NYSE:AQUA

Stock Analysis Report

Evoqua Water Technologies

Executive Summary

Evoqua Water Technologies Corp. provides a range of water and wastewater treatment systems and technologies, and mobile and emergency water supply solutions and services for industrial, commercial, and municipal water treatment markets.


Snowflake Analysis

Slightly overvalued with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AQUA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

37.2%

AQUA

14.0%

US Machinery

10.5%

US Market


1 Year Return

-10.5%

AQUA

-22.6%

US Machinery

-11.5%

US Market

Return vs Industry: AQUA exceeded the US Machinery industry which returned -22.6% over the past year.

Return vs Market: AQUA matched the US Market which returned -11.5% over the past year.


Shareholder returns

AQUAIndustryMarket
7 Day37.2%14.0%10.5%
30 Day-47.0%-22.9%-15.4%
90 Day-40.3%-31.3%-21.4%
1 Year-10.5%-10.5%-20.5%-22.6%-9.6%-11.5%
3 Yearn/a-3.2%-10.2%12.6%5.4%
5 Yearn/a18.9%3.9%32.8%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AQUA ($11.26) is trading below our estimate of fair value ($14.54)

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


Price To Earnings Ratio

PE vs Industry: AQUA is poor value based on its PE Ratio (21.5x) compared to the Machinery industry average (15x).

PE vs Market: AQUA is poor value based on its PE Ratio (21.5x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: AQUA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AQUA is overvalued based on its PB Ratio (3.2x) compared to the US Machinery industry average (1.5x).


Next Steps

Future Growth

How is Evoqua Water Technologies forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AQUA's earnings are forecast to decline over the next 3 years (-17.3% per year).

Earnings vs Market: AQUA's earnings are forecast to decline over the next 3 years (-17.3% per year).

High Growth Earnings: AQUA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AQUA's revenue (2.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AQUA's revenue (2.8% 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 AQUA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Evoqua Water Technologies performed over the past 5 years?

64.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AQUA has a large one-off gain of $20.3M impacting its December 31 2019 financial results.

Growing Profit Margin: AQUA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AQUA has become profitable over the past 5 years, growing earnings by 64.6% per year.

Accelerating Growth: AQUA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AQUA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (-2%).


Return on Equity

High ROE: AQUA's Return on Equity (14.8%) is considered low.


Next Steps

Financial Health

How is Evoqua Water Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: AQUA's short term assets ($682.2M) exceed its short term liabilities ($405.5M).

Long Term Liabilities: AQUA's short term assets ($682.2M) do not cover its long term liabilities ($989.7M).


Debt to Equity History and Analysis

Debt Level: AQUA's debt to equity ratio (232.5%) is considered high.

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


Balance Sheet

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

Debt Coverage by Assets: AQUA's debt is not covered by short term assets (assets are 0.7x 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: AQUA is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: AQUA is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if AQUA'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 AQUA'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?

3.2yrs

Average management tenure


CEO

Ron Keating (50yo)

5.25s

Tenure

US$3,291,385

Compensation

Mr. Ronald C. Keating, also known as Ron, has been President, Chief Executive Officer and Director of EWT Holdings I Corp. since December 2014. Mr. Keating has been Chief Executive Officer and President of ...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD3.29M) is about average for companies of similar size in the US market ($USD4.54M).

Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ronald Keating
President5.25yrsUS$3.29m0.28% $3.7m
Benedict Stas
Executive VP5yrsUS$1.17m0.12% $1.6m
Rodney Aulick
Executive VP of Integrated Solutions & President of Services Segmentno dataUS$807.05k0.060% $793.3k
Snehal Desai
Executive VP & Chief Growth Officer2.17yrsUS$736.08k0.014% $177.7k
Hervé Fages
Executive VP & President of Applied Product Technologies Segment1yrUS$1.00m0.023% $305.3k
James Kohosek
Executive VP & Chief Administrative Officer2.17yrsUS$1.06m0.045% $586.8k
Daniel Brailer
Vice President of Investor Relations2.33yrsno datano data
Vincent Grieco
Executive VP5.17yrsUS$628.48k0.030% $391.2k
Anthony Webster
Executive VP & Chief Human Resources Officer4yrsUS$2.50m0.055% $726.6k

3.2yrs

Average Tenure

51yo

Average Age

Experienced Management: AQUA's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ronald Keating
President5.25yrsUS$3.29m0.28% $3.7m
Peter Wilver
Independent Director2.17yrsUS$195.00k0.011% $142.7k
Lisa Glatch
Director0.083yrno datano data
Gary Cappeline
Independent Director6.17yrsUS$168.23k0.0068% $88.9k
Lynn Swann
Independent Director1.83yrsUS$181.00k0.019% $246.2k
Brian Hoesterey
Director6.17yrsno datano data
Vinay Kumar
Director6.17yrsno datano data
Judd Gregg
Independent Director6yrsUS$179.00k0.011% $142.9k
Harbhajan Bhambri
Independent Director6yrsUS$185.00k0.13% $1.7m
Martin Lamb
Independent Non-Executive Chairman6yrsUS$241.50k0.24% $3.2m

6.0yrs

Average Tenure

57.5yo

Average Age

Experienced Board: AQUA's board of directors are considered experienced (6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Evoqua Water Technologies Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Evoqua Water Technologies Corp.
  • Ticker: AQUA
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$1.313b
  • Shares outstanding: 116.62m
  • Website: https://www.evoqua.com

Number of Employees


Location

  • Evoqua Water Technologies Corp.
  • 210 Sixth Avenue
  • Pittsburgh
  • Pennsylvania
  • 15222
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AQUANYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2017
E0WDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2017

Biography

Evoqua Water Technologies Corp. provides a range of water and wastewater treatment systems and technologies, and mobile and emergency water supply solutions and services for industrial, commercial, and municipal water treatment markets. It operates in two segments, Integrated Solutions and Services, and Applied Product Technologies. The Integrated Solutions and Services segment offers capital systems and related recurring aftermarket services, parts, and consumables, as well as long-term and short-term service contracts, and emergency services for treating industrial process water, utility water, and wastewater. It serves customers in the pharmaceutical, food and beverage, power, and chemical processing industries. The Applied Product Technologies segment offers advanced filtration and separation products, such as Memcor membranes, Ionpure technologies, and Vortisand systems; wastewater treatment technologies, including the BioMag systems, clarification systems, and odor control and sludge management solutions; disinfection solutions from chlorine to ultraviolet light and ozone technologies; electrocatalytic and materials, which include electro chlorination, cathodic protection, and anode products; and aquatics technologies and solutions. This segment serves recreational and commercial pool market. The company has operations in the United States, Canada, the United Kingdom, the Netherlands, Germany, Australia, China, Singapore, Korea, and India. Evoqua Water Technologies Corp. was incorporated in 2013 and is headquartered in Pittsburgh, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 04:24
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.