WAVESTONE (WAVE.PA) Stock Fundamental Analysis
EPA:WAVE - FR0013357621 - Common Stock
48.6 EUR
-0.5 (-1.02%)
WAVE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 73 industry peers in the IT Services industry. WAVE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WAVE is not valued too expensively and it also shows a decent growth rate. This makes WAVE very considerable for quality investing!
1. Profitability
1.1 Basic Checks
WAVE had positive earnings in the past year.
WAVE had a positive operating cash flow in the past year.
In the past 5 years WAVE has always been profitable.
Each year in the past 5 years WAVE had a positive operating cash flow.
1.2 Ratios
WAVE has a Return On Assets of 7.71%. This is amongst the best in the industry. WAVE outperforms 82.19% of its industry peers.
WAVE has a Return On Equity (11.96%) which is comparable to the rest of the industry.
WAVE's Return On Invested Capital of 10.71% is fine compared to the rest of the industry. WAVE outperforms 67.12% of its industry peers.
WAVE had an Average Return On Invested Capital over the past 3 years of 11.44%. This is in line with the industry average of 11.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 11.96% | ||
| ROIC | 10.71% |
ROA(3y)7.66%
ROA(5y)7.8%
ROE(3y)12.97%
ROE(5y)14.22%
ROIC(3y)11.44%
ROIC(5y)12.28%
1.3 Margins
The Profit Margin of WAVE (8.01%) is better than 83.56% of its industry peers.
In the last couple of years the Profit Margin of WAVE has grown nicely.
Looking at the Operating Margin, with a value of 11.61%, WAVE belongs to the top of the industry, outperforming 86.30% of the companies in the same industry.
WAVE's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 84.64%, WAVE is doing good in the industry, outperforming 76.71% of the companies in the same industry.
WAVE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.61% | ||
| PM (TTM) | 8.01% | ||
| GM | 84.64% |
OM growth 3Y-9.16%
OM growth 5Y-1.75%
PM growth 3Y-9.65%
PM growth 5Y1.65%
GM growth 3Y-4.64%
GM growth 5Y-2.67%
2. Health
2.1 Basic Checks
WAVE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WAVE has less shares outstanding than it did 1 year ago.
WAVE has more shares outstanding than it did 5 years ago.
WAVE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.10 indicates that WAVE is not in any danger for bankruptcy at the moment.
WAVE has a Altman-Z score of 4.10. This is amongst the best in the industry. WAVE outperforms 84.93% of its industry peers.
The Debt to FCF ratio of WAVE is 0.96, which is an excellent value as it means it would take WAVE, only 0.96 years of fcf income to pay off all of its debts.
WAVE has a Debt to FCF ratio of 0.96. This is amongst the best in the industry. WAVE outperforms 83.56% of its industry peers.
WAVE has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.10, WAVE belongs to the best of the industry, outperforming 86.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.44
WACC7.44%
2.3 Liquidity
WAVE has a Current Ratio of 1.49. This is a normal value and indicates that WAVE is financially healthy and should not expect problems in meeting its short term obligations.
WAVE has a better Current ratio (1.49) than 71.23% of its industry peers.
WAVE has a Quick Ratio of 1.49. This is a normal value and indicates that WAVE is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.49, WAVE is doing good in the industry, outperforming 79.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
WAVE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.07%, which is quite good.
The Earnings Per Share has been growing by 14.55% on average over the past years. This is quite good.
The Revenue has grown by 34.60% in the past year. This is a very strong growth!
Measured over the past years, WAVE shows a quite strong growth in Revenue. The Revenue has been growing by 17.46% on average per year.
EPS 1Y (TTM)15.07%
EPS 3Y6.62%
EPS 5Y14.55%
EPS Q2Q%29.86%
Revenue 1Y (TTM)34.6%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%14.49%
3.2 Future
Based on estimates for the next years, WAVE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.36% on average per year.
WAVE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.09% yearly.
EPS Next Y9.3%
EPS Next 2Y9.94%
EPS Next 3Y11.36%
EPS Next 5YN/A
Revenue Next Year1.82%
Revenue Next 2Y3.17%
Revenue Next 3Y4.09%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 15.68 indicates a correct valuation of WAVE.
Based on the Price/Earnings ratio, WAVE is valued a bit cheaper than the industry average as 65.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.13, WAVE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.11, the valuation of WAVE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAVE indicates a somewhat cheap valuation: WAVE is cheaper than 64.38% of the companies listed in the same industry.
