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AQUA

Evoqua Water TechnologiesNYSE:AQUA Stock Report

Last Price

US$39.12

Market Cap

US$4.7b

7D

1.3%

1Y

28.5%

Updated

23 Jan, 2022

Data

Company Financials +
AQUA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends0/6

AQUA Stock Overview

Evoqua Water Technologies Corp. provides water and wastewater treatment systems and technologies, and mobile and emergency water supply solutions and contract services for industrial, commercial, and municipal water treatment markets in the United States and internationally.

Evoqua Water Technologies Competitors

Xylem

NYSE:XYL

US$19.3b

IDEX

NYSE:IEX

US$16.7b

Pentair

NYSE:PNR

US$10.6b

Franklin Electric

NasdaqGS:FELE

US$4.0b

Price History & Performance

Summary of all time highs, changes and price drops for Evoqua Water Technologies
Historical stock prices
Current Share PriceUS$39.12
52 Week HighUS$49.38
52 Week LowUS$22.00
Beta1.83
1 Month Change-14.64%
3 Month Change-6.72%
1 Year Change28.52%
3 Year Change279.81%
5 Year Changen/a
Change since IPO87.36%

Recent News & Updates

Dec 24

Evoqua: Water Is Tightly Priced

Evoqua has seen some struggles in recent years after the valuation was demanding from the start. Investors have embraced the water theme again this year. I like the positioning and a nice bolt-on deal as of recent, as the overall valuation is far too demanding here.

Dec 17
Return Trends At Evoqua Water Technologies (NYSE:AQUA) Aren't Appealing

Return Trends At Evoqua Water Technologies (NYSE:AQUA) Aren't Appealing

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

Sep 24
We Think Evoqua Water Technologies (NYSE:AQUA) Is Taking Some Risk With Its Debt

We Think Evoqua Water Technologies (NYSE:AQUA) Is Taking Some Risk With Its Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Sep 03
We Like These Underlying Return On Capital Trends At Evoqua Water Technologies (NYSE:AQUA)

We Like These Underlying Return On Capital Trends At Evoqua Water Technologies (NYSE:AQUA)

What are the early trends we should look for to identify a stock that could multiply in value over the long term? One...

Shareholder Returns

AQUAUS MachineryUS Market
7D1.3%-5.1%-6.1%
1Y28.5%4.6%4.2%

Return vs Industry: AQUA exceeded the US Machinery industry which returned 4.6% over the past year.

Return vs Market: AQUA exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is AQUA's price volatile compared to industry and market?
AQUA volatility
AQUA Average Weekly Movement5.9%
Machinery Industry Average Movement5.1%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: AQUA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AQUA's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20134,000Ron Keatinghttps://www.evoqua.com

Evoqua Water Technologies Corp. provides water and wastewater treatment systems and technologies, and mobile and emergency water supply solutions and contract services for industrial, commercial, and municipal water treatment markets in the United States and internationally. 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 process water, utility water, and wastewater.

Evoqua Water Technologies Fundamentals Summary

How do Evoqua Water Technologies's earnings and revenue compare to its market cap?
AQUA fundamental statistics
Market CapUS$4.72b
Earnings (TTM)US$51.48m
Revenue (TTM)US$1.46b

91.7x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AQUA income statement (TTM)
RevenueUS$1.46b
Cost of RevenueUS$998.62m
Gross ProfitUS$465.81m
ExpensesUS$414.32m
EarningsUS$51.48m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 01, 2022

Earnings per share (EPS)0.43
Gross Margin31.81%
Net Profit Margin3.52%
Debt/Equity Ratio127.7%

How did AQUA perform over the long term?

See historical performance and comparison

Valuation

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

91.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AQUA ($39.12) is trading above our estimate of fair value ($24.14)

Significantly Below Fair Value: AQUA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AQUA is poor value based on its PE Ratio (91.7x) compared to the US Machinery industry average (27.7x).

PE vs Market: AQUA is poor value based on its PE Ratio (91.7x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: AQUA is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: AQUA is overvalued based on its PB Ratio (8.1x) compared to the US Machinery industry average (2.6x).


Future Growth

How is Evoqua Water Technologies forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

24.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AQUA's forecast earnings growth (24.8% per year) is above the savings rate (2%).

Earnings vs Market: AQUA's earnings (24.8% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: AQUA's revenue (5.3% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: AQUA's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AQUA's Return on Equity is forecast to be low in 3 years time (14.2%).


Past Performance

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

49.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AQUA has high quality earnings.

Growing Profit Margin: AQUA's current net profit margins (3.5%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: AQUA's earnings have grown significantly by 49.7% per year over the past 5 years.

Accelerating Growth: AQUA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AQUA had negative earnings growth (-54.7%) over the past year, making it difficult to compare to the Machinery industry average (34.4%).


Return on Equity

High ROE: AQUA's Return on Equity (8.9%) is considered low.


Financial Health

How is Evoqua Water Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: AQUA's short term assets ($678.5M) exceed its short term liabilities ($406.0M).

Long Term Liabilities: AQUA's short term assets ($678.5M) do not cover its long term liabilities ($880.7M).


Debt to Equity History and Analysis

Debt Level: AQUA's net debt to equity ratio (102%) is considered high.

Reducing Debt: AQUA's debt to equity ratio has reduced from 371.8% to 127.7% over the past 5 years.

Debt Coverage: AQUA's debt is well covered by operating cash flow (24%).

Interest Coverage: AQUA's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


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 recent payouts.

High Dividend: Unable to evaluate AQUA'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 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?

4.2yrs

Average management tenure


CEO

Ron Keating (52 yo)

7.08yrs

Tenure

US$15,660,392

Compensation

Mr. Ronald C. Keating, also known as Ron, has been President, Chief Executive Officer and Director of Evoqua Water Technologies Corp. since December 2014. Mr. Keating has been Chief Executive Officer, Pres...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD15.66M) is above average for companies of similar size in the US market ($USD5.29M).

Compensation vs Earnings: Ron's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: AQUA's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: AQUA's board of directors are considered experienced (7.1 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 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
  • Implied Market Cap: US$4.722b
  • Shares outstanding: 120.71m
  • Website: https://www.evoqua.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 23:02
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.