Evoqua Water Technologies Corp.

Informe acción NYSE:AQUA

Capitalización de mercado: US$6.1b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Evoqua Water Technologies Resultados de beneficios anteriores

Pasado controles de criterios 4/6

Evoqua Water Technologies ha aumentado sus beneficios a una tasa media anual de 31.3%, mientras que los beneficios de la industria de Machinery han experimentado un crecimiento de 8% anual. Los ingresos han ido creciendo a una tasa media de 5.8% al año. La rentabilidad financiera de Evoqua Water Technologies es de 10.7%, y sus márgenes netos son de 4.2%.

Información clave

31.34%

Tasa de crecimiento de los beneficios

30.19%

Tasa de crecimiento del BPA

Crecimiento de la industria Machinery 8.77%
Tasa de crecimiento de los ingresos5.82%
Rentabilidad financiera10.66%
Margen neto4.24%
Última actualización de beneficios31 Mar 2023

Actualizaciones de resultados anteriores recientes

Recent updates

Seeking Alpha • Jan 31

Evoqua Water GAAP EPS of $0.07 misses by $0.01, revenue of $435.8M beats by $8.29M

Evoqua Water press release (NYSE:AQUA): Q1 GAAP EPS of $0.07 misses by $0.01. Revenue of $435.8M (+19.0% Y/Y) beats by $8.29M. Organic revenue growth contributed 9.1%, or $33.3 million, driven by favorable price realization and higher volume for products and services across most product lines and all regions. Inorganic revenue contributed $42.9 million, primarily related to our acquisition of the Mar Cor business on January 3, 2022.
Seeking Alpha • Jan 25

What To Make Of Xylem's Evoqua Acquisition

Summary Xylem just announced they have agreed to acquire Evoqua, offering 0.48 shares of Xylem per Evoqua share. Management expects the transaction to generate scale benefits, and to result in ~$140 million in synergies. We believe both companies were overvalued prior to the transaction, and a ~12% EBITDA improvement from synergies does very little to reduce an overly stretched valuation. Xylem (XYL) recently announced that they have agreed to acquire Evoqua (AQUA) in a $7.5 billion transaction. While this purchase would give Xylem access to Evoqua's strong portfolio of water and wastewater treatment solutions, which complement Xylem's existing offerings, we believe the company is overpaying significantly. That seems to be the way the market is interpreting it too, as shares of Evoqua moved higher after the announcement, as would be expected, but what is more surprising is how much Xylem's shares dropped after the news. Clearly the market believes that Xylem's shareholders are getting a bad deal, and we agree. Data by YCharts There are, however, some synergy opportunities as the two companies have compatible cultures and complementary operations. The way management is describing the rational is that this would create the "most advanced water solutions and services business at scale". The combined company Management expects $140M of expected run-rate cost synergies within three years, from things like enhanced purchasing power, logistics and freight savings, optimization of their office and branch footprint, increased utilization of their manufacturing facilities, reduced public company costs, etc. The slide below shows how the revenue by end market and by geography would look like for the combined company. Importantly, the company would have ~$7.1 billion in annual revenue and ~$1.2 billion in adjusted EBITDA before synergies. Synergies should add ~12% to the total adjusted EBITDA once realized. Xylem Investor Presentation In terms of revenue growth, Evoqua was growing a little bit faster at ~7% on average compared to a ~4% average for Xylem. The combined company should be expected to grow somewhere in the middle. While Xylem has a bigger weighting, there could be some revenue synergies that might be realized. Data by YCharts Transaction details At least Xylem is using its own overvalued shares as currency for the acquisition, as this is an all-stock transaction at a 0.480 exchange ratio. This means that Evoqua shareholders should receive 0.48 shares of Xylem for every share of Evoqua they own. Evoqua shareholders are expected to own approximately 25% of the combined company. With Xylem shares currently at $101.42, this would value Evoqua shares at $48.68. They are currently at 47.28, meaning there is still a ~3% spread that arbitrageurs could target. The fact that the spread is so low means the market believes the transaction has a high likelihood of being completed. The acquisition is expected to close mid-2023, and is subject to approval from shareholders of both companies, as well as required regulatory approvals and other customary closing conditions. Balance Sheets The fact that it is an all-stock transaction means that at least Xylem will not over-leverage its balance sheet. This is important because Xylem was already carrying ~$2.3 billion in debt, and Evoqua ~$880 million that Xylem will now assume. Both companies have a similar financial debt to EBITDA ratio of ~3.6x, which means that if they meet the synergy targets their leverage could actually end up lower. Data by YCharts Valuation We believe this transaction changes very little the reality that both companies were overvalued before the acquisition, and look overvalued even assuming EBITDA grows ~12% thanks to synergies. We therefore believe at current prices both companies are a 'Sell', as the synergies and revenue growth rates don't justify such stretched valuation multiples. Data by YCharts We agree with Seeking Alpha, which gives Xylem an 'F' valuation grade. The only metric where it doesn't do that bad is the dividend yield, and even then we would argue that a ~1.18% yield is nothing to get too excited about. Seeking Alpha Risks There are two main risks that we believe both Evoqua and Xylem shareholders should consider in regards to the merged company. One is the integration risk, as mergers can sometimes be messy, and there are times when there are dis-synergies in addition to synergies, especially when company cultures clash.
Seeking Alpha • Jan 11