WAVE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 14.11 |
4.2 Price Multiples
60.27% of the companies in the same industry are cheaper than WAVE, based on the Enterprise Value to EBITDA ratio.
WAVE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.34 | ||
| EV/EBITDA | 10.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WAVE may justify a higher PE ratio.
PEG (NY)1.68
PEG (5Y)1.08
EPS Next 2Y9.94%
EPS Next 3Y11.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, WAVE is not a good candidate for dividend investing.
WAVE's Dividend Yield is comparable with the industry average which is at 7.19.
Compared to an average S&P500 Dividend Yield of 2.32, WAVE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of WAVE is nicely growing with an annual growth rate of 10.75%!
Dividend Growth(5Y)10.75%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
12.41% of the earnings are spent on dividend by WAVE. This is a low number and sustainable payout ratio.
WAVE's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP12.41%
EPS Next 2Y9.94%
EPS Next 3Y11.36%
EPA:WAVE (9/1/2025, 7:00:00 PM)
48.6
-0.5 (-1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners14.7%
Inst Owner ChangeN/A
Ins Owners44.17%
Ins Owner ChangeN/A
Market Cap1.21B
Analysts80
Price Target65.84 (35.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.38
Dividend Growth(5Y)10.75%
DP12.41%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)8.16%
PT rev (3m)16.47%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)10.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 14.11 | ||
| P/S | 1.28 | ||
| P/FCF | 14.34 | ||
| P/OCF | 13.56 | ||
| P/B | 1.92 | ||
| P/tB | 29.34 | ||
| EV/EBITDA | 10.1 |
EPS(TTM)3.1
EY6.38%
EPS(NY)3.45
Fwd EY7.09%
FCF(TTM)3.39
FCFY6.97%
OCF(TTM)3.58
OCFY7.37%
SpS37.88
BVpS25.37
TBVpS1.66
PEG (NY)1.68
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 11.96% | ||
| ROCE | 14.7% | ||
| ROIC | 10.71% | ||
| ROICexc | 10.71% | ||
| ROICexgc | 51.64% | ||
| OM | 11.61% | ||
| PM (TTM) | 8.01% | ||
| GM | 84.64% | ||
| FCFM | 8.95% |
ROA(3y)7.66%
ROA(5y)7.8%
ROE(3y)12.97%
ROE(5y)14.22%
ROIC(3y)11.44%
ROIC(5y)12.28%
ROICexc(3y)13%
ROICexc(5y)22.97%
ROICexgc(3y)170.44%
ROICexgc(5y)N/A
ROCE(3y)15.72%
ROCE(5y)16.86%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-18.03%
ROICexc growth 3Y-39.81%
ROICexc growth 5Y-10.07%
OM growth 3Y-9.16%
OM growth 5Y-1.75%
PM growth 3Y-9.65%
PM growth 5Y1.65%
GM growth 3Y-4.64%
GM growth 5Y-2.67%
F-Score8
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 24.72% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 102.88 | ||
| Cash Conversion | 69.14% | ||
| Profit Quality | 111.75% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 4.1 |
F-Score8
WACC7.44%
ROIC/WACC1.44
Cap/Depr(3y)28.68%
Cap/Depr(5y)20.92%
Cap/Sales(3y)0.55%
Cap/Sales(5y)0.39%
Profit Quality(3y)107.99%
Profit Quality(5y)141.92%
High Growth Momentum
Growth
EPS 1Y (TTM)15.07%
EPS 3Y6.62%
EPS 5Y14.55%
EPS Q2Q%29.86%
EPS Next Y9.3%
EPS Next 2Y9.94%
EPS Next 3Y11.36%
EPS Next 5YN/A
Revenue 1Y (TTM)34.6%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%14.49%
Revenue Next Year1.82%
Revenue Next 2Y3.17%
Revenue Next 3Y4.09%
Revenue Next 5YN/A
EBIT growth 1Y27.73%
EBIT growth 3Y14.59%
EBIT growth 5Y15.41%
EBIT Next Year22.83%
EBIT Next 3Y13.08%
EBIT Next 5YN/A
FCF growth 1Y5.57%
FCF growth 3Y14.75%
FCF growth 5Y10.08%
OCF growth 1Y7.44%
OCF growth 3Y16.59%
OCF growth 5Y10.05%