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Waterco Limited (AU:WAT)
ASX:WAT
Australian Market
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Waterco Limited (WAT) AI Stock Analysis

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AU:WAT

Waterco Limited

(Sydney:WAT)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
AU$5.50
▲(11.79% Upside)
Action:Reiterated
Date:11/06/25
Waterco Limited's overall stock score is primarily influenced by its stable financial performance and moderate valuation. However, the bearish technical indicators significantly impact the score, suggesting caution for potential investors. The absence of recent earnings call data and notable corporate events limits additional insights into the company's future prospects.
Positive Factors
Strong free cash flow generation
Consistent and growing free cash flow provides durable support for reinvestment, maintenance capex, dividend funding and debt reduction. That cash conversion capacity boosts resilience through cycles and funds strategic initiatives without heavy reliance on external financing.
Negative Factors
Negative recent revenue and EPS trends
Declining revenue and material EPS contraction indicate weakening underlying demand or margin pressure. Persisting top-line and earnings declines reduce reinvestment capacity and weaken scalability, making recovery of operating leverage and shareholder returns a multi-quarter challenge.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent and growing free cash flow provides durable support for reinvestment, maintenance capex, dividend funding and debt reduction. That cash conversion capacity boosts resilience through cycles and funds strategic initiatives without heavy reliance on external financing.
Read all positive factors

Waterco Limited (WAT) vs. iShares MSCI Australia ETF (EWA)

Waterco Limited Business Overview & Revenue Model

Company Description
Waterco Limited engages in the manufacture, wholesale, and export of equipment and accessories in the swimming pool, spa pool, spa bath, rural pump, and irrigation and water treatment sectors in Australia, New Zealand, Asia, North America, and Eur...
How the Company Makes Money
Waterco makes money primarily by selling its pool and water-treatment equipment and related components to customers through wholesale/distribution networks and industry channels (e.g., pool retailers, builders, service/maintenance professionals, a...

Waterco Limited Financial Statement Overview

Summary
Waterco Limited presents a stable financial outlook with strengths in cash flow management and a solid balance sheet. However, challenges in revenue growth and profitability margins indicate areas for improvement. The company should focus on enhancing operational efficiency and driving revenue growth to improve its financial performance further.
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue190.37M254.93M244.84M128.10M122.81M112.83M
Gross Profit59.71M125.54M120.31M29.83M28.93M24.04M
EBITDA22.86M31.84M33.48M21.63M21.51M15.98M
Net Income8.60M9.57M13.90M10.85M11.64M12.76M
Balance Sheet
Total Assets280.16M264.24M257.77M167.95M157.65M135.42M
Cash, Cash Equivalents and Short-Term Investments21.53M24.52M16.80M12.34M11.95M11.69M
Total Debt84.72M82.35M80.69M21.33M20.89M14.08M
Total Liabilities134.40M121.60M127.92M46.72M46.64M34.97M
Stockholders Equity145.41M142.27M129.53M120.87M110.50M99.87M
Cash Flow
Free Cash Flow7.39M18.11M22.16M8.27M-176.00K2.44M
Operating Cash Flow16.38M21.15M24.50M11.19M3.33M5.23M
Investing Cash Flow-9.17M-2.83M-56.21M-3.39M-3.92M23.29M
Financing Cash Flow-9.23M-11.57M37.58M-7.12M-1.23M-24.07M

Waterco Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.92
Price Trends
50DMA
5.21
Positive
100DMA
5.31
Positive
200DMA
5.16
Positive
Market Momentum
MACD
0.14
Negative
RSI
81.85
Negative
STOCH
76.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WAT, the sentiment is Positive. The current price of 4.92 is below the 20-day moving average (MA) of 5.39, below the 50-day MA of 5.21, and below the 200-day MA of 5.16, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 81.85 is Negative, neither overbought nor oversold. The STOCH value of 76.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:WAT.

Waterco Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$10.54B39.187.27%1.09%2.83%-24.39%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
60
Neutral
AU$2.75B16.338.87%1.87%-1.47%-16.42%
58
Neutral
AU$199.33M23.755.98%2.95%-2.87%-18.36%
53
Neutral
AU$39.27M-17.16-15.66%20.05%33.33%
45
Neutral
AU$4.37M-1.54-41.16%308.85%-44.44%
42
Neutral
AU$81.34M-5.76115.72%64.76%61.79%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:WAT
Waterco Limited
5.76
-0.85
-12.91%
AU:FLC
Fluence Corporation Limited
0.07
<0.01
14.75%
AU:PET
Phoslock Environmental Technologies Limited
0.01
0.00
0.00%
AU:REH
Reece Limited
17.24
2.52
17.10%
AU:RWC
Reliance Worldwide Corp.
3.67
-0.80
-17.86%
AU:DEM
De.mem Ltd.
0.12
>-0.01
-4.17%

Waterco Limited Corporate Events

Waterco Trims Share Count Through On‑Market Buy‑Back
Aug 4, 2026
Waterco Limited has undertaken a small adjustment to its issued capital, cancelling 2,480 ordinary fully paid shares via an on-market buy-back recorded on 4 August 2026. The move forms part of its ongoing capital management, slightly reducing the ...
Waterco Updates Daily On-Market Share Buy-Back Activity
Jul 29, 2026
Waterco Limited has provided an updated notification on its on-market share buy-back program, confirming a daily buy-back of its ordinary fully paid shares. The latest filing reports that a total of 980 shares had been repurchased before the previ...
Waterco Updates Market on Progress of Daily On-Market Share Buy-Back
Jul 22, 2026
Waterco Limited has issued an updated notification regarding its on-market share buy-back program for its ordinary fully paid shares listed on the ASX under the code WAT. The latest daily update, dated 23 July 2026, reports that a total of 700 sha...
Waterco Limited Launches On-Market Share Buy-Back Program
Jul 14, 2026
Waterco Limited has announced an on-market share buy-back of its ordinary fully paid shares listed under the ASX code WAT, signalling a new phase in its capital management strategy.The move indicates management&#8217;s intention to actively repurc...
Waterco completes on‑market share buy‑back of 132,156 shares
Jul 1, 2026
Waterco Limited has completed an on-market share buy-back of its ordinary fully paid shares, repurchasing a total of 132,156 securities. The program, initially notified in July 2025 and now formally concluded with this final notification, reflects...
Waterco cancels shares following on-market buy-back
Jun 30, 2026
Waterco Limited has confirmed the cancellation of 9,953 ordinary fully paid shares following an on-market buy-back completed on June 30, 2026. The reduction in issued capital marginally tightens the company&#8217;s free float, signalling continued...
Waterco Updates Securities Trading Policy as Global Operations Expand
Jun 29, 2026
Waterco Limited, a Sydney-headquartered ASX-listed manufacturer and distributor of swimming pool, spa, and water treatment products, has a significant international footprint and diversified distribution channels, including the Swimart retail fran...
Waterco updates market on ongoing on-market share buy-back
Jun 25, 2026
Waterco Limited, listed on the ASX under ticker WAT, is undertaking an on-market buy-back of its ordinary fully paid shares as part of an ongoing capital management program. The company continues to report daily progress to the exchange, signallin...
Waterco Updates ASX on Progress of Ongoing Share Buy-Back
Jun 24, 2026
Waterco Limited has provided an updated notification to the ASX on 25 June 2026 regarding its ongoing on-market share buy-back of ordinary fully paid shares under ticker WAT. The company reported that a cumulative 125,929 securities had been repur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 06, 2025