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Phoslock Water Solutions

ASX:PHK
Snowflake Description

No noteworthy features.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PHK
ASX
A$125M
Market Cap
  1. Home
  2. AU
  3. Commercial Services
2018/01/19
Company description

Phoslock Water Solutions Limited operates as an engineering and treatment products company in the water remediation sector. More info.


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  • Phoslock Water Solutions's last earnings update was 203 days ago.
  • Phoslock Water Solutions is not covered by any analysts.
SHARE PRICE
3 Month History
PHK
Industry
5yr Volatility vs Market
Competitors

Sorry, no analysis for Phoslock Water Solutions's competitors could be found in our database.

Value

 Is Phoslock Water Solutions undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Phoslock Water Solutions. This is due to cash flow or dividend data being unavailable. The share price is A$0.26.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Phoslock Water Solutions's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Phoslock Water Solutions's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Phoslock Water Solutions is loss making, we can't compare it's value to the AU Commercial Services industry average.
  • Phoslock Water Solutions is loss making, we can't compare the value of its earnings to the AU market.
Price based on expected Growth
Does Phoslock Water Solutions's expected growth come at a high price?
  • Unable to calculate PEG ratio for Phoslock Water Solutions, we can't assess if it's growth is good value.
Price based on value of assets
What value do investors place on Phoslock Water Solutions's assets?
  • Phoslock Water Solutions is overvalued based on assets compared to the AU Commercial Services industry average.
X
Value checks
We assess Phoslock Water Solutions's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Phoslock Water Solutions has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (0%).

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Phoslock Water Solutions expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • Phoslock Water Solutions is not covered by any analysts.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.2%
Expected Commercial Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Phoslock Water Solutions expected to grow at an attractive rate?
  • Unable to compare Phoslock Water Solutions's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Phoslock Water Solutions's earnings growth to the AU market average as no estimate data is available.
  • Unable to compare Phoslock Water Solutions's revenue growth to the AU market average as no estimate data is available.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Unable to determine if Phoslock Water Solutions is high growth as no earnings estimate data is available.
  • Unable to determine if Phoslock Water Solutions is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • No +3 year Return on Equity (ROE) data.

Improvement & Relative to industry
  • No +3 year Return on Equity (ROE) or industry average data.
  • No +3 year Return on Equity (ROE) data.
X
Future performance checks
We assess Phoslock Water Solutions's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the AU market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the AU market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Phoslock Water Solutions has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Phoslock Water Solutions performed over the past 5 years?

  • Phoslock Water Solutions's last earnings update was 203 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Phoslock Water Solutions's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Phoslock Water Solutions does not currently make a profit.
Earnings and Revenue History
Phoslock Water Solutions's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Phoslock Water Solutions has negative negative earnings from operations, therefore its ROE is meaningless.
  • Phoslock Water Solutions had negative or no Return on Assets (ROA) last year.
  • Return based on revenue producing assets (ROCE) is negative or zero.
X
Past performance checks
We assess Phoslock Water Solutions's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Phoslock Water Solutions has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Phoslock Water Solutions's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Phoslock Water Solutions's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Phoslock Water Solutions is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Phoslock Water Solutions's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Phoslock Water Solutions's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of stock/ inventory/ unsold assets.
  • Total debt is covered by total short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
  • Phoslock Water Solutions's level of debt (92.6% of total debt) compared to net worth is high (greater than 40%).
  • Phoslock Water Solutions had negative shareholder equity 5 years ago, it is now positive.
  • Total debt is not well covered by annual operating cash flow (-165%, less than 20% of total debt).
  • Phoslock Water Solutions is making a loss, therefore interest on debt is not well covered by earnings.
X
Financial health checks
We assess Phoslock Water Solutions's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by short term assets? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Phoslock Water Solutions has a total score of 3/6, see the detailed checks below.


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Phoslock Water Solutions's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Phoslock Water Solutions dividends.
If you bought A$2,000 of Phoslock Water Solutions shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Not paying a dividend.
  • Not paying a dividend.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Not paying a notable dividend.
  • Not paying a notable dividend.
Current Payout to shareholders
What portion of Phoslock Water Solutions's earnings are paid to the shareholders as a dividend.
  • Not paying a notable dividend.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years.
X
Income/ dividend checks
We assess Phoslock Water Solutions's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can Phoslock Water Solutions afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. Phoslock Water Solutions has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Phoslock Water Solutions's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rob Schuitema, image provided by Google.
Rob Schuitema
COMPENSATION A$337,566
AGE 55
TENURE AS CEO 11 years
CEO Bio

