Evoqua Water Technologies Corp (AQUA)
US30057T1051 - Common Stock
Overall AQUA gets a fundamental rating of 4 out of 10. We evaluated AQUA against 131 industry peers in the Machinery industry. While AQUA is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past year AQUA had a positive cash flow from operations.
Of the past 5 years AQUA 4 years were profitable.
Each year in the past 5 years AQUA had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.57%, AQUA perfoms like the industry average, outperforming 51.49% of the companies in the same industry.
AQUA's Return On Equity of 10.66% is fine compared to the rest of the industry. AQUA outperforms 63.43% of its industry peers.
AQUA has a Return On Invested Capital of 5.95%. This is comparable to the rest of the industry: AQUA outperforms 52.99% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AQUA is below the industry average of 10.77%.
| 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
With a Profit Margin value of 4.24%, AQUA perfoms like the industry average, outperforming 51.49% of the companies in the same industry.
In the last couple of years the Profit Margin of AQUA has grown nicely.
With a Operating Margin value of 6.75%, AQUA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AQUA has grown nicely.
AQUA's Gross Margin of 31.28% is in line compared to the rest of the industry. AQUA outperforms 59.70% of its industry peers.
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.
AQUA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AQUA has more shares outstanding
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.
AQUA has a better Altman-Z score (3.77) than 73.13% of its industry peers.
AQUA has a debt to FCF ratio of 10.33. This is a negative value and a sign of low solvency as AQUA would need 10.33 years to pay back of all of its debts.
AQUA has a Debt to FCF ratio (10.33) which is in line with its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that AQUA has dependencies on debt 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
A Current Ratio of 1.78 indicates that AQUA should not have too much problems paying its short term obligations.
AQUA has a worse Current ratio (1.78) than 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 in line with its industry peers.
| 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.
Measured over the past years, AQUA shows a very strong growth in Earnings Per Share. The EPS has been growing by 95.99% on average per year.
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 growth Q2Q23.81%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y6.34%
Revenue growth 5Y6.85%
Revenue growth Q2Q11.97%
3.2 Future
AQUA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.62% yearly.
Based on estimates for the next years, AQUA will show a small growth in Revenue. The Revenue will grow by 6.27% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 45.35, the valuation of AQUA can be described as expensive.
Based on the Price/Earnings ratio, AQUA is valued a bit more expensive than 66.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.76, AQUA is valued quite expensively.
The Price/Forward Earnings ratio is 43.97, which means the current valuation is very expensive for AQUA.
61.19% of the companies in the same industry are cheaper than AQUA, based on the Price/Forward Earnings ratio.
AQUA is valuated expensively when we compare the Price/Forward Earnings ratio to 21.26, which is the current average of the S&P500 Index.
| 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 the industry average as 67.16% of the companies are valued more cheaply.
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
AQUA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Evoqua Water Technologies Corp
NYSE:AQUA (5/23/2023, 7:04:00 PM)
After market: 49.88 0 (0%)49.88
+0.47 (+0.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.35 | ||
| Fwd PE | 43.97 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 10.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.75% | ||
| PM (TTM) | 4.24% | ||
| GM | 31.28% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)34.51%
EPS 3Y32.62%
EPS 5Y
EPS growth Q2Q
EPS Next Y-3.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.94%
Revenue growth 3Y6.34%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y