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Update: Evoqua Water Technologies (NYSE:AQUA) Stock Gained 44% In The Last Year

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Simply Wall St
·3 min read
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Evoqua Water Technologies Corp. (NYSE:AQUA) shareholders have seen the share price descend 20% over the month. But looking back over the last year, the returns have actually been rather pleasing! To wit, it had solidly beat the market, up 44%.

See our latest analysis for Evoqua Water Technologies

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year Evoqua Water Technologies grew its earnings per share, moving from a loss to a profit.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

We think that the revenue growth of 7.5% could have some investors interested. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

NYSE:AQUA Income Statement, March 9th 2020
NYSE:AQUA Income Statement, March 9th 2020

Evoqua Water Technologies is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. You can see what analysts are predicting for Evoqua Water Technologies in this interactive graph of future profit estimates.

A Different Perspective

It's nice to see that Evoqua Water Technologies shareholders have gained 44% over the last year. Unfortunately the share price is down 0.9% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 4 warning signs for Evoqua Water Technologies you should be aware of, and 2 of them can't be ignored.

Of course Evoqua Water Technologies may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

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.

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. Thank you for reading.