CluenexWaters Corporation WAT
Waters Corporation scores average on business quality (4.9 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Waters Corporation does
Waters Corporation designs and manufactures high-performance liquid chromatography, mass spectrometry, and thermal analysis instruments. Pharmaceutical companies, academic institutions, and food safety authorities pay for these analytical tools to test chemical compositions and ensure product purity. The company is preparing for its third quarter 2026 earnings reporting cycle while managing analyst price targets.
- What it does best
Waters dominates high-performance liquid chromatography and specialty mass spectrometry systems for pharmaceutical drug development. With a gross margin of 50.9%, it commands premium pricing power over complex laboratory workflows. This technical edge relies on deep customer entrenchment, as regulated lab protocols often lock in proprietary instrument platforms.
- The main risk
A thin interest coverage ratio of 3.5x leaves the business vulnerable to unexpected earnings shocks or tighter credit conditions. Total debt sits at $1.4 billion against cash reserves of $588 million, restricting financial flexibility if macroeconomic conditions deteriorate.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 11.2% with a net margin of 3.6%, reflecting substantial overhead costs. Profitability remains compressed compared to historical efficiency levels.
An exceptional return on equity in the 96th sector percentile reflects powerful brand loyalty among regulated laboratory operators. Strict compliance hurdles make switching instruments difficult for clients.
Revenue growth registers at 7.0%, landing in the middle of the pack relative to its sector peers. This top-line expansion marks a modest recovery from prior flat periods.
Total debt stands at $1.4 billion with an interest coverage ratio of 3.5x, leaving limited margin for error on debt service. Free cash flow reached $399 million, softening from prior periods.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $1.4M outside pre-planned sales.
Our sealed record on WAT
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Waters Corporation scores average on the Cluenex quality check (4.9 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 sold $1.4M outside pre-planned sales.
Nov 3, 2026, before the open.
See WAT today
- Today's verdict on WAT, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Waters Corporation (WAT)”, https://cluenex.com/stocks/wat/, data as of Oct 10, 2026.