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Waterco Limited
(Sydney:WAT)
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Rating:62Neutral
Price Target:
AU$6.50
▲(32.11% Upside)
Action:Reiterated
Date:09/06/26
The score is mainly held back by weaker cash flow conversion, a sharp 2026 gross margin drop, and higher leverage despite strong revenue growth and continued profitability. Technicals show a strong uptrend but are overextended, while valuation is relatively supportive with a reasonable P/E and a ~2.5% yield.
Positive Factors
Strong 2026 revenue scaling
The sharp 2026 revenue increase indicates meaningful business expansion across Waterco’s pool and water-treatment activities. If the company can retain this larger revenue base, increased scale should support broader market reach, recurring replacement demand, and greater operating capacity over coming quarters.
Negative Factors
Sharp gross-margin deterioration
The substantial gross-margin decline signals weaker earnings quality and raises questions about margin sustainability. The pack attributes the movement to possible mix or pricing pressure or higher input costs; unless reversed, this compression could limit profit growth even while revenue continues to expand.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong 2026 revenue scaling
The sharp 2026 revenue increase indicates meaningful business expansion across Waterco’s pool and water-treatment activities. If the company can retain this larger revenue base, increased scale should support broader market reach, recurring replacement demand, and greater operating capacity over coming quarters.
Read all positive factors
Waterco Limited (WAT) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$210.07M
Dividend Yield2.5%
Average Volume (3M)2.88K
Price to Earnings (P/E)13.6
Beta (1Y)0.05
Revenue Growth3.97%
EPS Growth61.65%
CountryAU
Employees931
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)0.44
Shares Outstanding35,012,200
10 Day Avg. Volume1,032
30 Day Avg. Volume2,879
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.14
Price to Sales (P/S)0.68
P/FCF Ratio30.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Waterco Limited Business Overview & Revenue Model
Company Description
Waterco Limited engages in the manufacture, wholesale, and export of equipment and accessories in the swimming pool, spa pool, spa bath, rural pump, and irrigation and water treatment sectors in Australia, New Zealand, Asia, North America, and Eur...
How the Company Makes Money
Waterco makes money primarily by selling its pool and water-treatment equipment and related components to customers through wholesale/distribution networks and industry channels (e.g., pool retailers, builders, service/maintenance professionals, a...
Waterco Limited Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
62
Positive
Cash Flow
48
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 259.35M | 254.93M | 244.84M | 128.10M | 122.81M |
| Gross Profit | 63.15M | 125.54M | 120.31M | 29.83M | 28.93M |
| EBITDA | 36.95M | 31.84M | 33.48M | 21.63M | 21.51M |
| Net Income | 15.46M | 9.57M | 13.90M | 10.85M | 11.64M |
Balance Sheet | |||||
| Total Assets | 280.26M | 264.24M | 257.77M | 167.95M | 157.65M |
| Cash, Cash Equivalents and Short-Term Investments | 20.42M | 24.52M | 16.80M | 12.34M | 11.95M |
| Total Debt | 87.39M | 82.35M | 80.69M | 21.33M | 20.89M |
| Total Liabilities | 126.20M | 121.60M | 127.92M | 46.72M | 46.64M |
| Stockholders Equity | 153.80M | 142.27M | 129.53M | 120.87M | 110.50M |
Cash Flow | |||||
| Free Cash Flow | 5.74M | 18.11M | 22.16M | 8.27M | -176.00K |
| Operating Cash Flow | 14.34M | 21.15M | 24.50M | 11.19M | 3.33M |
| Investing Cash Flow | -8.54M | -2.83M | -56.21M | -3.39M | -3.92M |
| Financing Cash Flow | -9.01M | -11.57M | 37.58M | -7.12M | -1.23M |
Waterco Limited Technical Analysis
Positive
4.92
Price Trends
5.37
Positive
5.32
Positive
5.21
Positive
Market Momentum
0.13
Negative
81.79
Negative
80.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WAT, the sentiment is Positive. The current price of 4.92 is below the 20-day moving average (MA) of 5.65, below the 50-day MA of 5.37, and below the 200-day MA of 5.21, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 81.79 is Negative, neither overbought nor oversold. The STOCH value of 80.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:WAT.
Waterco Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | AU$9.98B | 32.44 | 8.32% | 1.13% | 4.46% | 1.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | AU$210.07M | 13.64 | 10.34% | 2.50% | 3.97% | 61.65% | |
59 Neutral | AU$3.11B | 244.27 | 0.81% | 1.62% | -5.16% | -93.82% | |
56 Neutral | AU$37.64M | -33.82 | -7.59% | ― | 23.31% | 50.00% | |
45 Neutral | AU$4.37M | -1.35 | -41.16% | 0.41% | 308.85% | -44.44% | |
42 Neutral | AU$74.47M | -8.07 | 85.81% | ― | 28.88% | 69.06% |
* Industrials Sector Average
AU:WAT
Waterco Limited
6.00
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Waterco Limited Corporate Events
Waterco updates ASX on progress of daily on-market share buy-back
Sep 1, 2026
Waterco Limited has provided an updated disclosure to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The announcement, dated 1 September 2026, confirms that the buy-back remains active and contin...
Waterco Cancels Shares Following On‑Market Buy‑Back
Aug 31, 2026
Waterco Limited has cancelled 5,111 ordinary fully paid shares following an on‑market buy‑back completed on August 31, 2026. The reduction in issued capital marginally consolidates existing shareholders’ equity and signals contin...
