ALKALINE WATER CO INC/THE (WTER) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:WTER • US01643A3068

0.26 USD
-0.02 (-8.42%)
At close: Feb 5, 2024
0.235 USD
-0.03 (-9.62%)
After Hours: 2/5/2024, 8:00:02 PM
Fundamental Rating

2

Overall WTER gets a fundamental rating of 2 out of 10. We evaluated WTER against 32 industry peers in the Beverages industry. WTER may be in some trouble as it scores bad on both profitability and health. WTER shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • WTER had negative earnings in the past year.
  • In the past year WTER has reported a negative cash flow from operations.
  • In the past 5 years WTER always reported negative net income.
  • In the past 5 years WTER always reported negative operating cash flow.
WTER Yearly Net Income VS EBIT VS OCF VS FCFWTER Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 -10M -20M -30M

1.2 Ratios

  • Looking at the Return On Assets, with a value of -149.74%, WTER is doing worse than 94.12% of the companies in the same industry.
Industry RankSector Rank
ROA -149.74%
ROE N/A
ROIC N/A
ROA(3y)-131.59%
ROA(5y)-107.28%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
WTER Yearly ROA, ROE, ROICWTER Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 -2K -4K -6K -8K

1.3 Margins

  • With a Gross Margin value of 20.66%, WTER is not doing good in the industry: 91.18% of the companies in the same industry are doing better.
  • WTER's Gross Margin has declined in the last couple of years.
  • The Profit Margin and Operating Margin are not available for WTER so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 20.66%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-18.82%
GM growth 5Y-14.95%
WTER Yearly Profit, Operating, Gross MarginsWTER Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100

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0

2. Health

2.1 Basic Checks

  • WTER does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • The number of shares outstanding for WTER has been increased compared to 1 year ago.
  • WTER has a worse debt/assets ratio than last year.
WTER Yearly Shares OutstandingWTER Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M 10M
WTER Yearly Total Debt VS Total AssetsWTER Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M

2.2 Solvency

  • Based on the Altman-Z score of -13.39, we must say that WTER is in the distress zone and has some risk of bankruptcy.
  • WTER has a worse Altman-Z score (-13.39) than 85.29% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -13.39
ROIC/WACCN/A
WACC11.13%
WTER Yearly LT Debt VS Equity VS FCFWTER Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 10M -10M -20M -30M

2.3 Liquidity

  • A Current Ratio of 0.58 indicates that WTER may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.58, WTER is doing worse than 94.12% of the companies in the same industry.
  • A Quick Ratio of 0.34 indicates that WTER may have some problems paying its short term obligations.
  • WTER has a worse Quick ratio (0.34) than 88.24% of its industry peers.
Industry RankSector Rank
Current Ratio 0.58
Quick Ratio 0.34
WTER Yearly Current Assets VS Current LiabilitesWTER Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M

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7

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 58.20% over the past year.
  • Looking at the last year, WTER shows a quite strong growth in Revenue. The Revenue has grown by 10.34% in the last year.
  • The Revenue has been growing by 26.35% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)58.2%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%70.83%
Revenue 1Y (TTM)10.34%
Revenue growth 3Y18.4%
Revenue growth 5Y26.35%
Sales Q2Q%-8.52%

3.2 Future

  • WTER is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.77% yearly.
  • WTER is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.00% yearly.
EPS Next Y52.63%
EPS Next 2Y33.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year22%
Revenue Next 2Y22%
Revenue Next 3Y22%
Revenue Next 5YN/A

3.3 Evolution

  • 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.
WTER Yearly Revenue VS EstimatesWTER Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M 80M 100M
WTER Yearly EPS VS EstimatesWTER Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 -1 -2 -3 -4 -5

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1

4. Valuation

4.1 Price/Earnings Ratio

  • WTER reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for WTER. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
WTER Price Earnings VS Forward Price EarningsWTER Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
WTER Per share dataWTER EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4

4.3 Compensation for Growth

  • WTER's earnings are expected to grow with 33.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.77%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

  • WTER does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ALKALINE WATER CO INC/THE / WTER FAQ

What is the fundamental rating for WTER stock?

ChartMill assigns a fundamental rating of 2 / 10 to WTER.


What is the valuation status of ALKALINE WATER CO INC/THE (WTER) stock?

ChartMill assigns a valuation rating of 1 / 10 to ALKALINE WATER CO INC/THE (WTER). This can be considered as Overvalued.


How profitable is ALKALINE WATER CO INC/THE (WTER) stock?

ALKALINE WATER CO INC/THE (WTER) has a profitability rating of 0 / 10.


How financially healthy is ALKALINE WATER CO INC/THE?

The financial health rating of ALKALINE WATER CO INC/THE (WTER) is 0 / 10.


How sustainable is the dividend of ALKALINE WATER CO INC/THE (WTER) stock?

The dividend rating of ALKALINE WATER CO INC/THE (WTER) is 0 / 10 and the dividend payout ratio is 0%.