Waters Corp (WAT, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial performance and promising market position. With a current share price of $351.6 and a modest daily gain of 0.14%, Waters Corp has shown a notable three-month growth of 12.8%. A detailed evaluation using the GF Score indicates that Waters Corp is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Waters Corp has achieved an impressive GF Score of 97, signaling strong future performance potential.
- Financial strength rank: 6/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 10/10
Understanding Waters Corp's Business
Waters Corp, with a market cap of $20.86 billion and annual sales of $2.91 billion, specializes in manufacturing analytical instruments like liquid chromatography, mass spectrometry, and thermal analysis tools. These instruments are crucial for analyzing molecular structures and physical properties, aiding clients across biopharmaceuticals, industrial sectors, and academic institutions. In 2023, Waters Corp's sales distribution included 57% from biopharmaceutical customers, 31% from industrial clients, and 12% from academic/government institutions.
Financial Strength Breakdown
Waters Corp's financial robustness is reflected in its Financial Strength rating of 6/10. The company boasts an Interest Coverage ratio of 7.45, significantly above the benchmark of 5 set by investing legend Benjamin Graham. Additionally, its Altman Z-Score of 5.47 indicates low risk of financial distress, and a Debt-to-Revenue ratio of 0.71 showcases prudent debt management.
Profitability and Growth Metrics
Waters Corp's Profitability Rank stands at a perfect 10/10. The company's Gross Margin has consistently improved over the past five years, reaching 59.57% in 2023. This trend highlights Waters Corp's increasing efficiency in converting revenue into profit. Furthermore, the company's Predictability Rank of 5 stars reflects its stable operational performance, enhancing investor confidence.
Conclusion
Considering Waters Corp's robust financial strength, exceptional profitability, and consistent growth metrics, the GF Score highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore more companies with high GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
