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 69 industry peers in the IT Services industry. Both the profitability and the financial health of WAVE get a neutral evaluation. Nothing too spectacular is happening here. WAVE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WAVE was profitable.
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 has a Return On Assets of 6.59%. This is in the better half of the industry: WAVE outperforms 75.36% of its industry peers.
The Return On Equity of WAVE (10.80%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 9.71%, WAVE is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WAVE is above the industry average of 10.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 10.8% | ||
| ROIC | 9.71% |
ROA(3y)8.54%
ROA(5y)7.64%
ROE(3y)15.61%
ROE(5y)15.34%
ROIC(3y)13.27%
ROIC(5y)12.88%
1.3 Margins
WAVE has a better Profit Margin (7.08%) than 84.06% of its industry peers.
In the last couple of years the Profit Margin of WAVE has remained more or less at the same level.
WAVE has a better Operating Margin (10.67%) than 79.71% of its industry peers.
In the last couple of years the Operating Margin of WAVE has declined.
With a decent Gross Margin value of 85.32%, WAVE is doing good in the industry, outperforming 75.36% of the companies in the same industry.
WAVE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.67% | ||
| PM (TTM) | 7.08% | ||
| GM | 85.32% |
OM growth 3Y5.71%
OM growth 5Y-1.79%
PM growth 3Y10.96%
PM growth 5Y1.1%
GM growth 3Y-2.23%
GM growth 5Y-1.38%
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.
The number of shares outstanding for WAVE has been increased compared to 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 3.71. This indicates that WAVE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.71, WAVE is in the better half of the industry, outperforming 76.81% of the companies in the same industry.
The Debt to FCF ratio of WAVE is 1.64, which is an excellent value as it means it would take WAVE, only 1.64 years of fcf income to pay off all of its debts.
WAVE has a Debt to FCF ratio of 1.64. This is in the better half of the industry: WAVE outperforms 78.26% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that WAVE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.12, WAVE belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 3.71 |
ROIC/WACC1.27
WACC7.63%
2.3 Liquidity
A Current Ratio of 1.28 indicates that WAVE should not have too much problems paying its short term obligations.
WAVE has a Current ratio (1.28) which is in line with its industry peers.
A Quick Ratio of 1.28 indicates that WAVE should not have too much problems paying its short term obligations.
WAVE has a better Quick ratio (1.28) than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
WAVE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.74%.
The Earnings Per Share has been growing by 11.97% on average over the past years. This is quite good.
The Revenue has grown by 54.26% in the past year. This is a very strong growth!
WAVE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.36% yearly.
EPS 1Y (TTM)-4.74%
EPS 3Y28.71%
EPS 5Y11.97%
EPS Q2Q%-4.43%
Revenue 1Y (TTM)54.26%
Revenue growth 3Y18.85%
Revenue growth 5Y12.36%
Sales Q2Q%65.46%
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 13.22% on average per year.
The Revenue is expected to grow by 10.10% on average over the next years. This is quite good.
EPS Next Y13.11%
EPS Next 2Y13.02%
EPS Next 3Y13.22%
EPS Next 5YN/A
Revenue Next Year26.2%
Revenue Next 2Y13.85%
Revenue Next 3Y10.1%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.27, WAVE is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of WAVE indicates a somewhat cheap valuation: WAVE is cheaper than 69.57% of the companies listed in the same industry.
WAVE is valuated rather cheaply when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.88, the valuation of WAVE can be described as correct.
72.46% of the companies in the same industry are more expensive than WAVE, based on the Price/Forward Earnings ratio.
WAVE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 13.88 |
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 60.87% of the companies listed in the same industry.
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 | 16.68 | ||
| EV/EBITDA | 11 |
4.3 Compensation for Growth
WAVE's 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.
A more expensive valuation may be justified as WAVE's earnings are expected to grow with 13.22% in the coming years.
