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Waterco Limited
(Sydney:WAT)
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Rating:62Neutral
Price Target:
AU$7.50
▲(52.44% 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
Revenue Growth
Strong revenue expansion indicates that Waterco is reaching more customers and increasing the scale of its pool and spa equipment business. If maintained, this growth can support operating leverage, broader distribution, and continued investment in products and market development.
Negative Factors
Gross Margin Pressure
The sharp gross-margin decline is a durable concern because it reduces the profit retained from each dollar of sales and makes earnings more sensitive to costs or product mix. Unless margins recover, strong revenue growth may translate into less consistent operating profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Strong revenue expansion indicates that Waterco is reaching more customers and increasing the scale of its pool and spa equipment business. If maintained, this growth can support operating leverage, broader distribution, and continued investment in products and market development.
Read all positive factors
Waterco Limited (WAT) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$252.03M
Dividend Yield2.78%
Average Volume (3M)704.00
Price to Earnings (P/E)16.4
Beta (1Y)0.11
Revenue Growth1.42%
EPS Growth61.72%
CountryAU
Employees937
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)0.44
Shares Outstanding35,004,566
10 Day Avg. Volume929
30 Day Avg. Volume704
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...
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
6.10
Positive
5.63
Positive
5.39
Positive
Market Momentum
0.26
Negative
85.20
Negative
78.49
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 6.55, below the 50-day MA of 6.10, and below the 200-day MA of 5.39, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 85.20 is Negative, neither overbought nor oversold. The STOCH value of 78.49 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | AU$252.03M | 16.36 | 10.34% | 2.78% | 1.42% | 61.72% | |
62 Neutral | AU$9.69B | 34.40 | 8.32% | 1.19% | 4.46% | 1.20% | |
59 Neutral | AU$3.21B | 249.64 | 0.81% | 1.57% | -5.16% | -93.82% | |
56 Neutral | AU$36.00M | -32.35 | -7.59% | ― | 23.31% | 50.00% | |
45 Neutral | AU$5.00M | -1.84 | -48.20% | 0.41% | 308.85% | -44.44% | |
42 Neutral | AU$65.30M | -6.91 | 89.35% | ― | 28.88% | 69.06% |
* Industrials Sector Average
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Waterco Limited Corporate Events
Waterco Cancels Long-Dated Options, Trims Future Dilution
Oct 30, 2026
Waterco Limited has cancelled 60,000 options that were due to expire on 2 December 2035 with an exercise price of $4.90, following an agreement between the company and the option holder. The move modestly reduces the company’s potential futu...
Waterco shareholders back board and pay at 2026 AGM
Oct 23, 2026
Waterco Limited has confirmed that all resolutions presented at its 2026 Annual General Meeting, held on 23 October, were passed by poll, signaling strong shareholder support for the company’s current governance and remuneration structures. ...
Waterco flags stronger earnings and margin gains but holds off on profit guidance
Oct 23, 2026
Waterco’s chairman told shareholders at the 2026 AGM that first-quarter earnings for the year to June 30, 2027 have improved markedly despite a challenging global backdrop. The uplift is being driven by cost rationalisation following the int...
Waterco Issues Daily Update on Ongoing ASX Share Buy-Back
Oct 13, 2026
Waterco Limited, an ASX-listed company in the water-related products and services sector, is conducting an on-market buy-back of its ordinary fully paid shares under the code WAT. The program represents a capital management initiative designed to ...
Waterco Cancels Shares Under On-Market Buy-Back
Oct 9, 2026
Waterco Limited has announced the cessation of 193 ordinary fully paid shares following their cancellation under an on-market buy-back program. The adjustment to its issued capital indicates a modest share reduction that marginally consolidates ex...
Waterco Issues Daily Update on Ongoing On-Market Share Buy-Back
Sep 22, 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 under code WAT. The latest update confirms that a total of 29,025 shares had been repurchased...
Waterco Cancels Shares Following On-Market Buy-Back
Sep 21, 2026
Waterco Limited, traded on the ASX as WAT, is a listed company engaged in the water-related products and services market. Its capital structure comprises ordinary fully paid shares, and the company employs on-market buy-backs as part of its broade...
Waterco Files Updated Corporate Governance Disclosures with ASX
Sep 20, 2026
Waterco Limited has lodged its Appendix 4G with the ASX for the financial year ended 30 June 2026 and directed investors to its updated corporate governance statement hosted on its website. The filing confirms that the board has approved the state...
Waterco Touts Safe Water Focus and Sustainability in Annual Report
Sep 20, 2026
Waterco Limited highlights its role as a pioneer in reliable solutions for healthy, safe water environments, underscoring its commitment to water quality and safety as a core part of its business. The company also signals a focus on environmental ...
Waterco sets October 2026 AGM with focus on pay and board stability
Sep 20, 2026
Waterco Limited has called its annual general meeting for 23 October 2026 in Rydalmere, NSW, where shareholders will receive the company’s financial statements for the year to 30 June 2026 and review the accompanying directors’ and aud...
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 ...
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.