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Euro Tech Holdings Company (CLWT) AI Stock Analysis

CLWT

Euro Tech Holdings Company

(NASDAQ:CLWT)

Select Model
Rating:47Neutral
Price Target:$1.50â–²(14.50% Upside)
Action:reiterated
Date:10/14/26

CLWT scores in the lower range, driven primarily by deteriorating fundamentals: a multi-year revenue decline, a swing to an operating loss, and negative operating and free cash flow of about -$1.1M despite a small reported profit. A debt-free balance sheet with $15.6M of stable equity cushions downside risk but has not produced growth or consistent returns. Valuation compounds the concern, with a ~104x P/E and no dividend offering little support. The main positive is the technical picture, where the stock trades above all key moving averages in a rising longer-term trend, though an RSI near 79 suggests the move is stretched and vulnerable to a pullback.

Positive Factors
Low LeverageVery low leverage gives CLWT meaningful financial flexibility and reduces refinancing exposure. A stable equity base can help the company fund customer projects, absorb operating volatility, and pursue opportunities without relying heavily on additional borrowing.
Negative Factors
Revenue ContractionThe 2025 revenue decline indicates weaker recent demand or project activity and reduces confidence in near-term growth consistency. Continued volatility would make it harder for CLWT to plan investment, sustain operating leverage, and build a predictable earnings base over the next several quarters.

Euro Tech Holdings Company (CLWT) vs. SPDR S&P 500 ETF (SPY)

-20%0%20%40%60%80%100%CLWT+13.56%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$9.93M
Dividend Yield
―
Average Volume (3M)
1.16M
Price to Earnings (P/E)
65.0
Beta (1Y)
0.50
Revenue Growth
-13.77%
EPS Growth
-78.34%
Country
US
Employees
47
Sector
Industrials
Sector Strength
63
Industry
Industrial - Pollution & Treatment Controls

Euro Tech Holdings Company Business Overview & Revenue Model

Company Description

Established in Hong Kong in 1971, Euro Tech Holdings Company Limited primarily supplies a diverse range of equipment and related solutions to commercial enterprises and government bodies across Hong Kong and mainland China. The company operates via t...

How the Company Makes Money

CLWT makes money primarily by selling water and wastewater treatment solutions and related equipment to customers and, where applicable, providing associated services tied to those installations. Key revenue streams generally include (a) product and...

Euro Tech Holdings Company Financial Statement Overview

Summary

Financials are weak overall. Revenue fell ~14% in 2025 to $13.3M, continuing a multi-year decline from the 2021 peak of $21.4M, and the company swung to an operating loss (EBIT -$233K) with net income collapsing to $157K (~1.2% margin). Cash flow is the biggest concern: operating and free cash flow turned sharply negative at roughly -$1.1M, with negative cash conversion against positive reported earnings — a red flag on earnings quality. The offsetting strength is a very clean balance sheet: minimal debt of $329K, ~2.1% debt-to-equity, and a stable $15.6M equity base that provides downside protection, though asset and equity stagnation signals little reinvestment or growth.

Income Statement

32Negative

Balance Sheet

68Positive

Cash Flow

25Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue13.27M13.27M15.38M17.94M14.95M21.39M
Gross Profit3.67M3.67M4.45M3.86M4.62M5.70M
EBITDA-233.00K-71.00K1.06M1.72M161.00K1.32M
Net Income157.00K157.00K734.00K1.83M369.00K989.00K
Balance Sheet
Total Assets21.34M21.34M20.71M22.12M19.36M21.25M
Cash, Cash Equivalents and Short-Term Investments5.18M5.18M5.80M5.45M5.63M5.27M
Total Debt329.00K329.00K92.00K368.00K422.00K592.00K
Total Liabilities4.75M4.75M4.01M5.64M4.56M6.45M
Stockholders Equity15.62M15.62M15.74M15.64M13.77M13.88M
Cash Flow
Free Cash Flow0-1.10M776.00K-85.00K454.00K2.20M
Operating Cash Flow0-1.09M781.00K-80.00K461.00K2.20M
Investing Cash Flow0-7,000302.00K317.00K232.00K358.00K
Financing Cash Flow0-317.00K-778.00K-82.00K-618.00K-1.02M

Euro Tech Holdings Company Technical Analysis

Technical Analysis SentimentNegative
Last Price1.31

Price Trends

50DMA1.49Negative
100DMA1.53Negative
200DMA1.38Negative

Market Momentum

MACD-0.04Positive
RSI46.32Neutral
STOCH39.13Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLWT, the sentiment is Negative. The current price of 1.31 is below the 20-day moving average (MA) of 1.40, below the 50-day MA of 1.49, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 39.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLWT.

Euro Tech Holdings Company Risk Analysis

Euro Tech Holdings Company disclosed 48 risk factors in its most recent earnings report. Euro Tech Holdings Company reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Euro Tech Holdings Company Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

CLWT against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
ERIIERII64Neutral$355.27M23.768.25%―-14.95%-31.61%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
CECOCECO62Neutral$2.96B-98.81-3.60%―37.64%-145.85%
TOMZTOMZ52Neutral$15.72M-3.74-326.60%―11.42%13.68%
CLWTCLWT47Neutral$9.93M65.051.01%―-13.77%-78.34%
LIQTLIQT44Neutral$9.92M-0.35-68.70%―-0.17%37.55%
FTEKFTEK40Underperform$45.26M-12.90-8.88%―8.89%-6.47%

* Industrials Sector Average

Performance Comparison

-50%0%50%CLWTCECOERIIFTEKLIQTTOMZDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
CLWT and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
CLWTEuro Tech1.340.1512.61%
CECOCeco Environmental Corp.50.50-1.50-2.88%
ERIIEnergy Recovery6.96-9.85-58.60%
FTEKFuel Tech Inc1.45-1.19-45.08%
LIQTLiqtech International0.30-2.09-87.41%
TOMZTomi Environmental Solutions, Inc.1.93-0.81-29.59%
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.

Date of analysis: Oct 14, 2026