Evoqua Water Technologies Corp (AQUA) Stock Fundamental Analysis
NYSE:AQUA - New York Stock Exchange, Inc. - US30057T1051 - Common Stock - Currency: USD
Taking everything into account, AQUA scores 4 out of 10 in our fundamental rating. AQUA was compared to 127 industry peers in the Machinery industry. AQUA has a medium profitability rating, but doesn't score so well on its financial health evaluation. AQUA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AQUA was profitable.
AQUA had a positive operating cash flow in the past year.
Of the past 5 years AQUA 4 years were profitable.
In the past 5 years AQUA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AQUA (3.57%) is comparable to the rest of the industry.
The Return On Equity of AQUA (10.66%) is better than 63.43% of its industry peers.
The Return On Invested Capital of AQUA (5.95%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for AQUA is below the industry average of 10.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 10.66% | ||
| ROIC | 5.95% |
ROA(3y)4.07%
ROA(5y)N/A
ROE(3y)14.23%
ROE(5y)N/A
ROIC(3y)7.06%
ROIC(5y)6.03%
1.3 Margins
AQUA's Profit Margin of 4.24% is in line compared to the rest of the industry. AQUA outperforms 51.49% of its industry peers.
AQUA's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 6.75%, AQUA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
AQUA's Operating Margin has improved in the last couple of years.
AQUA has a Gross Margin (31.28%) which is comparable to the rest of the industry.
AQUA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.75% | ||
| PM (TTM) | 4.24% | ||
| GM | 31.28% |
OM growth 3Y3.63%
OM growth 5Y3.49%
PM growth 3YN/A
PM growth 5Y88.13%
GM growth 3Y1.17%
GM growth 5Y-0.68%
2. Health
2.1 Basic Checks
AQUA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AQUA has been increased compared to 1 year ago.
Compared to 1 year ago, AQUA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.77 indicates that AQUA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.77, AQUA is in the better half of the industry, outperforming 73.13% of the companies in the same industry.
The Debt to FCF ratio of AQUA is 10.33, which is on the high side as it means it would take AQUA, 10.33 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AQUA (10.33) is comparable to the rest of the industry.
AQUA has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
AQUA has a worse Debt to Equity ratio (1.15) than 82.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 3.77 |
ROIC/WACC0.71
WACC8.34%
2.3 Liquidity
AQUA has a Current Ratio of 1.78. This is a normal value and indicates that AQUA is financially healthy and should not expect problems in meeting its short term obligations.
AQUA has a Current ratio of 1.78. This is in the lower half of the industry: AQUA underperforms 64.18% of its industry peers.
A Quick Ratio of 1.27 indicates that AQUA should not have too much problems paying its short term obligations.
AQUA has a Quick ratio (1.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
AQUA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.51%, which is quite impressive.
AQUA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 95.99% yearly.
Looking at the last year, AQUA shows a quite strong growth in Revenue. The Revenue has grown by 16.94% in the last year.
Measured over the past years, AQUA shows a small growth in Revenue. The Revenue has been growing by 6.85% on average per year.
EPS 1Y (TTM)34.51%
EPS 3Y32.62%
EPS 5Y95.99%
EPS Q2Q%23.81%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y6.34%
Revenue growth 5Y6.85%
Sales Q2Q%11.97%
3.2 Future
Based on estimates for the next years, AQUA will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.62% on average per year.
AQUA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.27% yearly.
EPS Next Y-3.35%
EPS Next 2Y6.35%
EPS Next 3Y9.93%
EPS Next 5Y9.62%
Revenue Next Year10.51%
Revenue Next 2Y7.35%
Revenue Next 3Y6.68%
Revenue Next 5Y6.27%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 45.35 indicates a quite expensive valuation of AQUA.
AQUA's Price/Earnings ratio is a bit more expensive when compared to the industry. AQUA is more expensive than 66.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of AQUA to the average of the S&P500 Index (26.85), we can say AQUA is valued expensively.
