The Alkaline Water Company Inc, WTER,
Fiscal Period: March
IPO date: 2013-05-28 (8 years 3 months)
Consumer Defensive -> Beverages-Non-Alcoholic
Consumer Staples -> Food, Beverage & Tobacco -> Beverages -> Soft Drinks
I always look at economics of the business
A bird in the hand is worth 2 in the bush and the question is how sure are you there are 2 in the bush and how long you have to wait to get them out
1. How many birds are in the bush?
2. When you gonna get them out?
3. How sure are you?
If interest rates are 15% roughly you've got 2 birds out of bush in 5 years equal to bird in the hand but if interest rates are 3% and you can get 2 birds out in 20 years it still makes sense to give up the bird in the hand because it's all gets back to discounting an interest rate. Often you don't know not only how many birds in the bush but in the case of internet companies there were not any birds in the bush but they still take the bird that you give them from the hand

Intrinsic Value

2014-032015-032016-032017-032018-032019-032020-03
Capitalization
USD Mil
Discounted Future Cash Flow (DFCF)
USD Mil

Summary

2014-032015-032016-032017-032018-032019-032020-03
RevenueRevenue is the total amount of income generated by the sale of goods or services related to the company's primary operations or in other words it's the income that a company receives from its normal business activities; for example, from the sales of goods and services. Revenue, also known as gross sales, is often referred to as the "top line" because it sits at the top of the income statement.
USD Mil
14713203241
Revenue Change
%
6.696.691.921.81.551.631.28
Сost of RevenueThe cost of revenue or cost of goods sold (COGS) is the total cost of manufacturing and delivering a product or service to consumers. Cost of revenue information is designed to represent the direct costs associated with the goods and services the company provides.
USD Mil
0347121924
Gross ProfitGross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales). Gross profit is the simplest profitability metric because it defines profit as all income that remains after accounting for the cost of goods sold (COGS). COGS includes only those expenses directly associated with the production or manufacture of items for sale, including raw materials and wages for labor required to make or assemble goods. Excluded from this figure are, among other things, any expenses for debt, taxes, operating or overhead costs, and one-time expenditures such as equipment purchases.
USD Mil
013581317
Gross Profit MarginThe gross profit margin compares gross profit to total revenue, reflecting the percentage of each revenue dollar that is retained as profit after paying for the cost of production.
%
0.250.320.370.420.410.40.41
Operating IncomeOperating income is an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS). Operating income—also called income from operations—takes a company's gross income, which is equivalent to total revenue minus COGS, and subtracts all operating expenses. A business's operating expenses are costs incurred from normal operating activities and include items such as office supplies and utilities. Operating income is revenue less any operating expenses, while net income is operating income less any other non-operating expenses, such as interest and taxes. Operating income includes expenses such as selling, general & administrative expenses (SG&A), and depreciation and amortization. Net income (also called the bottom line) can include additional income like interest income or the sale of assets.
USD Mil
-4-7-7-3-6-8-14
Operating Profit MarginOperating Profit Margin (or just operating margin): By subtracting selling, general and administrative, or operating expenses, from a company's gross profit number, we get operating profit margin, also known as earnings before interest and taxes, or EBIT. Resulting in an income figure that’s available to pay the business' debt and equity holders, as well as the tax department, it's profit from a company’s main, ongoing operations.
%
-7.74-1.87-1.05-0.2-0.3-0.25-0.35
Net IncomeNet income, also called net earnings, is calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses. It is a useful number for investors to assess how much revenue exceeds the expenses of an organization. Operating income is revenue less any operating expenses, while net income is operating income less any other non-operating expenses, such as interest and taxes. Operating income includes expenses such as selling, general & administrative expenses (SG&A), and depreciation and amortization. Net income (also called the bottom line) can include additional income like interest income or the sale of assets.
USD Mil
-4-7-8-3-7-9-15
Cash Flow From Operating ActivitiesCash flow from operating activities (CFO) indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers. It is the first section depicted on a company's cash flow statement. Cash flow from operating activities does not include long-term capital expenditures or investment revenue and expense. CFO focuses only on the core business, and is also known as operating cash flow (OCF) or net cash from operating activities. Cash flow forms one of the most important parts of business operations and accounts for the total amount of money being transferred into and out of a business.
USD Mil
-1-3-3-3-3-8-14
Capital ExpendituresCapital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. CapEx is often used to undertake new projects or investments by a company. Making capital expenditures on fixed assets can include repairing a roof, purchasing a piece of equipment, or building a new factory. This type of financial outlay is also made by companies to maintain or increase the scope of their operations. Capital expenditure (CapEx) is a payment for goods or services recorded—or capitalized—on the balance sheet instead of expensed on the income statement. CapEx spending is important for companies to maintain existing property and equipment, and invest in new technology and other assets for growth. If an item has a useful life of less than one year, it must be expensed on the income statement rather than capitalized—i.e. cannot be considered CapEx.
USD Mil
0000010
Free Cash FlowFree cash flow (FCF) or Owner's Earnings represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the non-cash expenses of the income statement and includes spending on equipment and assets as well as changes in working capital from the balance sheet. Free cash flow (FCF) represents the cash available for the company to repay creditors or pay dividends and interest to investors. FCF reconciles net income by adjusting for non-cash expenses, changes in working capital, and capital expenditures (CAPEX). Unlike earnings or net income, free cash flow is a measure of profitability that excludes the non-cash expenses of the income statement and includes spending on equipment and assets as well as changes in working capital from the balance sheet.
USD Mil
-2-4-3-3-3-9-14
Number of Shares OutstandingNumber of shares outstanding represents the amount of stock on the open market, including shares held by institutional investors and restricted shares held by insiders and company officers. A company's outstanding shares can fluctuate for a number of reasons.
USD Mil
Total Stockholders' EquityNumber of shares outstanding represents the amount of stock on the open market, including shares held by institutional investors and restricted shares held by insiders and company officers. A company's outstanding shares can fluctuate for a number of reasons.
USD Mil
0-8210112
Change in Total Stockholders' Equity
%
21.7221.72-0.190.550.5524.680.14
Dividends
USD Mil
0000000
Actual EarningsActual Earnings represent money they acutaly materialized into shareholder owners through dividneds or increase into Total Stockholders' Equity (Book Value) and is calculatrd as dvidents plus change in book value for the corresponding year.
USD Mil
-810-1011-10

