Duxton Water Ltd. (D2O) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 4.92%
• Average Volume (3M): 61.45K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.26
• Revenue Growth: 31.10%
• EPS Growth: 113.65%
• Country: AU
• Employees: N/A
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 0.15
• Shares Outstanding: 155,558,910
• 10 Day Avg. Volume: 51,737
• 30 Day Avg. Volume: 61,445
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$2.07
• Price Target Upside: 38.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: AU$1.50 ▲(0.00% Upside)

Duxton Water Ltd. benefits from strong revenue growth and profitability, supported by a solid balance sheet and attractive valuation metrics. However, the lack of strong market momentum and challenges in cash flow management slightly temper the overall outlook.

Duxton Water Ltd. Business Overview & Revenue Model

Company Description

Duxton Water Limited provides water supply solutions through its water entitlements. It supports farmers across the viticulture, nut, citrus, vegetable, olive, dried fruit, dairy, and broadacre cropping industries. The company was incorporated in 2016 and is based in Stirling, Australia.

How the Company Makes Money

Duxton Water Ltd. makes money by purchasing, holding, and leasing water entitlements to agricultural and other water-dependent industries. The company earns revenue from leasing these entitlements to farmers and businesses that require water for their operations, providing a flexible and reliable source of water. Additionally, Duxton Water benefits from the appreciation of water entitlements over time, which can lead to capital gains. The company may also be involved in trading water entitlements, generating income through strategic buying and selling based on market conditions.

Duxton Water Ltd. Financial Statement Overview

Summary

Duxton Water Ltd. shows strong revenue growth and profitability with a solid balance sheet, but faces challenges in cash flow generation and a low return on equity. Improving operational efficiency and cash flow management is crucial for sustained growth.

Income Statement

Duxton Water Ltd. has shown a consistent increase in revenue from 2019 to 2024, with a notable revenue growth rate of 20.4% from 2023 to 2024. The gross profit margin is strong at 98.3% in 2024, indicating effective cost management and pricing strategy. However, the net profit margin has decreased slightly to 37.4% in 2024 from 41.2% in 2023, suggesting a need to manage operational expenses better. Overall, the company demonstrates robust revenue growth and profitability, yet it must control rising costs to improve net margins.

Balance Sheet

Duxton Water Ltd. maintains a healthy balance sheet with a debt-to-equity ratio of 0.59 in 2024, reflecting moderate leverage and a solid equity base. The equity ratio stands at 62.4%, indicating strong asset backing by equity. However, the return on equity (ROE) is 4.8%, suggesting the company could improve its ability to convert equity investments into profits. The company is stable financially, but enhancing ROE would maximize shareholder value.

Cash Flow

The cash flow statement shows a negative free cash flow in 2024, which has improved from 2023 but remains concerning. The operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from operations to cover net income. The company needs to improve its cash generation from operations to ensure long-term financial health and operational sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.84M	20.75M	11.96M	20.44M	31.58M
Gross Profit	24.42M	20.36M	11.19M	6.75M	8.23M
EBITDA	19.98M	15.46M	171.00K	11.81M	16.65M
Net Income	9.33M	6.33M	10.01M	8.54M	8.70M
Balance Sheet
Total Assets	313.40M	324.64M	276.65M	255.80M	258.69M
Cash, Cash Equivalents and Short-Term Investments	825.00K	1.83M	1.25M	6.22M	2.76M
Total Debt	116.00M	116.50M	125.00M	106.00M	109.30M
Total Liabilities	117.64M	132.05M	131.79M	109.76M	114.60M
Stockholders Equity	195.76M	192.59M	144.86M	146.04M	144.09M
Cash Flow
Free Cash Flow	-34.91M	-52.42M	-26.17M	-2.11M	-16.45M
Operating Cash Flow	-7.10M	-7.57M	1.28M	7.81M	-5.43M
Investing Cash Flow	12.80M	-24.18M	-14.07M	5.54M	-377.00K
Financing Cash Flow	-6.71M	32.33M	7.82M	-9.89M	7.82M

Duxton Water Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:D2O, the sentiment is Negative. The current price of 1.5 is above the 20-day moving average (MA) of 1.48, below the 50-day MA of 1.51, and above the 200-day MA of 1.43, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.33 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:D2O.

Duxton Water Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAT	71 Outperform	220.13M	23.01	0.00%	2.40%	6.82%	-31.21%
D2O	64 Neutral		9.13	12.36%	4.92%	31.10%	113.65%
RWL	49 Neutral	37.31M	-5.36	0.00%	―	18.27%	53.69%
CNQ	47 Neutral	―	-7.98	0.00%	―	>-0.01%	31.60%
ERG	44 Neutral	3.81M	140.00	0.00%	―	7.44%	0.00%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Duxton Water Ltd. Corporate Events

Duxton Water Announces Dividend and Proposed Name Change

Duxton Water Limited has declared an interim dividend of 3.72 cents per share, marking its 17th consecutive and increasing dividend. The company’s net asset value increased by 1 cent in August due to strategic trades and improved allocation prices. The permanent water market saw mixed price movements, while allocation prices rose significantly. The company is well-positioned to meet irrigator demand with a diversified portfolio. An Extraordinary General Meeting is scheduled to approve a name change to Rivco Australia Limited, reflecting its long-term strategy and independence.

