RE: Interesting opportunity27 May 2025 14:15
This company’s growth is being severely underrated
Published on May 23, 2025
by Simon Thompson
• 20 per cent full-year earnings growth forecast
• Forward PE ratio of 10
• US listing being explored
Water Intelligence (WATR:338p) is a multinational provider of precision, minimally invasive water leak detection and remediation solutions. Around 90 per cent of revenue is generated in the US, a country where 15 per cent of all water is lost due to leakage.
Water Intelligence is targeting this captive market through its American Leak Detection (ALD) business, which has revolutionised the water infrastructure services industry. Specifically, ALD has pioneered the use of acoustic and infrared-based technology to pinpoint water leaks, as opposed to traditional methods of visual inspection that require breaking walls or digging up surfaces until the origins of the leak can be found.
ALD’s focus has been on small-diameter pipe, such as in homes, commercial premises and swimming pools. For these types of hard-to-find leaks, customers including homeowners, property management companies and insurance firms value the quality of service and the fact that ALD’s proprietary technology minimises damage to walls, floors and roofs.
Investment in technology is a key differentiator of Water Intelligence’s product and service offering, and has helped grow ALD into a national business that operates in 150 locations across 46 US states. The business continues to capture market share by establishing national channels with insurance firms, property management companies and municipalities.
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Sensibly, Water Intelligence is using strategic partnerships to drive organic growth. For instance, ALD has recently entered a partnership with StreamLabs, a Chubb Insurance company and a leading provider of patented, state-of-the art water usage monitoring, leak detection and water shut-off solutions for commercial and residential properties. ALD expects to generate organic revenue and profit growth through:
• the resale of StreamLabs products at favourable wholesale prices
• service installations of devices by ALD from StreamLabs
• ALD ‘aftercare’ programmes for water management sought by residential and commercial customers
• leveraging ALD’s other proprietary products.
Much like how insurance companies have transformed healthcare, insurance companies are working with homeowners to promote preventive maintenance solutions for water infrastructure, ranging from water monitoring and alerts to minimally invasive leak detection and repair. As the leader in the US in providing end-to-end solutions to more than 200,000 residential customers each year, ALD is the only company in a f