U.S. Municipal Water Equipment Markets - Investment Analysis and Growth Opportunities

1 EXECUTIVE SUMMARY

Executive Summary

Executive Summary

2 INTRODUCTION AND METHODOLOGY

Introduction and Methodology

Introduction

Methodology

3 INDUSTRY FUNDAMENTALS AND GROWTH OPPORTUNITIES

Industry Fundamentals

Introduction

Municipal Water Industry Fundamentals

Growth Opportunities

Frost & Sullivan - Municipal Water Industry Growth Monitor

Market Overview - Treatment Equipment and Flow Control and Measuring Devices

Municipal Water Treatment Equipment Market

Municipal Water Meters and Accessories Market

Municipal Water Pumps and Components Market

Municipal Water Pipes and Fittings Market

4 FINANCIAL ANALYSIS OF THE U.S. MUNICIPAL WATER EQUIPMENT MARKET

The Frost & Sullivan Water Universe

Industry Classification

EPS Impact of the Municipal Water Equipment Market

Companies and Municipal Exposure

Industry Profitability

Year-over-Year Sales Growth

Average Operating Margin

Annual Incremental Margin

Quarterly Incremental Margin

SG & A to Sales Ratio

R&D to Sales Ratio

Cash Flow and Balance Sheet Analysis

Free Cash Flow

Free Cash Flow Margin

Free Cash Flow to Operating Income

Annual Capital Expenditure

Capital Expenditure to Sales Ratio

Net Debt to Capital

Working Capital Analysis

Net Return on Average Equity

Return on Total Assets

5 VALUATION

Historical Valuation

Enterprise Value/LTM Sales to Six Year Sales CAGR Ratio

Enterprise Value/LTM EBITDA to 3-year Average Operating Margin

Stock Performance

Individual Stock Performance

Price/Earnings to Growth Ratio

Dividend Yield

Water Industry Stock Index

Water Industry Stock Index (WISI)

Historical M & A valuation

Mergers & Acquisitions

Acquisition Deals: Average EV/LTM Sales

Industry Growth Outlook

EPS Guidance for Next Fiscal Year