WEBSTEP ASA (WSTEP.OL) Stock Fundamental Analysis
OSL:WSTEP - Euronext Oslo - NO0010609662 - Common Stock - Currency: NOK
Overall WSTEP gets a fundamental rating of 7 out of 10. We evaluated WSTEP against 76 industry peers in the IT Services industry. While WSTEP has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on WSTEP. WSTEP also has an excellent dividend rating. This makes WSTEP very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year WSTEP was profitable.
WSTEP had a positive operating cash flow in the past year.
WSTEP had positive earnings in each of the past 5 years.
In the past 5 years WSTEP always reported a positive cash flow from operatings.
1.2 Ratios
WSTEP has a better Return On Assets (9.79%) than 93.42% of its industry peers.
WSTEP has a better Return On Equity (17.90%) than 80.26% of its industry peers.
WSTEP has a better Return On Invested Capital (12.05%) than 82.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 17.9% | ||
| ROIC | 12.05% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 5.93%, WSTEP is doing good in the industry, outperforming 73.68% of the companies in the same industry.
In the last couple of years the Profit Margin of WSTEP has remained more or less at the same level.
WSTEP has a Operating Margin of 8.05%. This is in the better half of the industry: WSTEP outperforms 63.16% of its industry peers.
WSTEP's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 93.11%, WSTEP belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
In the last couple of years the Gross Margin of WSTEP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.05% | ||
| PM (TTM) | 5.93% | ||
| GM | 93.11% |
OM growth 3Y-3.54%
OM growth 5Y0.53%
PM growth 3Y-3.26%
PM growth 5Y0.73%
GM growth 3Y0.74%
GM growth 5Y1.28%
2. Health
2.1 Basic Checks
WSTEP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for WSTEP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
WSTEP has an Altman-Z score of 3.82. This indicates that WSTEP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.82, WSTEP belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
WSTEP has a debt to FCF ratio of 0.40. This is a very positive value and a sign of high solvency as it would only need 0.40 years to pay back of all of its debts.
The Debt to FCF ratio of WSTEP (0.40) is better than 93.42% of its industry peers.
WSTEP has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.14, WSTEP is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.41
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.13 indicates that WSTEP should not have too much problems paying its short term obligations.
WSTEP has a Current ratio of 1.13. This is in the lower half of the industry: WSTEP underperforms 60.53% of its industry peers.
A Quick Ratio of 1.13 indicates that WSTEP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, WSTEP perfoms like the industry average, outperforming 46.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
WSTEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.22%, which is quite impressive.
The Earnings Per Share has been growing slightly by 5.69% on average over the past years.
Looking at the last year, WSTEP shows a quite strong growth in Revenue. The Revenue has grown by 16.59% in the last year.
WSTEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.76% yearly.
EPS 1Y (TTM)30.22%
EPS 3Y0.31%
EPS 5Y5.69%
EPS Q2Q%11.96%
Revenue 1Y (TTM)16.59%
Revenue growth 3Y4.09%
Revenue growth 5Y5.76%
Sales Q2Q%-9.75%
3.2 Future
Based on estimates for the next years, WSTEP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.60% on average per year.
The Revenue is expected to grow by 5.20% on average over the next years.
EPS Next Y24.91%
EPS Next 2Y18.08%
EPS Next 3Y15.6%
EPS Next 5YN/A
Revenue Next Year0.44%
Revenue Next 2Y3.83%
Revenue Next 3Y5.2%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.48 indicates a correct valuation of WSTEP.
WSTEP's Price/Earnings ratio is rather cheap when compared to the industry. WSTEP is cheaper than 82.89% of the companies in the same industry.
WSTEP is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.67, the valuation of WSTEP can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WSTEP indicates a rather cheap valuation: WSTEP is cheaper than 88.16% of the companies listed in the same industry.
WSTEP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 9.67 |
4.2 Price Multiples
WSTEP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WSTEP is cheaper than 78.95% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WSTEP indicates a rather cheap valuation: WSTEP is cheaper than 90.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.51 | ||
| EV/EBITDA | 5.97 |
4.3 Compensation for Growth
WSTEP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of WSTEP may justify a higher PE ratio.
A more expensive valuation may be justified as WSTEP's earnings are expected to grow with 15.60% in the coming years.
