Fact based stock research
The Alkaline Water Company (NasdaqCM:WTER)

US01643A2078

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Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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The Alkaline Water Company stock research in summary

thealkalinewaterco.com

ANALYSIS: With an Obermatt Combined Rank of 28 (worse than 72% compared with investment alternatives), The Alkaline Water Company (Soft Drinks, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of The Alkaline Water Company are a good value (attractively priced) with a consolidated Value Rank of 74 (better than 74% of alternatives), show above-average growth (Growth Rank of 57) but are riskily financed (Safety Rank of 1), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 28, is a hold recommendation based on The Alkaline Water Company's financial characteristics. As the company The Alkaline Water Company's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 74) and above-average growth (Obermatt Growth Rank of 57), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 1) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	74
Growth Rank	57
Safety Rank	1
Combined Rank	28

Country	USA
Industry	Soft Drinks
Index	NASDAQ
Size class	X-Small

2-May-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: The Alkaline Water Company

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	24	27	70	74
GROWTH
GROWTH	16	29	57	57
SAFETY
SAFETY	24	45	1	1
SENTIMENT
SENTIMENT	n/a	10	12	^new
360° VIEW
360° VIEW	n/a	3	10	^new

Most recent update of the stock research: 2-May-2024. Financial reporting date used for calculating ranks: 27-Jan-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better The Alkaline Water Company is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	24	27	70	74
GROWTH
GROWTH	16	29	57	57
SAFETY
SAFETY	24	45	1	1
COMBINED
COMBINED	1	20	35	28

Last update of combined financial performance: 2-May-2024. Stock analysis on combined financial performance: The higher the rank of The Alkaline Water Company the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 74 (better than 74% compared with alternatives), The Alkaline Water Company shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for The Alkaline Water Company. Price-to-Sales (P/S) is 100, which means that the stock price compared with what market professionals expect for future sales is lower than for 100% of comparable companies, indicating a good value concerning The Alkaline Water Company's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 97% of alternatives (3% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 26, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 74, is a buy recommendation based on The Alkaline Water Company's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for The Alkaline Water Company may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	74	61	100	100
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	18	26	26	26
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	16	20	97	97
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	24	27	70	74

Last update of Value Rank: 2-May-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of The Alkaline Water Company; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), The Alkaline Water Company shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for The Alkaline Water Company. Sales Growth has a rank of 91 which means that currently, professionals expect the company to grow more than 91% of its competitors. Capital Growth is also above 31% of competitors with a rank of 100. But Profit Growth only has a rank of 31, which means that currently professionals expect the company to grow its profits less than 69% of its competitors. And Stock Returns have also been below average with a rank of only 1. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	30	94	75	91
PROFIT GROWTH
PROFIT GROWTH	n/a	8	37	31
CAPITAL GROWTH
CAPITAL GROWTH	n/a	25	99	100
STOCK RETURNS
STOCK RETURNS	44	39	1	1
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	16	29	57	57

Last update of Growth Rank: 2-May-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of The Alkaline Water Company.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 1 (better than 1% compared with alternatives), the company The Alkaline Water Company has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of The Alkaline Water Company is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for The Alkaline Water Company. Liquidity is at 4, meaning that the company generates less profit to service its debt than 96% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 1, meaning the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. Finally, Refinancing is at a rank of 1 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 99% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 1 (worse than 99% compared with alternatives), The Alkaline Water Company has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of The Alkaline Water Company because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	52	66	1	1
REFINANCING
REFINANCING	60	71	1	1
LIQUIDITY
LIQUIDITY	1	1	4	4
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	24	45	1	1

Last update of Safety Rank: 2-May-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of The Alkaline Water Company and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	77	77	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	14	4	^new
MARKET PULSE
MARKET PULSE	n/a	2	7	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	10	12	^new

Last update of Sentiment Rank: 2-May-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for The Alkaline Water Company.
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