One-glance verdict
Undervalued
$2.65 our estimate vs market $1.52
43% below our estimate, below the bear case
Fundamentals snapshot
Euro Tech Holdings Company Limited
CLWT · NCM · Industrials · Pollution & Treatment Controls
Current price
$1.52
52-week range
$0.99 - $2.68
Market cap
$11.27M
Balance sheet
Healthy
-233.00x Concerning
Net cash $3.95M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Returns 1.0% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 5/10 years.
- Risk Stock trades 307.0% above its 5-year average P/E.
What this company does
Euro Tech Holdings Company Limited
Euro Tech Holdings acts as a specialized distributor, selling technical instruments for things like water purification and pollution monitoring, primarily in Hong Kong and mainland China. The company's revenue (the total money it brings in from sales) comes from supplying this essential equipment to other businesses, such as utility companies and research labs. This is important because customers rely on these tools for critical tasks like ensuring environmental safety and maintaining their daily operations.
How the company got here
Founded in Hong Kong in 1971, Euro Tech started by supplying a variety of equipment to businesses and government agencies in Hong Kong and mainland China. Over the years, it has established itself as a key provider of technology instruments and environmental engineering services. The company focuses on environmental protection, specifically in the areas of air, water, and energy. Its main goal has been to offer high-quality, competitively priced instruments and engineering solutions to the Chinese market.
What it actually does
Think of Euro Tech as a specialized hardware store and engineering consultant for environmental and industrial projects. They sell and install the high-tech equipment needed to monitor and treat water and air pollution. This includes everything from laboratory instruments that analyze water quality to systems that control emissions from power plants. Their customers are typically large organizations like government bodies, utilities, and industrial companies in Hong Kong and mainland China.
Trading and Manufacturing
This is the company's main business and generates the most revenue (the total amount of money a company brings in from sales). In this segment, Euro Tech acts as a distributor, selling a wide range of technical equipment. This includes instruments for testing water quality, analyzers for laboratories, and even equipment for power generation. They source these products and sell them to their clients, making money on the markup.
Engineering
This part of the company provides services rather than just selling products. The engineering team designs and manages projects related to water and wastewater treatment, as well as air pollution control. For example, a factory might hire Euro Tech to build a system to clean its wastewater before it's released. This segment also offers ongoing support like maintenance, installation, and calibration (the process of making sure equipment is working accurately).
What management is betting on now
Euro Tech is currently focused on expanding its engineering services, especially in industrial wastewater treatment for sectors like pharmaceuticals, energy, and mining. They are also innovating in the maritime industry with a new mobile ballast water treatment system. This system helps ships comply with environmental regulations by treating the water they carry for stability, which can contain invasive species. The company is looking to partner with European distributors to grow sales of this new technology.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$776.00K
FY2025 Q4
$-1.42M
Revenue
$13.27M
Net income
$167.00K
Diluted EPS
0.02
Operating cash flow
$-1.42M
Free cash flow
$-1.42M
Fetching…
Sources
Revenue
$15.38M
Net income
$845.00K
Diluted EPS
0.10
Operating cash flow
$781.00K
Free cash flow
$776.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $2.65 vs current price $1.52
Our most-likely fair value is $2.65 a share — about 74.6% above today's price of $1.52, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $4.0M - more cash than debt. Interest coverage -233.0x.
Net debt
$-3.95M
Interest coverage
-233.00x
Euro Tech Holdings Company Limited's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
CLWT
BASELINE
Euro Tech Holdings Company Limited
Total debt $329.00K Interest coverage -233.00x This is the baseline the peer rows are being compared against.
Total debt $3.39M Interest coverage -7.47x Neither company has much profit cushion over interest right now.
Total debt $8.10M Interest coverage -11.19x Neither company has much profit cushion over interest right now.
Total debt $117.00K Interest coverage -13.52x Neither company has much profit cushion over interest right now.
Total debt $238.98K Interest coverage -217.97x Neither company has much profit cushion over interest right now.
What you should know
The case for and against CLWT
2 Rewards
1 Risk
Rewards
-
Returns 1.0% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 5/10 years.
Risks
-
Stock trades 307.0% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
76.00x
Forward P/E
—
P/B
0.72x
P/S
0.85x
EV/EBITDA
-37.48x
PEG ratio
0.57x
Profitability
How much profit each dollar creates
Gross margin
27.7%
Operating margin
1.8%
Net margin
1.2%
ROE
1.0%
ROA
-0.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
2.02x
Quick ratio
1.71x
Total debt
$329.00K
Total cash
$4.28M
Growth
How the business has been compounding
Revenue TTM
$61.54M
Revenue 5Y CAGR
-11.3%
EPS TTM
0.02
EPS 5Y CAGR
-9.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$-253.00K
Free CF TTM
$-1.42M
FCF margin
-2.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2024-06-13