Sales and Marketing and Vice President and General Manager of the Patient Management Business. In addition, Mr. O’Connell led key corporate functions as Vice President of Corporate Strategy and Director of Investor Relations. He served as Vice President of Corporate Strategy and Director of Investor Relations of Medtronic’s Cardiac Rhythm Disease Management division. He began his Medtronic career in Corporate Development. He served for Corporate Finance unit of Chemical Bank. He serves as Director of California Life Sciences Association. He has been a Directors of Waters Corporation since September 8, 2015. He served as Non-Executive Director of Shandong Weigao Group Medical Polymer Co., Limited since May 21, 2012 until July 1, 2013. Mr. O’Connell earned a Bachelors Degree from Northwestern University in 1989 and a Masters Degree in Business Administration from Harvard University in 1994.

CEO Compensation
  • Chris's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Chris's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Waters management team in years:

3.3
Average Tenure
53
Average Age
  • The tenure for the Waters management team is about average.
Management Team

Chris O'Connell

TITLE
President
COMPENSATION
$8M
AGE
52
TENURE
4.6 yrs

Sherry Buck

TITLE
Senior VP & CFO
COMPENSATION
$3M
AGE
55
TENURE
3.3 yrs

Rob Carson

TITLE
Senior Vice President of Corporate Development
COMPENSATION
$4M
AGE
45
TENURE
2.2 yrs

Michael Harrington

TITLE
Senior Vice President of Global Markets
COMPENSATION
$2M
AGE
58
TENURE
4.2 yrs

Bryan Brokmeier

TITLE
Senior Director of Investor Relations

Keeley Aleman

TITLE
Senior VP
AGE
42
TENURE
0.5 yrs

Elizabeth Rae

TITLE
Senior Vice President of Global Human Resources
COMPENSATION
$2M
AGE
61
TENURE
4.2 yrs

Ian King

TITLE
Senior Vice President of Global Products
COMPENSATION
$2M
AGE
62
TENURE
2.8 yrs

Jon Pratt

TITLE
Senior VP & President of TA Instruments
AGE
49
TENURE
0.6 yrs

Michael Silveira

TITLE
VP & Corporate Controller
AGE
53
TENURE
6.7 yrs
Board of Directors Tenure

Average tenure and age of the Waters board of directors in years:

13.9
Average Tenure
62
Average Age
  • The average tenure for the Waters board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Flemming Ornskov

TITLE
Independent Chairman
COMPENSATION
$294K
AGE
61
TENURE
0.1 yrs

Chris O'Connell

TITLE
President
COMPENSATION
$8M
AGE
52
TENURE
4.6 yrs

Tom Salice

TITLE
Lead Independent Director
COMPENSATION
$336K
AGE
59
TENURE
16.2 yrs

Ed Conard

TITLE
Independent Director
COMPENSATION
$315K
AGE
62
TENURE
25.7 yrs

JoAnn Reed

TITLE
Independent Director
COMPENSATION
$320K
AGE
63
TENURE
13.9 yrs

Christopher Kuebler

TITLE
Independent Director
COMPENSATION
$307K
AGE
65
TENURE
13.9 yrs

Michael Berendt

TITLE
Independent Director
COMPENSATION
$298K
AGE
70
TENURE
22.1 yrs

Laurie Glimcher

TITLE
Independent Director
COMPENSATION
$290K
AGE
67
TENURE
22.3 yrs

Linda Baddour

TITLE
Independent Director
COMPENSATION
$134K
AGE
61
TENURE
1.6 yrs

Gary Hendrickson

TITLE
Independent Director
COMPENSATION
$133K
AGE
62
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • Waters individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
24. Feb 20 Sell Keeley Aleman Individual 21. Feb 20 21. Feb 20 -151 $216.79 $-32,734
18. Nov 19 Sell Mark Beaudouin Individual 15. Nov 19 15. Nov 19 -3,175 $215.00 $-682,625
14. Nov 19 Sell Mark Beaudouin Individual 13. Nov 19 13. Nov 19 -825 $215.00 $-177,375
04. Nov 19 Sell Laurie Glimcher Individual 01. Nov 19 01. Nov 19 -2,200 $214.64 $-472,208
X
Management checks
We assess Waters's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Waters has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WAT News

Simply Wall St News

Are Waters Corporation (NYSE:WAT) Investors Paying Above The Intrinsic Value?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $632.1m $670.6m $703.8m $734.0m $762.1m $788.7m $814.5m $839.7m $864.9m $890.1m Growth Rate Estimate Source Analyst x7 Analyst x4 Est @ 4.96% Est @ 4.29% Est @ 3.82% Est @ 3.49% Est @ 3.26% Est @ 3.1% Est @ 2.99% Est @ 2.91% Present Value ($, Millions) Discounted @ 9.01% $579.9 $564.3 $543.3 $519.8 $495.0 $470.0 $445.2 $421.1 $397.8 $375.6 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $4.8b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$890m × (1 + 2.7%) ÷ (9% – 2.7%) = US$15b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$15b ÷ ( 1 + 9%)10 = $6.14b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $10.96b. … NYSE:WAT Intrinsic value, August 27th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Is Waters (NYSE:WAT) A Risky Investment?

