WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:WAVE - FR0013357621 - Common Stock
55.5 EUR
-0.3 (-0.54%)
We assign a fundamental rating of 6 out of 10 to WAVE. WAVE was compared to 68 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. With these ratings, WAVE could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year WAVE was profitable.
In the past year WAVE had a positive cash flow from operations.
In the past 5 years WAVE has always been profitable.
WAVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WAVE (8.35%) is better than 85.29% of its industry peers.
Looking at the Return On Equity, with a value of 12.11%, WAVE is in line with its industry, outperforming 51.47% of the companies in the same industry.
WAVE has a Return On Invested Capital of 11.40%. This is in the better half of the industry: WAVE outperforms 79.41% of its industry peers.
WAVE had an Average Return On Invested Capital over the past 3 years of 11.48%. This is in line with the industry average of 11.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.35% | ||
| ROE | 12.11% | ||
| ROIC | 11.4% |
ROA(3y)7.68%
ROA(5y)7.81%
ROE(3y)13%
ROE(5y)14.23%
ROIC(3y)11.48%
ROIC(5y)12.31%
1.3 Margins
WAVE has a better Profit Margin (8.26%) than 83.82% of its industry peers.
In the last couple of years the Profit Margin of WAVE has grown nicely.
WAVE's Operating Margin of 11.76% is amongst the best of the industry. WAVE outperforms 85.29% of its industry peers.
WAVE's Operating Margin has declined in the last couple of years.
WAVE has a Gross Margin of 85.38%. This is in the better half of the industry: WAVE outperforms 76.47% of its industry peers.
In the last couple of years the Gross Margin of WAVE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.76% | ||
| PM (TTM) | 8.26% | ||
| GM | 85.38% |
OM growth 3Y-9.04%
OM growth 5Y-1.67%
PM growth 3Y-9.48%
PM growth 5Y1.77%
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.
Compared to 1 year ago, WAVE has less shares outstanding
WAVE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WAVE has been reduced compared to a year ago.
2.2 Solvency
WAVE has an Altman-Z score of 4.96. This indicates that WAVE is financially healthy and has little risk of bankruptcy at the moment.
WAVE has a better Altman-Z score (4.96) than 88.24% of its industry peers.
WAVE has a debt to FCF ratio of 0.39. This is a very positive value and a sign of high solvency as it would only need 0.39 years to pay back of all of its debts.
WAVE has a Debt to FCF ratio of 0.39. This is amongst the best in the industry. WAVE outperforms 95.59% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that WAVE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.03, WAVE belongs to the top of the industry, outperforming 92.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 4.96 |
ROIC/WACC1.48
WACC7.68%
2.3 Liquidity
WAVE has a Current Ratio of 1.37. 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 Current ratio value of 1.37, WAVE is doing good in the industry, outperforming 63.24% of the companies in the same industry.
WAVE has a Quick Ratio of 1.37. 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 Quick ratio of 1.37. This is in the better half of the industry: WAVE outperforms 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.75% over the past year.
The Earnings Per Share has been growing by 15.06% on average over the past years. This is quite good.
WAVE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.99%.
WAVE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.46% yearly.
EPS 1Y (TTM)23.75%
EPS 3Y7.41%
EPS 5Y15.06%
EPS Q2Q%14.81%
Revenue 1Y (TTM)6.99%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%0.04%
3.2 Future
WAVE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.93% yearly.
WAVE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.67% yearly.
EPS Next Y8.93%
EPS Next 2Y11.04%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue Next Year1.71%
Revenue Next 2Y2.92%
Revenue Next 3Y3.67%
Revenue Next 5YN/A
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
The Price/Earnings ratio is 17.18, which indicates a rather expensive current valuation of WAVE.
66.18% of the companies in the same industry are more expensive than WAVE, based on the Price/Earnings ratio.
WAVE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.84.
Based on the Price/Forward Earnings ratio of 14.28, the valuation of WAVE can be described as correct.
WAVE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WAVE is cheaper than 67.65% of the companies in the same industry.
WAVE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.18 | ||
| Fwd PE | 14.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WAVE is valued a bit more expensive than 67.65% of the companies in the same industry.
WAVE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.24 | ||
| EV/EBITDA | 10.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WAVE may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)1.14
EPS Next 2Y11.04%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, WAVE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.41, WAVE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.00, WAVE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of WAVE is nicely growing with an annual growth rate of 10.95%!
Dividend Growth(5Y)10.95%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
14.10% of the earnings are spent on dividend by WAVE. This is a low number and sustainable payout ratio.
