What Drives This Lab Equipment Maker?
Waters Corp makes analytical instruments and related technologies used in laboratory testing workflows. The business is built around equipment sales alongside recurring revenue from consumables and services tied to installed systems. It serves customers that rely on precise measurement and separation techniques in life science and industrial settings. With a market value around USD 35.4 billion, it operates at a scale that can support ongoing product support and service activity.
Are Margins And Returns Holding Steady?
FundamentalsFor 2025, reported in USD, revenue reached about USD 3.17 billion, with EBIT of roughly USD 803 million and net income of around USD 643 million. Revenue grew 7.0% versus the prior year, while trailing margins show a 55.15% gross margin, a 16.01% operating margin, and an 11.91% net margin.
Cash was about USD 588 million against total debt of roughly USD 1.4 billion. The cash flow proxy was around USD 779 million, with depreciation and amortization at about USD 88 million. On the returns side, ROE over the trailing period was 8.04%.
Is The Market Overpaying For Growth?
DCF / MultiplesAt USD 379.29, the stock price stands well above the range implied by the DCF model’s scenarios. The headline multiples are elevated, with an 84.14 trailing P/E and 53.73 EV/EBITDA.
Valuation Remains A Headwind
TakeawayThe current price looks hard to justify from cash returns. The case depends on higher returns on capital holding up. Margins and cash generation need to stay resilient. If returns stay muted, the valuation can remain a headwind.