📊 WAT Key Takeaways
Is Waters Corp. /DE/ (WAT) a Good Investment?
Waters Corp demonstrates exceptional financial health with robust profitability metrics (25.4% operating margin, 20.3% net margin) and strong cash generation ($539.8M FCF). The company maintains excellent liquidity (1.73x current ratio) and conservative leverage (0.55x debt/equity) while generating substantial returns on equity (25.1%) and assets (12.7%), indicating efficient capital deployment in a stable analytical instruments market.
Waters shows solid core fundamentals with strong operating and net margins, healthy free cash flow generation, and manageable leverage. However, the reported revenue surge and relatively low gross margin appear inconsistent with the rest of the financial profile, which raises caution about trend interpretation and suggests the business is financially sound but the current growth signal may not be high quality.
Why Buy Waters Corp. /DE/ Stock? WAT Key Strengths
- Exceptional operating margin of 25.4% demonstrates pricing power and operational efficiency
- Strong free cash flow generation of $539.8M with healthy 17.1% FCF margin indicates quality earnings
- Conservative balance sheet with 0.55x debt/equity and 11.5x interest coverage providing financial flexibility
- Superior returns on equity (25.1%) and assets (12.7%) reflect effective capital allocation
- Solid liquidity position (1.73x current ratio) with $587.8M cash provides strategic optionality
- High insider activity (32 Form 4 filings) suggests management confidence in fundamentals
- Strong profitability with 25.4% operating margin and 20.3% net margin
- Healthy cash generation with $539.81M in free cash flow and 17.1% FCF margin
- Balanced financial position with 1.73x current ratio, 0.55x debt-to-equity, and 11.5x interest coverage
WAT Stock Risks: Waters Corp. /DE/ Investment Risks
- Extreme revenue growth of 6734.4% YoY appears anomalous and warrants investigation into accounting changes, acquisitions, or one-time items that could mask underlying business dynamics
- Net income growth of 0.0% YoY despite massive revenue surge indicates potential margin compression or non-operating headwinds requiring clarification
- Gross margin of only 18.6% is relatively modest for specialty analytical instrumentation, limiting operational flexibility
- High long-term debt of $1.4B (54% of equity) concentrates refinancing risk in rising rate environment
- Revenue growth of +6734.4% YoY looks anomalous and may reflect data classification issues rather than true operating acceleration
- Gross margin of 18.6% is unusually low relative to the strong operating margin, creating uncertainty around earnings quality
- Net income was flat YoY, suggesting limited bottom-line growth despite the reported revenue jump
Key Metrics to Watch
- Revenue growth sustainability and organic versus inorganic composition of 6734% increase
- Operating and net margin trajectory to confirm if growth is profitable at core operations level
- Free cash flow conversion consistency relative to net income
- Debt reduction progress and interest expense trends
- Working capital efficiency given the significant revenue base expansion
- Organic revenue growth and gross margin normalization
- Free cash flow conversion and debt levels
Waters Corp. /DE/ (WAT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Waters Corp. /DE/ presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
WAT Profit Margin, ROE & Profitability Analysis
WAT vs Industrial Sector: How Waters Corp. /DE/ Compares
How Waters Corp. /DE/ compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Waters Corp. /DE/ Stock Overvalued? WAT Valuation Analysis 2026
Based on fundamental analysis, Waters Corp. /DE/ appears fundamentally strong relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Waters Corp. /DE/ Balance Sheet: WAT Debt, Cash & Liquidity
WAT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Waters Corp. /DE/'s revenue has grown significantly by 14% over the 5-year period, indicating strong business expansion. The most recent EPS of $10.84 reflects profitable operations.
WAT Revenue Growth, EPS Growth & YoY Performance
WAT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $740.3M | $148.9M | $2.50 |
| Q2 2025 | $708.5M | $142.7M | $2.40 |
| Q1 2025 | $636.8M | $102.2M | $1.72 |
| Q3 2024 | $711.7M | N/A | $2.27 |
| Q2 2024 | $708.5M | N/A | $2.40 |
| Q1 2024 | $636.8M | N/A | $1.72 |
| Q3 2023 | $708.6M | N/A | $2.27 |
| Q2 2023 | $714.3M | N/A | $2.55 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Waters Corp. /DE/ Dividends, Buybacks & Capital Allocation
WAT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Waters Corp. /DE/ (CIK: 0001000697)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WAT
What is the AI rating for WAT?
Waters Corp. /DE/ (WAT) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are WAT's key strengths?
Claude: Exceptional operating margin of 25.4% demonstrates pricing power and operational efficiency. Strong free cash flow generation of $539.8M with healthy 17.1% FCF margin indicates quality earnings. ChatGPT: Strong profitability with 25.4% operating margin and 20.3% net margin. Healthy cash generation with $539.81M in free cash flow and 17.1% FCF margin.
What are the risks of investing in WAT?
Claude: Extreme revenue growth of 6734.4% YoY appears anomalous and warrants investigation into accounting changes, acquisitions, or one-time items that could mask underlying business dynamics. Net income growth of 0.0% YoY despite massive revenue surge indicates potential margin compression or non-operating headwinds requiring clarification. ChatGPT: Revenue growth of +6734.4% YoY looks anomalous and may reflect data classification issues rather than true operating acceleration. Gross margin of 18.6% is unusually low relative to the strong operating margin, creating uncertainty around earnings quality.
What is WAT's revenue and growth?
Waters Corp. /DE/ reported revenue of $3.2B.
Does WAT pay dividends?
Waters Corp. /DE/ does not currently pay dividends.
Where can I find WAT SEC filings?
Official SEC filings for Waters Corp. /DE/ (CIK: 0001000697) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WAT's EPS?
Waters Corp. /DE/ has a diluted EPS of $10.76.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WAT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Waters Corp. /DE/ has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is WAT stock overvalued or undervalued?
Valuation metrics for WAT: ROE of 25.1% (sector avg: 15%), net margin of 20.3% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy WAT stock in 2026?
Our dual AI analysis gives Waters Corp. /DE/ a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is WAT's free cash flow?
Waters Corp. /DE/'s operating cash flow is $652.6M, with capital expenditures of $112.7M. FCF margin is 17.1%.
How does WAT compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 20.3% (avg: 10%), ROE 25.1% (avg: 15%), current ratio 1.73 (avg: 1.8).
Why is WAT's return on equity (ROE) so high?
Waters Corp. /DE/ has a return on equity of 25.1%, significantly above the Industrial sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 20.3% net margin.