Evoqua Water Technologies: Great Results Do Not Translate To A Great Prospect

Summary Evoqua Water Technologies continues to generate strong sales, profit, and cash flow growth. This trend will probably continue, but it's important to keep in mind the price being paid for growth. At the end of the day, shares aren't affordably priced at this point in time. Although water makes up around 70% of the surface of the planet, it truly is one of the most vital resources we have. Not only is it necessary in order for life to continue, it's also true that only a small fraction of it is potable. Given the scarcity and significance of water in our world today, it should not be a surprise that there would be a number of companies dedicated to providing various goods and services aimed at handling, cleaning, transporting, etc… the water that we use. One such firm that warrants attention is Evoqua Water Technologies (AQUA), an enterprise that provides its customers with mission-critical water and wastewater treatment solutions. Recent fundamental performance achieved by the company has been robust. This has made shares cheaper as time has gone on. But at the end of the day, shares don't look cheap to me. Although I acknowledge that the company is a high-quality firm that would likely continue to fare well down the road, I do think that shares are more or less fairly valued at this moment. And because of that, I've decided to keep my ‘hold’ rating on its stock to reflect my view that shares should generate upside or downside that more or less match the broader market moving forward. Surpassing expectations In May of 2022, I wrote an article discussing whether it made sense to buy into shares of Evoqua Water Technologies or not. Leading up to that point, shares of the company had experienced a great deal of downside, with the pain surpassing even what the broader market had experienced. Even though this was what was transpiring, fundamental performance for the company was stronger than it had been one year earlier and the trend for the firm continued to show signs of improvement. But because of how shares were priced, I felt as though there were better prospects to be had and, as a result, I kept the company at the ‘hold’ level that I had assigned it previously. Since then, the market has disagreed with my assessment. While the S&P 500 is down 2.9%, shares of Evoqua Water Technologies have generated upside for investors of 13.9%. Author - SEC EDGAR Data When I last wrote about the enterprise, we only had data covering through the second quarter of its 2022 fiscal year. Today, that data now extends through the rest of that year. For 2022 as a whole, revenue came in at $1.74 billion. That's roughly 19% higher than the $1.46 billion generated in 2021. This increase, according to management, was driven largely by a 22.2% surge in product sales. Services revenue, meanwhile, increased a more modest but still impressive 13.5%. Most of the growth for the company came from organic means, with higher pricing and higher product and services volume adding 10.2%, or $149.4 million, to the company's top line. Inorganic revenue, largely centered around acquisition activities, added a further 9.4%, or $137.1 million, to the company's revenue. It is worth noting that the firm was hit negatively to the tune of $13.8 million thanks to foreign currency fluctuations. The rise in revenue for the company, especially since it was driven by both higher pricing and higher volume, resulted in a significant improvement in profitability. Net income shot up from $51.5 million to $72.2 million. Operating cash flow was a bit more tepid, climbing from $178.7 million to $181.4 million. But if we adjust for changes in working capital, the metric would have risen a very impressive 23.9% from $182.2 million to $225.8 million. In addition to that, we also have data for EBITDA. Based on what's provided, this figure rose from $250.9 million to $297.7 million. Author - SEC EDGAR Data Given current economic concerns, I can understand why some investors would be wondering if the firm was showing any weakness toward the end of 2022. The answer to that would be no. Sales in the final quarter of the year totaled $504.8 million. That's 18.5% above the $426 million reported in the final quarter of 2021. Net income shot up from $26.9 million to $41.3 million. Operating cash flow expanded from $75.8 million to $94.5 million, with the adjusted figure for this increasing from $61 million to $71.5 million. And finally, EBITDA for the enterprise rose from $81.9 million to $93.2 million. In fact, the picture for the company is going so well that management has provided some fairly detailed guidance when it comes to the 2023 fiscal year. Revenue is expected to come in at between $1.81 billion and $1.89 billion. Using the midpoint for this, sales should increase by roughly 6.5%. The firm is also forecasting EBITDA of between $310 million and $330 million. That implies a year-over-year increase of between 4% and 11%. If we assume that other profitability metrics will rise at the same rate that EBITDA it's forecast to, we should anticipate net income of $77.6 million and adjusted operating cash flow of $242.7 million. Author - SEC EDGAR Data Using these figures, we can effectively price the company. The results can be seen in the table above. Given timing and the uncertainty that the future holds, I would like to emphasize the valuation of the company using 2022 data. At present, this would imply a price-to-earnings multiple of 67.7, a price to adjusted operating cash flow multiple of 21.7, and an EV to EBITDA multiple of 18.9. For context, I also compared the company to five similar enterprises.
Seeking Alpha • Nov 14

