DB:AQK

Stock Analysis Report

Executive Summary

Aqua Metals, Inc. engages in the recycling of lead primarily in the United States.

Snowflake

High growth potential and fair value.

Rewards

Trading at 85.7% below its fair value

Revenue is forecast to grow by 521.73% next year

Revenue grew by 12.6% over the past year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months

Current net profit margin (-1081.8%) is lower than last year (-833.2%)

+ 1 more risk

Share Price & News

How has Aqua Metals's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.2%

AQK

2.6%

DE Commercial Services

0.8%

DE Market


1 Year Return

-37.0%

AQK

-6.3%

DE Commercial Services

9.0%

DE Market

Return vs Industry: AQK underperformed the German Commercial Services industry which returned -6.3% over the past year.

Return vs Market: AQK underperformed the German Market which returned 9% over the past year.


Shareholder returns

AQKIndustryMarket
7 Day-6.2%2.6%0.8%
30 Day-12.8%7.1%6.3%
90 Day-6.6%17.6%14.4%
1 Year-37.0%-37.0%-2.9%-6.3%12.4%9.0%
3 Year-87.2%-87.2%6.2%-3.0%25.6%14.5%
5 Yearn/a1.7%-12.6%41.0%21.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Aqua Metals 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: AQK (€1.36) is trading below our estimate of fair value (€9.48)

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


Price To Earnings Ratio

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

PE vs Market: AQK 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 AQK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AQK is good value based on its PB Ratio (1.3x) compared to the DE Commercial Services industry average (2.7x).


Next Steps

Future Growth

How is Aqua Metals forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

85.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AQK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: AQK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AQK's is expected to become profitable in the next 3 years.

Revenue vs Market: AQK's revenue (70.9% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: AQK's revenue (70.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Aqua Metals performed over the past 5 years?

-42.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AQK has high quality earnings.

Growing Profit Margin: AQK's current net profit margins (-1081.8%) are lower than last year (-833.2%).


Past Earnings Growth Analysis

Earnings Trend: AQK is unprofitable, and losses have increased over the past 5 years at a rate of -42.3% per year.

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

Earnings vs Industry: AQK is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (6.1%).


Return on Equity

High ROE: AQK has a negative Return on Equity (-69.65%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aqua Metals's financial position?


Financial Position Analysis

Short Term Liabilities: AQK's short term assets ($30.6M) exceeds its short term liabilities ($8.7M)

Long Term Liabilities: AQK's short term assets (30.6M) exceeds its long term liabilities (10.5M)


Debt to Equity History and Analysis

Debt Level: AQK's debt to equity ratio (13.7%) is considered satisfactory

Reducing Debt: Insufficient data to determine if AQK's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: AQK has a high level of physical assets or inventory.

Debt Coverage by Assets: AQK's debt is covered by short term assets (assets are 3.5x 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: AQK has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AQK has less than a year of cash runway if free cash flow continues to grow at historical rates of 5.7% each year.


Next Steps

Dividend

What is Aqua Metals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate AQK'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 AQK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AQK'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 AQK's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Steve Cotton (53yo)

0.8yrs

Tenure

US$1,948,000

Compensation

Mr. Stephen Cotton, also known as Steve, has been Chief Executive Officer and Director of Aqua Metals, Inc. since January 7, 2019 and its President since May 02, 2018. Mr. Cotton founded IntelliBatt, LLC i ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.95M) is above average for companies of similar size in the German market ($USD215.15K).

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


Management Age and Tenure

1.4yrs

Average Tenure

50.5yo

Average Age

Experienced Management: AQK's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: AQK's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: AQK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$3,94222 Aug 19
Gayle Gibson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$1.58
BuyUS$14,89509 Aug 19
S. Yosufzai
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Lead Independent Director
Shares10,000
Max PriceUS$1.49
BuyUS$2,76608 Aug 19
Susanne Meline
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$1.38
BuyUS$4,45108 Aug 19
Vincent DiVito
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,048
Max PriceUS$1.46
BuyUS$13,41114 Jun 19
Stephen Cotton
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares10,000
Max PriceUS$1.34
BuyUS$2,66714 Jun 19
Judd Merrill
EntityIndividual
Role
Chief Financial Officer
CFO & Company Secretary
Shares2,000
Max PriceUS$1.33
BuyUS$8,59017 May 19
Sushil Kapoor
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$1.72
BuyUS$27,38208 Mar 19
Gayle Gibson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,782
Max PriceUS$3.52
BuyUS$16,68822 Jan 19
S. Yosufzai
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Lead Independent Director
Shares10,000
Max PriceUS$1.67
BuyUS$8,34422 Jan 19
Judd Merrill
EntityIndividual
Role
Chief Financial Officer
CFO & Company Secretary
Shares5,000
Max PriceUS$1.67
BuyUS$8,34422 Jan 19
Eric Proudy
EntityIndividual
Shares5,000
Max PriceUS$1.67
BuyUS$8,34422 Jan 19
Vincent DiVito
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$1.67
BuyUS$25,03222 Jan 19
Stephen Cotton
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares15,000
Max PriceUS$1.67

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 70.2%.


Management Team

  • Mark Weinswig (46yo)

    Consultant

    • Tenure: 1.7yrs
    • Compensation: US$827.00k
  • Steve Clarke (62yo)

    Consultant

    • Tenure: 1.6yrs
    • Compensation: US$400.00k
  • Judd Merrill (48yo)

    CFO & Company Secretary

    • Tenure: 1yrs
    • Compensation: US$412.83k
  • Steve Cotton (53yo)

    CEO, President & Director

    • Tenure: 0.8yrs
    • Compensation: US$1.95m
  • Kimberly Setliff

    Senior Vice President

    • Tenure: 0yrs
  • David Regan

    Director Marketing

    • Tenure: 0yrs
  • Terri Bradfield

    Vice President of Human Resources

    • Tenure: 1.3yrs
  • Kathleen Dotson

    VP of Finance & Corporate Controller

    • Tenure: 0yrs
  • Ben Taecker

    Vice President of Operations

    • Tenure: 1.8yrs

Board Members

  • Vincent DiVito (59yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$186.00k
  • S. Yosufzai (66yo)

    Non-Executive Chairman & Lead Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$198.00k
  • Sam Kapoor (72yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$137.00k
  • Steve Cotton (53yo)

    CEO, President & Director

    • Tenure: 0.8yrs
    • Compensation: US$1.95m
  • Susanne Meline (51yo)

    Director

    • Tenure: 0.3yrs
  • Gayle Gibson (58yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Aqua Metals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aqua Metals, Inc.
  • Ticker: AQK
  • Exchange: DB
  • Founded: 2014
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$86.584m
  • Listing Market Cap: US$78.619m
  • Shares outstanding: 56.96m
  • Website: https://www.aquametals.com

Number of Employees


Location

  • Aqua Metals, Inc.
  • 2500 Peru Drive
  • McCarran
  • Nevada
  • 89437
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AQMSNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 2015
AQKDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2015

Biography

Aqua Metals, Inc. engages in the recycling of lead primarily in the United States. It produces and sells hard lead, lead compounds, and plastics. The company was founded in 2014 and is headquartered in McC ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 21:50
End of Day Share Price2019/11/12 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.