ARIS WATER SOLUTIONS INC-A (ARIS) Stock Fundamental Analysis
NYSE:ARIS - US04041L1061 - Common Stock
24.035 USD
+0.39 (+1.63%)
ARIS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 61 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of ARIS while its profitability can be described as average. ARIS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ARIS had positive earnings in the past year.
ARIS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ARIS reported negative net income in multiple years.
Each year in the past 5 years ARIS had a positive operating cash flow.
1.2 Ratios
ARIS's Return On Assets of 1.88% is on the low side compared to the rest of the industry. ARIS is outperformed by 62.30% of its industry peers.
ARIS has a Return On Equity (7.65%) which is comparable to the rest of the industry.
ARIS's Return On Invested Capital of 7.39% is fine compared to the rest of the industry. ARIS outperforms 65.57% of its industry peers.
ARIS had an Average Return On Invested Capital over the past 3 years of 5.83%. This is below the industry average of 8.01%.
The 3 year average ROIC (5.83%) for ARIS is below the current ROIC(7.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 7.65% | ||
| ROIC | 7.39% |
ROA(3y)1.1%
ROA(5y)0.45%
ROE(3y)4.51%
ROE(5y)1.92%
ROIC(3y)5.83%
ROIC(5y)4.48%
1.3 Margins
ARIS has a Profit Margin (5.61%) which is in line with its industry peers.
ARIS's Profit Margin has declined in the last couple of years.
The Operating Margin of ARIS (23.95%) is better than 90.16% of its industry peers.
In the last couple of years the Operating Margin of ARIS has grown nicely.
ARIS has a better Gross Margin (39.67%) than 78.69% of its industry peers.
In the last couple of years the Gross Margin of ARIS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.95% | ||
| PM (TTM) | 5.61% | ||
| GM | 39.67% |
OM growth 3Y6.73%
OM growth 5Y20.3%
PM growth 3YN/A
PM growth 5Y-12.32%
GM growth 3Y6.48%
GM growth 5Y12.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARIS is destroying value.
Compared to 1 year ago, ARIS has more shares outstanding
ARIS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ARIS has been reduced compared to a year ago.
2.2 Solvency
ARIS has an Altman-Z score of 1.42. This is a bad value and indicates that ARIS is not financially healthy and even has some risk of bankruptcy.
ARIS has a worse Altman-Z score (1.42) than 65.57% of its industry peers.
The Debt to FCF ratio of ARIS is 4.38, which is a neutral value as it means it would take ARIS, 4.38 years of fcf income to pay off all of its debts.
ARIS has a Debt to FCF ratio of 4.38. This is comparable to the rest of the industry: ARIS outperforms 50.82% of its industry peers.
ARIS has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ARIS (1.27) is worse than 81.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.79
WACC9.39%
2.3 Liquidity
A Current Ratio of 1.22 indicates that ARIS should not have too much problems paying its short term obligations.
The Current ratio of ARIS (1.22) is worse than 81.97% of its industry peers.
ARIS has a Quick Ratio of 1.22. This is a normal value and indicates that ARIS is financially healthy and should not expect problems in meeting its short term obligations.
ARIS has a Quick ratio of 1.22. This is in the lower half of the industry: ARIS underperforms 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
ARIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.96%, which is quite good.
Measured over the past years, ARIS shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.41% on average per year.
ARIS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.42%.
ARIS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.67% yearly.
EPS 1Y (TTM)16.96%
EPS 3YN/A
EPS 5Y27.41%
EPS Q2Q%13.79%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y23.83%
Revenue growth 5Y29.67%
Sales Q2Q%22.72%
3.2 Future
Based on estimates for the next years, ARIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.58% on average per year.
ARIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.30% yearly.
EPS Next Y16.85%
EPS Next 2Y11.4%
EPS Next 3Y15.09%
EPS Next 5Y19.58%
Revenue Next Year14.2%
Revenue Next 2Y8.93%
Revenue Next 3Y8.25%
Revenue Next 5Y6.3%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.35, the valuation of ARIS can be described as rather expensive.
ARIS's Price/Earnings is on the same level as the industry average.
ARIS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.84.
The Price/Forward Earnings ratio is 15.37, which indicates a correct valuation of ARIS.
ARIS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.48. ARIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 15.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARIS indicates a rather expensive valuation: ARIS more expensive than 80.33% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ARIS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.81 | ||
| EV/EBITDA | 9.45 |
4.3 Compensation for Growth
ARIS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ARIS has a very decent profitability rating, which may justify a higher PE ratio.
