Euro Tech Holdings Company (CLWT) AI Stock Analysis

• Market Cap: $8.80M
• Dividend Yield: N/A
• Average Volume (3M): 12.79K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.24
• Revenue Growth: -14.25%
• EPS Growth: -59.84%
• Country: US
• Employees: 47
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.09
• Shares Outstanding: 7,616,844
• 10 Day Avg. Volume: 5,134
• 30 Day Avg. Volume: 12,795
• PEG Ratio: -0.33
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.35
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.31
• Enterprise Value/Ebitda: 3.73
• 1Y Price Target: $1.50
• Price Target Upside: 31.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $1.50 ▲(31.58%Upside)

The overall stock score is driven primarily by a stable financial performance supported by a strong equity position and low leverage, despite revenue volatility. Technical analysis suggests a neutral market sentiment, while valuation metrics show the stock is fairly priced without dividend incentives.

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 by selling water and wastewater treatment equipment and services to its clients, which include industrial, commercial, and municipal entities. These products and services are crucial for maintaining environmental compliance and ensuring safe water quality. Revenue is generated through direct sales of equipment, as well as through long-term service contracts for maintenance and operational support. The company may also engage in partnerships or collaborations with other firms to expand its product offerings or reach new markets, contributing to its revenue streams.

Euro Tech Holdings Company Financial Statement Overview

Summary

Euro Tech Holdings shows a mixed financial performance. It has strengths in its equity position and recent profitability and cash flow improvements. However, revenue volatility and historical profit margin fluctuations are concerns. The low leverage enhances stability.

Income Statement

The company's revenue has fluctuated over the years, with a significant decline in 2023. Despite this, the gross profit margin has slightly improved. However, the net profit margin has been inconsistent, with a positive outcome in 2024 after a negative EBIT margin in 2023. The EBITDA margin shows recovery from a previous negative trend, indicating improved operational efficiency.

Balance Sheet

Euro Tech Holdings maintains a strong equity position with a high equity ratio, suggesting stability. The debt-to-equity ratio is low, indicating low leverage and reduced financial risk. Return on equity improved in 2024, reflecting better profitability relative to shareholder equity.

Cash Flow

The cash flow situation shows volatility, with a significant recovery in free cash flow in 2024 compared to negative cash flow in 2023. The operating cash flow to net income ratio improved, suggesting enhanced cash generation efficiency. However, fluctuations in free cash flow growth rate indicate potential instability in cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.38M	17.94M	14.95M	21.39M	13.36M
Gross Profit	4.45M	3.86M	4.62M	5.70M	3.69M
EBITDA	1.06M	1.72M	161.00K	822.00K	-1.64M
Net Income	734.00K	1.83M	539.00K	1.37M	402.00K
Balance Sheet
Total Assets	20.71M	22.12M	19.36M	21.25M	20.09M
Cash, Cash Equivalents and Short-Term Investments	5.80M	5.45M	5.63M	5.27M	3.52M
Total Debt	92.00K	368.00K	422.00K	592.00K	573.00K
Total Liabilities	4.01M	5.64M	4.56M	6.45M	5.63M
Stockholders Equity	15.74M	15.64M	13.77M	13.88M	13.94M
Cash Flow
Free Cash Flow	776.00K	-85.00K	454.00K	2.20M	-2.05M
Operating Cash Flow	781.00K	-80.00K	461.00K	2.20M	-2.04M
Investing Cash Flow	302.00K	317.00K	232.00K	358.00K	2.04M
Financing Cash Flow	-778.00K	-82.00K	-618.00K	-1.02M	-1.50M

Euro Tech Holdings Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLWT, the sentiment is Neutral. The current price of 1.14 is below the 20-day moving average (MA) of 1.15, below the 50-day MA of 1.16, and below the 200-day MA of 1.33, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CLWT.

Euro Tech Holdings Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLWT	68 Neutral	$8.80M	12.09	4.68%	―	-14.25%	-59.84%
ARTW	65 Neutral	$11.50M	350.92	2.35%	―	-19.47%	―
Sector *	58 Neutral	HK$13.95B	4.43	-3.01%	7.31%	3.67%	-54.16%
VRME	49 Neutral	$9.11M	―	-28.42%	―	-9.87%	-49.12%
ASTC	47 Neutral	$9.52M	―	-44.54%	―	-54.94%	-24.76%
HIHO	47 Neutral	$7.50M	67.63	1.64%	12.27%	17.26%	―
HYFM	44 Neutral	$16.71M	―	-28.07%	―	-19.18%	-12.03%