Fundamental analysis · SEC EDGAR · TTM through 04/07/2026

Fundamental analysis of Waters Corp

WAT · NYSE · Healthcare

Fundamental quality

DEMANDING

35

out of 100

Waters Corp's profile is defined by leverage: it carries high debt (10.25× EBITDA) on thin margins (3.6%), which makes it more sensitive to rates and the cycle. On fundamental quality it scores 35 out of 100, profiling it as a company with demanding fundamentals. Its weakest area is its growth (revenue +13%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Waters makes chromatographs and mass spectrometers: the machines pharma companies use to check the purity and composition of every drug batch. Its instrument is bought once; its columns, parts and service are paid for forever.

What will shape its future

  • Pharma quality control, a regulated and mandatory demand: testing isn't optional.
  • Recurring consumables and service, over half the business and its cushion.
  • Instrument replacement cycles, which get delayed when budgets tighten.

Breakdown by area

I.Growth
29

EPS growth: -12.7% · Revenue growth: 13%

II.Profitability
35

Net margin: 3.6% · ROE: 1.1% · ROIC: 1.3%

III.Financial health
41

Net debt/EBITDA: 10.25x · FCF: 8.6%

Source: SEC EDGAR · TTM through 04/07/2026

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 57 Healthcare companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 30%
ROEbeats 14%
Growthbeats 79%
Cash generationbeats 33%
Less debtbeats 2%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Waters Corp strengths

  • Revenue growing (13% annualized).

Waters Corp risks and weaknesses

  • Very high leverage (net debt of 10.25× EBITDA): more exposed to rates and to a rough patch.
  • Declining earnings per share (-12.7% annualized).
  • Thin margins (net margin of 3.6%), little cushion for setbacks.
  • Low return on equity (ROE of 1.1%).

Waters Corp historical evolution

YearRevenueNet incomeFree cash flowNet debt
20202,365522920
20212,7866931,013
20222,9727081,094
20232,9566424421,960
20242,9586386201,301
20253,165643540819

Between 2020 and 2025, revenue went from $2,365M to $3,165M (+34%) and net income went from $522M to $643M (+23%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended July 4, 2026, versus the half-year ended June 28, 2025 (SEC filings):

  • Revenue+103.2%
  • Net income-177.6%

What changed with the July 4, 2026 results

Compared with the previous close (April 4, 2026), this is what moved in its accounts:

  • Quality score4435
  • Net margin11.9%3.6%
  • ROE2.9%1.1%
  • FCF margin7%8.6%
  • Revenue growth9.3%13%
  • Net debt/EBITDA6.73×10.25×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Waters Corp cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Waters Corp a good company to invest in?

In terms of business quality, Waters Corp scores 35 out of 100 in our analysis, placing it as a company with demanding fundamentals. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Waters Corp a profitable company?

Waters Corp is profitable, with a net margin of 3.6%, though a thin one.

Does Waters Corp have a lot of debt?

Yes, its leverage is high: net debt is 10.25 times its EBITDA.

Is Waters Corp growing?

Its revenue has grown 13% annualized in recent years.

Does Waters Corp generate cash?

Yes. It converts about 8.6% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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