Mr. Robert Schuitema, also known as Rob, BCA, INFINZ, CA, has been Managing Director of Phoslock Water Solutions Limited since January 2007 and has been its Company Secretary since December 10, 2008. Mr. Schuitema served as Company Secretary of KalNorth Gold Mines Limited (alternately Carrick Gold Limited) since January 17, 2011. He has been Secretary of Kidston Gold Mines Ltd., since January 17, 2011. He served as Chief Financial Officer of Phoslock Water Solutions Limited. He served as Company Secretary of Inca Minerals Limited from January 17, 2011 to May 18, 2012. He served as Company Secretary of Condor Metals Limited from January 17, 2011 to May 18, 2012. He is an experienced resource industry investment banker and financier, with 14 years of contribution at Chase Manhattan Bank. He served at JP MorganChase as Managing Director and Head of Mining & Metals for Asia Pacific. As an investment banker, Mr. Schuitema was actively involved in raising both debt (project finance, bank loans and long term bonds) and equity (including hybrids) and providing merger and acquisition advice for resource companies both in Australia and internationally. He served with resource companies ranging from the major resource houses to junior resource companies financing their first project. Mr. Schuitema has been the Chairman of Imt Holdings Ltd. since April 2005. He served as Executive Chairman of Phoslock Water Solutions Limited since April 2005 and has been its Executive Director since April 2005. He serves as Director of Imt Holdings Ltd. He has been an Executive Director of Carrick Gold Ltd. since 13, 2011. He has been an Executive Director of Kidston Gold Mines Ltd., since September 9, 2010. He served as a Director of KalNorth Gold Mines Limited until February 25, 2014. He served as a Director of Inca Minerals Limited from September 9, 2010 to May 18, 2012. He served as a Director of Condor Metals Limited from September 9, 2010 to May 18, 2012. He served as a Director of Carrick Gold Ltd. from September 9, 2010 to July 13, 2011. Mr. Schuitema served as an Independent Non-Executive Director of Electro Optic Systems Holdings Limited from December 6, 2006 to April 30, 2009. He served as a Director of Electro Optical Systems Ltd. Mr. Schuitema is a Chartered Accountant and Member of the NZ Institute of Investment.

CEO Compensation
  • Rob's compensation has increased whilst company is loss making.
  • Rob's compensation appears reasonable.
Management Team

Rob Schuitema

TITLE
MD, Company Secretary & Executive Director
COMPENSATION
A$338K
AGE
55
TENURE
11 yrs

Andrew Winks

TITLE
General Manager of Operations
COMPENSATION
A$193K

Nigel Traill

TITLE
General Manager of Europe & North America
COMPENSATION
A$215K

Ming Hong Zhong

TITLE
Executive
COMPENSATION
A$142K

Xingyuan Wang

TITLE
Executive
COMPENSATION
A$54K

Chris Hui

TITLE
Group Accountant

Sarah Marshall

TITLE
General Manager of Technical

Patrick Van Goethem

TITLE
Europe Business Development Officer

Ting Liu

TITLE
General Manager of Phoslock Beijing

Jason Hai

TITLE
Manager of Changxing Factory
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure of the Phoslock Water Solutions board of directors in years:

4.6
Average Tenure
  • The tenure for the Phoslock Water Solutions board of directors is about average.
Board of Directors

Laurence Freedman

TITLE
Non-Executive Chairman
COMPENSATION
A$69K
AGE
73

Rob Schuitema

TITLE
MD, Company Secretary & Executive Director
COMPENSATION
A$338K
AGE
55
TENURE
12.8 yrs

Zhigang Zhang

TITLE
Non-Executive Director
TENURE
0.6 yrs

Brenda Shanahan

TITLE
Non-Executive Director
TENURE
0.3 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess Phoslock Water Solutions's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Phoslock Water Solutions has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

Company News

External News
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Simply Wall St News

Phoslock Water Solutions Limited (ASX:PHK): Has Recent Earnings Growth Beaten Long-Term Trend?

Measuring Phoslock Water Solutions Limited's (ASX:PHK) track record of past performance is an insightful exercise for investors. … Check out our latest analysis for Phoslock Water Solutions Could PHK beat the long-term trend and outperform its industry? … For Phoslock Water Solutions, the latest earnings -A$2M, which compared to last year’s level, has become less negative.

Simply Wall St -

Phoslock Water Solutions Limited (ASX:PHK): Risks You Need To Consider Before Buying

Based on this beta value, PHK appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … PHK, with its market capitalisation of AUD A$92.78M, is a small-cap stock, which generally have higher beta than similar companies of larger size. … However, this is the opposite to what PHK’s actual beta value suggests, which is lower stock volatility relative to the market.

Simply Wall St -

Company Info

Map
Description

Phoslock Water Solutions Limited operates as an engineering and treatment products company in the water remediation sector. The company manufactures, markets, and sells Phoslock, a natural product that works by locking the phosphate present in the water body, permanently preventing its re-release for use by algae. It provides its in-water solution for lakes, drinking water reservoirs, prawn aquaculture ponds, irrigation channels, golf course ponds, ornamental lakes, koi ponds, garden ponds, and other recreational water bodies; and as preventative product to absorb phosphorus before it enters water bodies by being applied in storm water basins and inflow channels, rivers, and canals. The company also engages in the design, engineering, implementation, and use of remediation materials for river, canal, and lake projects. It provides its products through licensees, distributors, and agents primarily in Australia, New Zealand, the United Kingdom, the United States, Canada, Brazil, China, Germany, the Netherlands, Belgium, Poland, and Hungary, as well as Indonesia, Malaysia, Singapore, Taiwan, and South Korea. The company was formerly known as IMT Holdings Limited and changed its name to Phoslock Water Solutions Limited in November 2005. Phoslock Water Solutions Limited is headquartered in Sydney, Australia.

Details
Name: Phoslock Water Solutions Limited
PHK
Exchange: ASX
Founded:
A$124,881,588
480,313,801
Website: http://www.phoslock.com.au
Address: Phoslock Water Solutions Limited
25 Lime Street,
Suite 403,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX PHK Ordinary Shares Australian Securities Exchange AU AUD 16. Aug 2002
CHIA PHK Ordinary Shares Chi-X Australia AU AUD 16. Aug 2002
Number of employees
Current staff
Staff numbers
0
Phoslock Water Solutions employees.
Industry
Environmental and Facilities Services
Commercial Services
Company Analysis and Financial Data Status
Area Date
Company Analysis updated: 2018/01/19
Last earnings update: 2017/06/30
Last annual earnings update: 2017/06/30


All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.