Waters Corp (WAT): A High-Performing Stock with a GF Score of 94
Waters Corp (NYSE:WAT), a leading player in the Medical Diagnostics & Research industry, is currently trading at $295 per share. With a market capitalization of $17.41 billion, the company's stock price has seen a gain of 7.51% today and a 10.74% increase over the past four weeks. In this article, we will delve into the company's GF Score of 94/100, a stock performance ranking system developed by GuruFocus. This score is closely correlated with the long-term performances of stocks, making it a crucial tool for investors.
Waters Corp's GF Score Analysis
Waters Corp's impressive GF Score of 94/100 places it in the highest outperformance potential category. This score is derived from five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. Each of these components is ranked and weighted differently based on their impact on stock price performance. Let's delve into each of these aspects to understand Waters Corp's high GF Score.
Financial Strength Analysis
Waters Corp's Financial Strength rank is 6/10, indicating a relatively strong financial situation. This score is based on its Interest Coverage of 16.33, a debt to revenue ratio of 0.53, and an Altman Z score of 9.37. These figures suggest that the company has a manageable debt burden and a low risk of financial distress.
Profitability Rank Analysis
The company's Profitability Rank is a perfect 10/10, reflecting its strong profitability. This score is influenced by its Operating Margin of 28.73%, a Piotroski F-Score of 6, and a consistent profitability record over the past 10 years. These factors suggest that Waters Corp's business is likely to remain profitable.
Growth Rank Analysis
Waters Corp also boasts a Growth Rank of 10/10, indicating robust revenue and profitability growth. This score is based on its 5-year revenue growth rate of 11.70% and a 5-year EBITDA growth rate of 11.50%. These figures demonstrate the company's consistent growth over the years.
GF Value Rank Analysis
The company's GF Value Rank is 9/10, suggesting that the stock is reasonably valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on the company's past returns and growth.
Momentum Rank Analysis
Waters Corp's Momentum Rank is 4/10, reflecting the stock's price performance and momentum. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its competitors in the Medical Diagnostics & Research industry, Waters Corp stands out with its high GF Score. Exact Sciences Corp (NASDAQ:EXAS) has a GF Score of 69, Revvity Inc (NYSE:RVTY) has a score of 80, and Quest Diagnostics Inc (NYSE:DGX) has a score of 88. This comparison further highlights Waters Corp's strong position in the industry. For more details, visit the competitors page.
In conclusion, Waters Corp's high GF Score of 94, coupled with its strong financial strength, profitability, growth, and reasonable valuation, make it a compelling choice for investors. However, as with any investment, it's crucial to conduct thorough research and consider various factors before making a decision.
This article first appeared on GuruFocus.