Ratios

2014-032015-032016-032017-032018-032019-032020-03
ROEReturn on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity. Because shareholders' equity is equal to a company’s assets minus its debt, ROE is considered the return on net assets. ROE is considered a measure of the profitability of a corporation in relation to stockholders’ equity.
%
11.370.88-5.42-4.15-14.53-0.76-9.14
FCFROEFCF using as return.
%
4.480.43-2.26-3.37-6.4-0.84-8.71
Current RatioThe current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables. The current ratio compares all of a company’s current assets to its current liabilities. These are usually defined as assets that are cash or will be turned into cash in a year or less, and liabilities that will be paid in a year or less. The current ratio is sometimes referred to as the “working capital” ratio and helps investors understand more about a company’s ability to cover its short-term debt with its current assets. Weaknesses of the current ratio include the difficulty of comparing the measure across industry groups, overgeneralization of the specific asset and liability balances, and the lack of trending information.
%
0.340.021.180.920.872.321.01
D/EThe debt-to-equity (D/E) ratio is a measure of the degree to which a company is financing its operations through debt versus wholly-owned funds. More specifically, it reflects the ability of shareholder equity to cover all outstanding debts in the event of a business downturn.
%

Income Statement

2014-032015-032016-032017-032018-032019-032020-03
RevenueRevenue is the total amount of income generated by the sale of goods or services related to the company's primary operations or in other words it's the income that a company receives from its normal business activities; for example, from the sales of goods and services. Revenue, also known as gross sales, is often referred to as the "top line" because it sits at the top of the income statement.
USD Mil
14713203241
Сost of RevenueThe cost of revenue or cost of goods sold (COGS) is the total cost of manufacturing and delivering a product or service to consumers. Cost of revenue information is designed to represent the direct costs associated with the goods and services the company provides.
USD Mil
0347121924
Gross ProfitGross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales). Gross profit is the simplest profitability metric because it defines profit as all income that remains after accounting for the cost of goods sold (COGS). COGS includes only those expenses directly associated with the production or manufacture of items for sale, including raw materials and wages for labor required to make or assemble goods. Excluded from this figure are, among other things, any expenses for debt, taxes, operating or overhead costs, and one-time expenditures such as equipment purchases.
USD Mil
013581317
Operating Expenses
USD Mil
48108142030
    Research Development
USD Mil
0000000
    Selling, General & Administrative
USD Mil
48108142030
Operating Income
USD Mil
-4-7-7-3-6-8-14
Interest Expense
USD Mil
1-1-11110
Other Income (Expense)
USD Mil
Income before Taxes
USD Mil
-4-7-8-3-7-9-15
Provision for Income Taxes
USD Mil
0000000
Net Income from Continuing Ops
USD Mil
-4-7-8-3-7-9-15
Net Income
USD Mil
-4-7-8-3-7-9-15
Preferred Dividend
USD Mil
0000000
Net Income Avail to Comm Sharehol
USD Mil
-4-7-8-3-7-9-15

Balance Sheet

2014-032015-032016-032017-032018-032019-032020-03
Total Stockholders' EquityNumber of shares outstanding represents the amount of stock on the open market, including shares held by institutional investors and restricted shares held by insiders and company officers. A company's outstanding shares can fluctuate for a number of reasons.
USD Mil
0-8210112

Cash Flow Statement

2014-032015-032016-032017-032018-032019-032020-03
Cash Flows From Operating Activities
    Net Income
USD Mil
-4-7-8-3-7-9-15
    Depreciation & Amortization
USD Mil
0000011
    Investments Losses
USD Mil
    Deferred Income Taxes
USD Mil
    Stock Based Compensation
USD Mil
    Change in Working Capital
USD Mil
    Accounts Receivable
USD Mil
00-1-1-10-2
    Prepaid Expenses
USD Mil
    Accounts Payable
USD Mil
    Accrued Liabilities
USD Mil
0001113
    Other Working Capital
USD Mil
    Other Non-cash Items
USD Mil
    Net Cash Provided by Operating Activities
-1-3-3-3-3-8-14
Cash Flows From Investing Activities
    Investments in Properties, Plant, and Eq.
    Properties, Plant, and Eq. Reductions
    Acquisitions, net
    Purchases of Investmets
    Sales/Maturities of Investmets
    Other Investing Activities
    Net cash used for Investing Activities
00000-10
Cash Flows From Financing Activities
    Debt Issued
    Net Cash Provided by (not used for) by Financing Activities
24523208