PEG (NY)1.39
PEG (5Y)1.53
EPS Next 2Y13.02%
EPS Next 3Y13.22%
5. Dividend
5.1 Amount
WAVE has a yearly dividend return of 0.81%, which is pretty low.
WAVE's Dividend Yield is comparable with the industry average which is at 7.38.
Compared to an average S&P500 Dividend Yield of 2.43, WAVE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
The dividend of WAVE is nicely growing with an annual growth rate of 10.78%!
Dividend Growth(5Y)10.78%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
15.02% of the earnings are spent on dividend by WAVE. This is a low number and sustainable payout ratio.
WAVE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.02%
EPS Next 2Y13.02%
EPS Next 3Y13.22%
EPA:WAVE (5/7/2025, 5:29:30 PM)
48.225
+0.93 (+1.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners15.62%
Inst Owner ChangeN/A
Ins Owners44.17%
Ins Owner ChangeN/A
Market Cap1.20B
Analysts83.64
Price Target57.04 (18.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend0.34
Dividend Growth(5Y)10.78%
DP15.02%
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)-1.06%
PT rev (3m)2.34%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.28%
EPS NY rev (3m)-2.52%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 13.88 | ||
| P/S | 1.36 | ||
| P/FCF | 16.68 | ||
| P/OCF | 15.76 | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11 |
EPS(TTM)2.64
EY5.47%
EPS(NY)3.47
Fwd EY7.2%
FCF(TTM)2.89
FCFY6%
OCF(TTM)3.06
OCFY6.35%
SpS35.41
BVpS23.22
TBVpS-0.63
PEG (NY)1.39
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 10.8% | ||
| ROCE | 13.38% | ||
| ROIC | 9.71% | ||
| ROICexc | 10.47% | ||
| ROICexgc | 116.75% | ||
| OM | 10.67% | ||
| PM (TTM) | 7.08% | ||
| GM | 85.32% | ||
| FCFM | 8.16% |
ROA(3y)8.54%
ROA(5y)7.64%
ROE(3y)15.61%
ROE(5y)15.34%
ROIC(3y)13.27%
ROIC(5y)12.88%
ROICexc(3y)25.7%
ROICexc(5y)24.38%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)18.29%
ROCE(5y)17.76%
ROICexcg growth 3YN/A
ROICexcg growth 5Y15.81%
ROICexc growth 3Y-27.56%
ROICexc growth 5Y-13.49%
OM growth 3Y5.71%
OM growth 5Y-1.79%
PM growth 3Y10.96%
PM growth 5Y1.1%
GM growth 3Y-2.23%
GM growth 5Y-1.38%
F-Score5
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 22.1% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 118.12 | ||
| Cash Conversion | 67.35% | ||
| Profit Quality | 115.31% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 3.71 |
F-Score5
WACC7.63%
ROIC/WACC1.27
Cap/Depr(3y)25.41%
Cap/Depr(5y)19.61%
Cap/Sales(3y)0.41%
Cap/Sales(5y)0.43%
Profit Quality(3y)107.24%
Profit Quality(5y)153.12%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.74%
EPS 3Y28.71%
EPS 5Y11.97%
EPS Q2Q%-4.43%
EPS Next Y13.11%
EPS Next 2Y13.02%
EPS Next 3Y13.22%
EPS Next 5YN/A
Revenue 1Y (TTM)54.26%
Revenue growth 3Y18.85%
Revenue growth 5Y12.36%
Sales Q2Q%65.46%
Revenue Next Year26.2%
Revenue Next 2Y13.85%
Revenue Next 3Y10.1%
Revenue Next 5YN/A
EBIT growth 1Y17.39%
EBIT growth 3Y25.63%
EBIT growth 5Y10.35%
EBIT Next Year34.76%
EBIT Next 3Y17.39%
EBIT Next 5YN/A
FCF growth 1Y63.17%
FCF growth 3Y4.51%
FCF growth 5Y20.74%
OCF growth 1Y68.21%
OCF growth 3Y5.47%
OCF growth 5Y20.56%