Waters Corporation (WAT) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Waters Corporation

Updated on September 28, 2026 · accounts published on August 4, 2026

Reading of September 28, 2026

Waters trades at a P/E of 106.4× over the last 12 months, 271 % above its ten-year median of 28.7× and the highest level of the decade.

• Is Waters expensive or cheap? Its P/E of 106.4× is 271 % above its ten-year median of 28.7× and higher than at any point in the last decade.
• How is the business doing? Operating margin is 8.0 % over the last 12 months, against 28.2 % in fiscal 2025 and a 28.4 % average since 2014.
• How strong is the balance sheet? Net debt was $16.35 per share at the end of fiscal 2025, just 3.8 % of the share price and 0.9× EBITDA.
• Does Waters invest enough in R&D and turn profit into cash? Waters spent 6.2 % of revenue on R&D in fiscal 2025, well under the 15 % the sector treats as healthy.
• What to expect from the next earnings? Waters reports on November 3, 2026; analysts expect EPS of $4.01, and it has beaten estimates in each of the last 8 quarters.

Is Waters expensive or cheap?

Over the last 12 months Waters trades at a P/E of 106.4×. Its ten-year median is 28.7× and its decade range runs from 19.8× to 50.4×, so today's multiple is more than double the previous peak. Against its peers the gap is about the same: the sector median P/E is 28.2×, which puts Waters 278 % above it. EV/EBITDA of 52.8× and a free cash flow yield of just 2.6 % point the same way. The shares are up 51 % over the past year and sit within 1 % of their 52-week high of $433.54. The price assumes a profit recovery that current earnings do not yet show.

How is the business doing?

Sales are still growing, up 7.0 % over the last 12 months, but profits have not kept pace: EPS rose only 0.5 %. The bigger shift is in margins. Waters had an operating margin of 28.2 % in fiscal 2025, in line with its 28.4 % average for 2014-2025, but over the last 12 months it is 8.0 %, with a net margin of 3.6 %. ROIC over the last 12 months is 1.3 %, 4.6 points below the sector median of 6.0 %, even though it stayed above 10 % in 9 of the last 10 fiscal years. The open question is whether this dip is temporary.

How strong is the balance sheet?

The balance sheet is the steadiest part of the picture. At the end of fiscal 2025 Waters carried debt of $26.23 per share against cash of $9.88, which leaves net debt of $16.35, equal to 3.8 % of today's price. That is 0.9× EBITDA, well inside the 2.5× the sector considers healthy. Over the last 12 months debt/equity is 0.35 and the current ratio is 1.86, so short-term obligations are covered. The Altman Z-score of 9.7 sits deep in the safe zone. A Piotroski score of 5 out of 9 is only middling, which fits the weaker profitability.

Does Waters invest enough in R&D and turn profit into cash?

In healthcare the R&D pipeline is the invisible asset. When patents expire, the revenue they protect disappears, so innovation and cash flow matter more than a single year's earnings. On those tests Waters falls short. R&D was 6.2 % of revenue in fiscal 2025, below the 15 % benchmark, and gross margin was 57.8 %, under the 70 % typical of branded pharma. EPS grew 5.2 % a year from 2020 to 2025, short of the 8 % healthy mark. Cash conversion comes closer: free cash flow was 84 % of net income in fiscal 2025, just under the 90 % threshold. Only net debt, at 0.9× EBITDA, passes cleanly.

What to expect from the next earnings?

Analysts expect EPS of $4.01 for the quarter Waters reports on November 3, 2026. That is well above the $3.05 it reported on August 4, 2026, which beat the $3.01 estimate by 1.3 %. Waters has beaten EPS estimates in 8 of the last 8 quarters, so it usually clears the bar. Expectations are stable: the 2026 EPS consensus has held at $14.57 over the last 13 days, and revenue forecasts have barely moved. Of 37 analysts, 19 rate the stock a buy, 16 a hold and 2 a sell. With the price near its 52-week high, a miss would weigh more than usual.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.