Evoqua Water Q4 2022 Earnings Preview

Evoqua Water (NYSE:AQUA) is scheduled to announce Q4 earnings results on Tuesday, Nov. 15, before market open. The consensus EPS estimate is $0.32 and the consensus revenue estimate is $465.38M (+9.2% Y/Y). Over the last 1 year, AQUA has beaten EPS estimates 50% of the time and has beaten revenue estimates 100% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 1 downward. Revenue estimates have seen 1 upward revision and 3 downward. SA contributor The Value Investor in an analysis said Evoqua (AQUA) is a well-positioned water play, but rated it Hold as margins and earnings multiples are too elevated.
Seeking Alpha • Oct 21

Evoqua Water Technologies: Avoid The Drop

Summary Evoqua Water Technologies is a well-positioned water play, benefiting from multiple secular growth trends. I like Evoqua's business, yet the margins and earnings multiples remain far too elevated to see great appeal. The combination of a pullback this year and accelerating organic growth is nice, yet not enticing enough to get onboard Evoqua Water Technologies. Late in 2021, I observed that water is tightly priced in the case of Evoqua Water Technologies Corp. (AQUA). In that article I believed that the company has seen struggles amidst a demanding valuation from the start, with investors having embraced the water theme in recent years. However, the overall valuation was far too demanding for me to get involved, as high multiples created a tough backdrop amidst rising interest rates in 2022. A Recap Evoqua went public at $18 per share in 2017, ending the first day of trading in the low-twenties. The company is a large provider of critical water treatment solutions, covering over 200,000 installations and many contracts. On the back of a strong IP portfolio, with thousands of granted or pending patents, purification levels can be achieved at higher levels. Back in 2017, the 113 million shares valued equity of the business at $2.4 billion, for a $3.1 billion enterprise valuation after factoring in net debt. This was applied to a business which generated $1.1 billion in sales in 2016 on which a $5 million ((GAAP)) operating loss was reported. Revenues were up 9% in the first nine months of the year 2017 (when the business went public), as sales were set to come in around $1.25 billion in 2017. With EBITDA north of $206 million, leverage ratios came in around 3 times, as realistic earnings multiples came in around 40 times earnings. What followed were a few years of modest growth and occasional repositioning of the portfolio. I picked up coverage again in 2021 as shares rallied from $27 to $47 per share during the year. That momentum seen last year felt a bit misplaced, with 2021 sales up just 2% to $1.46 billion, with EBITDA up 5% to $251 million. With earnings only seen at $0.42 per share, that was even below the pro forma earnings seen at the time of the public offering nearly five years before. With a $6 billion enterprise valuation late last year, a 4 times sales multiple, and 25 times EBITA multiples looked high already, yet it was the earnings multiples which were pretty much non-existing amidst a heavy "D&A" component, leaving me cautious as we entered 2022. 2022 - Solid Performance, Not The Shares After shares traded at $47 per share last year, shares have fallen to $35, mostly the result of the valuation multiple compression on the back of higher interest rates. In the meantime, the business has seen solid growth as first quarter sales rose 14% to $366 million. GAAP earnings were flat at $0.05 per share, with adjusted earnings reported at $0.12 per share, but this excludes a quite substantial adjustment related to stock-based compensation expenses. The company hiked the full year guidance, now seeing sales between $1.62 and $1.70 billion and EBITDA between $280 and $300 million. Second quarter sales rose 23%, roughly half the result of organic growth, with GAAP earnings posted at $0.06 per share, as the company hiked the guidance in minimal fashion. In the meantime, the company announced a couple of bolt-on deals, with no financial details being announced, although the cash flow statement revealed some $200 million spent on deals in the first three quarters of the year. These transactions supported resilient third quarter growth, with sales up 19% to $439 million, as half of the growth was driven by organic growth. In the seasonally strong quarter, the company posted GAAP earnings of $0.14 per share, three cents ahead of last year.
Seeking Alpha • Aug 01

