ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Waters Corp. ?
1
High Management Efficiency with a high ROCE of 47.77%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.17 times
3
Poor long term growth as Net Sales has grown by an annual rate of 5.98% and Operating profit at 4.74% over the last 5 years
- ROCE(HY) Lowest at 37.03%
4
With ROCE of 27.82%, it has a fair valuation with a 18.75 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 1.80%, its profits have risen by 8.1% ; the PEG ratio of the company is 11.1
5
Underperformed the market in the last 1 year
- The stock has generated a return of 1.80% in the last 1 year, much lower than market (S&P 500) returns of 14.11%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Waters Corp. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Waters Corp.
4.74%
0.82
36.59%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.00%
EBIT Growth (5y)
3.99%
EBIT to Interest (avg)
14.34
Debt to EBITDA (avg)
1.17
Net Debt to Equity (avg)
0.56
Sales to Capital Employed (avg)
0.84
Tax Ratio
16.08%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
66.36%
ROCE (avg)
47.77%
ROE (avg)
133.16%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
87
Industry P/E
Price to Book Value
22.77
EV to EBIT
70.07
EV to EBITDA
56.32
EV to Capital Employed
17.34
EV to Sales
18.70
PEG Ratio
34.66
Dividend Yield
NA
ROCE (Latest)
24.75%
ROE (Latest)
26.22%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 33.4 %
NET SALES(Q)
Highest at USD 1,267 MM
-30What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 366.68 MM
ROCE(HY)
Lowest at 5.21%
INTEREST COVERAGE RATIO(Q)
Lowest at 539.58
RAW MATERIAL COST(Y)
Grown by 39.73% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.87 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.06 times
INTEREST(Q)
Highest at USD 48 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 20.44 %
PRE-TAX PROFIT(Q)
Lowest at USD 6 MM
NET PROFIT(Q)
Lowest at USD 22 MM
EPS(Q)
Lowest at USD -0.88
Here's what is working for Waters Corp.
Net Sales
Highest at USD 1,267 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Net Sales
At USD 1,267 MM has Grown at 91.48%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Debt-Equity Ratio
Lowest at 33.4 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at USD 207 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 207 MM has Grown at 293.98%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for Waters Corp.
Pre-Tax Profit
At USD 6 MM has Fallen at -95.82%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 22 MM has Fallen at -81.94%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest
At USD 48 MM has Grown at 235.97%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 539.58
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Cash Flow
Lowest at USD 366.68 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
Highest at USD 48 MM
in the last five periods and Increased by 235.97% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit Margin
Lowest at 20.44 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 6 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 22 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD -0.88
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Lowest at 1.87 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 3.06 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 39.73% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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