Current Water Technologies Inc (WATR) AI Stock Analysis

• Market Cap: C$4.93M
• Dividend Yield: N/A
• Average Volume (3M): 149.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -68.14%
• EPS Growth: -209.09%
• Country: CA
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): >-0.01
• Shares Outstanding: 246,590,040
• 10 Day Avg. Volume: 60,099
• 30 Day Avg. Volume: 149,737
• PEG Ratio: 0.02
• Price to Book (P/B): -43.42
• Price to Sales (P/S): 3.64
• P/FCF Ratio: -10.92
• 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: 45 Neutral
• Price Target: C$0.02 ▼(-25.00% Downside)

The score is driven primarily by weak financial performance (shrinking revenue, deeply negative margins, negative equity, and ongoing cash burn). Technical indicators are mostly neutral and do not offset the fundamental risk, and valuation metrics provide limited support due to negative earnings and no dividend data.

Positive Factors

Industrial water treatment focus

Specialization in industrial water treatment and water reuse targets a structural, long‑term market need as industries face regulatory and resource pressures. This niche supports recurring service and systems revenue potential and positions the company in a defensible segment of pollution control.

Cash flow tracks earnings closely

A near‑1x relationship between free cash flow and net income implies reported losses reflect real cash outcomes, reducing risk of hidden non‑cash items. For investors and lenders this makes cash forecasting and covenant assessment more reliable over the medium term.

Moderate absolute debt burden

Debt is modest in absolute terms relative to reported assets, which limits fixed financing obligations in the near term. This reduces immediate liquidation pressure and can provide some runway for operational adjustments or refinancing initiatives over the next several months.

Negative Factors

Severe margin deterioration

Deeply negative gross and net margins indicate the company is selling below cost and failing to cover direct production expenses. This is a structural profitability issue that undermines scalability, makes cost recovery difficult, and threatens long‑term viability without material business model changes.

Negative equity

Negative shareholders' equity signals accumulated losses that erode the capital base, constraining borrowing capacity and increasing refinancing risk. Over 2–6 months this limits financial flexibility, raises creditor scrutiny, and can force dilutive financings or asset sales.

Persistent cash burn

Ongoing negative operating and free cash flows mean the business cannot self‑fund operations or growth. Continued cash burn necessitates external financing, which can be dilutive or costly, and restricts ability to invest in commercialization or margin improvement initiatives over the medium term.

Current Water Technologies Inc Business Overview & Revenue Model

Company Description

Current Water Technologies Inc. develops environmental technologies in Canada, Australia, and the United States. It operates through two segments, Current Water and Pumptronics. The company provides patented and proprietary technologies for the treatment of wastewater and drinking water that are contaminated by metals or nutrients, such as arsenic and nitrate/ammonia associated with the mining, metal processing, chemical, agricultural, municipal, and waste management sectors; and for the recovery of nickel and other valuable metals from waste mill sulphide tailings associated with the mining sector. Its technologies include electro-static deionization, a electrochemical process that lowers the concentration of total dissolved solids in water; ammonia removal technology, a technology used for the removal of dissolved ammonia from industrial and municipal water, including wastewater, storm water, sewage effluent, and mine waste water; NitrEL system, an electrochemical water treatment process that reduces nitrate concentrations in contaminated drinking water, groundwater, and industrial process wastewater streams; AmdEl, an electrochemical system that prevents the oxidation of sulphide minerals in tailings or waste rock; and ExtrEL for the recovery of metals from sulphide tailings and ore. The company was formerly known as ENPAR Technologies Inc. and changed its name to Current Water Technologies Inc. in January 2018. Current Water Technologies Inc. was incorporated in 1996 and is headquartered in Guelph, Canada.

