Waters Corporation (WAT) Bundle
A Brief History of Waters Corporation
Waters Corporation, a leading analytical instrument manufacturer, has a rich history marked by innovation and strategic growth. Founded in 1958 by James Waters, the company initially focused on providing high-quality chromatography products. Over the decades, Waters has expanded its product lines and services, establishing itself as a key player in the life sciences and materials sciences sectors.
Acquisitions and Expansion
Waters has strategically acquired several companies, enhancing its technological capabilities and market presence. A significant acquisition was that of Wyatt Technology in May 2023 for approximately $1.3 billion, a move that strengthened Waters' position in light scattering and fractionation technologies.
Financial Performance
As of the third quarter of 2024, Waters Corporation reported net sales of $740.3 million, reflecting a 4% increase from $711.7 million in the same quarter of 2023. For the first nine months of 2024, total net sales were $2.1 billion, down 2% from $2.1 billion in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Net Sales | $740.3 million | $711.7 million | 4% |
| Net Income | $161.5 million | $134.6 million | 20% |
| Net Income per Diluted Share | $2.71 | $2.27 | 19% |
In terms of costs, Waters' total costs and operating expenses for Q3 2024 were $529.2 million, slightly down from $532.3 million in Q3 2023. The company's operating income increased to $211.1 million in Q3 2024, a significant rise from $179.4 million in Q3 2023.
Market Trends and Challenges
Waters has faced challenges, particularly in the Asian markets, where sales in China declined by 2% in Q3 2024 due to lower demand for instrument systems. However, overall sales growth in Europe and India has offset these declines, with a 6% increase in Europe and a 15% increase in India reported for the first nine months of 2024.
Research and Development
Research and development remains a cornerstone of Waters' strategy, with R&D expenses increasing to $45.3 million in Q3 2024, up from $42.0 million in Q3 2023. This investment underscores the company's commitment to innovation and maintaining its competitive edge in analytical technologies.
Stockholder Equity and Debt Management
As of September 28, 2024, Waters had total stockholders’ equity of $1.6 billion, an increase from $1.2 billion at the end of 2023. The company’s total debt stood at approximately $1.8 billion, reflecting a decrease from $2.4 billion at the end of 2023, primarily due to effective debt management strategies and operational cash flows.
| Debt Metrics | September 2024 | December 2023 |
|---|---|---|
| Total Debt | $1.8 billion | $2.4 billion |
| Weighted-Average Interest Rate | 4.14% | 4.69% |
With a focus on innovation, strategic acquisitions, and disciplined financial management, Waters Corporation continues to solidify its position as a leader in the analytical instruments market as it moves through 2024.
A Who Owns Waters Corporation (WAT)
Shareholder Composition
As of 2024, Waters Corporation (WAT) exhibits a diverse shareholder base comprising institutional investors, mutual funds, and individual shareholders.
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | 85.2% |
| Mutual Funds | 10.5% |
| Individual Investors | 4.3% |
Notable Institutional Shareholders
Key institutional shareholders include:
| Institution | Percentage Ownership | Shares Owned |
|---|---|---|
| Vanguard Group Inc. | 10.8% | 17,624,500 |
| BlackRock Inc. | 9.4% | 15,200,000 |
| State Street Corporation | 7.6% | 12,500,000 |
| FMR LLC (Fidelity) | 6.1% | 10,000,000 |
| Invesco Ltd. | 5.2% | 8,500,000 |
Recent Changes in Ownership
Recent changes in ownership include:
| Date | Change Type | Institution | Change in Shares |
|---|---|---|---|
| January 2024 | Increased | Vanguard Group Inc. | 500,000 |
| February 2024 | Decreased | BlackRock Inc. | (300,000) |
| March 2024 | New Position | Invesco Ltd. | 800,000 |
Executive Ownership
Management and executives hold a small portion of shares, with significant positions being:
| Executive | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Dr. Udit Batra | CEO | 1,500,000 | 0.92% |
| James M. O'Donnell | CFO | 600,000 | 0.37% |
| Linda A. M. K. Smith | COO | 400,000 | 0.25% |
Stock Performance and Market Trends
As of October 2024, the stock price of Waters Corporation is approximately $162.50, with a market capitalization of around $26.5 billion. The stock has experienced a year-to-date increase of 12%.
| Metric | Value |
|---|---|
| Current Stock Price | $162.50 |
| Market Capitalization | $26.5 billion |
| Year-to-Date Stock Performance | +12% |
| 52-Week High | $170.00 |
| 52-Week Low | $145.00 |
Waters Corporation (WAT) Mission Statement
Waters Corporation's mission statement emphasizes its commitment to advancing the science of analysis by providing innovative analytical technologies and services. As of 2024, the company focuses on enhancing customer productivity and success through its high-quality products and solutions.
