Darco Water Technologies Ltd. (BLR) AI Stock Analysis

• Market Cap: S$7.51M
• Dividend Yield: N/A
• Average Volume (3M): 4.28K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.15
• Revenue Growth: -7.59%
• EPS Growth: 78.60%
• Country: SG
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.02
• Shares Outstanding: 93,831,490
• 10 Day Avg. Volume: 9,610
• 30 Day Avg. Volume: 4,283
• PEG Ratio: -0.06
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -1.93
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: S$0.08 ▲(0.00% Upside)

The overall stock score of 49 reflects significant financial challenges, with declining revenues and profitability being the most impactful factors. Technical analysis indicates a bearish trend, while valuation metrics are unattractive due to negative earnings. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Legal Victory

The legal victory, resulting in a substantial financial award, enhances Darco's financial position, providing a boost to profitability and cash flow.

Strategic Partnerships

Strategic partnerships expand market reach and foster innovation, supporting long-term revenue growth and competitive positioning.

Innovative Product Development

Ongoing R&D investment drives innovation, leading to new products and technologies that can capture emerging market needs and drive growth.

Negative Factors

Declining Revenue

Declining revenue growth indicates challenges in market demand or competitive pressures, potentially affecting long-term financial health.

Cash Flow Challenges

Negative cash flow impacts liquidity and limits the company's ability to invest in growth opportunities or manage debt effectively.

Margin Pressure

Sustained margin pressure suggests inefficiencies or cost challenges, which can erode profitability and hinder competitive advantage.

Darco Water Technologies Ltd. Business Overview & Revenue Model

Company Description

Darco Water Technologies Ltd. (BLR) is a leading provider of innovative water treatment solutions, specializing in advanced filtration and purification technologies. Operating primarily within the environmental and industrial sectors, the company offers a range of products and services designed to address water quality challenges, including wastewater treatment systems, water recycling solutions, and consulting services for sustainable water management. With a commitment to environmental sustainability, Darco Water Technologies aims to deliver efficient, cost-effective solutions that meet the diverse needs of its clients.

How the Company Makes Money

Darco Water Technologies generates revenue through multiple streams, primarily by selling its proprietary water treatment systems and technologies to industrial and municipal clients. The company also earns income from ongoing maintenance contracts and service agreements, which provide regular revenue while ensuring customer loyalty. In addition, Darco Water Technologies has established strategic partnerships with key players in the environmental sector, allowing for joint ventures and collaborative projects that enhance its market reach. Furthermore, the company invests in research and development to innovate new products, opening up additional revenue opportunities through patented technologies and solutions tailored to emerging market needs.

Darco Water Technologies Ltd. Financial Statement Overview

Summary

Darco Water Technologies Ltd. is experiencing financial difficulties, with declining revenues and profitability. The income statement shows negative growth and margins, while the balance sheet indicates manageable leverage but inefficiencies in generating returns. Cash flow challenges further impact liquidity, necessitating improvements in revenue growth and operational efficiency.

Income Statement

The income statement shows declining revenue with a negative growth rate of -3.98% TTM. Margins are under pressure, with a negative net profit margin of -1.94% and EBIT margin of -2.36% TTM. The gross profit margin has decreased to 17.24% TTM from 20.13% in the previous year, indicating reduced profitability. Overall, the company is facing challenges in maintaining revenue and profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.23 TTM, indicating manageable leverage. However, the return on equity is negative at -3.74% TTM, highlighting inefficiencies in generating returns for shareholders. The equity ratio stands at a healthy level, suggesting a stable capital structure despite profitability concerns.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow TTM, with a decline in free cash flow growth by -14.78%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Despite a free cash flow to net income ratio of 1.27, the overall cash flow position is weak, impacting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.60M	59.14M	70.25M	77.70M	54.55M	78.08M
Gross Profit	9.42M	11.91M	9.57M	12.83M	7.20M	13.61M
EBITDA	-491.00K	3.23M	-4.15M	2.36M	-5.79M	986.00K
Net Income	-1.06M	1.01M	-5.42M	813.00K	-6.45M	1.18M
Balance Sheet
Total Assets	73.31M	79.38M	74.23M	86.97M	83.65M	92.33M
Cash, Cash Equivalents and Short-Term Investments	5.63M	7.96M	12.84M	19.83M	23.43M	19.01M
Total Debt	6.33M	6.31M	6.58M	4.04M	5.41M	7.17M
Total Liabilities	46.31M	49.13M	44.65M	49.97M	46.54M	48.22M
Stockholders Equity	27.24M	29.38M	28.12M	34.64M	34.80M	41.16M
Cash Flow
Free Cash Flow	-2.60M	-3.50M	-8.25M	-3.12M	4.36M	-831.00K
Operating Cash Flow	-2.04M	-3.10M	-7.67M	-2.86M	4.70M	-474.00K
Investing Cash Flow	-804.50K	-326.00K	-478.00K	-169.00K	-433.00K	-524.00K
Financing Cash Flow	37.50K	-453.00K	2.26M	2.11M	940.00K	-6.47M

Darco Water Technologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 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 SG:BLR, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:BLR.

Darco Water Technologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLR	49 Neutral	S$7.51M	-7.08	-3.79%	―	-7.59%	78.60%
LS9	49 Neutral	S$33.77M	-2.32	-235.02%	130.45%	-98.50%	-156.76%

Darco Water Technologies Ltd. Corporate Events

Darco Water Technologies Updates on Legal Proceedings

Darco Water Technologies Ltd. has announced a legal update involving its subsidiary, DIW, which has been allowed to submit a counterclaim against a supplier following a court decision. The counterclaim amounts to RM1,007,050, and the company expects no significant impact on its operations or financial performance for the year ending December 2025.