TSXV:WTER

Stock Analysis Report

Executive Summary

The Alkaline Water Company Inc. produces, distributes, and markets bottled alkaline water in the United States.

Snowflake

Fundamentals

Limited growth with imperfect balance sheet.

Risks

  • Alkaline Water has significant price volatility in the past 3 months.
  • Alkaline Water is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Alkaline Water's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.3%

TSXV:WTER

-0.9%

CA Beverage

-1.2%

CA Market


1 Year Return

-19.2%

TSXV:WTER

-21.2%

CA Beverage

-4.6%

CA Market

WTER outperformed the Beverage industry which returned -21.2% over the past year.

WTER underperformed the Market in Canada which returned -4.4% over the past year.


Share holder returns

WTERIndustryMarket
7 Day-2.3%-0.9%-1.2%
30 Day-10.3%0.8%-3.0%
90 Day-14.3%-8.9%-3.3%
1 Year-19.2%-19.2%-19.3%-21.2%-1.2%-4.6%
3 Yearn/a-20.1%-24.9%13.5%3.5%
5 Yearn/a53.8%36.0%12.2%-3.5%

Price Volatility Vs. Market

How volatile is Alkaline Water's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

7.47x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Alkaline Water to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Alkaline Water to establish if it is available at substantial discount.


Price Based on Earnings

Alkaline Water is loss making, we can't compare its value to the North America Beverage industry average.

Alkaline Water is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Alkaline Water, we can't assess if its growth is good value.


Price Based on Value of Assets

Alkaline Water is overvalued based on assets compared to the CA Beverage industry average.


Next Steps

Future Growth

How is Alkaline Water expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

37.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Alkaline Water's revenue is expected to grow significantly at over 20% yearly.

Unable to determine if Alkaline Water is high growth as no earnings estimate data is available.

Alkaline Water's revenue growth is expected to exceed the Canada market average.

Unable to compare Alkaline Water's earnings growth to the Canada market average as no estimate data is available.

Unable to compare Alkaline Water's earnings growth to the low risk savings rate as no estimate data is available.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Alkaline Water will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Alkaline Water performed over the past 5 years?

-3.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Alkaline Water does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Alkaline Water's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Alkaline Water's 1-year growth to the North America Beverage industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Alkaline Water has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Alkaline Water has efficiently used its assets last year compared to the North America Beverage industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Alkaline Water improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Alkaline Water's financial position?


Financial Position Analysis

Alkaline Water is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Alkaline Water's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Alkaline Water's level of debt (43.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (13.3% vs 43.3% today).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 4.2x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Alkaline Water has less than a year of cash runway based on current free cash flow.

Alkaline Water has less than a year of cash runway if free cash flow continues to grow at historical rates of 43.6% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Alkaline Water's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Alkaline Water's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Alkaline Water has not reported any payouts.

Unable to verify if Alkaline Water's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Alkaline Water has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Richard Wright (61yo)

2.3yrs

Tenure

US$192,940

Compensation

Mr. Richard A. Wright has been the President of The Alkaline Water Company Inc. since April 07, 2017 and has been its Chief Executive Officer since April 28, 2017. Mr. Wright serves as the Chief Financial  ...


CEO Compensation Analysis

Richard's remuneration is higher than average for companies of similar size in Canada.

Richard's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

61yo

Average Age

The tenure for the Alkaline Water management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

55yo

Average Age

The average tenure for the Alkaline Water board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • David Guarino (55yo)

    CFO, Secretary

    • Tenure: 2.3yrs
    • Compensation: US$177.00k
  • Richard Wright (61yo)

    CEO, President

    • Tenure: 2.3yrs
    • Compensation: US$192.94k
  • Ron DaVella (62yo)

    Executive Vice President of Finance

    • Tenure: 0.3yrs

Board Members

  • David Guarino (55yo)

    CFO, Secretary

    • Tenure: 2.3yrs
    • Compensation: US$177.00k
  • Aaron Keay (41yo)

    Chairman

    • Tenure: 2.0yrs
  • Brian Sudano (55yo)

    Director

    • Tenure: 0.9yrs
  • Richard Wright (61yo)

    CEO, President

    • Tenure: 2.3yrs
    • Compensation: US$192.94k
  • Bruce Leitch (61yo)

    Director

    • Tenure: 2.9yrs

Company Information

The Alkaline Water Company Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Alkaline Water Company Inc.
  • Ticker: WTER
  • Exchange: TSXV
  • Founded: 2011
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$64.089m
  • Listing Market Cap: US$85.174m
  • Shares outstanding: 41.35m
  • Website: https://www.thealkalinewaterco.com

Number of Employees


Location

  • The Alkaline Water Company Inc.
  • 14646 North Kierland Boulevard
  • Suite 255
  • Scottsdale
  • Arizona
  • 85254
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WTERNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 2013
AWJABST (Boerse-Stuttgart)YesCommon StockDEEURJun 2013
WTERTSXV (TSX Venture Exchange)YesCommon StockCACADJun 2013
AWJADB (Deutsche Boerse AG)YesCommon StockDEEURJun 2013

Biography

The Alkaline Water Company Inc. produces, distributes, and markets bottled alkaline water in the United States. It also provides flavored bottled alkaline water. The company offers its products in various  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 00:46
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.