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%)
Taking everything into account, AQUA scores 3 out of 10 in our fundamental rating. AQUA was compared to 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- AQUA had positive earnings in the past year.
- AQUA had a positive operating cash flow in the past year.
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 has a Return On Equity of 10.66%. This is in the better half of the industry: AQUA outperforms 63.43% of its industry peers.
- AQUA has a Return On Invested Capital (5.95%) which is comparable to the rest of the industry.
- AQUA had an Average Return On Invested Capital over the past 3 years of 7.06%. This 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.
- AQUA's Profit Margin has improved in the last couple of years.
- AQUA has a Operating Margin (6.75%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of AQUA has grown nicely.
- The Gross Margin of AQUA (31.28%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of AQUA has remained more or less at the same level.
| 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.
- 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's Altman-Z score of 3.77 is fine compared to the rest 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.
- 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.
- The Debt to Equity ratio of AQUA (1.15) is worse 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 Current ratio of 1.78. This is in the lower half of the industry: AQUA underperforms 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.
- With a Quick ratio value of 1.27, AQUA perfoms like the industry average, outperforming 52.24% of the companies in the same 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.
- The Earnings Per Share has been growing by 95.99% on average over the past years. This is a very strong growth
- The Revenue has grown by 16.94% in the past year. This is quite good.
- 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.
- 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
- The Price/Earnings ratio is 45.35, which means the current valuation is very expensive for AQUA.
- 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 28.60, AQUA is valued quite expensively.
- AQUA is valuated quite expensively with a Price/Forward Earnings ratio of 43.97.
- Based on the Price/Forward Earnings ratio, AQUA is valued a bit more expensive than the industry average as 61.19% of the companies are valued more cheaply.
- AQUA is valuated expensively when we compare the Price/Forward Earnings ratio to 25.83, 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
- 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.