H2O Innovation Analysis
H2O Innovation holds a debt-to-equity ratio of 0.669. H2O Innovation's financial risk is the risk to H2O Innovation stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
H2O Innovation's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. H2O Innovation's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the OTC Stock is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps H2O OTC Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect H2O Innovation's stakeholders.
For most companies, including H2O Innovation, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for H2O Innovation, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, H2O Innovation's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that H2O Innovation's debt-to-equity ratio measures a OTC Stock's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which H2O Innovation is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of H2O Innovation to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, H2O Innovation is said to be less leveraged. If creditors hold a majority of H2O Innovation's assets, the OTC Stock is said to be highly leveraged.
H2O Innovation is undervalued with Real Value of 0.0 and Hype Value of 0.0. The main objective of H2O Innovation otc analysis is to determine its intrinsic value, which is an estimate of what H2O Innovation is worth, separate from its market price. There are two main types of H2O Innovation's stock analysis: fundamental analysis and technical analysis.
The H2O Innovation otc stock is traded in the USA on OTCQX Exchange, with the market opening at 09:30:00 and closing at 16:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in the USA. Here, you can get updates on important government artifacts, including earning estimates, SEC corporate filings, announcements, and H2O Innovation's ongoing operational relationships across important fundamental and technical indicators.
H2O |
H2O OTC Stock Analysis Notes
About 22.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.87. Some equities with similar Price to Book (P/B) outperform the market in the long run. H2O Innovation had not issued any dividends in recent years. The entity had 1:5 split on the 1st of December 2014. H2O Innovation Inc. designs and provides integrated water treatment solutions based on membrane filtration technology. The company was founded in 2000 and is headquartered in Quebec City, Canada. H2O Innovation operates under UtilitiesRegulated Water classification in the United States and is traded on OTC Exchange. It employs 1000 people.The quote for H2O Innovation is listed on Over The Counter exchange (i.e., OTC), and the entity is not required to meet listing requirements such as those found on the Nasdaq, NYSE, or AMEX exchanges. To learn more about H2O Innovation call Frederic Dugre at 418 688 0170 or check out https://www.h2oinnovation.com.H2O Innovation Investment Alerts
| H2O Innovation is not yet fully synchronised with the market data | |
| H2O Innovation has some characteristics of a very speculative penny stock | |
| H2O Innovation has a very high chance of going through financial distress in the upcoming years | |
| H2O Innovation has accumulated about 7.38 M in cash with (6.25 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.08. |
H2O Market Capitalization
The company currently falls under 'Small-Cap' category with a current market capitalization of 175.17 M. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate H2O Innovation's market, we take the total number of its shares issued and multiply it by H2O Innovation's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.H2O Profitablity
H2O Innovation's profitability indicators refer to fundamental financial ratios that showcase H2O Innovation's ability to generate income relative to its revenue or operating costs. If, let's say, H2O Innovation is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, H2O Innovation's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of H2O Innovation's profitability requires more research than a typical breakdown of H2O Innovation's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
The company has Profit Margin (PM) of 0.02 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.04 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.04.
H2O Innovation Debt to Cash Allocation
Many companies such as H2O Innovation, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
H2O Innovation has accumulated 46.07 M in total debt with debt to equity ratio (D/E) of 0.67, which is about average as compared to similar companies. H2O Innovation has a current ratio of 1.8, which is within standard range for the sector. Debt can assist H2O Innovation until it has trouble settling it off, either with new capital or with free cash flow. So, H2O Innovation's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like H2O Innovation sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for H2O to invest in growth at high rates of return. When we think about H2O Innovation's use of debt, we should always consider it together with cash and equity.H2O Innovation Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the H2O Innovation's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of H2O Innovation, which in turn will lower the firm's financial flexibility.Be your own money manager
As an investor, your ultimate goal is to build wealth. Optimizing your investment portfolio is an essential element in this goal. Using our otc stock analysis tools, you can find out how much better you can do when adding H2O Innovation to your portfolios without increasing risk or reducing expected return.Did you try this?
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Other Consideration for investing in H2O OTC Stock
If you are still planning to invest in H2O Innovation check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the H2O Innovation's history and understand the potential risks before investing.
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