Evoqua Water Technologies Corp (AQUA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AQUA - US30057T1051 - Common Stock
49.88 USD
+0.47 (+0.95%)
49.88 USD
0 (0%)
Overall AQUA gets a fundamental rating of 3 out of 10. We evaluated AQUA against 132 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.
1.2 Ratios
- AQUA has a Return On Assets (3.57%) which is comparable to the rest of the 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's Return On Invested Capital of 5.95% is in line compared 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 10.24%.
| 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
- The Profit Margin of AQUA (4.24%) 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 comparable to the rest of the 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.
- The debt/assets ratio for AQUA is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.77 indicates that AQUA is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.77, AQUA is doing good in the industry, outperforming 73.13% of the companies in the same industry.
- 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's Debt to FCF ratio of 10.33 is in line compared to the rest of the industry. AQUA outperforms 58.21% of its industry peers.
- AQUA has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.15, AQUA is doing worse than 82.09% of the companies in the same industry.
| 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.
- AQUA has a Quick Ratio of 1.27. This is a normal value and indicates that AQUA is financially healthy and should not expect problems in meeting its short term obligations.
- AQUA's Quick ratio of 1.27 is in line compared to the rest of the industry. AQUA outperforms 52.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 34.51% over the past year.
- 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.
- The Revenue has been growing slightly by 6.85% on average over the past years.
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.
- 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
- 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
- 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.
- The average S&P500 Price/Earnings ratio is at 28.39. AQUA is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 43.97 indicates a quite expensive valuation of AQUA.
- 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.
- When comparing the Price/Forward Earnings ratio of AQUA to the average of the S&P500 Index (25.72), we can say AQUA is valued expensively.
| 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.
- 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 |
Evoqua Water Technologies Corp / AQUA FAQ
What is the ChartMill fundamental rating of Evoqua Water Technologies Corp (AQUA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AQUA.
What is the valuation status of Evoqua Water Technologies Corp (AQUA) stock?
ChartMill assigns a valuation rating of 3 / 10 to Evoqua Water Technologies Corp (AQUA). This can be considered as Overvalued.
Can you provide the profitability details for Evoqua Water Technologies Corp?
Evoqua Water Technologies Corp (AQUA) has a profitability rating of 2 / 10.
How financially healthy is Evoqua Water Technologies Corp?
The financial health rating of Evoqua Water Technologies Corp (AQUA) is 5 / 10.
What is the earnings growth outlook for Evoqua Water Technologies Corp?
The Earnings per Share (EPS) of Evoqua Water Technologies Corp (AQUA) is expected to decline by -3.35% in the next year.