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Waterco Limited (AU:WAT)
: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 57 (OpenAI - 4o)
Rating:57Neutral
Price Target:
AU$6.00
▲(7.14% Upside)
Waterco Limited's overall stock score is primarily influenced by its stable financial performance, particularly strong cash flow management. However, the bearish technical indicators and moderate valuation metrics suggest caution. The lack of earnings call data and corporate events limits further insights into the company's future prospects.

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

Waterco Limited Business Overview & Revenue Model

Company DescriptionWaterco Limited (WAT) is a global company specializing in the design, manufacturing, and distribution of innovative water treatment products and systems. The company operates in sectors such as swimming pool and spa equipment, water filtration, and water purification. Waterco is recognized for its commitment to sustainability and providing high-quality products that cater to both residential and commercial clients, ensuring safe and clean water solutions worldwide.
How the Company Makes MoneyWaterco Limited generates revenue primarily through the sale of its water treatment products and systems, including swimming pool and spa equipment, and water filtration and purification systems. The company serves a diverse customer base, including homeowners, commercial property managers, and industrial clients. Waterco's earnings are bolstered by its extensive distribution network and partnerships with retailers and distributors globally. The company also invests in research and development to innovate and improve its product offerings, which helps maintain its competitive edge and customer loyalty, thereby contributing to its revenue streams.

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.
Income Statement
65
Positive
Waterco Limited's income statement shows a mixed performance. The gross profit margin has remained relatively stable over the years, indicating consistent cost management. However, the net profit margin has decreased in the latest year, reflecting challenges in converting revenue into profit. Revenue growth has been negative recently, which is a concern, although past years showed positive growth. The EBIT and EBITDA margins have also declined, suggesting pressure on operational efficiency.
Balance Sheet
70
Positive
The balance sheet of Waterco Limited reflects a moderate financial position. The debt-to-equity ratio has improved slightly, indicating better leverage management. Return on equity has decreased, showing reduced profitability for shareholders. The equity ratio remains healthy, suggesting a stable capital structure. Overall, the balance sheet indicates a cautious approach to debt and a solid equity base.
Cash Flow
75
Positive
Waterco Limited's cash flow statement highlights strong free cash flow growth, which is a positive indicator of financial health. The operating cash flow to net income ratio is stable, showing consistent cash generation relative to net income. The free cash flow to net income ratio is high, suggesting effective cash management. Overall, the cash flow position is robust, with significant improvements in free cash flow.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue194.84M254.93M244.84M128.10M122.81M112.83M
Gross Profit95.57M125.54M120.31M29.83M28.93M24.04M
EBITDA24.25M31.84M33.48M21.63M21.51M15.98M
Net Income7.72M9.57M13.90M10.85M11.64M12.76M
Balance Sheet
Total Assets264.24M264.24M257.77M167.95M157.65M135.42M
Cash, Cash Equivalents and Short-Term Investments24.52M24.52M16.80M12.34M11.95M11.69M
Total Debt82.35M82.35M80.69M21.33M20.89M14.08M
Total Liabilities121.60M121.60M127.92M46.72M46.64M34.97M
Stockholders Equity142.27M142.27M129.53M120.87M110.50M99.87M
Cash Flow
Free Cash Flow8.47M18.11M22.16M8.27M-176.00K2.44M
Operating Cash Flow11.24M21.15M24.50M11.19M3.33M5.23M
Investing Cash Flow-2.82M-2.83M-56.21M-3.39M-3.92M23.29M
Financing Cash Flow-11.57M-11.57M37.58M-7.12M-1.23M-24.07M

Waterco Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.60
Price Trends
50DMA
6.51
Negative
100DMA
6.72
Negative
200DMA
6.93
Negative
Market Momentum
MACD
-0.26
Positive
RSI
12.52
Positive
STOCH
11.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WAT, the sentiment is Negative. The current price of 5.6 is below the 20-day moving average (MA) of 6.14, below the 50-day MA of 6.51, and below the 200-day MA of 6.93, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 12.52 is Positive, neither overbought nor oversold. The STOCH value of 11.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:WAT.

Waterco Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
AU$196.92M20.217.04%2.68%4.52%-31.16%
57
Neutral
AU$93.22M19.7610.28%13.51%5.08%
49
Neutral
AU$34.90M-5.0218.27%53.69%
48
Neutral
AU$69.62M-2.87405.86%11.44%19.49%
46
Neutral
AU$29.34M-14.29-21.44%11.53%46.15%
44
Neutral
AU$4.38M-2.27-23.70%-45.80%-210.00%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:WAT
Waterco Limited
5.60
0.41
7.90%
AU:FLC
Fluence Corporation Limited
0.06
-0.03
-30.43%
AU:PET
Phoslock Environmental Technologies Limited
0.01
-0.01
-50.00%
AU:EGL
Environmental Group Limited
0.24
-0.16
-40.00%
AU:RWL
Rubicon Water Limited
0.14
-0.12
-46.15%
AU:DEM
De.mem Ltd.
0.10
-0.04
-28.57%

Waterco Limited Corporate Events

Waterco Limited Announces Cessation of Securities
Jul 28, 2025

Waterco Limited announced the cessation of 60,000 securities, specifically options expiring on March 20, 2034, with an exercise price of $5.09. This cancellation was agreed upon between the entity and the holder, effective July 25, 2025, and reflects a strategic decision that may impact the company’s capital structure and investor relations.

Waterco Limited Announces Cessation of Securities
Jul 15, 2025

Waterco Limited has announced the cessation of 100,000 securities, specifically options expiring on August 23, 2031, priced at $3.15. This cancellation was agreed upon between the company and the securities holder, potentially impacting the company’s capital structure and signaling strategic financial adjustments.

Waterco Limited Addresses Historical ASX Listing Rule Breach
Jun 20, 2025

Waterco Limited has acknowledged a historical breach of ASX Listing Rule 10.1 due to lease arrangements with a related party, Mint Holdings Pty Ltd, which exceeded the permissible value threshold without prior security holder approval. To address this oversight, Waterco has proposed a remediation plan, including seeking security holder approval at its 2025 Annual General Meeting and commissioning an independent expert’s report. The company is committed to enhancing its internal compliance framework to prevent future breaches and is working closely with the ASX to resolve the issue.

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: Oct 02, 2025