Rubicon Water Limited (RWL) AI Stock Analysis

• Market Cap: AU$49.36M
• Dividend Yield: N/A
• Average Volume (3M): 103.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 18.27%
• EPS Growth: 53.69%
• Country: AU
• Employees: 300
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): -0.02
• Shares Outstanding: 240,795,100
• 10 Day Avg. Volume: 161,238
• 30 Day Avg. Volume: 103,367
• PEG Ratio: 0.11
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 8.42
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: AU$0.19 ▲(36.43% Upside)

The score is primarily constrained by weak financial performance, especially ongoing losses (negative margins/ROE) despite strong revenue growth and some cash flow improvement. Technicals are modestly supportive in the near term (above key short/mid-term averages, RSI ~61) but are mixed overall (negative MACD, below 200-day). Valuation is also a headwind due to the negative P/E reflecting unprofitable operations.

Positive Factors

Revenue Growth

Sustained ~21% top-line growth indicates robust demand for Rubicon's irrigation software/hardware mix and expanding market penetration. Over 2-6 months this supports scale benefits, recurring subscription expansion, and strengthens the company's ability to invest in product R&D and sales channels.

Improved Leverage

Improving debt-to-equity signals better leverage management and greater financial flexibility. Over several months this reduces refinancing risk, lowers interest burden potential, and gives management room to fund capital projects or absorb cyclical shocks without diluting equity or hampering operations.

Free Cash Flow Generation

Meaningful free cash flow growth despite accounting losses shows the business can generate durable cash from operations and investments. This improves runway, funds product development and deployments, and reduces dependence on external financing over the medium term.

Negative Factors

Negative Profitability

Persistent negative EBIT and net margins imply the company is not yet converting revenue into profit. Over months this constrains retained earnings, hampers ROE recovery, and forces reliance on cash reserves or financing to sustain growth unless operational efficiency or pricing improves materially.

Weak Cash Conversion

Low conversion of accounting earnings into operating cash suggests working capital or collection issues and that reported revenue may not translate to liquid resources. This structural inefficiency can stress liquidity and limit reinvestment capacity absent improvements in cash collection or margin quality.

Negative Return on Equity

A sustained negative ROE signals the company is destroying shareholder capital rather than creating it. Over the medium term this undermines investor returns, makes equity financing less attractive, and indicates management must reverse losses to restore long-term value creation.

Rubicon Water Limited Business Overview & Revenue Model

Company Description

Rubicon Water Limited designs, manufactures, installs, and maintains irrigation automation software and hardware in Australia, New Zealand, Asia, and internationally. The company offers network control solutions, such as total channel control, low energy pipeline, site management, and water and energy efficiency solutions; flow, water level, and climate measurement solutions; and operations software solutions. It also provides surface irrigation, irrigation automation, and precise irrigation scheduling solutions. The company was founded in 1995 and is headquartered in Hawthorn East, Australia.

How the Company Makes Money

Rubicon Water generates revenue primarily through the sale and subscription of its technology solutions. Key revenue streams include the sale of hardware systems, software licenses, and ongoing subscription fees for its data analytics services. The company may also earn income from consulting services related to water management optimization. Additionally, strategic partnerships with agricultural organizations and government agencies can lead to collaborative projects, further contributing to RWL's income by providing tailored solutions that meet specific market needs.

Rubicon Water Limited Financial Statement Overview

Summary

Revenue growth is strong (20.99%), but profitability is a key weakness with negative net profit and EBIT margins. Balance sheet leverage has improved, yet return on equity remains negative. Cash flow shows improvement (free cash flow growth) but weak operating cash flow conversion versus net income signals operational inefficiency.

Income Statement

Rubicon Water Limited has shown a mixed performance in its income statement. The company experienced a significant revenue growth rate of 20.99% in the most recent year, indicating a positive trajectory. However, profitability remains a concern with negative net profit margins and EBIT margins, reflecting ongoing operational challenges. The gross profit margin is relatively stable but not sufficient to offset the negative net income.

Balance Sheet

The balance sheet of Rubicon Water Limited shows moderate stability. The debt-to-equity ratio has improved over the years, indicating better leverage management. However, the return on equity remains negative, highlighting profitability issues. The equity ratio is reasonable, suggesting a solid asset base relative to equity.

Cash Flow

Cash flow analysis reveals some improvements but also significant challenges. The company has achieved a substantial free cash flow growth rate, but the operating cash flow to net income ratio is low, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is relatively high, suggesting that the company is managing to generate cash despite net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.07M	69.07M	58.40M	55.22M	65.29M	81.53M
Gross Profit	28.48M	28.48M	23.46M	-2.00M	27.06M	14.38M
EBITDA	-6.82M	-6.82M	-6.45M	-7.99M	2.28M	10.55M
Net Income	-6.79M	-6.79M	-10.71M	-10.93M	-438.00K	8.32M
Balance Sheet
Total Assets	103.94M	103.94M	106.40M	111.58M	125.81M	106.95M
Cash, Cash Equivalents and Short-Term Investments	5.51M	5.51M	1.69M	8.49M	11.23M	9.03M
Total Debt	23.13M	23.13M	37.13M	30.69M	29.50M	32.69M
Total Liabilities	39.98M	39.98M	51.54M	45.78M	49.66M	57.80M
Stockholders Equity	64.42M	64.42M	55.13M	65.75M	75.86M	48.53M
Cash Flow
Free Cash Flow	4.70M	4.70M	-9.13M	-3.92M	-20.48M	-12.06M
Operating Cash Flow	5.45M	5.45M	-6.95M	-1.36M	-16.81M	-10.45M
Investing Cash Flow	-2.44M	-2.44M	-2.10M	-2.60M	-3.38M	-2.87M
Financing Cash Flow	1.04M	1.04M	1.28M	1.09M	26.18M	-4.20M

Rubicon Water Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 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:RWL, the sentiment is Positive. The current price of 0.14 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.18, and below the 200-day MA of 0.19, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.71 is Neutral, neither overbought nor oversold. The STOCH value of 61.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RWL.

