Snowflake Score | |
---|---|
Valuation | 3/6 |
Future Growth | 4/6 |
Past Performance | 1/6 |
Financial Health | 5/6 |
Dividends | 0/6 |
HEO Stock Overview
H2O Innovation Inc. designs and provides integrated water treatment solutions based on membrane filtration technology.
H2O Innovation Competitors
Price History & Performance
Historical stock prices | |
---|---|
Current Share Price | CA$2.20 |
52 Week High | CA$2.90 |
52 Week Low | CA$1.75 |
Beta | 1.08 |
1 Month Change | 7.32% |
3 Month Change | 0.92% |
1 Year Change | -16.98% |
3 Year Change | 89.66% |
5 Year Change | 49.66% |
Change since IPO | -96.86% |
Recent News & Updates
Getting In Cheap On H2O Innovation Inc. (TSE:HEO) Might Be Difficult
With a price-to-earnings (or "P/E") ratio of 79.1x H2O Innovation Inc. ( TSE:HEO ) may be sending very bearish signals...
What Is H2O Innovation Inc.'s (TSE:HEO) Share Price Doing?
While H2O Innovation Inc. ( TSE:HEO ) might not be the most widely known stock at the moment, it received a lot of...
Shareholder Returns
HEO | CA Machinery | CA Market | |
---|---|---|---|
7D | 8.4% | 4.5% | 3.0% |
1Y | -17.0% | -34.5% | 0.7% |
Return vs Industry: HEO exceeded the Canadian Machinery industry which returned -36% over the past year.
Return vs Market: HEO underperformed the Canadian Market which returned -0.2% over the past year.
Price Volatility
HEO volatility | |
---|---|
HEO Average Weekly Movement | 5.5% |
Machinery Industry Average Movement | 10.6% |
Market Average Movement | 10.6% |
10% most volatile stocks in CA Market | 19.0% |
10% least volatile stocks in CA Market | 4.3% |
Stable Share Price: HEO is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: HEO's weekly volatility (5%) has been stable over the past year.
About the Company
Founded | Employees | CEO | Website |
---|---|---|---|
2000 | 900 | Frederic Dugre | https://www.h2oinnovation.com |
H2O Innovation Inc. designs and provides integrated water treatment solutions based on membrane filtration technology. The company operates through three segments: Water Technologies and Services, Specialty Products, and Operation and Maintenance Services. It offers membrane filtration technology for municipal, industrial, energy, and natural resources end-users; and aftersales services, as well as digital solutions to monitor and optimize water treatment plants.
H2O Innovation Fundamentals Summary
HEO fundamental statistics | |
---|---|
Market Cap | CA$198.02m |
Earnings (TTM) | CA$2.52m |
Revenue (TTM) | CA$167.51m |
78.7x
P/E Ratio1.2x
P/S RatioIs HEO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
HEO income statement (TTM) | |
---|---|
Revenue | CA$167.51m |
Cost of Revenue | CA$121.37m |
Gross Profit | CA$46.15m |
Other Expenses | CA$43.63m |
Earnings | CA$2.52m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
Earnings per share (EPS) | 0.028 |
Gross Margin | 27.55% |
Net Profit Margin | 1.50% |
Debt/Equity Ratio | 35.0% |
How did HEO perform over the long term?
See historical performance and comparisonValuation
Is HEO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for HEO?
Other financial metrics that can be useful for relative valuation.
What is HEO's n/a Ratio? | |
---|---|
n/a Ratio | 0x |
n/a | n/a |
Market Cap | CA$198.02m |
Key Statistics | |
---|---|
Enterprise Value/Revenue | 1.4x |
Enterprise Value/EBITDA | 17.2x |
PEG Ratio | 1.5x |
Price to Earnings Ratio vs Peers
How does HEO's PE Ratio compare to its peers?
HEO PE Ratio vs Peers |
---|
Company | PE | Estimated Growth | Market Cap |
---|---|---|---|
Peer Average | 26.9x | ||
SIS Savaria | 50.4x | 48.6% | CA$965.7m |
REKO Reko International Group | 14.8x | n/a | CA$28.8m |
ATA ATS Automation Tooling Systems | 31.7x | 21.5% | CA$4.2b |
CNO California Nanotechnologies | 11x | n/a | CA$3.7m |
HEO H2O Innovation | 78.7x | 53.2% | CA$198.0m |
Price-To-Earnings vs Peers: HEO is expensive based on its Price-To-Earnings Ratio (78.7x) compared to the peer average (26.9x).
