NasdaqCM:NEWA

Stock Analysis Report

Executive Summary

Newater Technology, Inc. operates as a wastewater purification treatment company in the People's Republic of China.

Snowflake

Fundamentals

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Newater Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.4%

NEWA

2.5%

US Machinery

0.4%

US Market


1 Year Return

-28.4%

NEWA

8.5%

US Machinery

6.9%

US Market

Return vs Industry: NEWA underperformed the US Machinery industry which returned 8.5% over the past year.

Return vs Market: NEWA underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

NEWAIndustryMarket
7 Day-0.4%2.5%0.4%
30 Day-0.9%0.9%-1.1%
90 Day4.3%-0.4%-0.5%
1 Year-28.4%-28.4%10.8%8.5%9.3%6.9%
3 Yearn/a49.9%40.2%45.8%36.4%
5 Yearn/a57.6%38.3%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Newater Technology undervalued compared to its fair value and its price relative to the market?

9.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate NEWA's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate NEWA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NEWA is good value based on its PE Ratio (9.4x) compared to the Machinery industry average (20.1x).

PE vs Market: NEWA is good value based on its PE Ratio (9.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NEWA is overvalued based on its PB Ratio (2.5x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Newater Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEWA's forecast earnings growth (1.4% per year) is below the savings rate (2.7%).

Earnings vs Market: NEWA's earnings (1.4% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: NEWA's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if NEWA's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if NEWA's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Newater Technology performed over the past 5 years?

65.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NEWA's earnings have grown significantly by 65.1% per year over the past 5 years.

Accelerating Growth: NEWA's earnings growth over the past year (178.3%) exceeds its 5-year average (65.1% per year).

Earnings vs Industry: NEWA earnings growth over the past year (178.3%) exceeded the Machinery industry 17.5%.


Return on Equity

High ROE: NEWA's Return on Equity (26.7%) is considered high.


Return on Assets

ROA vs Industry: NEWA has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: NEWA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Newater Technology's financial position?


Financial Position Analysis

Short Term Liabilities: NEWA's short term assets ($39.5M) exceeds its short term liabilities ($30.3M)

Long Term Liabilities: NEWA's short term assets (39.5M) exceeds its long term liabilities (4.4M)


Debt to Equity History and Analysis

Debt Level: NEWA's debt to equity ratio (56.6%) is considered high

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

Debt Coverage: NEWA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: NEWA's interest payments on its debt are well covered by EBIT (14x coverage).


Balance Sheet

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

Debt Coverage by Assets: NEWA's debt is covered by short term assets (assets are 2.581140x debt).


Next Steps

Dividend

What is Newater Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

Yuebiao Li (45yo)

3.3yrs

Tenure

0

Mr. Yuebiao Li is a Co-Owner at Tigerwind Group Limited. Mr. Li has been the Chairman and Chief Executive Officer of Newater Technology, Inc. since June 2016. He has experience in executive positions at co ...


Board Age and Tenure

3.3yrs

Average Tenure

45yo

Average Age

Experienced Board: NEWA's board of directors are considered experienced (3.3 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.


Ownership Breakdown


Management Team

  • Yuebiao Li (45yo)

    CEO & Chairman

    • Tenure: 3.3yrs
  • Zhuo Zhang (41yo)

    CFO & Vice Chairman

    • Tenure: 3.3yrs

Board Members

  • Yuebiao Li (45yo)

    CEO & Chairman

    • Tenure: 3.3yrs
  • Zhuo Zhang (41yo)

    CFO & Vice Chairman

    • Tenure: 3.3yrs
  • Hengtong Li (54yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$5.00k
  • Zhicun Chen (45yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$5.00k
  • Yan Shen (48yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$5.00k

Company Information

Newater Technology, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Newater Technology, Inc.
  • Ticker: NEWA
  • Exchange: NasdaqCM
  • Founded: 2012
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$67.664m
  • Shares outstanding: 10.81m
  • Website: https://dtnewa.com

Number of Employees


Location

  • Newater Technology, Inc.
  • 1 Ruida Road
  • Laishan District
  • Yantai
  • Shandong Province
  • 264000
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEWANasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDJul 2017

Biography

Newater Technology, Inc. operates as a wastewater purification treatment company in the People's Republic of China. The company focuses on the development, manufacture, and sale of disk tube reverse osmosi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:47
End of Day Share Price2019/10/18 00:00
Earnings2018/12/31
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.