New Risk • Jun 07
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 106% Dividend yield: 0.7% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.1x net interest cover). Earnings have declined by 39% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (106% payout ratio). Market cap is less than US$100m (৳2.03b market cap, or US$16.6m). Reported Earnings • Jun 02
Third quarter 2026 earnings released: EPS: ৳0.07 (vs ৳0.25 in 3Q 2025) Third quarter 2026 results: EPS: ৳0.07 (down from ৳0.25 in 3Q 2025). Revenue: ৳243.9m (up 12% from 3Q 2025). Net income: ৳1.05m (down 72% from 3Q 2025). Profit margin: 0.4% (down from 1.7% in 3Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Board Change • May 20
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 1 highly experienced director. 1 independent director (6 non-independent directors). Independent Director Md. A. M. M. Haq was the last independent director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 27
Wata Chemicals Limited to Report Q3, 2026 Results on Apr 30, 2026 Wata Chemicals Limited announced that they will report Q3, 2026 results on Apr 30, 2026 Announcement • Jan 25
Wata Chemicals Limited to Report Q2, 2026 Results on Jan 29, 2026 Wata Chemicals Limited announced that they will report Q2, 2026 results on Jan 29, 2026 Announcement • Nov 12
Wata Chemicals Limited to Report Q1, 2026 Results on Nov 14, 2025 Wata Chemicals Limited announced that they will report Q1, 2026 results on Nov 14, 2025 Announcement • Nov 11
Wata Chemicals Limited announces Annual dividend, payable on January 25, 2026 Wata Chemicals Limited announced Annual dividend of BDT 1.0000 per share payable on January 25, 2026, ex-date on November 30, 2025 and record date on November 27, 2025. Announcement • Nov 10
Wata Chemicals Limited, Annual General Meeting, Dec 24, 2025 Wata Chemicals Limited, Annual General Meeting, Dec 24, 2025. Announcement • Oct 31
Wata Chemicals Limited to Report Fiscal Year 2025 Results on Nov 06, 2025 Wata Chemicals Limited announced that they will report fiscal year 2025 results on Nov 06, 2025 Announcement • Apr 25
Wata Chemicals Limited to Report Q3, 2025 Results on Apr 29, 2025 Wata Chemicals Limited announced that they will report Q3, 2025 results on Apr 29, 2025 Announcement • Jan 27
Wata Chemicals Limited to Report Q2, 2025 Results on Jan 30, 2025 Wata Chemicals Limited announced that they will report Q2, 2025 results on Jan 30, 2025 Reported Earnings • Nov 14
Full year 2024 earnings released: EPS: ৳0.67 (vs ৳3.04 in FY 2023) Full year 2024 results: EPS: ৳0.67 (down from ৳3.04 in FY 2023). Revenue: ৳713.4m (down 29% from FY 2023). Net income: ৳9.86m (down 78% from FY 2023). Profit margin: 1.4% (down from 4.4% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 24% per year, which means it has not declined as severely as earnings. Announcement • Nov 12
Wata Chemicals Limited to Report Q1, 2025 Results on Nov 14, 2024 Wata Chemicals Limited announced that they will report Q1, 2025 results on Nov 14, 2024 Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ৳124, the stock trades at a trailing P/E ratio of 48.7x. Average trailing P/E is 25x in the Chemicals industry in Bangladesh. Total loss to shareholders of 55% over the past three years. Declared Dividend • Nov 01
Dividend of ৳1.20 announced Shareholders will receive a dividend of ৳1.20. Ex-date: 1st December 2024 Payment date: 26th January 2025 Dividend yield will be 1.0%, which is lower than the industry average of 2.0%. Sustainability & Growth Dividend is covered by both earnings (59% earnings payout ratio) and cash flows (31% cash payout ratio). The dividend has increased by an average of 24% per year over the past 9 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 34% to shift the payout ratio to a potentially unsustainable range, which is more than the 21% EPS decline seen over the last 5 years. Announcement • Oct 30
Wata Chemicals Limited, Annual General Meeting, Dec 26, 2024 Wata Chemicals Limited, Annual General Meeting, Dec 26, 2024, at 16:00 Central Asia Standard Time. Announcement • Oct 23
Wata Chemicals Limited to Report Fiscal Year 2024 Results on Oct 29, 2024 Wata Chemicals Limited announced that they will report fiscal year 2024 results on Oct 29, 2024 Reported Earnings • Jul 16
Third quarter 2024 earnings released: EPS: ৳0.47 (vs ৳0.69 in 3Q 2023) Third quarter 2024 results: EPS: ৳0.47 (down from ৳0.69 in 3Q 2023). Revenue: ৳170.2m (up 4.5% from 3Q 2023). Net income: ৳6.96m (down 32% from 3Q 2023). Profit margin: 4.1% (down from 6.3% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. New Risk • Jul 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Bangladeshi stocks, typically moving 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.3x net interest cover). Earnings have declined by 28% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.4% average weekly change). Market cap is less than US$100m (৳2.34b market cap, or US$19.9m). Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ৳137, the stock trades at a trailing P/E ratio of 49.8x. Average trailing P/E is 29x in the Chemicals industry in Bangladesh. Total loss to shareholders of 49% over the past three years. Announcement • Apr 30
