U.S. markets closed
  • S&P 500

    3,768.25
    -27.29 (-0.72%)
     
  • Dow 30

    30,814.26
    -177.24 (-0.57%)
     
  • Nasdaq

    12,998.50
    -114.10 (-0.87%)
     
  • Russell 2000

    2,123.20
    -32.15 (-1.49%)
     
  • Crude Oil

    52.09
    -0.27 (-0.52%)
     
  • Gold

    1,836.80
    +6.90 (+0.38%)
     
  • Silver

    25.01
    +0.14 (+0.58%)
     
  • EUR/USD

    1.2077
    -0.0007 (-0.06%)
     
  • 10-Yr Bond

    1.0970
    -0.0320 (-2.83%)
     
  • GBP/USD

    1.3581
    -0.0002 (-0.02%)
     
  • USD/JPY

    103.6870
    -0.1130 (-0.11%)
     
  • BTC-USD

    35,792.68
    -266.21 (-0.74%)
     
  • CMC Crypto 200

    696.43
    -38.71 (-5.27%)
     
  • FTSE 100

    6,720.65
    -15.06 (-0.22%)
     
  • Nikkei 225

    28,242.21
    -276.97 (-0.97%)
     

The AquaVenture Holdings (NYSE:WAAS) Share Price Is Up 15% And Shareholders Are Holding On

Simply Wall St

If you want to compound wealth in the stock market, you can do so by buying an index fund. But if you pick the right individual stocks, you could make more than that. For example, the AquaVenture Holdings Limited (NYSE:WAAS) share price is up 15% in the last year, clearly besting the market return of around 12% (not including dividends). That's a solid performance by our standards! Zooming out, the stock is actually down 1.3% in the last three years.

View our latest analysis for AquaVenture Holdings

AquaVenture Holdings isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

AquaVenture Holdings grew its revenue by 42% last year. We respect that sort of growth, no doubt. While the share price performed well, gaining 15% over twelve months, you could argue the revenue growth warranted it. If revenue stays on trend, there may be plenty more share price gains to come. But it's crucial to check profitability and cash flow before forming a view on the future.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

NYSE:WAAS Income Statement, November 15th 2019
NYSE:WAAS Income Statement, November 15th 2019

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So it makes a lot of sense to check out what analysts think AquaVenture Holdings will earn in the future (free profit forecasts).

A Different Perspective

AquaVenture Holdings shareholders have gained 15% over twelve months. This isn't far from the market return of 15%. Shareholders can take comfort that it's certainly better than the yearly loss of about 0.4% per year endured over the last three years. The optimist would say that this might be the dawn of a brighter future. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

But note: AquaVenture Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.