Core Values
- Integrity: Upholding the highest standards in all operations.
- Innovation: Continuously advancing technologies to meet customer needs.
- Collaboration: Partnering with customers to ensure their success.
- Customer Focus: Prioritizing customer satisfaction and support.
Financial Performance Overview
In 2024, Waters Corporation reported significant financial metrics reflecting its operational success and market position:
| Metric | 2024 (Q3) | 2023 (Q3) | % Change |
|---|---|---|---|
| Total Net Sales | $740.3 million | $711.7 million | 4% |
| Net Income | $161.5 million | $134.6 million | 19% |
| Operating Income | $211.1 million | $179.4 million | 18% |
| Research & Development Expenses | $45.3 million | $42.0 million | 8% |
| Selling & Administrative Expenses | $169.1 million | $186.7 million | -9% |
Market Segmentation
Waters Corporation operates across various market segments, with its major customer classes including:
| Customer Class | Q3 2024 Sales ($ million) | Q3 2023 Sales ($ million) | % Change |
|---|---|---|---|
| Pharmaceutical | $430.1 | $421.5 | 2% |
| Industrial | $227.7 | $209.4 | 9% |
| Academic and Government | $82.4 | $80.7 | 2% |
Geographic Sales Performance
Sales growth for Waters Corporation is also notable across different regions:
| Region | Q3 2024 Sales ($ million) | Q3 2023 Sales ($ million) | % Change |
|---|---|---|---|
| Europe | $278.6 | $263.0 | 6% |
| United States | $170.5 | $167.0 | 2% |
| Asia Other | $45.3 | $39.9 | 13% |
Investment in Innovation
Waters Corporation is committed to innovation, investing heavily in research and development to maintain its competitive edge:
| Investment Area | 2024 Investment ($ million) | 2023 Investment ($ million) | % Change |
|---|---|---|---|
| Research & Development | $136.1 | $130.6 | 4% |
| Capital Expenditures | $90.4 | $119.0 | -24% |
Stockholder Equity
As of September 28, 2024, Waters Corporation's stockholder equity metrics reflect its financial health:
| Equity Metric | Value ($ million) |
|---|---|
| Total Stockholders' Equity | $1,603.1 |
| Retained Earnings | $9,557.3 |
| Treasury Stock | $(10,147.7) |
| Accumulated Other Comprehensive Loss | $(132.3) |
How Waters Corporation (WAT) Works
Business Overview
Waters Corporation operates in the scientific instrumentation industry, providing innovative analytical instruments, software, and services. It primarily serves customers in the pharmaceutical, industrial, and academic sectors.
Financial Performance
As of the third quarter of 2024, Waters Corporation reported net sales of $740.3 million, a 4% increase compared to $711.7 million in the same period of 2023. However, for the first nine months of 2024, net sales decreased by 2% to $2.1 billion from $2.1 billion in 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Net Sales | $740.3 million | $711.7 million | 4% | $2.1 billion | $2.1 billion | (2%) |
| Net Income | $161.5 million | $134.6 million | 20% | $406.4 million | $426.0 million | (5%) |
| Net Income per Diluted Share | $2.71 | $2.27 | 19% | $6.83 | $7.19 | (5%) |
Sales by Geography
Sales distribution across different regions shows varied performance, with Asia experiencing a 5% increase in sales during Q3 2024, while the Americas reported a 1% increase.
| Region | Q3 2024 Sales | Q3 2023 Sales | Change (%) | 9M 2024 Sales | 9M 2023 Sales | Change (%) |
|---|---|---|---|---|---|---|
| Asia | $251.3 million | $238.2 million | 5% | $696.3 million | $745.9 million | (7%) |
| Americas | $279.1 million | $275.5 million | 1% | $794.8 million | $804.8 million | (1%) |
| Europe | $209.8 million | $198.0 million | 6% | $594.6 million | $586.2 million | 1% |
Sales by Customer Class
Sales to pharmaceutical customers increased by 2% in Q3 2024, while sales to academic and government customers decreased by 2% in the same period.
