AIM:WATR

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet with solid 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.1%

WATR

-1.9%

GB Commercial Services

-2.0%

GB Market


1 Year Return

73.6%

WATR

-10.6%

GB Commercial Services

-14.5%

GB Market

Return vs Industry: WATR exceeded the UK Commercial Services industry which returned -10.3% over the past year.

Return vs Market: WATR exceeded the UK Market which returned -14.2% over the past year.


Shareholder returns

WATRIndustryMarket
7 Day9.1%-1.9%-2.0%
30 Day18.6%-0.3%-1.7%
90 Day40.4%-1.3%-4.2%
1 Year73.6%73.6%-7.1%-10.6%-11.3%-14.5%
3 Year282.0%282.0%-8.9%-18.5%-9.0%-20.3%
5 Year567.8%567.8%22.4%-1.1%15.3%-10.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WATR (£4.78) is trading below our estimate of fair value (£42.23)

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


Price To Earnings Ratio

PE vs Industry: WATR is poor value based on its PE Ratio (44.5x) compared to the GB Commercial Services industry average (34.8x).

PE vs Market: WATR is poor value based on its PE Ratio (44.5x) compared to the UK market (18.1x).


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 (5x) compared to the GB Commercial Services industry average (1.7x).


Next Steps

Future Growth

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

6.1%

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 (1.2%).

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 (6.1% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: WATR's revenue (6.1% 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 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?

29.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WATR has high quality earnings.

Growing Profit Margin: WATR's current net profit margins (6.1%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: WATR's earnings have grown significantly by 29.8% per year over the past 5 years.

Accelerating Growth: WATR's earnings growth over the past year (40.3%) exceeds its 5-year average (29.8% per year).

Earnings vs Industry: WATR earnings growth over the past year (40.3%) exceeded the Commercial Services industry 0.2%.


Return on Equity

High ROE: WATR's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Water Intelligence's financial position?


Financial Position Analysis

Short Term Liabilities: WATR's short term assets ($14.0M) exceed its short term liabilities ($6.1M).

Long Term Liabilities: WATR's short term assets ($14.0M) exceed its long term liabilities ($8.1M).


Debt to Equity History and Analysis

Debt Level: WATR's debt to equity ratio (26%) is considered satisfactory.

Reducing Debt: WATR's debt to equity ratio has reduced from 61% to 26% over the past 5 years.

Debt Coverage: WATR's debt is well covered by operating cash flow (169%).

Interest Coverage: WATR's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

5.9yrs

Average board tenure


CEO

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


Board Members

NamePositionTenureCompensationOwnership
Patrick DeSouza
Executive Chairman10.25yrsUS$537.38k19.34%
$ 13.6m
Robert Knell
Executive Director1.58yrsUS$40.00kno data
Laura Hills
Non Executive Vice Chairman1.17yrsUS$20.00k0.78%
$ 545.4k
William Reisman
Independent Non-Executive Director10.25yrsUS$20.00k1.21%
$ 848.0k

5.9yrs

Average Tenure

61yo

Average Age

Experienced Board: WATR's board of directors are considered experienced (5.9 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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£70.156m
  • Shares outstanding: 14.69m
  • 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
WTLL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 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 Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 22:32
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.