PEG (NY)0.54
PEG (5Y)2.37
EPS Next 2Y18.08%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
WSTEP has a Yearly Dividend Yield of 9.43%, which is a nice return.
Compared to an average industry Dividend Yield of 6.63, WSTEP pays a better dividend. On top of this WSTEP pays more dividend than 97.37% of the companies listed in the same industry.
WSTEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.43% |
5.2 History
The dividend of WSTEP has a limited annual growth rate of 2.04%.
Dividend Growth(5Y)2.04%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
42.17% of the earnings are spent on dividend by WSTEP. This is a bit on the high side, but may be sustainable.
The dividend of WSTEP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP42.17%
EPS Next 2Y18.08%
EPS Next 3Y15.6%
OSL:WSTEP (5/30/2025, 7:00:00 PM)
24.4
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners33.38%
Inst Owner ChangeN/A
Ins Owners0.87%
Ins Owner ChangeN/A
Market Cap687.84M
Analysts84
Price Target30.6 (25.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.43% |
Yearly Dividend1.7
Dividend Growth(5Y)2.04%
DP42.17%
Div Incr Years0
Div Non Decr Years0
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)0
Avg Revenue beat(2)-4.79%
Min Revenue beat(2)-5.2%
Max Revenue beat(2)-4.38%
Revenue beat(4)0
Avg Revenue beat(4)-6.75%
Min Revenue beat(4)-11.23%
Max Revenue beat(4)-4.38%
Revenue beat(8)0
Avg Revenue beat(8)-4.85%
Revenue beat(12)0
Avg Revenue beat(12)-4.45%
Revenue beat(16)2
Avg Revenue beat(16)-3.16%
PT rev (1m)0%
PT rev (3m)7.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 9.67 | ||
| P/S | 0.62 | ||
| P/FCF | 4.51 | ||
| P/OCF | 4.41 | ||
| P/B | 1.87 | ||
| P/tB | 12.62 | ||
| EV/EBITDA | 5.97 |
EPS(TTM)1.81
EY7.42%
EPS(NY)2.52
Fwd EY10.34%
FCF(TTM)5.41
FCFY22.17%
OCF(TTM)5.54
OCFY22.69%
SpS39.39
BVpS13.06
TBVpS1.93
PEG (NY)0.54
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 17.9% | ||
| ROCE | 21.37% | ||
| ROIC | 12.05% | ||
| ROICexc | 15.91% | ||
| ROICexgc | 1579.88% | ||
| OM | 8.05% | ||
| PM (TTM) | 5.93% | ||
| GM | 93.11% | ||
| FCFM | 13.73% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-3.54%
OM growth 5Y0.53%
PM growth 3Y-3.26%
PM growth 5Y0.73%
GM growth 3Y0.74%
GM growth 5Y1.28%
F-Score9
Asset Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 18.57% | ||
| Cap/Sales | 0.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 143.93% | ||
| Profit Quality | 231.42% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3.82 |
F-Score9
WACC8.54%
ROIC/WACC1.41
Cap/Depr(3y)26.24%
Cap/Depr(5y)31.6%
Cap/Sales(3y)0.75%
Cap/Sales(5y)0.77%
Profit Quality(3y)613.2%
Profit Quality(5y)419.59%
High Growth Momentum
Growth
EPS 1Y (TTM)30.22%
EPS 3Y0.31%
EPS 5Y5.69%
EPS Q2Q%11.96%
EPS Next Y24.91%
EPS Next 2Y18.08%
EPS Next 3Y15.6%
EPS Next 5YN/A
Revenue 1Y (TTM)16.59%
Revenue growth 3Y4.09%
Revenue growth 5Y5.76%
Sales Q2Q%-9.75%
Revenue Next Year0.44%
Revenue Next 2Y3.83%
Revenue Next 3Y5.2%
Revenue Next 5YN/A
EBIT growth 1Y508.56%
EBIT growth 3Y0.4%
EBIT growth 5Y6.32%
EBIT Next Year40%
EBIT Next 3Y19.26%
EBIT Next 5YN/A
FCF growth 1Y158.49%
FCF growth 3Y-19.48%
FCF growth 5Y-8.42%
OCF growth 1Y128.27%
OCF growth 3Y-19.87%
OCF growth 5Y-7.57%