BQE WATER INC (BQE.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:BQE - CA0556402059 - Common Stock
67 CAD
-1 (-1.47%)
BQE gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 24 industry peers in the Commercial Services & Supplies industry. BQE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BQE is evaluated to be cheap and growing strongly. This does not happen too often! With these ratings, BQE could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
- BQE had positive earnings in the past year.
- BQE had a positive operating cash flow in the past year.
- In the past 5 years BQE has always been profitable.
- The reported operating cash flow has been mixed in the past 5 years: BQE reported negative operating cash flow in multiple years.
1.2 Ratios
- BQE has a better Return On Assets (21.87%) than 100.00% of its industry peers.
- The Return On Equity of BQE (27.35%) is better than 95.83% of its industry peers.
- BQE has a better Return On Invested Capital (13.85%) than 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.87% | ||
| ROE | 27.35% | ||
| ROIC | 13.85% |
ROA(3y)13.04%
ROA(5y)13.87%
ROE(3y)16.68%
ROE(5y)17.54%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- BQE's Profit Margin of 22.86% is amongst the best of the industry. BQE outperforms 95.83% of its industry peers.
- BQE's Profit Margin has improved in the last couple of years.
- BQE has a Operating Margin of 17.34%. This is amongst the best in the industry. BQE outperforms 91.67% of its industry peers.
- With a decent Gross Margin value of 41.38%, BQE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of BQE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.34% | ||
| PM (TTM) | 22.86% | ||
| GM | 41.38% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-7.21%
PM growth 5Y45.58%
GM growth 3Y1.06%
GM growth 5Y-0.64%
2. Health
2.1 Basic Checks
- BQE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for BQE has been increased compared to 1 year ago.
- Compared to 5 years ago, BQE has more shares outstanding
- Compared to 1 year ago, BQE has an improved debt to assets ratio.
2.2 Solvency
- BQE has an Altman-Z score of 8.26. This indicates that BQE is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.26, BQE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- BQE has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
- BQE has a Debt to FCF ratio of 0.68. This is amongst the best in the industry. BQE outperforms 100.00% of its industry peers.
- A Debt/Equity ratio of 0.08 indicates that BQE is not too dependend on debt financing.
- The Debt to Equity ratio of BQE (0.08) is better than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 8.26 |
ROIC/WACC1.74
WACC7.94%
2.3 Liquidity
- A Current Ratio of 5.41 indicates that BQE has no problem at all paying its short term obligations.
- BQE has a Current ratio of 5.41. This is amongst the best in the industry. BQE outperforms 95.83% of its industry peers.
- A Quick Ratio of 5.41 indicates that BQE has no problem at all paying its short term obligations.
- The Quick ratio of BQE (5.41) is better than 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.41 | ||
| Quick Ratio | 5.41 |
3. Growth
3.1 Past
- BQE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.69%, which is quite impressive.
- BQE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 79.78% yearly.
- The Revenue has grown by 82.90% in the past year. This is a very strong growth!
- BQE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.95% yearly.
EPS 1Y (TTM)82.69%
EPS 3Y21.13%
EPS 5Y79.78%
EPS Q2Q%-26.13%
Revenue 1Y (TTM)82.9%
Revenue growth 3Y31.75%
Revenue growth 5Y24.95%
Sales Q2Q%36.64%
3.2 Future
- Based on estimates for the next years, BQE will show a very strong growth in Earnings Per Share. The EPS will grow by 22.74% on average per year.
- BQE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 34.45% yearly.
EPS Next Y61.3%
EPS Next 2Y28.42%
EPS Next 3Y22.74%
EPS Next 5YN/A
Revenue Next Year89.94%
Revenue Next 2Y55.89%
Revenue Next 3Y34.45%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- BQE is valuated reasonably with a Price/Earnings ratio of 11.75.
- Based on the Price/Earnings ratio, BQE is valued cheaper than 95.83% of the companies in the same industry.
- BQE is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 10.95 indicates a reasonable valuation of BQE.
- BQE's Price/Forward Earnings ratio is rather cheap when compared to the industry. BQE is cheaper than 91.67% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of BQE to the average of the S&P500 Index (24.26), we can say BQE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BQE is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, BQE is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.29 | ||
| EV/EBITDA | 11.99 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- BQE has a very decent profitability rating, which may justify a higher PE ratio.
- BQE's earnings are expected to grow with 22.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)0.15
EPS Next 2Y28.42%
EPS Next 3Y22.74%
5. Dividend
5.1 Amount
- No dividends for BQE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BQE WATER INC / BQE.CA FAQ
What is the ChartMill fundamental rating of BQE WATER INC (BQE.CA) stock?
ChartMill assigns a fundamental rating of 8 / 10 to BQE.CA.
What is the valuation status for BQE stock?
ChartMill assigns a valuation rating of 8 / 10 to BQE WATER INC (BQE.CA). This can be considered as Undervalued.
How profitable is BQE WATER INC (BQE.CA) stock?
BQE WATER INC (BQE.CA) has a profitability rating of 7 / 10.
What is the expected EPS growth for BQE WATER INC (BQE.CA) stock?
The Earnings per Share (EPS) of BQE WATER INC (BQE.CA) is expected to grow by 61.3% in the next year.