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

Fundamental analysis of Waters Corp

WAT · NYSE · Healthcare

Fundamental quality

DEMANDING

44

out of 100

Waters Corp earns a fundamental-quality score of 44 out of 100, profiling it as a company with demanding fundamentals. Its score rests mainly on its profitability (net margin 11.9%). Its weakest area is its financial strength (net debt 6.73× EBITDA). 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
42

EPS growth: -1.2% · Revenue growth: 9.3%

II.Profitability
52

Net margin: 11.9% · ROE: 2.9% · ROIC: 2.6%

III.Financial health
38

Net debt/EBITDA: 6.73x · FCF: 7%

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

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its financial strength 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 54%
ROEbeats 14%
Growthbeats 58%
Cash generationbeats 28%
Less debtbeats 4%

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

  • Solid net margin (11.9%): the business is clearly profitable.
  • Revenue growing (9.3% annualized).

Waters Corp risks and weaknesses

  • Very high leverage (net debt of 6.73× EBITDA): more exposed to rates and to a rough patch.
  • Declining earnings per share (-1.2% annualized).
  • Low return on equity (ROE of 2.9%).

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 quarter ended April 4, 2026, versus the quarter ended March 29, 2025 (SEC filings):

  • Revenue+91.4%
  • Net income-159.5%

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 44 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?

Yes. Waters Corp shows a net margin of 11.9% and an ROE of 2.9%, a sign of a profitable business.

Does Waters Corp have a lot of debt?

Yes, its leverage is high: net debt is 6.73 times its EBITDA.

Is Waters Corp growing?

Its revenue has grown 9.3% annualized in recent years.

Does Waters Corp generate cash?

Yes. It converts about 7% 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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