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. 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.
- 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 in line with 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.
- With a Return On Invested Capital value of 5.95%, AQUA perfoms like the industry average, outperforming 52.99% of the companies in the same industry.
- 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
- AQUA has a Profit Margin of 4.24%. This is comparable to the rest of the industry: AQUA outperforms 51.49% of its industry peers.
- AQUA's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 6.75%, AQUA perfoms like the industry average, 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 has a Gross Margin (31.28%) which is in line with its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AQUA is destroying value.
- The number of shares outstanding for AQUA has been increased compared to 1 year ago.
- Compared to 1 year ago, AQUA has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.77 indicates that AQUA is not in any danger for 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.
- 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.
- AQUA has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
- AQUA has a worse Debt to Equity ratio (1.15) 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'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 (1.27) which is in line with its industry peers.
| 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.
- Measured over the past years, AQUA shows a very strong growth in Earnings Per Share. The EPS has been growing by 95.99% on average per year.
- 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
- The Earnings Per Share is expected to grow by 9.62% on average over the next years. This is quite good.
- The Revenue is expected to grow by 6.27% on average over the next years.
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
- The Price/Earnings ratio is 45.35, which means the current valuation is very expensive for AQUA.
- 66.42% of the companies in the same industry are cheaper than AQUA, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of AQUA to the average of the S&P500 Index (28.60), we can say AQUA is valued expensively.
- With a Price/Forward Earnings ratio of 43.97, AQUA can be considered very expensive at the moment.
- 61.19% of the companies in the same industry are cheaper than AQUA, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, AQUA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.35 | ||
| Fwd PE | 43.97 |
4.2 Price Multiples
- AQUA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AQUA is more expensive than 67.16% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AQUA is on the same level as its industry peers.
| 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.