Rubicon Water Limited (RWL) AI Stock Analysis

• Market Cap: AU$60.17M
• Dividend Yield: N/A
• Average Volume (3M): 16.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -6.95%
• EPS Growth: 40.87%
• Country: AU
• Employees: 300
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Water
• EPS (TTM): -0.04
• Shares Outstanding: 240,695,100
• 10 Day Avg. Volume: 16,136
• 30 Day Avg. Volume: 16,072
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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: AU$0.46
• Price Target Upside: 84.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Rubicon Water Limited's stock score reflects significant financial and technical challenges. The company's weak profitability and cash flow issues are the primary concerns, compounded by bearish technical indicators. The lack of positive valuation metrics further detracts from the stock's overall appeal.

Rubicon Water Limited Business Overview & Revenue Model

Company Description

Rubicon Water Limited (RWL) is an Australian-based technology company specializing in providing innovative water management solutions. The company operates primarily in the agricultural sector, developing and deploying advanced hardware and software systems designed to optimize water usage for irrigation. Rubicon Water Limited's core products include automated water delivery solutions and real-time monitoring systems that enable farmers to increase water efficiency, reduce waste, and enhance crop yields.

How the Company Makes Money

Rubicon Water Limited makes money primarily through the sale of its advanced irrigation management systems and related services. The company's key revenue streams include the sale of hardware products such as automated gates and flow meters, which are integral to its water management solutions. Additionally, Rubicon generates revenue through software subscriptions that provide real-time data analytics and control capabilities for its systems. The company also offers installation, maintenance, and consulting services, which contribute to its revenue. Significant partnerships with government agencies and agricultural organizations help drive sales and expand its market presence, while ongoing innovation and development efforts ensure a competitive edge in the water management technology sector.

Rubicon Water Limited Financial Statement Overview

Summary

Rubicon Water Limited faces significant financial challenges. The company struggles with profitability and cash flow generation despite steady revenues. Increasing leverage and negative cash flows highlight potential risks, and there needs to be a focus on improving operational efficiency and cost management to enhance financial health.

Income Statement

Rubicon Water Limited has seen declining revenue over the years, with a notable gross profit recovery in 2024 compared to 2023. However, the company remains unprofitable with negative EBIT and net income margins, impacting its overall income statement score.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio and decreasing equity over the years, with a stable asset base. Equity ratios have remained adequate, but the increase in debt levels suggests rising leverage, which could pose risks if not managed carefully.

Cash Flow

Cash flows are under pressure, with negative operating and free cash flows indicating challenges in generating sufficient cash from operations. The growing gap between cash flow and net income highlights cash management issues that need addressing.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
58.40M	55.22M	65.29M	81.53M	64.81M
	Gross Profit
23.46M	-2.00M	27.06M	14.38M	10.26M
	EBIT
-5.16M	-10.66M	-371.00K	6.60M	2.68M
	EBITDA
-6.45M	-7.99M	2.02M	10.55M	5.68M
	Net Income Common Stockholders
-10.71M	-10.93M	-438.00K	8.32M	1.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.69M	8.49M	11.23M	9.03M	24.43M
	Total Assets
106.40M	111.58M	125.81M	106.95M	93.64M
	Total Debt
37.13M	30.69M	29.50M	32.69M	33.42M
	Net Debt
35.44M	22.20M	18.27M	23.67M	9.00M
	Total Liabilities
51.54M	45.78M	49.66M	57.80M	52.24M
	Stockholders Equity
55.13M	65.75M	75.86M	48.53M	40.69M
Cash Flow		Free Cash Flow
-9.13M	-3.92M	-20.48M	-12.06M	-2.46M
	Operating Cash Flow
-6.95M	-1.36M	-16.81M	-10.45M	-1.52M
	Investing Cash Flow
-2.10M	-2.60M	-3.38M	-2.87M	-1.15M
	Financing Cash Flow
1.28M	1.09M	26.18M	-4.20M	21.00M

Rubicon Water Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RWL, the sentiment is Positive. The current price of 0.25 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.27, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RWL.

Rubicon Water Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGL	70 Outperform	AU$89.42M	23.50	9.28%	―	19.70%	8.70%
RFF	68 Neutral	$699.55M	14.29	4.68%	6.73%	14.72%	-42.17%
Sector *	63 Neutral	$8.48B	11.84	5.32%	4.35%	3.04%	-11.46%
SHV	59 Neutral	$741.80M	411.02	0.34%	―	64.18%	―
GNC	57 Neutral	$1.49B	24.41	3.92%	3.59%	-20.98%	-75.30%
RWL	47 Neutral	AU$60.17M	―	-10.18%	―	-6.95%	40.87%
NWF	32 Underperform	AU$83.72M	―		―	―	―

Rubicon Water Limited Corporate Events

Rubicon Water Limited Mitigates US Tariff Impact and Boosts Indian Cash Collections

Rubicon Water Limited has announced that the newly imposed 10% US tariffs on selected Australian imports are not expected to materially impact its FY25 financial results. The company has implemented strategic initiatives to mitigate these effects, including localizing production in the US and passing duty-related costs to customers. Additionally, Rubicon has successfully collected $5.0 million AUD from Indian customers, significantly reducing its outstanding receivables in India, with further collections anticipated before the fiscal year-end.

Rubicon Water Limited Releases H1 FY25 Results Presentation

Rubicon Water Limited has released a presentation for the first half of fiscal year 2025, highlighting its operations and financial performance. The presentation is intended for professional or sophisticated investors and emphasizes the confidentiality of the information shared. The company does not guarantee the accuracy or completeness of the information, and stakeholders are advised to conduct their own assessments.

Rubicon Water Limited Reports Strong Revenue Growth and Global Expansion Success

Rubicon Water Limited reported a revenue of $32.0 million for the first half of FY25, marking a 27% increase from the previous half. Despite an underlying EBITDA loss of $1.7 million, the company showed significant improvement in its net loss after tax, which decreased by 75% compared to the previous corresponding period. The company also achieved a positive operating cash flow of $2.2 million and reduced its net debt significantly. Rubicon’s global expansion strategy is yielding positive results, with notable contract signings in the US, Latin America, and EMEA regions. The company is optimistic about its growth prospects, supported by a strong pipeline of projects and increasing demand for water management solutions.

Rubicon Water to Host Investor Webinar on FY25 Results

Rubicon Water Limited announced that its CEO, Bruce Rodgerson, and CFO, Andrew Bendall, will host an investor webinar on February 25 following the release of the company’s first-half fiscal year 2025 results. This event allows stakeholders to gain insights into the company’s financial performance and strategic direction, potentially affecting its market position and stakeholder confidence.

Australian Ethical Increases Stake in Rubicon Water Limited

Rubicon Water Limited, a company with a focus on water management solutions, has experienced a change in the interests of a substantial shareholder. Australian Ethical Investment Limited has increased its voting power in Rubicon Water Limited from 10.03% to 11.37%, indicating a growing confidence or strategic interest in the company’s operations or potential future growth.