DB:H3O1

Stock Analysis Report

Executive Summary

H2O Innovation Inc. provides integrated water treatment solutions based on membrane filtration technology in Canada, the United States, China, Korea, and internationally.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has H2O Innovation's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: H3O1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.6%

H3O1

2.8%

DE Machinery

9.9%

DE Market


1 Year Return

n/a

H3O1

-30.9%

DE Machinery

-17.5%

DE Market

Return vs Industry: Insufficient data to determine how H3O1 performed against the German Machinery industry.

Return vs Market: Insufficient data to determine how H3O1 performed against the German Market.


Shareholder returns

H3O1IndustryMarket
7 Day13.6%2.8%9.9%
30 Day-40.6%-18.7%-16.6%
90 Day-45.9%-29.7%-24.8%
1 Yearn/a-28.8%-30.9%-15.0%-17.5%
3 Year-66.3%-66.3%-41.6%-45.8%-17.4%-24.5%
5 Year-60.4%-60.4%-28.9%-36.9%-16.6%-28.1%

Price Volatility Vs. Market

How volatile is H2O Innovation's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is H2O Innovation undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: H3O1 (€0.37) is trading below our estimate of fair value (€1.25)

Significantly Below Fair Value: H3O1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: H3O1 is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: H3O1 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate H3O1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: H3O1 is good value based on its PB Ratio (0.7x) compared to the DE Machinery industry average (1x).


Next Steps

Future Growth

How is H2O Innovation forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

152.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: H3O1 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: H3O1 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: H3O1 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: H3O1's revenue (9.4% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: H3O1's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if H3O1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has H2O Innovation performed over the past 5 years?

-35.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: H3O1 is currently unprofitable.

Growing Profit Margin: H3O1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: H3O1 is unprofitable, and losses have increased over the past 5 years at a rate of -35.3% per year.

Accelerating Growth: Unable to compare H3O1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: H3O1 is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-19.9%).


Return on Equity

High ROE: H3O1 has a negative Return on Equity (-3.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is H2O Innovation's financial position?


Financial Position Analysis

Short Term Liabilities: H3O1's short term assets (CA$43.7M) exceed its short term liabilities (CA$30.2M).

Long Term Liabilities: H3O1's short term assets (CA$43.7M) exceed its long term liabilities (CA$23.2M).


Debt to Equity History and Analysis

Debt Level: H3O1's debt to equity ratio (35.3%) is considered satisfactory.

Reducing Debt: H3O1's debt to equity ratio has increased from 21.4% to 35.3% over the past 5 years.


Balance Sheet

Inventory Level: H3O1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: H3O1's debt is covered by short term assets (assets are 1.8x 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.

Stable Cash Runway: Whilst unprofitable H3O1 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: H3O1 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 32.2% per year.


Next Steps

Dividend

What is H2O Innovation's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate H3O1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate H3O1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if H3O1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if H3O1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of H3O1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Frédéric Dugré

11.67s

Tenure

CA$628,844

Compensation

Mr. Frédéric Dugré Co-founded H2O Innovation Inc. (also known as H2O Innovation (2000) Inc) and has also been its Chief Executive Officer and President since July 10, 2008. Mr. Dugré served as an Executive ...


CEO Compensation Analysis

Compensation vs Market: Frédéric's total compensation ($USD444.75K) is about average for companies of similar size in the German market ($USD432.27K).

Compensation vs Earnings: Frédéric's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Frédéric Dugré
Co-Founder11.67yrsCA$628.84k1.12% CA$352.1k
Marc Blanchet
Chief Financial Officer4.5yrsCA$373.01k0.51% CA$160.1k
Guillaume Clairet
Chief Operating Officer4.5yrsCA$390.30k0.51% CA$161.8k
Edith Allain
Secretaryno datano datano data

4.5yrs

Average Tenure

Experienced Management: H3O1's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frédéric Dugré
Co-Founder11.67yrsCA$628.84k1.12% CA$352.1k
Richard Hoel
Independent Vice Chairman of the Board1.33yrsCA$42.81k3.61% CA$1.1m
Robert Comeau
Independent Director2.25yrsCA$57.15k0.22% CA$68.7k
Pierre Côté
Independent Director6.33yrsCA$40.81k0.052% CA$16.3k
René Vachon
Independent Director0.75yrCA$2.00k0.0064% CA$2.0k
Lisa Henthorne
Independent Chairman of the Board1.33yrsCA$58.56k0.087% CA$27.4k
Stéphane Guérin
Independent Director0.33yrno datano data

1.3yrs

Average Tenure

Experienced Board: H3O1's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 37.9%.


Top Shareholders

Company Information

H2O Innovation Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: H2O Innovation Inc.
  • Ticker: H3O1
  • Exchange: DB
  • Founded: 2000
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: CA$49.198m
  • Listing Market Cap: CA$31.538m
  • Shares outstanding: 76.87m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HEOTSXV (TSX Venture Exchange)YesCommon SharesCACADNov 1995
H3O1DB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1995
ALHEOENXTPA (Euronext Paris)YesCommon SharesFREURNov 1995
HEOF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1995

Biography

H2O Innovation Inc. provides integrated water treatment solutions based on membrane filtration technology in Canada, the United States, China, Korea, and internationally. The company operates through three segments: Projects & Aftermarket, Specialty Products, and Operation & Maintenance Services. It designs, manufactures, and markets systems and equipment for the production of drinking and industrial process water, reclamation and reuse of water, and desalination of seawater and treatment of wastewater. The company also provides products and membrane filtration systems’ spare parts, such as pumps, valves, membranes, media, and other replacement parts; specialty chemicals for membrane pre-treatment applications under the PWT brand name; and develops blends for maintenance, preservation, and cleaning of membrane systems. It offers specialty coagulants for conventional and membrane filtration systems, as well as flocculants; a line of couplings and fittings; cartridge filter housings, bag filters, strainers, and cartridge filter elements; and maple syrup products and equipment comprising evaporators, reverse osmosis separators, monitoring solutions, membranes, fittings, tubing, tanks, press filters, and other products. The company also provides operation and maintenance services; and public works services, including street and drainage maintenance, and solid waste collection, as well as leases containerized water or wastewater treatment systems, and pilot units. It offers Intelogx, a data analysis and interpretation software solution for monitoring water treatment plant; and onsite and technical support services. The company also provides water and waste water projects and services. It serves municipalities; developers and resorts; energy and power plants; food and beverages, and mining industries; and oil and gas markets. The company was founded in 2000 and is headquartered in Quebec City, Canada. H2O Innovation Inc. is a subsidiary of Amsterdams Effectenkantoor B.V. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 22:16
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.