Firstly, does WATR possess a high quality balance sheet and growth prospects on a fundamental level? YES!!
The company has $23m cash and $21m of borrowings, with FCF increasing from $6m in 22 to an estimated $7.4m in 23 and $9m in 24, owing to a reduction in CAPEX. The only thing I don't like about the balance sheet is the high amount of intangible assets, but, these aren't set to increase and a high proportion is goodwill from acquisitions which will be amortised over time.
Net margin remains high at 17.6% and is forecasted to be maintained at this level, with revenue growing from $71m in 22 to $90m in 25.
In terms of technical analysis, WATR is hovering around a strong support uptrend on the weekly chart, against a positive divergence on the RSI. In 2021 the PE ratio sat at over 50, with this now down to sub-20, indicating that in the past investors were willing to pay 150% more than today's price. The orange lines dictate my price targets, however, I would be inclined to hold this as an investment for much longer.
The company has $23m cash and $21m of borrowings, with FCF increasing from $6m in 22 to an estimated $7.4m in 23 and $9m in 24, owing to a reduction in CAPEX. The only thing I don't like about the balance sheet is the high amount of intangible assets, but, these aren't set to increase and a high proportion is goodwill from acquisitions which will be amortised over time.
Net margin remains high at 17.6% and is forecasted to be maintained at this level, with revenue growing from $71m in 22 to $90m in 25.
In terms of technical analysis, WATR is hovering around a strong support uptrend on the weekly chart, against a positive divergence on the RSI. In 2021 the PE ratio sat at over 50, with this now down to sub-20, indicating that in the past investors were willing to pay 150% more than today's price. The orange lines dictate my price targets, however, I would be inclined to hold this as an investment for much longer.
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Thông báo miễn trừ trách nhiệm
Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.