Evoqua Water Q3 2022 Earnings Preview

Evoqua Water (NYSE:AQUA) is scheduled to announce Q3 earnings results on Tuesday, August 2nd, before market open. The consensus EPS Estimate is $0.23 (+109.1% Y/Y) and the consensus Revenue Estimate is $431.68M (+16.8% Y/Y). Over the last 1 year, AQUA has beaten EPS estimates 50% of the time and has beaten revenue estimates 100% of the time. Over the last 3 months, EPS estimates have seen 2 upward revisions and 7 downward. Revenue estimates have seen 5 upward revisions and 5 downward.
Seeking Alpha • May 16

Evoqua Water Technologies: Getting Cheaper

Evoqua Water Technologies has taken a tumble recently, with its loss outpacing the losses seen by the broader market. This comes at a time when financial performance is stronger than it was a year ago, and the picture for the company looks appealing. Even so, the company is not yet a candidate for purchase.
Seeking Alpha • Feb 26

Evoqua Shares Continuing To Bubble With Multiple Growth Drivers

Growth across multiple industrial end-markets drove Street-topping 13% organic growth in the company's fiscal first quarter, with most major markets in the green. The municipal wastewater market should pick up in time, helped by infrastructure spending, and Evoqua remains leveraged to growth in industries like pharmaceuticals and electronics. PFAS cleanup is looking like a major opportunity; not only is Evoqua in a leading position to service remediation/cleanup demand, but also industrial retrofits. Evoqua already trades with robust future growth expectations, but the company is well-placed in an attractive market that can likely drive upward revisions.
Seeking Alpha • Dec 24

Evoqua: Water Is Tightly Priced

Evoqua has seen some struggles in recent years after the valuation was demanding from the start. Investors have embraced the water theme again this year. I like the positioning and a nice bolt-on deal as of recent, as the overall valuation is far too demanding here.
Seeking Alpha • Aug 05

Evoqua Water: Finding Sustainable Growth

In the past, there was little evidence that an investment in water treatment companies would yield a higher return than the overall market. Evoqua Water Technologies has proven that correct. But with recent improvements and restructuring and a lower debt burden allowing them to post higher margins and profits, I believe that all is about to change. I remain bullish on the company's long-term prospects and now believe they are likely to outperform the overall market over the next 3-4 years.

Desglose de ingresos y gastos

Cómo gana y gasta dinero Evoqua Water Technologies. Basado en los últimos beneficios reportados, en base a los últimos doce meses (LTM).

