Evoqua Water Technologies Corp (AQUA) Stock Fundamental Analysis
NYSE:AQUA - New York Stock Exchange, Inc. - US30057T1051 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to AQUA. AQUA was compared to 128 industry peers in the Machinery industry. There are concerns on the financial health of AQUA while its profitability can be described as average. While showing a medium growth rate, AQUA is valued expensive at the moment.
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.
In the past 5 years AQUA always reported a positive cash flow from operatings.
1.2 Ratios
AQUA has a Return On Assets of 3.57%. This is comparable to the rest of the industry: AQUA outperforms 51.49% of its industry peers.
AQUA has a better Return On Equity (10.66%) than 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.
The Average Return On Invested Capital over the past 3 years for AQUA is below the industry average of 10.31%.
| 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 has a Profit Margin (4.24%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AQUA has grown nicely.
AQUA has a Operating Margin (6.75%) which is in line with its industry peers.
AQUA's Operating Margin has improved in the last couple of years.
AQUA has a Gross Margin (31.28%) which is in line with 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AQUA is destroying value.
Compared to 1 year ago, AQUA has more shares outstanding
AQUA has a worse debt/assets ratio than last year.
2.2 Solvency
AQUA has an Altman-Z score of 3.77. This indicates that AQUA is financially healthy and has little risk of bankruptcy at the moment.
AQUA has a Altman-Z score of 3.77. This is in the better half of the industry: AQUA outperforms 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.
Looking at the Debt to FCF ratio, with a value of 10.33, AQUA is in line with its industry, outperforming 58.21% of the companies in the same industry.
AQUA has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.15, AQUA is not doing good in the industry: 82.09% of the companies in the same industry are doing better.
| 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's Current ratio of 1.78 is on the low side compared to the rest of the industry. AQUA is outperformed by 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.
The Quick ratio of AQUA (1.27) 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.
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.
AQUA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.94%.
AQUA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.85% yearly.
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
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 45.35 indicates a quite expensive valuation of AQUA.
Based on the Price/Earnings ratio, AQUA is valued a bit more expensive than 66.42% of the companies in the same industry.
AQUA is valuated expensively when we compare the Price/Earnings ratio to 26.68, which is the current average of the S&P500 Index.
AQUA is valuated quite expensively with a Price/Forward Earnings ratio of 43.97.
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 22.50. AQUA is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.35 | ||
| Fwd PE | 43.97 |
4.2 Price Multiples
67.16% of the companies in the same industry are cheaper than AQUA, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as AQUA.
| 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 |
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%