The Alkaline Water Company Inc. (WTER) shares are trading at higher $1.19 and the avg recommendation for the stock is Moderate Buy.
To add more color to this target, the company’s high over the last year is $2.60 and the low is $0.40. Over the last 52 weeks, WTER is up 5.31% while the S&P 500 is up 15.29%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, WTER reported a profit of $4.43 million. The Alkaline Water Company Inc. also saw revenues increase to $10.76 million. In addition, WTER has free cash flow of -$8.2 million as of 09-2020. The company’s EBITDA came in at -$4.05 million which compares well with its peers.
WTER booked profit margins of -31.30%, its Return on Equity (ROE) is -340.10%, and its Return on Assets is -90.40%. All told, it is clear that, WTER needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. WTER has a short ratio of 1.64 and outstanding shares of 67.89M.
WTER has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.12 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.27. The Alkaline Water Company Inc. WTER also noted assets of $17.75 million at the end of the last quarter. Investors should also keep an eye on sector updates as WTER has historically followed its peers on positive news.
All told, The Alkaline Water Company Inc. WTER has strung together solid data and demonstrated underlying fundamentals. At its current valuation, WTER represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
The Alkaline Water Company Inc. WTER is now commanding a market cap of 86.10M and a float of 67.85M. WTER is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of WTER stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in WTER, either long or short, and we have not been compensated for this article.