NYSE:WAT Historical Debt, July 18th 2019 How Strong Is Waters's Balance Sheet? … Waters may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Need To Know: Waters Corporation (NYSE:WAT) Insiders Have Been Selling Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Waters Corporation (NYSE:WAT). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Waters The Last 12 Months Of Insider Transactions At Waters Over the last year, we can see that the biggest insider sale was by the Independent Director, Michael Berendt, for US$719k worth of shares, at about US$240 per share. … Insider Ownership of Waters Many investors like to check how much of a company is owned by insiders.

Simply Wall St -

Why Waters Corporation (NYSE:WAT) Looks Like A Quality Company

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Waters: 61% = US$591m ÷ US$968m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Waters Have A Good Return On Equity? … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry.

Simply Wall St -

Is Waters Corporation (NYSE:WAT) Worth US$214 Based On Its Intrinsic Value?

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $589.22 $641.01 $692.74 $736.06 $774.30 $808.81 $840.66 $870.72 $899.64 $927.93 Growth Rate Estimate Source Analyst x7 Analyst x6 Analyst x3 Est @ 6.25% Est @ 5.2% Est @ 4.46% Est @ 3.94% Est @ 3.58% Est @ 3.32% Est @ 3.14% Present Value ($, Millions) Discounted @ 9.05% $540.32 $539.02 $534.17 $520.47 $502.07 $480.91 $458.37 $435.35 $412.48 $390.14 Present Value of 10-year Cash Flow (PVCF)= $4.81b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$928m × (1 + 2.7%) ÷ (9.1% – 2.7%) = US$15b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$15b ÷ ( 1 + 9.1%)10 = $6.34b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $11.15b. … NYSE:WAT Intrinsic value, May 10th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

What Investors Should Know About Waters Corporation's (NYSE:WAT) Financial Strength

One reason being its ‘too big to fail’ aura which gives it the appearance of a strong and stable investment. … This article will examine Waters’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

Should You Worry About Waters Corporation's (NYSE:WAT) CEO Pay Cheque?

First, this article will compare CEO compensation with compensation at other large companies. … How Does Chris O'Connell's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Waters Corporation has a market cap of US$18b, and is paying total annual CEO compensation of US$7.6m.

Simply Wall St -

What Should We Expect From Waters Corporation's (NYSE:WAT) Earnings In The Next Couple Of Years?

The latest earnings announcement Waters Corporation (NYSE:WAT) released in December 2018a … indicated

Simply Wall St -

Waters Shareholders Have Enjoyed An Impressive 110% Share Price Gain

It's also good to see the share price up 20% over the last quarter. … During five years of share price growth, Waters achieved compound earnings per share (EPS) growth of 7.9% per year. … This EPS growth is slower than the share price growth of 16% per year, over the same period.

Simply Wall St -

Waters Corporation (NYSE:WAT): Will The Growth Last?

Help shape the future of investing tools and you could win a $250 gift card! … On 31 December 2018, Waters Corporation (NYSE:WAT) released its earnings update. … with earnings expected to grow by 7.2% in the upcoming year

Simply Wall St -

WAT Company Info

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's 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 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.

Details
Name: Waters Corporation
WAT
Exchange: NYSE
Founded: 1958
$11,144,335,402
61,933,619
Website: http://www.waters.com
Address: Waters Corporation
34 Maple Street,
Milford,
Massachusetts, 01757,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WAT Common Shares New York Stock Exchange US USD 17. Nov 1995
DB WAZ Common Shares Deutsche Boerse AG DE EUR 17. Nov 1995
LSE 0LTI Common Shares London Stock Exchange GB USD 17. Nov 1995
BRSE WAZ Common Shares Berne Stock Exchange CH CHF 17. Nov 1995
BMV WAT * Common Shares Bolsa Mexicana de Valores MX MXN 17. Nov 1995
BOVESPA WATC34 BDR EACH 1 REP 0.25 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 17. May 2019
Number of employees
Current staff
Staff numbers
7,467
Waters employees.
Industry
Life Sciences Tools and Services
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 04:14
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/02/25
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.