Waters Corporation (WAT) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Healthcare · Diagnostics & Research
Is Waters Corporation a safe investment right now?
Waters Corporation's Altman Z-Score of 12.08 places it in the safe zone. Our fair value estimate is $322.34 (Fairly Valued). Moat rating: 3.4/5 stars.
Could Waters Corporation go bankrupt? Altman Z-Score analysis
Z-Score of 12.08 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives WAT's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.1789 | 1.2 | 0.21 |
| B · Retained Earnings / Total Assets | RE / TA | 2.0548 | 1.4 | 2.88 |
| C · EBIT / Total Assets | EBIT / TA | 0.1624 | 3.3 | 0.54 |
| D · Market Cap / Total Liabilities | MCap / TL | 13.0499 | 0.6 | 7.83 |
| E · Revenue / Total Assets | Rev / TA | 0.6235 | 1.0 | 0.62 |
How has WAT's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 12.88 | Safe |
| 2023 | 9.92 | Safe |
| 2024 | 11.73 | Safe |
| 2025 | 12.08 | Safe |
Source: Calculated from WAT's latest 10-K filing on SEC EDGAR.
What is Waters Corporation actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $12.21 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $10.76 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $14.39 | 22 analysts consensus |
| Trailing P/E | 31.1x | Current market pricing |
| Fair P/E (β discount) | 26.4x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $385.50 (22 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Waters Corporation have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up WAT's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is WAT's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 42.6% | — |
| 2023 | 23.8% | Declining |
| 2024 | 24.4% | Stable |
| 2025 | 20.8% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is Waters Corporation's dividend safe?
Waters Corporation's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $3.2B | $3.0B | $3.0B | Rising |
| Net Income | $0.6B | $0.6B | $0.7B | Declining |
| Free Cash Flow | $0.5B | $0.6B | $0.4B | Rising |
| Gross Margin | 59.3% | 59.4% | 58.0% | Stable |
Recent events that affect our WAT analysis
WAT earnings report scheduled
Upcoming report. Consensus EPS estimate: $2.31. Revenue estimate: $1.20B. Our current Fair Value: $322.34 — a significant beat or miss could shift this estimate.
WAT analyst consensus: 55% bullish (12 of 22 analysts)
1 Strong Buy, 11 Buy, 10 Hold, 0 Sell, 0 Strong Sell. Consensus target: $385.50 (15.3% upside). Compare with our independent Fair Value: $322.34.
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
WAT beat EPS estimates by 0.5%
Reported EPS: $4.53 vs estimate $4.51. Earnings strength supports our Fair Value of $322.34 (3.6% below current price).
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT beat EPS estimates by 5.5%
Reported EPS: $3.40 vs estimate $3.22. Earnings strength supports our Fair Value of $322.34 (3.6% below current price).
WAT filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT beat EPS estimates by 0.3%
Reported EPS: $2.95 vs estimate $2.94. Earnings strength supports our Fair Value of $322.34 (3.6% below current price).
WAT filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT beat EPS estimates by 1.2%
Reported EPS: $2.25 vs estimate $2.22. Earnings strength supports our Fair Value of $322.34 (3.6% below current price).
WAT filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
WAT beat EPS estimates by 1.7%
Reported EPS: $4.10 vs estimate $4.03. Earnings strength supports our Fair Value of $322.34 (3.6% below current price).
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WAT filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Waters Corporation
What is Waters Corporation stock price today?
Waters Corporation (WAT) stock price is $334.38 as of the latest market close, traded on the NYSE exchange.
What does Waters Corporation do?
Waters Corporation provides analytical workflow solutions in Asia, the Americas, and Europe. It operates through two segments, Waters and TA. It designs, manufactures, sells, and services liquid chromatography, as well as mass spectrometry (MS) technology systems and supports products, including chromatography columns, and other consumable products.
What is Waters Corporation market cap?
Waters Corporation has a market capitalization of $32.82B, classifying it as a large-cap stock in the Healthcare sector.
What sector and industry is WAT in?
Waters Corporation operates in the Healthcare sector, specifically within the Diagnostics & Research industry. It trades on the NYSE under the ticker symbol WAT.
Is WAT stock overvalued or undervalued?
Based on our valuation model, Waters Corporation trades 3.7% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $322.34
- Current Price: $334.38
- Valuation Zone: Fairly Valued
What is WAT stock forecast and analyst target price?
Based on 22 Wall Street analysts, the consensus price target for Waters Corporation is $385.50, implying upside of 15.3% from the current price.
- Analyst High Target: $470.00
- Analyst Low Target: $330.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Waters Corporation revenue and earnings growing?
Here are the analyst consensus growth estimates for Waters Corporation:
- Revenue growth (current year est.): 102.7%
- EPS growth (current year est.): 9.6%
- Revenue growth (next year est.): 10.4%
- EPS growth (next year est.): 13.6%
What are Waters Corporation's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $3.2B | Rising |
| Net Income | $0.6B | Declining |
| Free Cash Flow | $0.5B | Rising |
| Gross Margin | 59.3% | Stable |
What is WAT's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 31.1x
- Forward P/E (next 12 months est.): 20.5x
- FairValueLabs Fair P/E: 26.4x
How volatile is WAT stock?
Waters Corporation has a beta of 1.20, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Waters Corporation have?
Waters Corporation's balance sheet shows:
- Total Cash: $587.8M
- Total Debt: $1.54B
- Net Cash Position: $-956.1M
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Waters Corporation's free cash flow?
Waters Corporation generated $427.2M in trailing twelve-month free cash flow (from $652.6M in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Waters Corporation pay a dividend?
Waters Corporation does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Waters Corporation at risk of going bankrupt?
Waters Corporation's Altman Z-Score is 12.08, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Waters Corporation have a durable competitive advantage?
Waters Corporation scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is WAT's return on equity (ROE)?
Waters Corporation's return on equity is 29.3%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy WAT stock?
WAT shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol WAT
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is WAT a value stock or speculative?
FairValueLabs classifies Waters Corporation as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Waters Corporation?
The current CEO of Waters Corporation is Dr. Udit Batra Ph.D..
What is WAT's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $10.77
- Forward EPS (next 12 months est.): $16.34
- Analyst consensus EPS (this year): $14.39
- Analyst consensus EPS (next year): $16.34
Other Healthcare companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
WAT analysis methodology: How we calculate fair value, Z-Scores, and moat ratings