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 Analysis

Imperfect balance sheet and overvalued.


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

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


Market Performance


7 Day Return

0%

NEWA

2.9%

US Machinery

2.4%

US Market


1 Year Return

-70.5%

NEWA

-19.5%

US Machinery

-10.0%

US Market

Return vs Industry: NEWA underperformed the US Machinery industry which returned -23.5% over the past year.

Return vs Market: NEWA underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

NEWAIndustryMarket
7 Day0%2.9%2.4%
30 Day9.0%-13.4%-11.0%
90 Day-41.2%-26.7%-19.4%
1 Year-70.5%-70.5%-17.2%-19.5%-8.1%-10.0%
3 Yearn/a2.3%-5.2%17.3%9.6%
5 Yearn/a25.6%9.6%36.1%21.1%

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?

0.95x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: NEWA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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 good value based on its PB Ratio (0.9x) compared to the US Machinery industry average (1.6x).


Next Steps

Future Growth

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

5.5%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Newater Technology has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Newater Technology performed over the past 5 years?

36.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEWA is currently unprofitable.

Growing Profit Margin: NEWA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NEWA is unprofitable, but has reduced losses over the past 5 years at a rate of 36.5% per year.

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

Earnings vs Industry: NEWA is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-1.6%).


Return on Equity

High ROE: NEWA has a negative Return on Equity (-3.85%), as it is currently unprofitable.


Next Steps

Financial Health

How is Newater Technology's financial position?


Financial Position Analysis

Short Term Liabilities: NEWA's short term assets ($45.3M) exceed its short term liabilities ($39.1M).

Long Term Liabilities: NEWA's short term assets ($45.3M) exceed its long term liabilities ($4.6M).


Debt to Equity History and Analysis

Debt Level: NEWA's debt to equity ratio (64.7%) 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: Insufficient data to determine if NEWA's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

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

3.8yrs

Average board tenure


CEO

Yuebiao Li (45yo)

3.83s

Tenure

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 Members

NamePositionTenureCompensationOwnership
Yuebiao Li
CEO & Chairman3.83yrsno datano data
Zhuo Zhang
CFO & Vice Chairman3.83yrsno data17.58% $4.4m
Hengtong Li
Independent Director3.83yrsUS$5.00kno data
Zhicun Chen
Independent Director3.83yrsUS$5.00kno data
Yan Shen
Independent Director3.83yrsUS$5.00kno data

3.8yrs

Average Tenure

45yo

Average Age

Experienced Board: NEWA's board of directors are considered experienced (3.8 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

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$24.753m
  • 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 osmosis and disk tube nanofiltration membrane filtration products that are used in the treatment, recycling, and discharge of wastewater. It also supplies hardware and engineered systems to implement integrated solutions; and engineering support and installation, technical advice and service, and other project-related solutions to filter wastewater into clean water. In addition, the company offers landfill leachate treatment and purification services; and traditional wastewater treatment solutions, such as activated carbon and resins. It primarily serves energy, refuse, and chemical industries. Newater Technology, Inc. was founded in 2012 and is headquartered in Yantai, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 11:36
End of Day Share Price2020/04/06 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.