WAVESTONE (WAVE.PA) Stock Fundamental Analysis
EPA:WAVE - Euronext Paris - Matif - FR0013357621 - Common Stock - Currency: EUR
Overall WAVE gets a fundamental rating of 6 out of 10. We evaluated WAVE against 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 has a correct valuation and a medium growth rate. These ratings would make WAVE suitable 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.
Each year in the past 5 years WAVE has been profitable.
In the past 5 years WAVE always reported a positive cash flow from operatings.
1.2 Ratios
WAVE has a better Return On Assets (7.71%) than 85.29% of its industry peers.
Looking at the Return On Equity, with a value of 11.96%, WAVE is in line with its industry, outperforming 52.94% of the companies in the same industry.
WAVE has a Return On Invested Capital of 10.71%. This is in the better half of the industry: WAVE outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WAVE is in line with the industry average of 10.89%.
| 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
Looking at the Profit Margin, with a value of 8.01%, WAVE belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
WAVE's Profit Margin has improved in the last couple of years.
WAVE's Operating Margin of 11.61% is amongst the best of the industry. WAVE outperforms 88.24% of its industry peers.
In the last couple of years the Operating Margin of WAVE has declined.
WAVE's Gross Margin of 84.64% is fine compared to the rest of the industry. WAVE outperforms 73.53% of its industry peers.
In the last couple of years the Gross Margin of WAVE has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WAVE is creating some value.
WAVE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WAVE has more shares outstanding
Compared to 1 year ago, WAVE has an improved debt to assets ratio.
2.2 Solvency
WAVE has an Altman-Z score of 4.51. This indicates that WAVE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WAVE (4.51) is better than 91.18% 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.
The Debt to FCF ratio of WAVE (0.96) is better than 83.82% 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.
Looking at the Debt to Equity ratio, with a value of 0.10, WAVE belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 4.51 |
ROIC/WACC1.42
WACC7.54%
2.3 Liquidity
A Current Ratio of 1.49 indicates that WAVE should not have too much problems paying its short term obligations.
WAVE has a better Current ratio (1.49) than 67.65% 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 76.47% 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 14.93%, which is quite good.
Measured over the past years, WAVE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.55% on average per year.
Looking at the last year, WAVE shows a very strong growth in Revenue. The Revenue has grown by 34.60%.
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)14.93%
EPS 3Y6.61%
EPS 5Y14.55%
EPS Q2Q%29.61%
Revenue 1Y (TTM)34.6%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%14.49%
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 13.28% yearly.
WAVE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.23% yearly.
EPS Next Y12.93%
EPS Next 2Y13.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.68%
Revenue Next 2Y-1.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WAVE is valuated rather expensively with a Price/Earnings ratio of 19.58.
WAVE's Price/Earnings ratio is a bit cheaper when compared to the industry. WAVE is cheaper than 61.76% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, WAVE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.41, the valuation of WAVE can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAVE is on the same level as its industry peers.
WAVE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 17.41 |
4.2 Price Multiples
67.65% of the companies in the same industry are cheaper than WAVE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAVE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.85 | ||
| EV/EBITDA | 11.95 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WAVE has a very decent profitability rating, which may justify a higher PE ratio.
WAVE's earnings are expected to grow with 13.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)1.35
EPS Next 2Y13.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WAVE has a yearly dividend return of 0.79%, which is pretty low.
WAVE's Dividend Yield is comparable with the industry average which is at 7.42.
With a Dividend Yield of 0.79, WAVE pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
On average, the dividend of WAVE grows each year by 10.50%, which is quite nice.
Dividend Growth(5Y)10.5%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
WAVE pays out 12.41% of its income as dividend. This is a sustainable payout ratio.
The dividend of WAVE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.41%
EPS Next 2Y13.28%
EPS Next 3YN/A
EPA:WAVE (7/18/2025, 7:00:00 PM)
60.5
+1.8 (+3.07%)
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 Cap1.51B
Analysts83.64
Price Target60.87 (0.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend0.38
Dividend Growth(5Y)10.5%
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)9.67%
PT rev (3m)5.59%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 17.41 | ||
| P/S | 1.6 | ||
| P/FCF | 17.85 | ||
| P/OCF | 16.88 | ||
| P/B | 2.38 | ||
| P/tB | 35.88 | ||
| EV/EBITDA | 11.95 |
EPS(TTM)3.09
EY5.11%
EPS(NY)3.47
Fwd EY5.74%
FCF(TTM)3.39
FCFY5.6%
OCF(TTM)3.58
OCFY5.92%
SpS37.88
BVpS25.37
TBVpS1.69
PEG (NY)1.51
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 11.96% | ||
| ROCE | 14.71% | ||
| ROIC | 10.71% | ||
| ROICexc | 10.71% | ||
| ROICexgc | 51.48% | ||
| 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)170.38%
ROICexgc(5y)N/A
ROCE(3y)15.72%
ROCE(5y)16.86%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-18.08%
ROICexc growth 3Y-39.8%
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 | 4.51 |
F-Score8
WACC7.54%
ROIC/WACC1.42
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)14.93%
EPS 3Y6.61%
EPS 5Y14.55%
EPS Q2Q%29.61%
EPS Next Y12.93%
EPS Next 2Y13.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)34.6%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%14.49%
Revenue Next Year-7.68%
Revenue Next 2Y-1.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y27.73%
EBIT growth 3Y14.59%
EBIT growth 5Y15.41%
EBIT Next Year22.83%
EBIT Next 3YN/A
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%