Waters Corporation (WAT) Stock

Waters Corporation trades at a P/E ratio of 36.11, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 27.55 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 6.41 indicates a premium valuation even accounting for growth.

With a beta of 1.16, Waters Corporation is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 10.02 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Waters Corporation achieves a profit margin of 20.90%, meaning it retains $20.90 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 27.40% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 33.00% and ROA at 11.50%, the company generates strong returns on invested capital.

Waters Corporation's revenue grew by 8.00% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 7.70% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against DIAGNOSTICS & RESEARCH industry averages for proper context.

Waters Corporation has a market capitalization of $22.9B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 59.53M shares outstanding, the company's ownership is relatively concentrated. As a participant in the DIAGNOSTICS & RESEARCH industry, it competes with other firms in this sector.

Waters Corporation's book value per share is $39.16, while the current stock price is $385.15, resulting in a price-to-book (P/B) ratio of 9.84. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

16 analysts cover WAT with 31% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $394.68 implies 2.5% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:05 Buy, 11 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.