Euro Tech Holdings Company (CLWT) AI Stock Analysis

• Market Cap: $9.07M
• Dividend Yield: N/A
• Average Volume (3M): 10.17K
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.21
• Revenue Growth: 6.59%
• EPS Growth: 615.58%
• Country: US
• Employees: 47
• Sector: Industrials
• Sector Strength: 66
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.28
• Shares Outstanding: 7,716,299
• 10 Day Avg. Volume: 8,784
• 30 Day Avg. Volume: 10,169
• PEG Ratio: 0.00693
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.54
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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

The overall score for Euro Tech Holdings is 59, reflecting a mix of strengths and weaknesses. While the company exhibits strong revenue growth and a solid balance sheet, operational inefficiencies and cash flow issues pose risks. Technical indicators suggest bearish momentum, and the absence of earnings call insights leaves some uncertainty. The low P/E ratio indicates a potentially undervalued stock, which could be appealing to value investors.

Euro Tech Holdings Company Business Overview & Revenue Model

Company Description

Euro Tech Holdings Company Limited primarily distributes water treatment equipment, laboratory instruments, analyzers, test kits and related supplies, and power generation equipment to commercial customers, and governmental agencies in Hong Kong and the People's Republic of China. The company operates in two segments, Trading and Manufacturing, and Engineering. It sells analytical instruments, such as spectrophotometers, colorimeters, chromatographs, mass spectrometers, flow injector analyzers, automated sample preparation workstations, and atomic spectrometers; environmental monitoring instruments comprising air and water quality monitoring instruments; sample pre-treatment equipment; and general-purpose laboratory instruments consisting of water quality monitoring and analysis equipment. The company also distributes general testing and measuring equipment comprising multi-channel digital and analogue recorders, signal amplifiers, and calibration equipment for energy conservation, renewable energy equipment, power quality analyzers, and continuous emissions monitoring systems; and air pollution control systems to power plants, railway and aero-space industries, utilities, educational institutions, and telecommunications companies. In addition, it offers process control systems, including sensors, temperature and pressure gauges, power and energy consumption meters, flow meters, valves, temperature and pressure transmitters and control devices, and temperature and pressure calibrators, as well as moisture, power, energy, and harmonic analyzers; systems engineering services; and maintenance, installation assistance, and calibration services. Further, the company distributes programmable logic controllers, telemetry units, and supervisory control and data acquisition systems and software; and designs, operates, and manages various wastewater, water, and power generation projects. The company was founded in 1971 and is headquartered in Hong Kong, Hong Kong.

How the Company Makes Money

Euro Tech Holdings Company makes money through the sale and distribution of water treatment and laboratory instruments, which are essential for municipal and industrial water management. The company generates revenue from equipment sales, maintenance services, and after-sales support. It may also engage in partnerships with manufacturers or technology firms to expand its product offerings and market reach. Additionally, the company could earn through contracts with government entities and private sector clients who require specialized equipment and solutions for water and environmental management projects.

Euro Tech Holdings Company Financial Statement Overview

Summary

Euro Tech Holdings demonstrates a mixed financial performance. Strong revenue growth and net income improvements are offset by operational and cash flow challenges. The balance sheet remains robust with low leverage, but operational efficiency and cash flow generation require careful monitoring to sustain growth.

Income Statement

The company has shown a notable improvement in net income, rising from $539,000 in 2022 to $1,828,000 in 2023, indicating a strong net profit margin of 10.19% for 2023. However, the EBIT margin turned negative in 2023, highlighting underlying operational challenges. Revenue growth is impressive at 20%, but the decrease in gross profit margin from the previous year is concerning.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.02, indicating low financial leverage, and a solid equity ratio of 70.71% for 2023. The return on equity stands at an impressive 11.69%, showcasing efficient use of equity to generate profits. However, declining total assets suggest a potential risk to future growth.

Cash Flow

Cash flow from operations has turned negative in 2023, with an operating cash flow to net income ratio of -0.04, presenting a cash flow concern. The free cash flow to net income ratio is also negative, indicating challenges in generating cash relative to earnings. Despite this, investing cash flow remains positive, suggesting ongoing investment in growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
17.24M	17.94M	14.95M	21.39M	13.36M	17.40M
	Gross Profit
4.15M	3.86M	4.62M	5.70M	3.69M	4.42M
	EBIT
91.00K	-249.00K	670.00K	1.21M	-1.54M	-436.00K
	EBITDA
102.00K	1.72M	161.00K	822.00K	-1.64M	-237.00K
	Net Income Common Stockholders
2.13M	1.83M	539.00K	1.37M	402.00K	-210.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.63M	5.45M	5.63M	5.27M	3.52M	5.99M
	Total Assets
19.36M	22.12M	19.36M	21.25M	20.09M	22.21M
	Total Debt
422.00K	368.00K	422.00K	592.00K	573.00K	951.00K
	Net Debt
-5.21M	-5.08M	-5.21M	-4.68M	-2.95M	-5.04M
	Total Liabilities
4.56M	5.64M	4.56M	6.45M	5.63M	6.88M
	Stockholders Equity
13.77M	15.64M	13.77M	13.88M	13.94M	14.46M
Cash Flow		Free Cash Flow
-42.50K	-85.00K	454.00K	2.20M	-2.05M	-287.00K
	Operating Cash Flow
-40.00K	-80.00K	461.00K	2.20M	-2.04M	-266.00K
	Investing Cash Flow
158.50K	317.00K	232.00K	358.00K	2.04M	-169.00K
	Financing Cash Flow
-41.00K	-82.00K	-618.00K	-1.02M	-1.50M	565.00K

Euro Tech Holdings Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLWT, the sentiment is Negative. The current price of 1.18 is above the 20-day moving average (MA) of 1.16, below the 50-day MA of 1.23, and below the 200-day MA of 1.43, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 81.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLWT.

Euro Tech Holdings Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$4.17B	11.26	5.46%	215.76%	4.12%	-8.54%
CLWT	59 Neutral	$9.07M	4.26	14.87%	―	6.59%	615.58%
ARTW	59 Neutral	$8.04M	243.08	2.35%	―	-19.47%	―
VRME	48 Neutral	$7.66M	―	-33.62%	―	-4.37%	-3.25%
HIHO	43 Neutral	$6.56M	―	-10.62%	8.05%	11.36%	22.93%
HYFM	37 Underperform	$10.66M	―	-25.94%	―	-16.02%	-1.84%
ASTC	37 Underperform	$9.96M	―	-39.20%	―	-78.93%	-29.96%