The most recent analyst rating on (AU:D2O) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Duxton Water Ltd. stock, see the AU:D2O Stock Forecast page.

Duxton Water Limited Releases 2025 Half-Year Results

Duxton Water Limited has released its 2025 half-year results presentation, highlighting its financial performance and market outlook. The announcement underscores the company’s strategic positioning in the water industry, with potential implications for stakeholders regarding investment risks and market trends.

The most recent analyst rating on (AU:D2O) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Duxton Water Ltd. stock, see the AU:D2O Stock Forecast page.

Duxton Water Announces Extraordinary General Meeting for October 2025

Duxton Water Limited has announced an Extraordinary General Meeting to be held on October 2, 2025, at HLB Mann Judd in Dulwich, South Australia. Shareholders are invited to vote in person or by proxy on the business items, with the chair intending to vote undirected proxies in favor. This meeting is significant for stakeholders as it may influence future company decisions and strategies.

The most recent analyst rating on (AU:D2O) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Duxton Water Ltd. stock, see the AU:D2O Stock Forecast page.

Duxton Water Announces New Dividend Distribution

Duxton Water Limited has announced a new dividend distribution of AUD 0.0372 per share for its ordinary fully paid security, with the payment scheduled for October 31, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may positively impact its market positioning by reinforcing investor confidence.

The most recent analyst rating on (AU:D2O) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Duxton Water Ltd. stock, see the AU:D2O Stock Forecast page.

Duxton Water Declares 17th Consecutive Dividend with Adjusted DRP Terms

Duxton Water Limited has announced a fully franked dividend of 3.72 cents per share, marking its 17th consecutive dividend payment. The company has decided to pause the discount on its Dividend Reinvestment Plan (DRP) due to recent debt repayment and aims for disciplined capital management. The DRP pricing window has been adjusted to reflect post-dividend market prices, ensuring fairness across the shareholder base.

The most recent analyst rating on (AU:D2O) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Duxton Water Ltd. stock, see the AU:D2O Stock Forecast page.

Duxton Water Ltd. Releases June 2025 Half-Year Report

Duxton Water Ltd. has released its half-year report for June 2025, highlighting its ongoing commitment to supporting Australian irrigators and farmers. The report includes key financial statements and declarations, reflecting the company’s financial health and operational performance over the period.

The most recent analyst rating on (AU:D2O) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Duxton Water Ltd. stock, see the AU:D2O Stock Forecast page.

Duxton Water Ltd. Reports Strong Half-Year Financial Performance

Duxton Water Ltd. reported a substantial increase in its financial performance for the half-year ending 30 June 2025, with revenue up by 75% and net profit after tax rising by 197% compared to the previous year. The company also realized significant capital gains from entitlement sales and paid a fully franked dividend. The net asset value per share increased, reflecting strong market positioning and effective management of water entitlements, which are crucial for its stakeholders.

The most recent analyst rating on (AU:D2O) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Duxton Water Ltd. stock, see the AU:D2O Stock Forecast page.

Duxton Water Issues Unquoted Management Performance Rights

Duxton Water Limited has announced the issuance of 200,000 unquoted Management Performance Rights, divided equally into Class A and Class B, as part of a transaction previously disclosed to the market. This issuance is not intended to be quoted on the ASX and reflects the company’s ongoing efforts to manage its equity securities and incentivize management, potentially impacting its operational strategies and stakeholder interests.

The most recent analyst rating on (AU:D2O) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Duxton Water Ltd. stock, see the AU:D2O Stock Forecast page.

Duxton Water Navigates High Allocation Prices and Strategic Acquisitions

Duxton Water Limited reported that the 2025-2026 water year began with high allocation prices in the lower Murray, which later eased. The company has leased 52% of its entitlement portfolio, achieving its highest weighted average lease expiry since inception. Despite increased rainfall, major storages are at their lowest levels since 2020, affecting allocation determinations. Duxton Water has secured forward contracts to hedge against spot market volatility and acquired new entitlements at favorable prices. The release of the 2025 Murray-Darling Basin Evaluation Report highlighted ongoing water recovery efforts, with Duxton Water noting the efficiency of water buybacks over infrastructure projects.

The most recent analyst rating on (AU:D2O) stock is a Buy with a A$2.10 price target. To see the full list of analyst forecasts on Duxton Water Ltd. stock, see the AU:D2O Stock Forecast page.

Duxton Water Issues Performance Rights to Portfolio Managers

Duxton Water Limited has announced the issuance of 100,000 Performance Rights each to Portfolio Managers Lachlan Campbell and Lachlan Beech as a sign-on bonus following the internalisation of the company’s management. These Performance Rights are subject to vesting conditions based on continued employment and are intended to align the interests of the managers with the company’s long-term goals, potentially impacting the company’s operational efficiency and market positioning.

The most recent analyst rating on (AU:D2O) stock is a Buy with a A$2.10 price target. To see the full list of analyst forecasts on Duxton Water Ltd. stock, see the AU:D2O Stock Forecast page.