How the Company Makes Money

Current Water Technologies Inc. generates revenue primarily through the sale and licensing of its patented water treatment technologies and systems. The company offers its products to a range of clients in industrial and municipal sectors, where there is a significant need for effective water treatment solutions. Revenue streams include direct sales, licensing agreements with partners who utilize the company's technologies, and service contracts for the maintenance and operation of installed systems. The company may also engage in research and development partnerships or receive grants for the advancement of its technologies, but detailed information on specific partnerships or financial data is not available.

Current Water Technologies Inc Financial Statement Overview

Summary

Financial performance is highly stressed: TTM revenue fell ~32%, gross profit is negative (TTM gross margin ~-174%) with very weak net margin (TTM ~-300%), equity is negative in 2024 and TTM, and operating/free cash flow are both negative in TTM (about -$0.33M). A brief improvement in 2023 was not sustained, increasing earnings and funding risk.

Income Statement

Profitability has deteriorated sharply. TTM (Trailing-Twelve-Months) revenue fell ~32%, and losses are deep with negative gross profit (TTM gross margin ~-174%) and very weak net margin (TTM ~-300%). Results were briefly stronger in 2023 (positive net income and positive gross margin), but the business reverted to sizable losses in 2024 and worsened again in TTM, indicating limited earnings stability and weak cost absorption at current revenue levels.

Balance Sheet

Balance sheet quality is pressured by negative equity in the most recent periods (2024 and TTM), which reduces financial flexibility and raises refinancing risk. Debt is moderate in absolute terms versus assets (TTM debt ~$0.58M vs assets ~$1.03M), but leverage metrics are distorted by negative equity and historically have been volatile (e.g., very high debt-to-equity in 2023). Overall, capitalization looks thin and unstable.

Cash Flow

Cash generation remains weak with negative operating cash flow and negative free cash flow in TTM (both about -$0.33M) and also negative in 2024. Free cash flow decline accelerated in TTM (down ~27%). A key positive is that free cash flow has generally tracked reported earnings closely (free cash flow to net income ~1x), suggesting limited non-cash distortion—but the core issue is persistent cash burn and lack of self-funding capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	504.86K	1.53M	2.02M	2.16M	1.18M	1.41M
Gross Profit	-880.45K	-136.91K	106.69K	131.18K	-630.86K	431.88K
EBITDA	-1.23M	-728.74K	701.50K	-872.16K	-1.39M	-130.68K
Net Income	-1.52M	-1.02M	447.15K	-1.05M	-1.57M	-307.82K
Balance Sheet
Total Assets	1.03M	1.54M	2.11M	902.76K	1.50M	1.34M
Cash, Cash Equivalents and Short-Term Investments	54.12K	79.11K	113.14K	118.67K	635.30K	132.53K
Total Debt	575.99K	732.26K	1.04M	233.06K	369.64K	503.49K
Total Liabilities	1.66M	1.67M	2.01M	1.37M	1.28M	1.40M
Stockholders Equity	-631.15K	-127.95K	96.59K	-464.96K	216.71K	-64.21K
Cash Flow
Free Cash Flow	-333.67K	-508.66K	164.31K	-380.04K	-1.11M	-413.63K
Operating Cash Flow	-333.68K	-508.65K	168.31K	-377.33K	-1.01M	-413.63K
Investing Cash Flow	0.00	0.00	-4.00K	-2.71K	-93.26K	0.00
Financing Cash Flow	277.59K	474.63K	-169.84K	-136.59K	1.60M	473.89K

Current Water Technologies Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 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 TSE:WATR, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WATR.

Current Water Technologies Inc 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%
DST	49 Neutral	C$12.84M	-2.07	―	―	-27.49%	-32.97%
RGEN	47 Neutral	C$3.17M	-0.74	―	―	―	―
WATR	45 Neutral	C$4.93M	-2.94	―	―	-68.14%	-209.09%
SAY	43 Neutral	C$3.74M	-4.55	―	―	17.30%	-200.00%
SHRC	42 Neutral	C$10.67M	-2.72	―	―	14.18%	-29.19%
APL	40 Underperform	C$3.50M	-37.19	-1.36%	―	―	-144.44%