Evoqua Water Technologies Corp (AQUA) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:AQUA • US30057T1051

49.88 USD
+0.47 (+0.95%)
At close: May 23, 2023
49.88 USD
0 (0%)
After Hours: 5/23/2023, 8:04:00 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to AQUA. 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. While showing a medium growth rate, AQUA is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

4

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.
AQUA Yearly Net Income VS EBIT VS OCF VS FCFAQUA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 50M 100M 150M

1.2 Ratios

  • The Return On Assets of AQUA (3.57%) is comparable to the rest of the industry.
  • The Return On Equity of AQUA (10.66%) is better than 63.43% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 5.95%, AQUA is in line with its industry, outperforming 52.99% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for AQUA is below the industry average of 10.20%.
Industry RankSector 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%
AQUA Yearly ROA, ROE, ROICAQUA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 5 10 15 20

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.
  • Looking at the Operating Margin, with a value of 6.75%, AQUA is in line with its industry, outperforming 50.00% of the companies in the same 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 RankSector 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%
AQUA Yearly Profit, Operating, Gross MarginsAQUA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 10 20 30

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3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AQUA is destroying value.
  • Compared to 1 year ago, AQUA has more shares outstanding
  • AQUA has a worse debt/assets ratio than last year.
AQUA Yearly Shares OutstandingAQUA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
AQUA Yearly Total Debt VS Total AssetsAQUA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B

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 better Altman-Z score (3.77) 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 of 10.33. This is comparable to the rest of the industry: AQUA outperforms 58.21% of its industry peers.
  • A Debt/Equity ratio of 1.15 is on the high side and indicates that AQUA has dependencies on debt 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 RankSector Rank
Debt/Equity 1.15
Debt/FCF 10.33
Altman-Z 3.77
ROIC/WACC0.71
WACC8.34%
AQUA Yearly LT Debt VS Equity VS FCFAQUA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M 400M 600M 800M

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'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.
  • AQUA has a Quick ratio of 1.27. This is comparable to the rest of the industry: AQUA outperforms 52.24% of its industry peers.
Industry RankSector Rank
Current Ratio 1.78
Quick Ratio 1.27
AQUA Yearly Current Assets VS Current LiabilitesAQUA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M

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5

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.
  • 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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
AQUA Yearly Revenue VS EstimatesAQUA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
AQUA Yearly EPS VS EstimatesAQUA Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1

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1

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 45.35 indicates a quite expensive valuation of AQUA.
  • 66.42% of the companies in the same industry are cheaper than AQUA, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 28.30, 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.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. AQUA is valued rather expensively when compared to this.
Industry RankSector Rank
PE 45.35
Fwd PE 43.97
AQUA Price Earnings VS Forward Price EarningsAQUA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 71.14
EV/EBITDA 26.6
AQUA Per share dataAQUA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y6.35%
EPS Next 3Y9.93%

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0

5. Dividend

5.1 Amount

  • No dividends for AQUA!.
Industry RankSector Rank
Dividend Yield N/A

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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.