As a general rule of thumb, you don’t look to water/water technology companies to find bargains. With less-cyclical business models, leverage to water quality concerns, and the potential for increased federal support through regulation and infrastructure spending, they tend to trade at premiums to the wider multi-industrial space.
With that in mind, I’m not surprised that Evoqua Water Technologies (AQUA) shares look pricey by my typical investment standards. I do like the basic story here, though, including leverage to a “water as a service” business model and the potential for meaningful PFAS water clean-up mandates. If you’re less valuation-sensitive, or have some context for a 32x multiple to ’22 EPS as “cheap”, then there may be something here for you.
Read the full article here:
Evoqua Water Technologies Leveraged To Both Sides Of The Water Quality Equation
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