Rubicon Water Limited (RWL) AI Stock Analysis

• Market Cap: AU$48.14M
• Dividend Yield: N/A
• Average Volume (3M): 46.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -6.95%
• EPS Growth: 40.87%
• Country: AU
• Employees: 300
• Sector: Utilities
• Sector Strength: 79
• Industry: Regulated Water
• EPS (TTM): -0.63
• Shares Outstanding: 240,695,100
• 10 Day Avg. Volume: 10,726
• 30 Day Avg. Volume: 46,345
• PEG Ratio: -0.20
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.63
• 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$0.46
• Price Target Upside: 130.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Rubicon Water Limited's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. The bearish technical indicators further contribute to the low score. Valuation concerns, particularly the negative P/E ratio, also play a significant role.

Rubicon Water Limited Business Overview & Revenue Model

Company Description

Rubicon Water Limited (RWL) is an Australian-based technology company specializing in providing innovative water management solutions. The company operates primarily in the agricultural sector, developing and deploying advanced hardware and software systems designed to optimize water usage for irrigation. Rubicon Water Limited's core products include automated water delivery solutions and real-time monitoring systems that enable farmers to increase water efficiency, reduce waste, and enhance crop yields.

How the Company Makes Money

Rubicon Water Limited makes money primarily through the sale of its advanced irrigation management systems and related services. The company's key revenue streams include the sale of hardware products such as automated gates and flow meters, which are integral to its water management solutions. Additionally, Rubicon generates revenue through software subscriptions that provide real-time data analytics and control capabilities for its systems. The company also offers installation, maintenance, and consulting services, which contribute to its revenue. Significant partnerships with government agencies and agricultural organizations help drive sales and expand its market presence, while ongoing innovation and development efforts ensure a competitive edge in the water management technology sector.

Rubicon Water Limited Financial Statement Overview

Summary

Rubicon Water Limited faces significant financial challenges. The company struggles with profitability and cash flow generation despite steady revenues. Increasing leverage and negative cash flows highlight potential risks, and there needs to be a focus on improving operational efficiency and cost management to enhance financial health.

Income Statement

Rubicon Water Limited has seen declining revenue over the years, with a notable gross profit recovery in 2024 compared to 2023. However, the company remains unprofitable with negative EBIT and net income margins, impacting its overall income statement score.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio and decreasing equity over the years, with a stable asset base. Equity ratios have remained adequate, but the increase in debt levels suggests rising leverage, which could pose risks if not managed carefully.

Cash Flow

Cash flows are under pressure, with negative operating and free cash flows indicating challenges in generating sufficient cash from operations. The growing gap between cash flow and net income highlights cash management issues that need addressing.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
57.09M	58.40M	55.22M	65.29M	81.53M	64.81M
	Gross Profit
22.64M	23.46M	-2.00M	27.06M	14.38M	10.26M
	EBIT
-6.15M	-5.16M	-10.66M	-371.00K	6.60M	2.68M
	EBITDA
-7.23M	-6.45M	-7.99M	2.02M	10.55M	5.68M
	Net Income Common Stockholders
-6.62M	-10.71M	-10.93M	-438.00K	8.32M	1.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.69M	1.69M	8.49M	11.23M	9.03M	24.43M
	Total Assets
111.28M	106.40M	111.58M	125.81M	106.95M	93.64M
	Total Debt
25.09M	37.13M	30.69M	29.50M	32.69M	33.42M
	Net Debt
18.40M	35.44M	22.20M	18.27M	23.67M	9.00M
	Total Liabilities
41.82M	51.54M	45.78M	49.66M	57.80M	52.24M
	Stockholders Equity
69.76M	55.13M	65.75M	75.86M	48.53M	40.69M
Cash Flow		Free Cash Flow
2.91M	-9.13M	-3.92M	-20.48M	-12.06M	-2.46M
	Operating Cash Flow
3.71M	-6.95M	-1.36M	-16.81M	-10.45M	-1.52M
	Investing Cash Flow
-2.06M	-2.10M	-2.60M	-3.38M	-2.87M	-1.15M
	Financing Cash Flow
4.26M	1.28M	1.09M	26.18M	-4.20M	21.00M

Rubicon Water Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RWL, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.25, and below the 200-day MA of 0.29, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 32.02 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RWL.

Rubicon Water Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RFF	74 Outperform	AU$707.35M	14.37	4.68%	7.37%	14.72%	-42.17%
EGL	71 Outperform	AU$93.22M	24.50	9.28%	―	19.70%	8.70%
Sector *	64 Neutral	$8.54B	10.30	4.69%	4.37%	4.14%	-13.04%
GNC	63 Neutral	AU$1.71B	24.34	4.61%	3.26%	2.00%	-28.15%
SHV	52 Neutral	$640.91M	19.44	7.05%	―	75.76%	―
RWL	44 Neutral	AU$48.14M	―	-10.18%	―	-6.95%	40.87%
NWF	42 Neutral	AU$83.72M	―		―	―	―

Rubicon Water Limited Corporate Events

Rubicon Water Limited Mitigates US Tariff Impact and Boosts Indian Cash Collections

Rubicon Water Limited has announced that the newly imposed 10% US tariffs on selected Australian imports are not expected to materially impact its FY25 financial results. The company has implemented strategic initiatives to mitigate these effects, including localizing production in the US and passing duty-related costs to customers. Additionally, Rubicon has successfully collected $5.0 million AUD from Indian customers, significantly reducing its outstanding receivables in India, with further collections anticipated before the fiscal year-end.