Price to Earnings Ratio vs Industry
How does HEO's PE Ratio compare vs other companies in the North American Machinery Industry?
Price-To-Earnings vs Industry: HEO is expensive based on its Price-To-Earnings Ratio (78.7x) compared to the Canadian Machinery industry average (14.7x)
Price to Earnings Ratio vs Fair Ratio
What is HEO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
Fair Ratio | |
---|---|
Current PE Ratio | 78.7x |
Fair PE Ratio | 35.9x |
Price-To-Earnings vs Fair Ratio: HEO is expensive based on its Price-To-Earnings Ratio (78.7x) compared to the estimated Fair Price-To-Earnings Ratio (35.9x).
Share Price vs Fair Value
What is the Fair Price of HEO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: HEO (CA$2.2) is trading below our estimate of fair value (CA$3.81)
Significantly Below Fair Value: HEO is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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Future Growth
How is H2O Innovation forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
53.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HEO's forecast earnings growth (53.2% per year) is above the savings rate (1.6%).
Earnings vs Market: HEO's earnings (53.2% per year) are forecast to grow faster than the Canadian market (8% per year).
High Growth Earnings: HEO's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HEO's revenue (8.4% per year) is forecast to grow faster than the Canadian market (6.4% per year).
High Growth Revenue: HEO's revenue (8.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HEO's Return on Equity is forecast to be low in 3 years time (9.5%).
Discover growth companies
Past Performance
How has H2O Innovation performed over the past 5 years?
Past Performance Score
1/6Past Performance Score 1/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
47.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HEO has a large one-off loss of CA$1.6M impacting its March 31 2022 financial results.
Growing Profit Margin: HEO's current net profit margins (1.5%) are lower than last year (2.8%).
Past Earnings Growth Analysis
Earnings Trend: HEO has become profitable over the past 5 years, growing earnings by 47.9% per year.
Accelerating Growth: HEO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HEO had negative earnings growth (-39.1%) over the past year, making it difficult to compare to the Machinery industry average (-39.1%).
Return on Equity
High ROE: HEO's Return on Equity (2.8%) is considered low.
Discover strong past performing companies
Financial Health
How is H2O Innovation's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: HEO's short term assets (CA$65.4M) exceed its short term liabilities (CA$35.9M).
Long Term Liabilities: HEO's short term assets (CA$65.4M) exceed its long term liabilities (CA$46.9M).
Debt to Equity History and Analysis
Debt Level: HEO's net debt to equity ratio (27.8%) is considered satisfactory.
Reducing Debt: HEO's debt to equity ratio has reduced from 36.3% to 35% over the past 5 years.
Debt Coverage: HEO's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: HEO's interest payments on its debt are well covered by EBIT (3.7x coverage).
Balance Sheet
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Dividend
What is H2O Innovation current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate HEO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate HEO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if HEO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if HEO's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as HEO has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Frederic Dugre
22.58yrs
Tenure
CA$1,165,874
Compensation
Mr. Frederic Dugre Co-founded H2O Innovation Inc. (also known as H2O Innovation (2000) Inc) in 2000 and has also been its Chief Executive Officer and President since January 2000. Mr. Dugre served as an Ex...
CEO Compensation Analysis
Compensation vs Market: Frederic's total compensation ($USD911.18K) is above average for companies of similar size in the Canadian market ($USD695.79K).
Compensation vs Earnings: Frederic's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: HEO's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: HEO's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.
Top Shareholders
Company Information
H2O Innovation Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: H2O Innovation Inc.
- Ticker: HEO
- Exchange: TSX
- Founded: 2000
- Industry: Industrial Machinery
- Sector: Capital Goods
- Implied Market Cap: CA$198.016m
- Shares outstanding: 90.01m
- Website: https://www.h2oinnovation.com
Number of Employees
Location
- H2O Innovation Inc.
- 330 rue Saint-Vallier Street East
- Suite 340
- Quebec City
- Quebec
- G1K 9C5
- Canada
Listings
Company Analysis and Financial Data Status
Data | Last Updated (UTC time) |
---|---|
Company Analysis | 2022/08/12 00:00 |
End of Day Share Price | 2022/08/12 00:00 |
Earnings | 2022/03/31 |
Annual Earnings | 2021/06/30 |
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.