ARIS's earnings are expected to grow with 15.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)0.67
EPS Next 2Y11.4%
EPS Next 3Y15.09%
5. Dividend
5.1 Amount
ARIS has a Yearly Dividend Yield of 2.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.33, ARIS pays a bit more dividend than its industry peers.
ARIS's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
ARIS has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
111.96% of the earnings are spent on dividend by ARIS. This is not a sustainable payout ratio.
DP111.96%
EPS Next 2Y11.4%
EPS Next 3Y15.09%
NYSE:ARIS (9/4/2025, 3:52:08 PM)
24.035
+0.39 (+1.63%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners109.68%
Inst Owner Change-3.26%
Ins Owners4.18%
Ins Owner Change1.49%
Market Cap1.42B
Analysts77.89
Price Target28 (16.5%)
Short Float %7.64%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend0.42
Dividend Growth(5Y)N/A
DP111.96%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.73%
Min EPS beat(2)10.74%
Max EPS beat(2)16.71%
EPS beat(4)3
Avg EPS beat(4)5.86%
Min EPS beat(4)-16.05%
Max EPS beat(4)16.71%
EPS beat(8)7
Avg EPS beat(8)15.16%
EPS beat(12)9
Avg EPS beat(12)9.68%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.8%
Min Revenue beat(2)1.26%
Max Revenue beat(2)4.35%
Revenue beat(4)4
Avg Revenue beat(4)4.57%
Min Revenue beat(4)1.26%
Max Revenue beat(4)6.5%
Revenue beat(8)8
Avg Revenue beat(8)4.11%
Revenue beat(12)11
Avg Revenue beat(12)4%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-6.96%
PT rev (3m)-16.41%
EPS NQ rev (1m)0.69%
EPS NQ rev (3m)-14.75%
EPS NY rev (1m)5.54%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)5.72%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 15.37 | ||
| P/S | 2.99 | ||
| P/FCF | 13.81 | ||
| P/OCF | 7.61 | ||
| P/B | 4.08 | ||
| P/tB | 11.97 | ||
| EV/EBITDA | 9.45 |
EPS(TTM)1.31
EY5.45%
EPS(NY)1.56
Fwd EY6.51%
FCF(TTM)1.74
FCFY7.24%
OCF(TTM)3.16
OCFY13.14%
SpS8.03
BVpS5.89
TBVpS2.01
PEG (NY)1.09
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 7.65% | ||
| ROCE | 8.66% | ||
| ROIC | 7.39% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 9.2% | ||
| OM | 23.95% | ||
| PM (TTM) | 5.61% | ||
| GM | 39.67% | ||
| FCFM | 21.65% |
ROA(3y)1.1%
ROA(5y)0.45%
ROE(3y)4.51%
ROE(5y)1.92%
ROIC(3y)5.83%
ROIC(5y)4.48%
ROICexc(3y)5.9%
ROICexc(5y)4.57%
ROICexgc(3y)7.47%
ROICexgc(5y)6.05%
ROCE(3y)6.84%
ROCE(5y)5.25%
ROICexcg growth 3Y14.01%
ROICexcg growth 5Y32.54%
ROICexc growth 3Y22.24%
ROICexc growth 5Y40.48%
OM growth 3Y6.73%
OM growth 5Y20.3%
PM growth 3YN/A
PM growth 5Y-12.32%
GM growth 3Y6.48%
GM growth 5Y12.28%
F-Score9
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 4.38 | ||
| Debt/EBITDA | 2.29 | ||
| Cap/Depr | 105.22% | ||
| Cap/Sales | 17.65% | ||
| Interest Coverage | 3.5 | ||
| Cash Conversion | 96.52% | ||
| Profit Quality | 386.19% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 1.42 |
F-Score9
WACC9.39%
ROIC/WACC0.79
Cap/Depr(3y)188.27%
Cap/Depr(5y)201.28%
Cap/Sales(3y)37.3%
Cap/Sales(5y)45.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.96%
EPS 3YN/A
EPS 5Y27.41%
EPS Q2Q%13.79%
EPS Next Y16.85%
EPS Next 2Y11.4%
EPS Next 3Y15.09%
EPS Next 5Y19.58%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y23.83%
Revenue growth 5Y29.67%
Sales Q2Q%22.72%
Revenue Next Year14.2%
Revenue Next 2Y8.93%
Revenue Next 3Y8.25%
Revenue Next 5Y6.3%
EBIT growth 1Y14.41%
EBIT growth 3Y32.17%
EBIT growth 5Y55.99%
EBIT Next Year98.99%
EBIT Next 3Y31.72%
EBIT Next 5Y20.27%
FCF growth 1Y320.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.43%
OCF growth 3Y44.89%
OCF growth 5Y112.28%