The dividend of WAVE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.1%
EPS Next 2Y11.04%
EPS Next 3Y10.93%
EPA:WAVE (12/30/2025, 3:20:02 PM)
55.5
-0.3 (-0.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners15.85%
Inst Owner ChangeN/A
Ins Owners44.17%
Ins Owner ChangeN/A
Market Cap1.38B
Revenue(TTM)943.85M
Net Income(TTM)78.00M
Analysts80
Price Target63.36 (14.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend0.39
Dividend Growth(5Y)10.95%
DP14.1%
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)3.36%
PT rev (3m)-3.76%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.75%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.18 | ||
| Fwd PE | 14.28 | ||
| P/S | 1.46 | ||
| P/FCF | 13.24 | ||
| P/OCF | 12.74 | ||
| P/B | 2.15 | ||
| P/tB | 26.59 | ||
| EV/EBITDA | 10.92 |
EPS(TTM)3.23
EY5.82%
EPS(NY)3.89
Fwd EY7%
FCF(TTM)4.19
FCFY7.55%
OCF(TTM)4.36
OCFY7.85%
SpS37.89
BVpS25.85
TBVpS2.09
PEG (NY)1.92
PEG (5Y)1.14
Graham Number43.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.35% | ||
| ROE | 12.11% | ||
| ROCE | 15.63% | ||
| ROIC | 11.4% | ||
| ROICexc | 11.4% | ||
| ROICexgc | 68.62% | ||
| OM | 11.76% | ||
| PM (TTM) | 8.26% | ||
| GM | 85.38% | ||
| FCFM | 11.06% |
ROA(3y)7.68%
ROA(5y)7.81%
ROE(3y)13%
ROE(5y)14.23%
ROIC(3y)11.48%
ROIC(5y)12.31%
ROICexc(3y)13.04%
ROICexc(5y)23.01%
ROICexgc(3y)170.72%
ROICexgc(5y)N/A
ROCE(3y)15.74%
ROCE(5y)16.87%
ROICexgc growth 3YN/A
ROICexgc growth 5Y-18.02%
ROICexc growth 3Y-39.72%
ROICexc growth 5Y-10%
OM growth 3Y-9.04%
OM growth 5Y-1.67%
PM growth 3Y-9.48%
PM growth 5Y1.77%
GM growth 3Y-4.64%
GM growth 5Y-2.67%
F-Score9
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.39 | ||
| Debt/EBITDA | 0.13 | ||
| Cap/Depr | 20.55% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 94.87 | ||
| Cash Conversion | 82.86% | ||
| Profit Quality | 133.89% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 4.96 |
F-Score9
WACC7.68%
ROIC/WACC1.48
Cap/Depr(3y)28.51%
Cap/Depr(5y)20.81%
Cap/Sales(3y)0.55%
Cap/Sales(5y)0.39%
Profit Quality(3y)107.65%
Profit Quality(5y)141.71%
High Growth Momentum
Growth
EPS 1Y (TTM)23.75%
EPS 3Y7.41%
EPS 5Y15.06%
EPS Q2Q%14.81%
EPS Next Y8.93%
EPS Next 2Y11.04%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue 1Y (TTM)6.99%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%0.04%
Revenue Next Year1.71%
Revenue Next 2Y2.92%
Revenue Next 3Y3.67%
Revenue Next 5YN/A
EBIT growth 1Y17.36%
EBIT growth 3Y14.74%
EBIT growth 5Y15.5%
EBIT Next Year23.85%
EBIT Next 3Y14.66%
EBIT Next 5YN/A
FCF growth 1Y92.92%
FCF growth 3Y14.63%
FCF growth 5Y10.01%
OCF growth 1Y87.07%
OCF growth 3Y16.47%
OCF growth 5Y9.99%
WAVESTONE / WAVE.PA FAQ
What is the ChartMill fundamental rating of WAVESTONE (WAVE.PA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to WAVE.PA.
What is the valuation status for WAVE stock?
ChartMill assigns a valuation rating of 4 / 10 to WAVESTONE (WAVE.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for WAVESTONE?
WAVESTONE (WAVE.PA) has a profitability rating of 7 / 10.
How financially healthy is WAVESTONE?
The financial health rating of WAVESTONE (WAVE.PA) is 8 / 10.
Is the dividend of WAVESTONE sustainable?
The dividend rating of WAVESTONE (WAVE.PA) is 3 / 10 and the dividend payout ratio is 14.1%.