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.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.8%

AQUA

-0.7%

US Machinery

0.7%

US Market


1 Year Return

110.0%

AQUA

14.5%

US Machinery

13.7%

US Market

Return vs Industry: AQUA exceeded the US Machinery industry which returned 14.5% over the past year.

Return vs Market: AQUA exceeded the US Market which returned 13.7% over the past year.


Shareholder returns

AQUAIndustryMarket
7 Day4.8%-0.7%0.7%
30 Day6.3%7.0%4.7%
90 Day15.3%14.8%6.1%
1 Year110.0%110.0%16.7%14.5%16.2%13.7%
3 Yearn/a47.5%38.2%48.8%39.2%
5 Yearn/a58.7%39.4%62.5%44.5%

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?

5.7x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AQUA ($17.98) is trading above our estimate of fair value ($13.35)

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


Price To Earnings Ratio

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

PE vs Market: AQUA 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 AQUA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AQUA is overvalued based on its PB Ratio (5.7x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

How is Evoqua Water Technologies forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

102.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AQUA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: AQUA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AQUA's is expected to become profitable in the next 3 years.

Revenue vs Market: AQUA's revenue (3.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AQUA's revenue (3.4% 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 (14.9%).


Next Steps

Past Performance

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

80.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AQUA has large one-off items impacting its financial results.

Growing Profit Margin: AQUA's current net profit margins (-1%) are lower than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: AQUA is unprofitable, but has reduced losses over the past 5 years at a rate of 80.2% per year.

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

Earnings vs Industry: AQUA is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (13.5%).


Return on Equity

High ROE: AQUA has a negative Return on Equity (-3.73%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Evoqua Water Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: AQUA's short term assets ($565.1M) exceeds its short term liabilities ($281.7M)

Long Term Liabilities: AQUA's short term assets ($565.1M) do not cover its long term liabilities (1.0B)


Debt to Equity History and Analysis

Debt Level: AQUA's debt to equity ratio (260.8%) 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 0.6x 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: Whilst unprofitable AQUA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AQUA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 52.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

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

What is the CEO of Evoqua Water Technologies's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Ron Keating (50yo)

4.9yrs

Tenure

US$12,283,463

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 ($USD12.28M) is above average for companies of similar size in the US market ($USD3.92M).

Compensation vs Earnings: Ron's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.1yrs

Average Tenure

51yo

Average Age

Experienced Management: AQUA's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

59yo

Average Age

Experienced Board: AQUA's board of directors are considered experienced (5.7 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.


Recent Insider Transactions

BuyUS$244,83506 Dec 18
James Kohosek
EntityIndividual
Role
Chief Administrative Officer
Executive VP & Chief Administrative Officer
Shares25,000
Max PriceUS$9.79
BuyUS$92,99203 Dec 18
Snehal Desai
EntityIndividual
Shares10,927
Max PriceUS$8.52
BuyUS$500,78803 Dec 18
Ronald Keating
EntityIndividual
Role
Chief Executive Officer
President
Shares54,418
Max PriceUS$9.37
BuyUS$72,18403 Dec 18
Benedict Stas
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares8,000
Max PriceUS$9.02

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Management Team

  • Dan Brailer (61yo)

    Vice President of Investor Relations

    • Tenure: 2yrs
  • Gary Cappeline (69yo)

    Executive Officer & Director

    • Tenure: 5.8yrs
  • Ron Keating (50yo)

    President

    • Tenure: 4.9yrs
    • Compensation: US$12.28m
  • Ed May (51yo)

    Executive VP & Chief Supply Chain Officer

    • Tenure: 5.1yrs
  • James Irwin (47yo)

    Executive Vice President of Corporate Development and Mergers & Acquisitions

    • Tenure: 3.5yrs
  • Jim Kohosek (60yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 1.8yrs
    • Compensation: US$1.06m
  • Rodney Aulick (52yo)

    Executive VP of Integrated Solutions & President of Services Segment

    • Tenure: 4.1yrs
    • Compensation: US$2.81m
  • Vince Grieco (50yo)

    Executive VP

    • Tenure: 4.8yrs
    • Compensation: US$628.48k
  • Anthony Webster (50yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 3.7yrs
    • Compensation: US$2.50m
  • Ben Stas (51yo)

    Executive VP

    • Tenure: 4.7yrs
    • Compensation: US$5.34m

Board Members

  • Pete Wilver (59yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$170.49k
  • Gary Cappeline (69yo)

    Executive Officer & Director

    • Tenure: 5.8yrs
  • Lynn Swann (67yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$101.60k
  • Vinay Kumar (41yo)

    Director

    • Tenure: 5.8yrs
  • Ron Keating (50yo)

    President

    • Tenure: 4.9yrs
    • Compensation: US$12.28m
  • Judd Gregg (72yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$158.24k
  • Nick Bhambri (56yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$164.99k
  • Martin Lamb (59yo)

    Non-Executive Chairman

    • Tenure: 5.7yrs
    • Compensation: US$206.12k
  • Brian Hoesterey (51yo)

    Director

    • Tenure: 5.8yrs

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$2.056b
  • Shares outstanding: 114.34m
  • 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. It operates in three segments: Ind ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 01:07
End of Day Share Price2019/11/15 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.