Rubicon Water Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
WAT	58 Neutral	AU$188.80M	18.44	7.04%	2.95%	4.52%	-31.16%
EGL	54 Neutral	AU$95.12M	20.16	10.86%	―	13.51%	5.08%
CCE	49 Neutral	AU$29.76M	-11.41	-11.34%	―	-8.52%	13.51%
LPE	47 Neutral	AU$17.35M	-4.92	-38.32%	―	2.69%	-273.87%
RWL	46 Neutral	AU$49.36M	-7.09	-11.36%	―	18.27%	53.69%
DEL	40 Underperform	AU$20.93M	-2.33	-129.44%	―	-29.97%	-284.16%

Rubicon Water Limited Corporate Events

Rubicon Water Limited Cancels Erroneous Securities Quotation

Rubicon Water Limited announced the cancellation of a previous securities quotation application due to an error, as no new shares were issued or should be listed. This correction ensures accurate representation of the company’s securities status, maintaining transparency with stakeholders and aligning with regulatory requirements.

The most recent analyst rating on (AU:RWL) stock is a Hold with a A$0.18 price target. To see the full list of analyst forecasts on Rubicon Water Limited stock, see the AU:RWL Stock Forecast page.

Rubicon Water Limited Issues New Securities Under Employee Share Scheme

Rubicon Water Limited has announced the issuance of 100,000 ordinary fully paid securities to be quoted on the ASX, as part of the Rubicon Employee Share Scheme. This move is likely to enhance employee engagement and align interests with shareholders, potentially strengthening the company’s market position.

The most recent analyst rating on (AU:RWL) stock is a Hold with a A$0.18 price target. To see the full list of analyst forecasts on Rubicon Water Limited stock, see the AU:RWL Stock Forecast page.

Rubicon Water Limited Issues New Securities in Compliance with Corporations Act

Rubicon Water Limited has issued fully paid ordinary shares and/or options without disclosure to investors, in compliance with the Corporations Act. This strategic move reflects the company’s adherence to regulatory requirements and aims to strengthen its financial position, potentially impacting its market operations and stakeholder interests.

The most recent analyst rating on (AU:RWL) stock is a Hold with a A$0.18 price target. To see the full list of analyst forecasts on Rubicon Water Limited stock, see the AU:RWL Stock Forecast page.

Rubicon Water Limited Issues Performance Rights to Boost Employee Incentives

Rubicon Water Limited has announced the issuance of 2,116,076 performance rights as part of an employee incentive scheme. This move is likely aimed at motivating employees and aligning their interests with the company’s growth objectives, potentially impacting the company’s operational efficiency and market positioning positively.

The most recent analyst rating on (AU:RWL) stock is a Hold with a A$0.18 price target. To see the full list of analyst forecasts on Rubicon Water Limited stock, see the AU:RWL Stock Forecast page.

Rubicon Water Announces Director’s Interest Update

Rubicon Water Limited announced a change in the director’s interest, specifically involving Bruce Rodgerson. The update details the acquisition of 1,275,355 Performance Rights and 43,742 ordinary shares through the conversion of Performance Rights, as part of the company’s Long-Term Incentive Plan. This change reflects the company’s ongoing efforts to align management interests with long-term strategic goals, potentially impacting shareholder value and company performance.

The most recent analyst rating on (AU:RWL) stock is a Hold with a A$0.18 price target. To see the full list of analyst forecasts on Rubicon Water Limited stock, see the AU:RWL Stock Forecast page.

Rubicon Water Limited Passes All AGM Resolutions

Rubicon Water Limited announced that all resolutions presented at their Annual General Meeting were passed successfully. This outcome reflects strong shareholder support and is likely to positively impact the company’s governance and strategic initiatives, reinforcing its position in the water technology industry.

The most recent analyst rating on (AU:RWL) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Rubicon Water Limited stock, see the AU:RWL Stock Forecast page.

Rubicon Water Limited Reports Strong Revenue Growth and Strategic Asian Expansion

Rubicon Water Limited reported its strongest revenue since listing on the ASX, achieving $69 million in FY25, with a notable 42% increase in its Rest of World segment. The company narrowed its net loss and generated positive operating cash flow, while strategically transitioning in the Asian market through a new joint venture in China, positioning itself for future growth and addressing global water security challenges.

The most recent analyst rating on (AU:RWL) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Rubicon Water Limited stock, see the AU:RWL Stock Forecast page.

Rubicon Water Expands Italian Operations with New Contract

Rubicon Water Limited has secured a new contract worth approximately A$1.3 million in Italy’s Torinese region, marking its fifth significant project in the country for FY26. This contract contributes to a total of A$4.5 million in Italian projects, reinforcing Italy’s role as a key growth area for Rubicon in the EMEA region. The company’s technology is increasingly adopted across northern Italy, delivering substantial water savings and cost reductions, which bolsters its market position and supports further expansion.

The most recent analyst rating on (AU:RWL) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Rubicon Water Limited stock, see the AU:RWL Stock Forecast page.