Based on the Price/Forward Earnings ratio of 43.97, the valuation of AQUA can be described as expensive.
AQUA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AQUA is more expensive than 61.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.98. AQUA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.35 | ||
| Fwd PE | 43.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AQUA is valued a bit more expensive than 67.16% of the companies in the same industry.
AQUA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.14 | ||
| EV/EBITDA | 26.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y6.35%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
No dividends for AQUA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
49.88
+0.47 (+0.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners0.08%
Inst Owner Change0%
Ins Owners0.2%
Ins Owner Change0%
Market Cap6.10B
Analysts72
Price Target52.53 (5.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.9%
Min EPS beat(2)15.81%
Max EPS beat(2)15.98%
EPS beat(4)3
Avg EPS beat(4)16.28%
Min EPS beat(4)-5.01%
Max EPS beat(4)38.34%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.27%
Min Revenue beat(2)-0.05%
Max Revenue beat(2)2.59%
Revenue beat(4)2
Avg Revenue beat(4)2.14%
Min Revenue beat(4)-0.23%
Max Revenue beat(4)6.25%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.32%
PT rev (3m)8.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.27%
EPS NY rev (1m)0%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.35 | ||
| Fwd PE | 43.97 | ||
| P/S | 3.29 | ||
| P/FCF | 71.14 | ||
| P/OCF | 32.74 | ||
| P/B | 8.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.6 |
EPS(TTM)1.1
EY2.21%
EPS(NY)1.13
Fwd EY2.27%
FCF(TTM)0.7
FCFY1.41%
OCF(TTM)1.52
OCFY3.05%
SpS15.18
BVpS6.04
TBVpS-0.24
PEG (NY)N/A
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 10.66% | ||
| ROCE | N/A | ||
| ROIC | 5.95% | ||
| ROICexc | 6.37% | ||
| ROICexgc | 12.1% | ||
| OM | 6.75% | ||
| PM (TTM) | 4.24% | ||
| GM | 31.28% | ||
| FCFM | N/A |
ROA(3y)4.07%
ROA(5y)N/A
ROE(3y)14.23%
ROE(5y)N/A
ROIC(3y)7.06%
ROIC(5y)6.03%
ROICexc(3y)7.92%
ROICexc(5y)6.68%
ROICexgc(3y)16.83%
ROICexgc(5y)14.48%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y0.78%
ROICexcg growth 5Y-0.27%
ROICexc growth 3Y3.56%
ROICexc growth 5Y3.36%
OM growth 3Y3.63%
OM growth 5Y3.49%
PM growth 3YN/A
PM growth 5Y88.13%
GM growth 3Y1.17%
GM growth 5Y-0.68%
F-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.33 | ||
| Debt/EBITDA | 3.43 | ||
| Cap/Depr | 75.63% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 108.92% | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.77 |
F-Score6
WACC8.34%
ROIC/WACC0.71
Cap/Depr(3y)75%
Cap/Depr(5y)83.2%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)127.47%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)34.51%
EPS 3Y32.62%
EPS 5Y95.99%
EPS Q2Q%23.81%
EPS Next Y-3.35%
EPS Next 2Y6.35%
EPS Next 3Y9.93%
EPS Next 5Y9.62%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y6.34%
Revenue growth 5Y6.85%
Sales Q2Q%11.97%
Revenue Next Year10.51%
Revenue Next 2Y7.35%
Revenue Next 3Y6.68%
Revenue Next 5Y6.27%
EBIT growth 1Y6.62%
EBIT growth 3Y10.2%
EBIT growth 5Y10.58%
EBIT Next Year111.44%
EBIT Next 3Y34.61%
EBIT Next 5Y26.52%
FCF growth 1Y-19.88%
FCF growth 3Y47.56%
FCF growth 5YN/A
OCF growth 1Y-6.55%
OCF growth 3Y13.16%
OCF growth 5Y44.8%