Fidelity Water Sustainability Fund (FLOWX) Fund Overview

Fidelity Water Sustainability Fund (FLOWX) Financial Services Profile

Fidelity Water Sustainability Fund (FLOWX) is a non-diversified fund focusing on equity securities of water sustainability companies. With a P/E of 45.58 and a dividend yield of 2.85%, FLOWX offers exposure to water resources, treatment, and infrastructure sectors, targeting investors interested in environmental sustainability.

What Is the Investment Thesis for FLOWX?

Fidelity Water Sustainability Fund (FLOWX), with a market capitalization of $0.18 billion, presents an investment opportunity in the growing water sustainability sector. The fund's focus on water resources, treatment, and infrastructure aligns with increasing global demand for clean water and efficient water management solutions. A key value driver is the fund's exposure to companies benefiting from technological advancements in water purification, conservation, and distribution. Upcoming catalysts include increased government regulations and incentives promoting water conservation and infrastructure upgrades. Potential risks include regulatory changes, economic downturns affecting infrastructure spending, and competition from other ESG-focused funds.

Based on FMP financials and quantitative analysis

FLOWX Key Highlights

Market Cap of $0.18B indicates a relatively small fund size, allowing for potentially higher growth rates compared to larger funds.

• P/E ratio of 45.58 suggests the fund may be undervalued compared to its earnings, offering a potential entry point for investors.
• Profit Margin of 3.6% reflects the fund's ability to generate profit from its investments in water sustainability companies.
• Gross Margin of 64.2% indicates efficient management of investment costs and strong revenue generation from its portfolio companies.
• Dividend Yield of 2.85% provides a steady income stream for investors, enhancing the fund's attractiveness.

Who Are FLOWX's Competitors?

FLOWX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FLOWX's Key Strengths?

Specialized focus on the growing water sustainability sector.

• Established brand reputation of Fidelity Investments.
• Access to Fidelity's research and investment expertise.
• Dividend yield provides income potential for investors.

What Are FLOWX's Weaknesses?

Non-diversified structure increases investment risk.

• Relatively small market capitalization compared to larger funds.
• Vulnerability to regulatory changes affecting the water sector.
• Dependence on the performance of water sustainability companies.

What Are the Key Risks for FLOWX?

Financial-distress signal — its Altman Z-Score of 1.06 sits in the distress zone (elevated bankruptcy risk).

• Rich valuation — a P/E of 45.58 runs well above the Financial Services sector’s ~17.20x, leaving little room for a miss.
• Regulatory changes impacting the water sector and investment strategies.
• Economic downturns affecting infrastructure spending and investment returns.
• Competition from other ESG-focused funds attracting investor capital.
• Fluctuations in commodity prices affecting water treatment costs.
• Market volatility impacting the value of equity securities in the fund's portfolio.

What Are FLOWX's Competitive Advantages?

• Specialized focus on the water sustainability sector provides a niche market.
• Established brand reputation of Fidelity Investments enhances investor confidence.
• Access to Fidelity's research and investment expertise provides a competitive edge.
• Non-diversified structure allows for concentrated investments in high-potential companies.

What Does FLOWX Do?

Fidelity Water Sustainability Fund (FLOWX) was established to focus on investments in companies dedicated to water sustainability. The fund channels capital into businesses involved in various aspects of water management, including water resources, treatment, distribution, and related technologies. This includes companies engaged in desalinization, purification, water analytics, environmental services, and infrastructure such as pumps, valves, and pipes. FLOWX is a non-diversified fund, meaning it can invest a significant portion of its assets in a smaller number of companies compared to diversified funds. This strategy allows for potentially higher returns but also carries increased risk. The fund primarily invests in equity securities, reflecting a long-term investment approach. By focusing on the water sector, FLOWX aims to capitalize on the increasing global demand for sustainable water solutions and technologies. The fund's investments span across various sub-sectors within the water industry, providing exposure to different facets of water management and conservation. Headquartered in Boston, the fund operates within the broader Fidelity Investments ecosystem, leveraging its research and investment capabilities. FLOWX's strategy aligns with the growing environmental, social, and governance (ESG) investment trend, appealing to investors seeking both financial returns and positive environmental impact.

What Products and Services Does FLOWX Offer?

• Invests in securities of water sustainability companies.
• Focuses on companies involved in water resources management.
• Targets businesses in water treatment and distribution.
• Includes companies engaged in desalinization and purification.
• Invests in water technologies and analytics firms.
• Supports environmental water services and infrastructure companies.
• Provides capital to companies involved in irrigation and water conservation.
• Funds businesses in water supply and processing services.

How Does FLOWX Make Money?

• Generates revenue through management fees charged on assets under management (AUM).
• Invests in equity securities of water sustainability companies.
• Distributes dividends and capital gains to shareholders.
• Reinvests earnings to grow the fund's asset base.

What Industry Does FLOWX Operate In?

The asset management industry is experiencing growth driven by increasing demand for specialized investment products like ESG funds. Fidelity Water Sustainability Fund (FLOWX) operates within this context, focusing specifically on the water sustainability sector. Competitors include other specialized funds such as AVEWX, BUFMX, CAMYX, HADUX, and HJSIX, each with varying investment strategies and focuses within the broader ESG landscape.

Who Are FLOWX's Key Customers?

• Individual investors seeking exposure to the water sustainability sector.
• Institutional investors allocating capital to ESG-focused funds.
• Retirement plans and endowments investing in sustainable solutions.
• Financial advisors recommending ESG investments to their clients.

Return on equity for Fidelity Water Sustainability Fund stands at 4.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.8%, showing how much profit it generates from its asset base. FLOWX trades at a trailing price-to-earnings ratio of 45.58, above the Financial Services sector average of ~17.20x. A current ratio of 2.03 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 53.4%, the inverse of the P/E and a quick read on earnings relative to price.

Fidelity Water Sustainability Fund's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.06 places it in the distress zone, a signal of elevated financial risk.

FLOWX Financials

FLOWX Latest News

No recent news available for FLOWX.

FLOWX Analyst Consensus

FLOWX MoonshotScore

Common Questions About FLOWX (Financials)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources