OTCQX:HEOFF - Post by User
Post by
retiredcfon May 22, 2022 8:18am
![](https://assets.stockhouse.com/kentico-cms/0340-00/images/Sprite.svg#id_Post_Views_Icon)
260 Views
Post# 34700924
Assessment
Assessment Q: Could you provide an update on the fundamentals of H2O Innovation including the latest quarter, insider holdings and recent trading.
Revenue growth has been accelerating in the last few quarters. Gross and EBITDA margins have been holding up quite well. Operating expenses have also been managed well in the last few years. It is recently profitable and has positive free cash flows. We like it as a leader in water treatment, however, it is still relatively small and we would watch position sizing. Shares have held up relatively well in this market and we would be fine with a small starter position today. HEO have a good track record for beating estimates and the recent quarter was solid. EPS came in at 4 cents vs estimates of 1 cent and sales were $52M, up 32% y/y and beating estimates by 14%. Insiders own ~10%. There has been little insider activity over the last 3 and 6 months showing only 2 sales for both periods and no buying.
Provided by the team at 5iResearch last Wednesday. GLTA