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%)
AQUA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. There are concerns on the financial health of AQUA while its profitability can be described as average. AQUA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AQUA was profitable.
- AQUA had a positive operating cash flow in the past year.
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.
- Looking at the Return On Equity, with a value of 10.66%, AQUA is in the better half of the industry, outperforming 63.43% of the companies in the same industry.
- 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.
- The Average Return On Invested Capital over the past 3 years 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
- With a Profit Margin value of 4.24%, AQUA perfoms like the industry average, outperforming 51.49% of the companies in the same industry.
- AQUA's Profit Margin has improved in the last couple of years.
- The Operating Margin of AQUA (6.75%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of AQUA has grown nicely.
- With a Gross Margin value of 31.28%, AQUA perfoms like the industry average, outperforming 59.70% of the companies in the same industry.
- 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
- 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.
- The Altman-Z score of AQUA (3.77) is better than 73.13% of its industry peers.
- The Debt to FCF ratio of AQUA is 10.33, which is on the high side as it means it would take AQUA, 10.33 years of fcf income to pay off all of its debts.
- AQUA has a Debt to FCF ratio (10.33) which is comparable to the rest of the industry.
- 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
- AQUA has a Current Ratio of 1.78. This is a normal value and indicates that AQUA is financially healthy and should not expect problems in meeting 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 has a Quick ratio (1.27) which 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
- 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.
- AQUA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.94%.
- 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
- The Earnings Per Share is expected to grow by 9.62% on average over the next years. This is quite good.
- 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
- With a Price/Earnings ratio of 45.35, AQUA can be considered very expensive at the moment.
- 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 28.82, AQUA is valued quite expensively.
- With a Price/Forward Earnings ratio of 43.97, AQUA can be considered very expensive at the moment.
- 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 (25.95), we can say AQUA is valued expensively.
| 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.