WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe - EPA:WAVE - FR0013357621 - Common Stock
51.3 EUR
-0.3 (-0.58%)
Taking everything into account, WAVE scores 6 out of 10 in our fundamental rating. WAVE was compared to 70 industry peers in the IT Services industry. While WAVE has a great health rating, its profitability is only average at the moment. WAVE has a correct valuation and a medium growth rate.
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.
WAVE had positive earnings in each of the past 5 years.
WAVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WAVE's Return On Assets of 7.71% is amongst the best of the industry. WAVE outperforms 82.86% of its industry peers.
The Return On Equity of WAVE (11.96%) 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 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WAVE is significantly below the industry average of 21.24%.
| 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
With an excellent Profit Margin value of 8.01%, WAVE belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
WAVE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.61%, WAVE belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
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 74.29% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WAVE is still creating some value.
WAVE has less 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 4.21. This indicates that WAVE is financially healthy and has little risk of bankruptcy at the moment.
WAVE has a Altman-Z score of 4.21. This is amongst the best in the industry. WAVE outperforms 90.00% 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's Debt to FCF ratio of 0.96 is amongst the best of the industry. WAVE outperforms 90.00% 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.
WAVE has a better Debt to Equity ratio (0.10) than 84.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 4.21 |
ROIC/WACC1.39
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.49 indicates that WAVE should not have too much problems paying its short term obligations.
WAVE's Current ratio of 1.49 is fine compared to the rest of the industry. WAVE outperforms 70.00% 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.
The Quick ratio of WAVE (1.49) is better than 77.14% of its industry peers.
| 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.
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)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 11.23% on average per year.
Based on estimates for the next years, WAVE will show a small growth in Revenue. The Revenue will grow by 2.79% on average per year.
EPS Next Y6.88%
EPS Next 2Y8.94%
EPS Next 3Y11.23%
EPS Next 5YN/A
Revenue Next Year1.34%
Revenue Next 2Y2.71%
Revenue Next 3Y2.79%
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
A Price/Earnings ratio of 16.55 indicates a correct valuation of WAVE.
Based on the Price/Earnings ratio, WAVE is valued a bit cheaper than 70.00% of the companies in the same industry.
WAVE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
A Price/Forward Earnings ratio of 15.23 indicates a correct valuation of WAVE.
WAVE's Price/Forward Earnings is on the same level as the industry average.
WAVE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 15.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WAVE indicates a slightly more expensive valuation: WAVE is more expensive than 64.29% of the companies listed in the same industry.
WAVE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.13 | ||
| EV/EBITDA | 10.58 |
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)2.41
PEG (5Y)1.14
EPS Next 2Y8.94%
EPS Next 3Y11.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, WAVE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.86, WAVE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, WAVE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of WAVE grows each year by 10.75%, which is quite nice.
Dividend Growth(5Y)10.75%
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.
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 2Y8.94%
EPS Next 3Y11.23%
EPA:WAVE (11/3/2025, 12:13:05 PM)
51.3
-0.3 (-0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners15.55%
Inst Owner ChangeN/A
Ins Owners44.17%
Ins Owner ChangeN/A
Market Cap1.28B
Revenue(TTM)943.67M
Net Income(TTM)75.56M
Analysts80
Price Target65.22 (27.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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)-0.95%
PT rev (3m)7.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)9.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.55 | ||
| Fwd PE | 15.23 | ||
| P/S | 1.35 | ||
| P/FCF | 15.13 | ||
| P/OCF | 14.31 | ||
| P/B | 2.02 | ||
| P/tB | 30.97 | ||
| EV/EBITDA | 10.58 |
EPS(TTM)3.1
EY6.04%
EPS(NY)3.37
Fwd EY6.57%
FCF(TTM)3.39
FCFY6.61%
OCF(TTM)3.58
OCFY6.99%
SpS37.88
BVpS25.37
TBVpS1.66
PEG (NY)2.41
PEG (5Y)1.14
Graham Number42.07
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%
ROICexgc growth 3YN/A
ROICexgc 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 | 4.21 |
F-Score8
WACC7.72%
ROIC/WACC1.39
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 Y6.88%
EPS Next 2Y8.94%
EPS Next 3Y11.23%
EPS Next 5YN/A
Revenue 1Y (TTM)34.6%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%14.49%
Revenue Next Year1.34%
Revenue Next 2Y2.71%
Revenue Next 3Y2.79%
Revenue Next 5YN/A
EBIT growth 1Y27.73%
EBIT growth 3Y14.59%
EBIT growth 5Y15.41%
EBIT Next Year24.15%
EBIT Next 3Y12.96%
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%
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 6 / 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 4 / 10 and the dividend payout ratio is 12.41%.