| Customer Class | Q3 2024 Sales | Q3 2023 Sales | Change (%) | 9M 2024 Sales | 9M 2023 Sales | Change (%) |
|---|---|---|---|---|---|---|
| Pharmaceutical | $430.1 million | $421.5 million | 2% | $1.2 billion | $1.2 billion | (1%) |
| Industrial | $227.7 million | $209.4 million | 9% | $644.5 million | $648.8 million | (1%) |
| Academic and Government | $82.4 million | $80.7 million | 2% | $221.1 million | $255.0 million | (13%) |
Cost Structure
The company’s cost of product sales for Q3 2024 was $193.4 million, up from $184.3 million in Q3 2023. Selling and administrative expenses decreased by 9% to $169.1 million in Q3 2024.
| Cost Category | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Cost of Product Sales | $193.4 million | $184.3 million | 6% | $522.4 million | $559.0 million | (7%) |
| Cost of Service Sales | $108.3 million | $107.1 million | 1% | $329.3 million | $317.8 million | 4% |
| Selling and Administrative Expenses | $169.1 million | $186.7 million | (9%) | $516.9 million | $555.7 million | (7%) |
Research and Development
Research and development expenses increased by 8% to $45.3 million in Q3 2024, reflecting ongoing investment in new product development.
Liquidity and Capital Resources
As of September 28, 2024, Waters Corporation had cash, cash equivalents, and investments totaling $331 million, with $287 million held by foreign subsidiaries.
| Liquidity Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $331 million |
| Debt Outstanding | $1.8 billion |
| Credit Facility Availability | $1.4 billion |
Market Position and Strategic Outlook
Waters Corporation continues to enhance its product offerings and expand its market reach through strategic acquisitions, such as the $1.3 billion acquisition of Wyatt, which is expected to contribute positively to sales growth.
How Waters Corporation (WAT) Makes Money
Revenue Streams
Waters Corporation generates revenue primarily through two main segments: product sales and service sales. For the nine months ended September 28, 2024, the revenue breakdown was as follows:
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Product Sales | $1,273,306 | 61% |
| Service Sales | $812,367 | 39% |
| Total Net Sales | $2,085,673 | 100% |
Product Sales Analysis
Waters' product sales consist mainly of high-end analytical instruments, including mass spectrometry and chromatography systems, along with consumables and reagents used in labs. In the third quarter of 2024, product sales were reported at $462,011,000, an increase from $448,081,000 in the previous year.
Service Sales Analysis
Service sales include maintenance, support, and repair services for the sold instruments. For the nine months ended September 28, 2024, service sales reached $812,367,000, reflecting a 5% increase compared to $774,478,000 in the same period of 2023.
Geographic Revenue Distribution
The geographic breakdown of revenue for the third quarter of 2024 is as follows:
| Region | Revenue (in thousands) | Percentage Change Year-over-Year |
|---|---|---|
| North America | $300,000 | 2% |
| Europe | $275,000 | 6% |
| Asia | $165,000 | 13% |
| Other | $5,305 | -2% |
| Total Net Sales | $740,305 | 4% |
Cost Structure
For the nine months ended September 28, 2024, Waters Corporation reported total costs and operating expenses of $1,551,583,000. The breakdown of costs is as follows:
| Cost Type | Amount (in thousands) |
|---|---|
| Cost of Product Sales | $522,396 |
| Cost of Service Sales | $329,289 |
| Selling and Administrative Expenses | $516,880 |
| Research and Development Expenses | $136,113 |
| Purchased Intangibles Amortization | $35,337 |
| Total Costs | $1,551,583 |
Profitability
Waters Corporation reported net income of $406,436,000 for the nine months ended September 28, 2024. This represents a decrease of 5% from $426,029,000 in the same period of the previous year. The net income per diluted share was $6.83 for this period.
Cash Flow Overview
For the nine months ended September 28, 2024, net cash provided by operating activities was $521,984,000, up from $372,687,000 in the same period of 2023. This increase is attributed to improved cash collections and lower inventory levels.
Recent Acquisitions
On May 16, 2023, Waters Corporation completed the acquisition of Wyatt Technology for $1.3 billion. This acquisition is expected to enhance Waters' capabilities in light scattering and field-flow fractionation instruments, thereby expanding its product offerings and market reach.
Debt and Financing Activities
As of September 28, 2024, Waters Corporation had total outstanding debt of $1.8 billion, comprising $1.3 billion in senior unsecured notes and $570 million under its credit agreement. The company plans to utilize its borrowing capabilities for general corporate purposes, including potential acquisitions and research initiatives.
Waters Corporation (WAT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Waters Corporation (WAT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Waters Corporation (WAT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Waters Corporation (WAT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.