AIM:WATR

Stock Analysis Report

Executive Summary

Water Intelligence plc provides leak detection and remediation products and services for residential, commercial, and municipal customers in the United States, the United Kingdom, and internationally.

Rewards

Revenue is forecast to grow 7.78% per year

Earnings have grown 27.1% per year over the past 5 years

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap (£40M)



Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WATR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

WATR

0.9%

GB Commercial Services

-0.5%

GB Market


1 Year Return

-3.3%

WATR

28.8%

GB Commercial Services

12.4%

GB Market

Return vs Industry: WATR underperformed the UK Commercial Services industry which returned 26.8% over the past year.

Return vs Market: WATR underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

WATRIndustryMarket
7 Day4.5%0.9%-0.5%
30 Day7.4%1.2%0.2%
90 Day9.0%8.8%6.0%
1 Year-3.3%-3.3%32.6%28.8%18.3%12.4%
3 Year139.7%139.7%28.8%17.9%22.6%6.9%
5 Year935.7%935.7%45.4%22.0%40.9%8.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Water Intelligence undervalued compared to its fair value and its price relative to the market?

36.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate WATR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate WATR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: WATR is poor value based on its PE Ratio (33.5x) compared to the Commercial Services industry average (20.9x).

PE vs Market: WATR is poor value based on its PE Ratio (33.5x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WATR is overvalued based on its PB Ratio (3.1x) compared to the GB Commercial Services industry average (2x).


Next Steps

Future Growth

How is Water Intelligence forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

8.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if WATR's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if WATR's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WATR's revenue (7.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: WATR's revenue (7.8% 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 WATR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Water Intelligence performed over the past 5 years?

27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WATR has high quality earnings.

Growing Profit Margin: WATR's current net profit margins (4.9%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: WATR's earnings have grown significantly by 27.1% per year over the past 5 years.

Accelerating Growth: WATR's earnings growth over the past year (10.8%) is below its 5-year average (27.1% per year).

Earnings vs Industry: WATR earnings growth over the past year (10.8%) underperformed the Commercial Services industry 16.1%.


Return on Equity

High ROE: WATR's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Water Intelligence's financial position?


Financial Position Analysis

Short Term Liabilities: WATR's short term assets ($12.5M) exceed its short term liabilities ($5.8M).

Long Term Liabilities: WATR's short term assets ($12.5M) exceed its long term liabilities ($4.1M).


Debt to Equity History and Analysis

Debt Level: WATR's debt to equity ratio (22.8%) is considered satisfactory.

Reducing Debt: WATR's debt to equity ratio has reduced from 85.3% to 22.8% over the past 5 years.

Debt Coverage: WATR's debt is well covered by operating cash flow (23.5%).

Interest Coverage: WATR's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: WATR's debt is covered by short term assets (assets are 3.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.8%markettop25%5.0%industryaverage2.6%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

8.2yrs

Average board tenure


CEO

Water Intelligence has no CEO, or we have no data on them.


Board Age and Tenure

8.2yrs

Average Tenure

64yo

Average Age

Experienced Board: WATR's board of directors are considered experienced (8.2 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

BuyUK£92,20010 May 19
Laura Hills
EntityIndividual
Role
Vice Chairman
Independent Vice Chairman
Shares24,919
Max PriceUK£3.70
BuyUK£15,36610 May 19
William Reisman
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,153
Max PriceUK£3.70

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.1%.


Management Team

  • Lorrie Rennick

    • Patrick DeSouza (60yo)

      Executive Chairman

      • Tenure: 9.5yrs
      • Compensation: US$501.87k
    • Adrian Hargrave

      VP of Corporate Development & Company Secretary

      • Bobby Knell (68yo)

        Executive Director

        • Tenure: 0.8yrs

      Board Members

      • David Silverstone (73yo)

        Independent Non-Executive Director

        • Tenure: 8.2yrs
        • Compensation: US$21.00k
      • Patrick DeSouza (60yo)

        Executive Chairman

        • Tenure: 9.5yrs
        • Compensation: US$501.87k
      • Laura Hills (57yo)

        Independent Vice Chairman

        • Tenure: 0.3yrs
        • Compensation: US$20.00k
      • William Reisman

        Independent Non-Executive Director

        • Tenure: 9.5yrs
        • Compensation: US$20.00k
      • Bobby Knell (68yo)

        Executive Director

        • Tenure: 0.8yrs

      Company Information

      Water Intelligence plc's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Water Intelligence plc
      • Ticker: WATR
      • Exchange: AIM
      • Founded: 1974
      • Industry: Environmental and Facilities Services
      • Sector: Commercial Services
      • Market Cap: UK£42.637m
      • Shares outstanding: 14.70m
      • Website: https://www.waterintelligence.co.uk

      Number of Employees


      Location

      • Water Intelligence plc
      • 27-28 Eastcastle Street
      • London
      • Greater London
      • W1W 8DH
      • United Kingdom

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      WATRAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2010

      Biography

      Water Intelligence plc provides leak detection and remediation products and services for residential, commercial, and municipal customers in the United States, the United Kingdom, and internationally. The company operates through Franchise Royalty Income, Franchise-Related Activities, US Corporate Operated Locations, and International Corporate Operated Locations segments. It offers flow leak monitors to detect leakage problems. The company also provides managed services to water and energy utilities that allow for remote and automated meter reading, data storage, analysis, and presentations of meter data through the Internet. In addition, it is involved in franchising activities, as well as operating corporate owned stores. Water Intelligence plc was founded in 1974 and is based in London, the United Kingdom. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/22 21:58
      End of Day Share Price2020/01/22 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.