Bonkers Valuation: Water Intelligence still hard to fathom
Chris Boxall of AIM investment specialist Fundamental Asset is highly sceptical of the valuation of this inherently low growth and aged US based business
A well established US leak detection business is the main operating subsidiary of AIM-traded group Water Intelligence (LON: WATR). Until recently American Leak Detection, which was established in the 1970s, was being run as it always has done, as a simple, cash generative, franchise business, requiring little capital and generating reasonable margins. However, management at its parent company Water Intelligence recently decided to acquire franchise territories from franchise holders, making it very hard to determine the real organic growth of the business. .
The…
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