North American Residential Water Treatment Equipment Markets - Investment Analysis and Growth Opportunities

SUMMARY

Frost & Sullivan's Water Financial Benchmarking and Analysis (FBA) service presents a broad financial outline of the water industry, highlighting major market and financial trends in key growth segments. It provides a comprehensive financial analysis of leading water companies to support the investment and financial analysis needs of decision makers in the arena. The current study within the service focuses on the North American residential water treatment equipment market.

Residential Water Market Reaching Maturity

While the residential water treatment equipment market has reached the mature stage of its lifecycle, the competing bottled water industry is growing at an astonishing rate, illustrating that Americans are concerned about the quality of drinking water. In response, residential water companies are taking drastic measures to attract these customers to shift from bottled water to residential water treatment equipment.

Frost & Sullivan estimates that the North American residential water treatment equipment market, with a revenue base of $1.48 billion for 2004, will reach $2.29 billion in revenues by 2011, representing a compound annual growth rate (CAGR) of only 6.5 percent. Since the increasing market saturation limits the growth the market, industry participants should look for ways to attract new customers to the marketplace.

Increased Concerns Over Water Purity

Over the last five years, the market has witnessed an increase in public concerns about the contamination of drinking water through parasites and bio-terrorism. Recently, there have been several outbreaks of various water-borne diseases in the United States; these occurrences, coupled with fear of terrorism post-9/11, have boosted sales in the water purification market.

In order to address the concerns over water purity, residential water companies need to increase consumer awareness, and facilitate a shift from basic treatment equipment to high-end sophisticated products. If consumers are more educated about water contaminants, the residential water companies will be more effective at convincing consumers that their products and equipment are sufficient at treating the contaminants.

TABLE OF CONTENTS

• 1. Executive Summary
  • 1. Executive Summary
    • 1. Executive Summary
• 2. Introduction and Methodology
  • 1. Introduction
    • 1. Introduction
    • 2. Methodology
• 3. Industry Fundamental and Growth Opportunities
  • 1. Industry Fundamentals
    • 1. Introduction
    • 2. Residential Water Treatment Equipment Market Fundamentals
  • 2. Growth Opportunities
    • 1. Frost & Sullivan - Residential Water Treatment Equipment Market Growth Monitor
  • 3. Industry Economics and Value Chain Analysis
    • 1. Industry Economics
    • 2. Value Chain Analysis
  • 4. Market Overview
    • 1. Point-of-Entry Equipment Market
    • 2. Point-of-Use Equipment Market
    • 3. Pitcher Filter Market
• 4. Financial Analysis of North American Water Equipment Market
  • 1. The Frost & Sullivan Water Universe
    • 1. Industry Classification
  • 2. Industry Profitability
    • 1. Year-over-Year Sales Growth
    • 2. Annual Gross Profit Margin
    • 3. Quarterly and Annual Operating Margins
    • 4. Annual Incremental Margin
    • 5. SG&A to Sales
    • 6. R&D to Sales
  • 3. Liquidity Analysis
    • 1. Quick Ratio
    • 2. Current Ratio
    • 3. Debt/Equity Ratio
  • 4. Management Effectiveness
    • 1. Return on Total Assets
    • 2. Return on Investment
    • 3. Return on Equity
  • 5. Efficiency
    • 1. Revenue per Employee
    • 2. Inventory Turnover
    • 3. Asset Turnover
• 5. Valuation
  • 1. Historical Valuation
    • 1. Enterprise Value/LTM Sales to Six Year CAGR Ratio
    • 2. Enterprise Value/LTM EBITDA to 3 Year Average Operating Margin
  • 2. Stock Performance
    • 1. Individual Stock Performance
    • 2. Price/Earnings to Growth Ratio
    • 3. Dividend Yield
  • 3. Water Industry Stock Index
    • 1. Water Industry Stock Index (WISI)
  • 4. Historical M&A Valuation
    • 1. Mergers & Acquisitions
  • 5. Industry Growth Outlook
    • 1. EPS Guidance for the Next Fiscal Year
  • 6. Investment Opportunity Scorecard
    • 1. Residential Water Sector Opportunity Scorecard
    • 2. Residential Water Company Investment Scorecard
• 6. Frost & Sullivan Awards
  • 1. 2005 Frost & Sullivan Best Commercial Bank Award - Residential Water Market
    • 1. 2005 Frost & Sullivan Best Commercial Bank Award - Residential Water Market
  • 2. 2005 Frost & Sullivan Employee Insurance Provider Award - Residential Water Market
    • 1. 2005 Frost & Sullivan Employee Insurance Provider Award - Residential Water Market