Waters WAT
Waters Corporation is an analytical technology company that designs, manufactures, and sells chromatography and mass spectrometry instruments, consumables, and software for research, diagnostic, and quality control laboratories. Waters Corporation shows exceptional revenue growth of 113.40%, but its financial health is fragile (Net Debt/EBITDA of 3.40, negative cash conversion) and its valuation is very demanding (P/E 109.76), making it vulnerable to a rising interest rate environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Waters Corporation is an analytical technology company that designs, manufactures, and sells chromatography and mass spectrometry instruments, consumables, and software for research, diagnostic, and quality control laboratories. Waters Corporation shows exceptional revenue growth of 113.40%, but its financial health is fragile (Net Debt/EBITDA of 3.40, negative cash conversion) and its valuation is very demanding (P/E 109.76), making it vulnerable to a rising interest rate environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.7 |
| Quality / Moat | 2.8 |
| Valuation | 1.7 |
| Growth | 10.0 |
| Dividend | 1.5 |
| Momentum | 8.3 |
| Risk & Context | 4.9 |
OVERALL SCORE: 4.4/10
Context and risks
The company has a Net Debt/EBITDA of 3.40 and a P/E of 109.76, making it sensitive to the rise in 10-year Treasury yields (5.17%), which increases its financing costs and pressures the present value of its future cash flows. Exposure to AI demand is a positive factor, but the interest rate risk is the most material.
News considered in the analysis
- Waters Tops Growth Outlook as AI Demand, BD Integration Fuel Momentum — Supera las expectativas de crecimiento impulsado por la demanda de IA y la integración de BD, lo que refuerza la narrativa de crecimiento de la compañía.
- Waters Launches BD FACSDiscover A7 for Advanced Flow Cytometry — Lanzamiento de un nuevo producto que amplía su cartera en citometría de flujo, un nicho de alto crecimiento.
- The Bull Case For Waters (WAT) Could Change Following New At-Home HPV And Cell Analysis Push — Iniciativa en diagnóstico en el hogar (HPV) y análisis celular, aún en fase temprana y con potencial de mercado, pero con incertidumbre sobre su adopción.
- 1 Growth Stock with All-Star Potential and 2 We Find Risky — Listículo genérico sin información nueva específica sobre la empresa.
- Robust Results Lifted Waters (WAT) — Resultados sólidos ya reflejados en el precio y en el momentum de la acción.
Verdict: Hold, given the strong growth but the high debt and valuation that limit the margin of safety.
Main risk: Financial leverage (Net Debt/EBITDA of 3.40) combined with an extreme valuation (P/E 109.76) in a rising interest rate environment, which could compress the multiple and increase the cost of debt.
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