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Fundamental analysis: Evoqua Water Technologies Corp. (AQUA)

Awarener score: 5.5

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Very good) and growth (Modest), and the company's inclination to return cash to the stockholders (Modest).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.5

  • Business growth has been almost stagnant. It's been almost average when measured against peer companies.
  • Evoqua Water Technologies Corp. business trend stability is very good. The higher the stability, the lower the risk. It looks top-notch against rivals.

Margins score: 6.0

  • AQUA profit margins -on goods and services sold- are usually hardly sufficient. They stand slightly worse than rival companies.
  • Business profit on sales tends to be good. It's encouraging in relation to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain rather normal in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still slightly better than similar companies.
  • Profits -before income taxes- are usually sufficient considering total sales, and remain similar to rivals.
  • Total net profit tends to be sufficient when confronted to sales. Company stands similar to comparable firms.

Growth score: 5.3

  • Evoqua Water Technologies Corp. profit -on goods and services sold- has been growing at a very low pace. It's been in a weak position compared to competitors.
  • In recent years, earnings -on operations- have been growing at a good step, which has been slightly worse than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a normal pace, which compares below average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be close to average when compared to similar stocks.
  • In past years, profits -before income taxes- grew at an extremely fast speed. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 8.3

  • AQUA had to pay sparse income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
  • Research and development expenses hardly consume a portion of revenues. It's encouraging in relation to competitors.
  • The company shows very good business growth in relation to research and development efforts. It stands lacking compared to rival companies.

Profitability score: 7.0

  • Evoqua Water Technologies Corp. usually gets good returns on the resources it controls. It proves similar to peer firms.
  • The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
  • Profitability -in relation to owned resources- is usually quite good. It ranks similar to competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 4.6

  • AQUA usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands encouraging in relation to rival firms.
  • The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is similar to industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.8

  • Evoqua Water Technologies Corp. intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
  • The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be in a very weak position compared to similar firms.
  • A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains worse than most rival firms.
  • Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks last-in-rank when measured against rivals.
  • For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's in a very weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is worse than most similar enterprises.
  • Usually, sales are on somewhat more than three months credit. It still ranks below average when measured against peers.
  • Normally has approximately somewhat more than two months of sales worth in inventory. It comes up as close to average when compared to competitors.
  • On average, it takes higher than five months from the purchase to charging customers. It happens to be slightly worse than peers.
  • On average pays suppliers longer than two months after the purchase. It ranks similar to industry peers.
  • The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's rather normal in relation to similar companies.
  • Usual business earnings are mostly consumed by net interest expenses. Creditors may be earning money by assuming risks, but stockholders not so much. Profitability must increase, lest the firm risks only working for creditors' benefit. It stands mediocre against rival firms.
  • Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
  • Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
  • Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat better than peer companies.

Valuation score: 4.1

  • Evoqua Water Technologies Corp. profits are really small compared to market valuation, market valuation doesn't rely on current earnings. It happens to be substantially worse when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated some good free funds in relation to the stock price, which stands somewhat better than similar companies.
  • The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still almost average when measured against industry firms.
  • In the past twelve months, the company has slightly enlarged the pool of investors by issuing new shares. The pie of earnings will now be split among a little more stockholders. It came up rather normal in relation to peer ventures.
  • The company has barely more debt than cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks worse than most similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is huge, as profits were extremely low in relative terms. It ranks substantially worse when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a very weak position compared to rival firms.
  • The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
  • In the past twelve months, the operating business lost a little money. It happens to be encouraging in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 5.8


AQUA logos

Company at a glance: Evoqua Water Technologies Corp. (AQUA)

Sector, industry: Industrials, Pollution & Treatment Controls

Market Cap: 5.28 billions

Revenues TTM: 1.74 billions

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 through two segments, Integrated Solutions and Services, and Applied Product Technologies. The Integrated Solutions and Services segment offers outsourced water service contracts, capital systems and related recurring aftermarket services, parts and consumables, and emergency services for treating process water, utility water, and wastewater. This segment also provides odor and corrosion control services and drinking water treatment systems for municipalities. It serves manufacturing, healthcare, pharmaceuticals, biotech, power, microelectronics, chemical processing, food and beverage, and refining industries. The Applied Product Technologies segment provides advanced filtration and separation products, such as VAF self-cleaning filters, Ionpure electrodeionization systems, and Vortisand filtration systems, as well as filter presses and related consumables, and aftermarket products for customers in the microelectronics, pharmaceutical, and power end markets. It also offers disinfection solutions, including chemical and non-chemical disinfection technologies comprising low and medium pressure ultraviolet, ozone, onsite hypochlorite generation, and chlorine and chlorine dioxide systems for municipal drinking water, industrial, light manufacturing, commercial, and aquatics markets. In addition, this segment provides wastewater technologies, including biological treatment, clarification, filtration, nutrient removal, biosolid, and field-erected biological wastewater treatment plant solutions; and aftermarket and retrofit solutions. Further, it offers aquatics and electrochlorination solutions. The company was incorporated in 2013 and is headquartered in Pittsburgh, Pennsylvania.

Awarener score: 5.5

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Very good) and growth (Modest), and the company's inclination to return cash to the stockholders (Modest).