Wide-moat Waters turned in a strong start to the year, but management merely maintained its guidance for 2024. At first glance, we are keeping our $323 fair value estimate intact. Waters' shares remain about fairly valued, in our opinion.
Waters' analytical instruments remain the gold standard in several applications, especially LC-MS for biopharmaceutical firms, where regulations preserve consistent recurring sales for many years.
Waters remains an extremely focused organization, which creates the potential for cash flow variability if its products fall out of favor.
|
Metric
|
WAT
|
TMO
|
DHR
|
|---|---|---|---|
Price/Earnings (Normalized) | 30.55 | 27.32 | 32.09 |
Price/Book Value | 16.94 | 4.95 | 3.59 |
Price/Sales | 7.32 | 5.38 | 8.59 |
Price/Cash Flow | 25.81 | 26.35 | 29.24 |
|
Metric
|
WAT
|
TMO
|
DHR
|
|---|---|---|---|
Quick Ratio | 1.39 | 1.19 | 1.34 |
Current Ratio | 2.22 | 1.70 | 1.85 |
Interest Coverage | 8.28 | 4.83 | 15.85 |
|
Metric
|
WAT
|
TMO
|
DHR
|
|---|---|---|---|
Return on Assets (Normalized) | 17.19% | 8.69% | 5.15% |
Return on Equity (Normalized) | 88.59% | 18.71% | 8.40% |
Return on Invested Capital (Normalized) | 25.75% | 10.97% | 6.02% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
TMO
| Thermo Fisher Scientific Inc | Mvqdcjlm | Hwwxj | $227.0 Bil | |
DHR
| Danaher Corp | Rsyrstknb | Yblcgxj | $186.4 Bil | |
A
| Agilent Technologies Inc | Nytlnxvx | Trllb | $44.3 Bil | |
IQV
| IQVIA Holdings Inc | Msxbfkn | Jjnrbv | $42.1 Bil | |
IDXX
| IDEXX Laboratories Inc | Nqqmwwqkj | Vgmsbz | $41.5 Bil | |
MTD
| Mettler-Toledo International Inc | Kdhcyqbgz | Snzfcr | $32.0 Bil | |
ICLR
| Icon PLC | Ltqrhjyfl | Pvzsh | $25.6 Bil | |
ILMN
| Illumina Inc | Htsvxqxhs | Zjxpn | $18.4 Bil | |
LH
| Laboratory Corp of America Holdings | Dnmmxpcx | Vjpptzs | $17.8 Bil |
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