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Waterco Limited
(Sydney:WAT)
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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)
Market Cap
AU$199.33M
Dividend Yield2.6%
Average Volume (3M)850.00
Price to Earnings (P/E)23.8
Beta (1Y)0.07
Revenue Growth-2.87%
EPS Growth-18.36%
CountryAU
Employees931
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)0.24
Shares Outstanding35,031,307
10 Day Avg. Volume1,695
30 Day Avg. Volume850
Financial Highlights & Ratios
PEG Ratio-0.80
Price to Book (P/B)1.73
Price to Sales (P/S)0.97
P/FCF Ratio13.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 190.37M | 254.93M | 244.84M | 128.10M | 122.81M | 112.83M |
| Gross Profit | 59.71M | 125.54M | 120.31M | 29.83M | 28.93M | 24.04M |
| EBITDA | 22.86M | 31.84M | 33.48M | 21.63M | 21.51M | 15.98M |
| Net Income | 8.60M | 9.57M | 13.90M | 10.85M | 11.64M | 12.76M |
Balance Sheet | ||||||
| Total Assets | 280.16M | 264.24M | 257.77M | 167.95M | 157.65M | 135.42M |
| Cash, Cash Equivalents and Short-Term Investments | 21.53M | 24.52M | 16.80M | 12.34M | 11.95M | 11.69M |
| Total Debt | 84.72M | 82.35M | 80.69M | 21.33M | 20.89M | 14.08M |
| Total Liabilities | 134.40M | 121.60M | 127.92M | 46.72M | 46.64M | 34.97M |
| Stockholders Equity | 145.41M | 142.27M | 129.53M | 120.87M | 110.50M | 99.87M |
Cash Flow | ||||||
| Free Cash Flow | 7.39M | 18.11M | 22.16M | 8.27M | -176.00K | 2.44M |
| Operating Cash Flow | 16.38M | 21.15M | 24.50M | 11.19M | 3.33M | 5.23M |
| Investing Cash Flow | -9.17M | -2.83M | -56.21M | -3.39M | -3.92M | 23.29M |
| Financing Cash Flow | -9.23M | -11.57M | 37.58M | -7.12M | -1.23M | -24.07M |
Waterco Limited Technical Analysis
Positive
4.92
Price Trends
5.21
Positive
5.31
Positive
5.16
Positive
Market Momentum
0.14
Negative
81.85
Negative
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | AU$10.54B | 39.18 | 7.27% | 1.09% | 2.83% | -24.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | AU$2.75B | 16.33 | 8.87% | 1.87% | -1.47% | -16.42% | |
58 Neutral | AU$199.33M | 23.75 | 5.98% | 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 | -5.76 | 115.72% | ― | 64.76% | 61.79% |
* Industrials Sector Average
AU:WAT
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5.76
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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’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’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.