Waterco Issues Daily Update on Ongoing Share Buy-Back
Aug 31, 2026
Waterco Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest daily report, dated 31 August 2026, states that a total of 21,585 shares had been...
Waterco names CFO Nigel Hobler as Joint Company Secretary to bolster ASX governance
Aug 28, 2026
Waterco Limited has appointed Chief Financial Officer Nigel Roger Franklin Hobler as Joint Company Secretary, effective immediately, strengthening its governance and ASX communications capability. Hobler, a chartered accountant and former partner ...
Waterco Releases FY2026 Results Presentation With Investment Caveats
Aug 28, 2026
Waterco Limited has released a presentation of its FY2026 results, providing shareholders and potential investors with high-level financial and operational information as at 28 August 2026. The company emphasises that the material is summary in na...
Waterco sets 2026 AGM date and director nomination deadline
Aug 28, 2026
Waterco Limited has scheduled its 2026 Annual General Meeting for 23 October 2026, with a formal notice to be sent to shareholders by the end of September. The meeting will include the election of directors, underscoring ongoing board governance a...
Waterco Declares AUD 0.13 Final Dividend for FY2026
Aug 28, 2026
Waterco Limited, listed on the ASX under ticker WAT, has declared a dividend on its ordinary fully paid shares, underscoring its continued capacity to distribute profits to investors. The announcement indicates the company’s commitment to sh...
Waterco lifts FY26 profit, boosts dividends and launches new buyback
Aug 28, 2026
Waterco Limited reported modest revenue growth for the year to 30 June 2026, with sales from continuing operations up 1.7% to $259.3 million, while profit after tax attributable to members rose 61.6% to $15.5 million as margins improved. Underlyin...
Waterco Updates ASX on Ongoing On-Market Share Buy-Back
Aug 18, 2026
Waterco Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back program for its ordinary fully paid shares.The company reported that it bought back a total of 16,572 shares prior to the previous trading day ...
Waterco Adds to On-Market Buy-Back With Daily Share Purchases
Aug 17, 2026
Waterco Limited has updated the market on its ongoing on-market share buy-back program, confirming a daily buy-back notification as of 18 August 2026. The company reported that a total of 16,474 ordinary fully paid shares had been repurchased befo...
Waterco Cancels Shares in On-Market Buy-Back
Aug 17, 2026
Waterco Limited has cancelled 13,994 ordinary fully paid shares as part of an on-market share buy-back, according to a notification of cessation of securities lodged with the ASX on 17 August 2026. The reduction in issued capital reflects the comp...
Waterco Continues On-Market Share Buy-Back Program
Aug 10, 2026
Waterco Limited has issued an updated notification to the ASX confirming the ongoing execution of its on-market share buy-back program for ordinary fully paid shares. The latest daily report shows that 13,994 shares were repurchased on the previou...
Waterco Trims Share Count Through On‑Market Buy‑Back
Aug 4, 2026
Waterco Limited has undertaken a small adjustment to its issued capital, cancelling 2,480 ordinary fully paid shares via an on-market buy-back recorded on 4 August 2026. The move forms part of its ongoing capital management, slightly reducing the ...
Waterco Updates Daily On-Market Share Buy-Back Activity
Jul 29, 2026
Waterco Limited has provided an updated notification on its on-market share buy-back program, confirming a daily buy-back of its ordinary fully paid shares. The latest filing reports that a total of 980 shares had been repurchased before the previ...
Waterco Updates Market on Progress of Daily On-Market Share Buy-Back
Jul 22, 2026
Waterco Limited has issued an updated notification regarding its on-market share buy-back program for its ordinary fully paid shares listed on the ASX under the code WAT. The latest daily update, dated 23 July 2026, reports that a total of 700 sha...
Waterco Limited Launches On-Market Share Buy-Back Program
Jul 14, 2026
Waterco Limited has announced an on-market share buy-back of its ordinary fully paid shares listed under the ASX code WAT, signalling a new phase in its capital management strategy.The move indicates management’s intention to actively repurc...
Waterco completes on‑market share buy‑back of 132,156 shares
Jul 1, 2026
Waterco Limited has completed an on-market share buy-back of its ordinary fully paid shares, repurchasing a total of 132,156 securities. The program, initially notified in July 2025 and now formally concluded with this final notification, reflects...
Waterco cancels shares following on-market buy-back
Jun 30, 2026
Waterco Limited has confirmed the cancellation of 9,953 ordinary fully paid shares following an on-market buy-back completed on June 30, 2026. The reduction in issued capital marginally tightens the company’s free float, signalling continued...
Waterco Updates Securities Trading Policy as Global Operations Expand
Jun 29, 2026
Waterco Limited, a Sydney-headquartered ASX-listed manufacturer and distributor of swimming pool, spa, and water treatment products, has a significant international footprint and diversified distribution channels, including the Swimart retail fran...
Waterco updates market on ongoing on-market share buy-back
Jun 25, 2026
Waterco Limited, listed on the ASX under ticker WAT, is undertaking an on-market buy-back of its ordinary fully paid shares as part of an ongoing capital management program. The company continues to report daily progress to the exchange, signallin...
Waterco Updates ASX on Progress of Ongoing Share Buy-Back
Jun 24, 2026
Waterco Limited has provided an updated notification to the ASX on 25 June 2026 regarding its ongoing on-market share buy-back of ordinary fully paid shares under ticker WAT. The company reported that a cumulative 125,929 securities had been repur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.