Wata Chemicals Limited to Report Q3, 2024 Results on Apr 30, 2024 Wata Chemicals Limited announced that they will report Q3, 2024 results on Apr 30, 2024 Reported Earnings • Feb 08
Second quarter 2024 earnings released: EPS: ৳0.26 (vs ৳0.53 in 2Q 2023) Second quarter 2024 results: EPS: ৳0.26 (down from ৳0.53 in 2Q 2023). Revenue: ৳179.5m (down 27% from 2Q 2023). Net income: ৳3.84m (down 51% from 2Q 2023). Profit margin: 2.1% (down from 3.2% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Announcement • Jan 25
Wata Chemicals Limited to Report Q2, 2024 Results on Jan 30, 2024 Wata Chemicals Limited announced that they will report Q2, 2024 results on Jan 30, 2024 Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ৳169, the stock trades at a trailing P/E ratio of 54.3x. Average trailing P/E is 29x in the Chemicals industry in Bangladesh. Total loss to shareholders of 43% over the past three years. Upcoming Dividend • Nov 22
Upcoming dividend of ৳1.50 per share at 0.7% yield Eligible shareholders must have bought the stock before 29 November 2023. Payment date: 28 January 2024. Payout ratio is a comfortable 49% and the cash payout ratio is 95%. Trailing yield: 0.7%. Lower than top quartile of Bangladeshi dividend payers (3.5%). Lower than average of industry peers (2.2%). Reported Earnings • Nov 07
Full year 2023 earnings released: EPS: ৳3.03 (vs ৳4.05 in FY 2022) Full year 2023 results: EPS: ৳3.03 (down from ৳4.05 in FY 2022). Revenue: ৳1.01b (up 6.0% from FY 2022). Net income: ৳45.0m (down 25% from FY 2022). Profit margin: 4.4% (down from 6.3% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • Oct 17
Wata Chemicals Limited to Report Fiscal Year 2023 Results on Oct 26, 2023 Wata Chemicals Limited announced that they will report fiscal year 2023 results on Oct 26, 2023 New Risk • Jun 13
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.0% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.6x net interest cover). Earnings have declined by 13% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (3.1% net profit margin). Market cap is less than US$100m (৳2.97b market cap, or US$27.4m). Reported Earnings • May 21
Third quarter 2023 earnings released: EPS: ৳0.69 (vs ৳0.71 in 3Q 2022) Third quarter 2023 results: EPS: ৳0.69 (down from ৳0.71 in 3Q 2022). Revenue: ৳162.8m (down 22% from 3Q 2022). Net income: ৳10.2m (down 2.8% from 3Q 2022). Profit margin: 6.3% (up from 5.0% in 3Q 2022). The increase in margin was driven by lower expenses. Reported Earnings • Feb 17
Second quarter 2023 earnings released: EPS: ৳0.53 (vs ৳1.51 in 2Q 2022) Second quarter 2023 results: EPS: ৳0.53 (down from ৳1.51 in 2Q 2022). Revenue: ৳245.8m (up 4.3% from 2Q 2022). Net income: ৳7.89m (down 65% from 2Q 2022). Profit margin: 3.2% (down from 9.5% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. 1 independent director (4 non-independent directors). Independent Director Md. A. M. M. Haq was the last independent director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Nov 01
Wata Chemicals Limited Recommends Cash Dividend for the Year Ended June 30, 2022 The board of directors of Wata Chemicals Limited has recommended 20% Cash Dividend for General Shareholders and 10% Cash Dividend for Directors for the year ended June 30, 2022. Reported Earnings • May 29
Third quarter 2022 earnings released: EPS: ৳0.71 (vs ৳0.68 in 3Q 2021) Third quarter 2022 results: EPS: ৳0.71 (up from ৳0.68 in 3Q 2021). Revenue: ৳209.6m (up 55% from 3Q 2021). Net income: ৳10.5m (up 4.2% from 3Q 2021). Profit margin: 5.0% (down from 7.5% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. 1 independent director (4 non-independent directors). Independent Director Md. A. M. M. Haq was the last independent director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Mar 09
Second quarter 2022 earnings: Revenues and EPS in line with analyst expectations Second quarter 2022 results: EPS: ৳1.51 (down from ৳2.03 in 2Q 2021). Revenue: ৳235.6m (up 77% from 2Q 2021). Net income: ৳22.3m (down 26% from 2Q 2021). Profit margin: 9.5% (down from 23% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Reported Earnings • Dec 05
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: ৳6.14 (down from ৳8.05 in FY 2020). Revenue: ৳569.8m (down 26% from FY 2020). Net income: ৳91.0m (down 24% from FY 2020). Profit margin: 16% (in line with FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 02
Upcoming dividend of ৳3.00 per share Eligible shareholders must have bought the stock before 09 December 2021. Payment date: 30 January 2022. Trailing yield: 1.1%. Lower than top quartile of Bangladeshi dividend payers (3.0%). Lower than average of industry peers (2.0%). Valuation Update With 7 Day Price Move • Sep 10
Investor sentiment improved over the past week After last week's 17% share price gain to ৳359, the stock trades at a trailing P/E ratio of 64.5x. Average trailing P/E is 40x in the Chemicals industry in Bangladesh. Total returns to shareholders of 97% over the past three years. Announcement • Jul 06
Wata Chemicals Limited to Report Q3, 2020 Results on Jun 30, 2020 Wata Chemicals Limited announced that they will report Q3, 2020 results on Jun 30, 2020