DB:1A0

Stock Analysis Report

AquaVenture Holdings

Executive Summary

AquaVenture Holdings Limited provides water-as-a-service solutions in North America, the Caribbean, and South America.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has AquaVenture Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

1A0

3.5%

DE Water Utilities

1.7%

DE Market


1 Year Return

15.2%

1A0

26.2%

DE Water Utilities

7.2%

DE Market

Return vs Industry: 1A0 underperformed the German Water Utilities industry which returned 26.2% over the past year.

Return vs Market: 1A0 exceeded the German Market which returned 7.2% over the past year.


Shareholder returns

1A0IndustryMarket
7 Day0.6%3.5%1.7%
30 Day-2.8%12.4%2.4%
90 Day14.8%14.5%2.3%
1 Year15.2%15.2%32.7%26.2%10.6%7.2%
3 Year-15.8%-15.8%17.4%2.1%18.4%8.1%
5 Yearn/a40.4%12.7%42.3%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is AquaVenture Holdings undervalued compared to its fair value and its price relative to the market?

22.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1A0 (€17.4) is trading below our estimate of fair value (€22.35)

Significantly Below Fair Value: 1A0 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1A0 is unprofitable, so we can't compare its PE Ratio to the Water Utilities industry average.

PE vs Market: 1A0 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 1A0's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1A0 is good value based on its PB Ratio (1.6x) compared to the XE Water Utilities industry average (1.7x).


Next Steps

Future Growth

How is AquaVenture Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1A0 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1A0 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1A0 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 1A0's revenue (5.1% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 1A0's revenue (5.1% 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 1A0's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has AquaVenture Holdings performed over the past 5 years?

-4.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1A0 is unprofitable, and losses have increased over the past 5 years at a rate of -4.5% per year.

Accelerating Growth: Unable to compare 1A0's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1A0 is unprofitable, making it difficult to compare its past year earnings growth to the Water Utilities industry (6.8%).


Return on Equity

High ROE: 1A0 has a negative Return on Equity (-5.62%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1A0 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1A0 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is AquaVenture Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1A0's short term assets ($100.4M) exceeds its short term liabilities ($40.3M)

Long Term Liabilities: 1A0's short term assets (100.4M) do not cover its long term liabilities (351.0M)


Debt to Equity History and Analysis

Debt Level: 1A0's debt to equity ratio (96.1%) is considered high

Reducing Debt: 1A0's debt to equity ratio has increased from 39.7% to 96.1% over the past 5 years.


Balance Sheet

Inventory Level: 1A0 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1A0's debt is not covered by short term assets (assets are 0.3x 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 1A0 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1A0 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 79.8% per year.


Next Steps

Dividend

What is AquaVenture Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage4.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1A0's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1A0's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1A0's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1A0'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 1A0'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 AquaVenture Holdings's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Tony Ibargüen (60yo)

0.8yrs

Tenure

US$1,106,556

Compensation

Mr. Anthony A. Ibargüen, also known as Tony, has been the President and a Director of AquaVenture Holdings Ltd since June 2014. Mr. Ibargüen is the Chief Executive Officer at AquaVenture Holdings Ltd since ...


CEO Compensation Analysis

Compensation vs. Market: Tony has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

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


Management Age and Tenure

0.8yrs

Average Tenure

59yo

Average Age

Experienced Management: 1A0's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 1A0's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$275,17411 Apr 19
Advent-Morro Equity Partners
EntityCompany
Shares16,203
Max PriceUS$17.07

Ownership Breakdown


Management Team

  • Olaf Krohg (57yo)

    Chief Executive Officer of Seven Seas Water

    • Tenure: 0.8yrs
  • Douglas Brown (65yo)

    Founder & Chairman

    • Tenure: 12.8yrs
    • Compensation: US$1.96m
  • Tony Ibargüen (60yo)

    CEO, President & Director

    • Tenure: 0.8yrs
    • Compensation: US$1.11m
  • Brian Miller (53yo)

    Senior VP & General Counsel

    • Tenure: 0.4yrs
  • Lee Muller (59yo)

    CFO, Senior VP

    • Tenure: 5yrs
    • Compensation: US$773.84k

Board Members

  • Cyril Meduña (62yo)

    Director

    • Tenure: 6.8yrs
  • David Lincoln (63yo)

    Director

    • Tenure: 3.1yrs
  • Douglas Brown (65yo)

    Founder & Chairman

    • Tenure: 12.8yrs
    • Compensation: US$1.96m
  • Paul Hanrahan (61yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$183.79k
  • Tony Ibargüen (60yo)

    CEO, President & Director

    • Tenure: 0.8yrs
    • Compensation: US$1.11m
  • Tim Whall (57yo)

    Director

    • Tenure: 0.2yrs
  • Hugh Evans (53yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$175.39k
  • Debra Coy

    Director

    • Tenure: 0.7yrs
  • Dick Reilly (71yo)

    Director

    • Tenure: 5yrs
    • Compensation: US$179.99k

Company Information

AquaVenture Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AquaVenture Holdings Limited
  • Ticker: 1A0
  • Exchange: DB
  • Founded: 2006
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$615.950m
  • Listing Market Cap: US$552.877m
  • Shares outstanding: 31.72m
  • Website: https://www.aquaventure.com

Number of Employees


Location

  • AquaVenture Holdings Limited
  • Commerce House
  • Wickhams Cay 1
  • Road Town
  • Tortola
  • VG11110
  • British Virgin Islands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WAASNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDOct 2016
1A0DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2016

Biography

AquaVenture Holdings Limited provides water-as-a-service solutions in North America, the Caribbean, and South America. The company operates in two segments, Seven Seas Water and Quench. It offers desalinat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:42
End of Day Share Price2019/10/22 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.