📊 WAT Key Takeaways
Is Waters Corp. /DE/ (WAT) a Good Investment?
Waters Corp exhibits severe profitability and cash flow deterioration, with negative operating income (-$47M), negative free cash flow (-$42M), and inability to service debt from operations (interest coverage -1.0x) despite a 46.6% gross margin. The unexplained 6734% revenue growth suggests major business disruption or data anomalies requiring clarification. While the balance sheet remains solid, operational cash burn and sustained unprofitability make the company fundamentally unattractive.
Waters shows solid core fundamentals with strong operating and net margins, healthy free cash flow generation, and manageable leverage. However, the reported revenue surge and relatively low gross margin appear inconsistent with the rest of the financial profile, which raises caution about trend interpretation and suggests the business is financially sound but the current growth signal may not be high quality.
Waters Corp. /DE/ Key Strengths (WAT)
- Strong gross margin of 46.6% demonstrates pricing power and product competitiveness
- Solid balance sheet with $24.5B assets and conservative 0.32x debt-to-equity ratio
- Adequate liquidity with 1.79x current ratio and $462M cash reserves
- Strong profitability with 25.4% operating margin and 20.3% net margin
- Healthy cash generation with $539.81M in free cash flow and 17.1% FCF margin
- Balanced financial position with 1.73x current ratio, 0.55x debt-to-equity, and 11.5x interest coverage
WAT Stock Risks: Waters Corp. /DE/ Investment Risks
- Negative operating and free cash flow (-$42M FCF) unsustainable; company burning cash despite revenue growth
- Negative interest coverage (-1.0x) indicates inability to service $4.9B debt from operations
- Severe margin compression (46.6% gross to -5.7% net) suggests significant operational or structural problems requiring investigation
- Revenue growth of +6734.4% YoY looks anomalous and may reflect data classification issues rather than true operating acceleration
- Gross margin of 18.6% is unusually low relative to the strong operating margin, creating uncertainty around earnings quality
- Net income was flat YoY, suggesting limited bottom-line growth despite the reported revenue jump
Key Metrics to Watch
- Operating cash flow recovery and path to positive free cash flow
- Operating margin expansion toward historical norms and explanation of 6734% revenue growth anomaly
- Interest coverage ratio improvement demonstrating debt service capability from core operations
- Organic revenue growth and gross margin normalization
- Free cash flow conversion and debt levels
Waters Corp. /DE/ (WAT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Waters Corp. /DE/ presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
WAT Profit Margin, ROE & Profitability Analysis
WAT vs Industrial Sector: How Waters Corp. /DE/ Compares
How Waters Corp. /DE/ compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Waters Corp. /DE/ Stock Overvalued? WAT Valuation Analysis 2026
Based on fundamental analysis, Waters Corp. /DE/ has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Waters Corp. /DE/ Balance Sheet: WAT Debt, Cash & Liquidity
WAT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Waters Corp. /DE/'s revenue has grown significantly by 14% over the 5-year period, indicating strong business expansion. The most recent EPS of $10.84 reflects profitable operations.
WAT Revenue Growth, EPS Growth & YoY Performance
WAT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $662.0M | -$72.0M | $-0.87 |
| Q3 2025 | $740.3M | $148.9M | $2.50 |
| Q2 2025 | $708.5M | $142.7M | $2.40 |
| Q1 2025 | $636.8M | $102.2M | $1.72 |
| Q3 2024 | $711.7M | N/A | $2.27 |
| Q2 2024 | $708.5M | N/A | $2.40 |
| Q1 2024 | $636.8M | N/A | $1.72 |
| Q3 2023 | $708.6M | N/A | $2.27 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Waters Corp. /DE/ Dividends, Buybacks & Capital Allocation
WAT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Waters Corp. /DE/ (CIK: 0001000697)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WAT
What is the AI rating for WAT?
Waters Corp. /DE/ (WAT) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are WAT's key strengths?
Claude: Strong gross margin of 46.6% demonstrates pricing power and product competitiveness. Solid balance sheet with $24.5B assets and conservative 0.32x debt-to-equity ratio. ChatGPT: Strong profitability with 25.4% operating margin and 20.3% net margin. Healthy cash generation with $539.81M in free cash flow and 17.1% FCF margin.
What are the risks of investing in WAT?
Claude: Negative operating and free cash flow (-$42M FCF) unsustainable; company burning cash despite revenue growth. Negative interest coverage (-1.0x) indicates inability to service $4.9B debt from operations. ChatGPT: Revenue growth of +6734.4% YoY looks anomalous and may reflect data classification issues rather than true operating acceleration. Gross margin of 18.6% is unusually low relative to the strong operating margin, creating uncertainty around earnings quality.
What is WAT's revenue and growth?
Waters Corp. /DE/ reported revenue of $1.3B.
Does WAT pay dividends?
Waters Corp. /DE/ does not currently pay dividends.
Where can I find WAT SEC filings?
Official SEC filings for Waters Corp. /DE/ (CIK: 0001000697) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WAT's EPS?
Waters Corp. /DE/ has a diluted EPS of $-0.87.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is WAT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Waters Corp. /DE/ has a C grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is WAT stock overvalued or undervalued?
Valuation metrics for WAT: ROE of -0.5% (sector avg: 15%), net margin of -5.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is WAT's AI grade for 2026?
Our dual AI analysis gives Waters Corp. /DE/ a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WAT's free cash flow?
Waters Corp. /DE/'s operating cash flow is $-3.0M, with capital expenditures of $39.0M. FCF margin is -3.3%.
How does WAT compare to other Industrial stocks?
Vs Industrial sector averages: Net margin -5.7% (avg: 10%), ROE -0.5% (avg: 15%), current ratio 1.79 (avg: 1.8).