Waters Corporation (WAT)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-and-Buffett-style investor, I start with what is known. Waters sells analytical workflow tools—liquid chromatography, mass spectrometry, columns, consumables, and related services—to laboratories. That can be a decent business because consumables and service can recur, but the filed results are mixed. In fiscal 2025, the year ended 2025-12-31, revenue was $3.2 billion, net income $642.6 million, and diluted EPS $10.76. Fiscal 2024 was similar: revenue $3.0 billion, net income $637.8 million, diluted EPS $10.71; fiscal 2023 had $3.0 billion revenue, $642.2 million net income, and $10.84 diluted EPS. So the historical base was stable but not fast-growing. The recent trend is the problem: in fiscal Q1 2026, the quarter ended 2026-04-04, revenue was $1.3 billion and net income was -$72.0 million, or -$0.87 diluted EPS; in fiscal Q2 2026, ended 2026-07-04, revenue was $1.6 billion and net income was -$136.0 million, or -$1.39 diluted EPS. At the 2026-10-26 close of $455.98, FairStock’s P/E is 115.15, EV/EBITDA 51.15, FCF yield only 0.9%, and the Graham Number is $117.40, leaving a negative margin of safety of 286.43%. ROE of 1.92% and ROCE of 3.56% are weak, while D/E of 0.36 and Altman Z-score of 3.54 suggest leverage is not the main risk. The moat question is whether the installed base and consumables stickiness can protect pricing; the recent losses argue that the current economics do not yet demonstrate it. FairStock calls it a Slow Grower based on 4.3% annual profit growth and 6.0% revenue growth over five years. The price already assumes a sharp recovery.

In plain English: Waters makes lab instruments and supplies used to analyze chemicals and materials. It was profitable in the last few full years, but the latest two reported quarters showed losses, and the shares look expensive compared with earnings and cash flow. On the numbers given, it does not look like a cheap stock.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-04) · fiscal Q1 2026 10-Q (period ended 2026-04-04) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer