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The Ubika Research Cleantech Stock Watchlist
| H2O Innovation Inc. (Symbol: HEO- TSXV) |
| Company Name: |
H2O Innovation Inc |
| HQ Location: |
Quebec City, Quebec |
| Company Website: |
www.h2oinnovation.com |
| Shares Outstanding |
55.14 Million |
| Market Cap: |
$30.3 Million |
| 52 Week Range |
$0.30-$0.79 |
| Average Daily Volume |
91,900 |
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Share Highlight / 1-Year Stock Chart
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Business Overview
H2O Innovation Inc is a clean technology company and a major player in the water treatment industry in Canada. It is a recipient of the prestigious Deloitte Technology Green 15™ Award, an award created in 2007 to showcase 15 Canadian companies that are leading the way to create major breakthroughs in the field of green technology. The company designs, develops, produces, and integrates innovative and environmentally friendly water treatment systems for the production of drinking water, the reclamation of water, the treatment of wastewater and industrial process water.
The company is operating in a very promising industry with huge growth potential. Water is a scare resource and reusing water is imperative for future conservation. Water treatment technologies offered by H2O Innovation have very promising future as more countries emphasize on sustainable development and try to conserve water.
The Company serves the municipal, commercial, industrial, mining, and energy markets. In addition, the Company offers after-sales, consumables and maintenance solutions for membrane filtration and reverse osmosis systems. The Company has three manufacturing and assembly plants in Canada and the United States.
H2O innovation has set its sight on becoming a major consolidator in the water treatment industry. In a short 10 year corporate history, the company has acquired at least 7 companies that offer various water treatment solutions. Its most recent acquisitions included the acquisition of Itasca Systems Inc. on July 3, 2008 and in June 2009 the Company completed the acquisition of Professional Water Technologies.
What is interesting?
The following are key investment highlights:
- One of the fastest growing small cap companies in Canada. 3 year compounded annual revenue growth rate of over 107%
- A Price over sales ratio of less than 1, considerably lower than the industry average
- A well established clients base with over 450 systems installations in Canada, U.S.A and all over the world
- Well funded with cash on balance sheet of over C$ 5.35 million (or approximately 10 cents a share) as at September 30, 2009
- Know-how in traditional water treatment processes and unique expertise in membrane technology that allows H2O to develop superior solutions
Risks
H2O Innovation has adopted a growth through acquisition strategy and has acquired several companies in recent years. It will be critical for the company to integrate these companies in the overall operations well and to manage this growth in a systematic manner. The company is still not profitable and might require to access capital markets to raise additional financing. This could potentially result in shareholder dilution.
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