Historial de beneficios e ingresos

NYSE:AQUA Ingresos, gastos y beneficios (USD Millions)
FechaIngresosBeneficiosGastos G+AGastos de I+D
31 Mar 231,8587942817
31 Dec 221,8077542416
30 Sep 221,7377241415
30 Jun 221,6585840215
31 Mar 221,5895338914
31 Dec 211,5095136614
30 Sep 211,4645134713
30 Jun 211,4225632013
31 Mar 211,4006430313
31 Dec 201,4066731113
30 Sep 201,42911432713
30 Jun 201,4588434014
31 Mar 201,4716734614
31 Dec 191,4686033015
30 Sep 191,444-1034915
30 Jun 191,398-1531515
31 Mar 191,380-1832115
31 Dec 181,365-731515
30 Sep 181,340629915
30 Jun 181,3302129816
31 Mar 181,2982127918
31 Dec 171,2651227419
30 Sep 171,247227420
30 Jun 171,210-928220
31 Mar 171,192629020
31 Dec 161,155028922
30 Sep 161,1371226021
30 Sep 151,061-8626225
30 Sep 141,097-9823325

Ingresos de calidad: AQUA tiene una única gran pérdida de $24.4M que afecta a sus resultados financieros de los últimos 12 meses de 31st March, 2023.

Margen de beneficios creciente: Los actuales márgenes de beneficio (4.2%) de AQUA son superiores a los del año pasado (3.4%).

Análisis del flujo de caja libre vs. Beneficios

Análisis del crecimiento de los beneficios en el pasado

Tendencia de beneficios: En los últimos 5 años, los beneficios de lAQUA han crecido significativamente en un 31.3% al año.

Acelerando crecimiento: El crecimiento de los beneficios de AQUA en el último año (47.7%) supera su media de 5 años (31.3% al año).

Beneficios vs. Industria: El crecimiento de los beneficios de AQUA en el último año (47.7%) superó al de la industria Machinery 1.6%.

Rentabilidad financiera

Alta ROE: La rentabilidad financiera de AQUA (10.7%) se considera baja.

Rentabilidad económica

Rendimiento del capital invertido

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Análisis de la empresa y estado de los datos financieros

DatosÚltima actualización (huso horario UTC)
Análisis de la empresa2023/05/25 22:12
Precio de las acciones al final del día2023/05/23 00:00
Beneficios2023/03/31
Ingresos anuales2022/09/30

Fuentes de datos

Los datos utilizados en nuestro análisis de empresas proceden de S&P Global Market Intelligence LLC. Los siguientes datos se utilizan en nuestro modelo de análisis para generar este informe. Los datos están normalizados, lo que puede introducir un retraso desde que la fuente está disponible.

PaqueteDatosMarco temporalEjemplo Fuente EE.UU. *
Finanzas de la empresa10 años
  • Cuenta de resultados
  • Estado de tesorería
  • Balance
Estimaciones del consenso de analistas+3 años
  • Previsiones financieras
  • Objetivos de precios de los analistas
Precios de mercado30 años
  • Precios de las acciones
  • Dividendos, escisiones y acciones
Propiedad10 años
  • Accionistas principales
  • Información privilegiada
Gestión10 años
  • Equipo directivo
  • Consejo de Administración
Principales avances10 años
  • Anuncios de empresas

* Ejemplo para valores de EE.UU., para no EE.UU. se utilizan formularios y fuentes normativas equivalentes.

A menos que se especifique lo contrario, todos los datos financieros se basan en un periodo anual, pero se actualizan trimestralmente. Esto se conoce como datos de los últimos doce meses (TTM) o de los últimos doce meses (LTM). Más información.

Modelo de análisis y copo de nieve

Los detalles del modelo de análisis utilizado para generar este informe están disponibles en nuestra página de Github, también tenemos guías sobre cómo utilizar nuestros informes y tutoriales en Youtube.

Conozca al equipo de talla mundial que diseñó y construyó el modelo de análisis Simply Wall St.

Métricas industriales y sectoriales

Simply Wall St calcula cada 6 horas nuestras métricas sectoriales y de sección. Los detalles de nuestro proceso están disponibles en Github.

Fuentes analistas

Evoqua Water Technologies Corp. está cubierta por 12 analistas. 7 de esos analistas presentaron las estimaciones de ingresos o ganancias utilizadas como datos para nuestro informe. Las estimaciones de los analistas se actualizan a lo largo del día.

AnalistaInstitución
Michael HalloranBaird
Andrew BuscagliaBerenberg
Andrew KaplowitzCitigroup Inc