WEBSTEP ASA (WSTEP.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:WSTEP - NO0010609662 - Common Stock
18.4 NOK
+0.6 (+3.37%)
Overall WSTEP gets a fundamental rating of 6 out of 10. We evaluated WSTEP against 72 industry peers in the IT Services industry. WSTEP has an excellent profitability rating, but there are some minor concerns on its financial health. WSTEP scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make WSTEP a good candidate for value investing.
1. Profitability
1.1 Basic Checks
WSTEP had positive earnings in the past year.
WSTEP had a positive operating cash flow in the past year.
WSTEP had positive earnings in each of the past 5 years.
WSTEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.54%, WSTEP belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.80%, WSTEP is in the better half of the industry, outperforming 76.39% of the companies in the same industry.
WSTEP has a better Return On Invested Capital (10.28%) than 65.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSTEP is below the industry average of 11.90%.
The last Return On Invested Capital (10.28%) for WSTEP is above the 3 year average (7.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.54% | ||
| ROE | 15.8% | ||
| ROIC | 10.28% |
ROA(3y)4.7%
ROA(5y)5.56%
ROE(3y)8.36%
ROE(5y)9.41%
ROIC(3y)7.26%
ROIC(5y)7.18%
1.3 Margins
WSTEP has a Profit Margin of 5.87%. This is in the better half of the industry: WSTEP outperforms 66.67% of its industry peers.
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 (7.85%) which is in line with its industry peers.
In the last couple of years the Operating Margin of WSTEP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 93.09%, WSTEP belongs to the top of the industry, outperforming 90.28% of the companies in the same industry.
WSTEP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.85% | ||
| PM (TTM) | 5.87% | ||
| GM | 93.09% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WSTEP is still creating some value.
Compared to 1 year ago, WSTEP has less shares outstanding
WSTEP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WSTEP has been reduced compared to a year ago.
2.2 Solvency
WSTEP has an Altman-Z score of 3.19. This indicates that WSTEP is financially healthy and has little risk of bankruptcy at the moment.
WSTEP's Altman-Z score of 3.19 is fine compared to the rest of the industry. WSTEP outperforms 70.83% of its industry peers.
The Debt to FCF ratio of WSTEP is 0.96, which is an excellent value as it means it would take WSTEP, only 0.96 years of fcf income to pay off all of its debts.
WSTEP's Debt to FCF ratio of 0.96 is amongst the best of the industry. WSTEP outperforms 88.89% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that WSTEP is not too dependend on debt financing.
WSTEP's Debt to Equity ratio of 0.16 is amongst the best of the industry. WSTEP outperforms 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 3.19 |
ROIC/WACC1.27
WACC8.12%
2.3 Liquidity
A Current Ratio of 0.94 indicates that WSTEP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.94, WSTEP is doing worse than 73.61% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that WSTEP may have some problems paying its short term obligations.
WSTEP has a Quick ratio of 0.94. This is in the lower half of the industry: WSTEP underperforms 68.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
WSTEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.56%, which is quite good.
Measured over the past 5 years, WSTEP shows a small growth in Earnings Per Share. The EPS has been growing by 5.69% on average per year.
The Revenue has been growing slightly by 1.45% in the past year.
The Revenue has been growing slightly by 5.76% on average over the past years.
EPS 1Y (TTM)14.56%
EPS 3Y0.31%
EPS 5Y5.69%
EPS Q2Q%-50%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y4.09%
Revenue growth 5Y5.76%
Sales Q2Q%-5.84%
3.2 Future
The Earnings Per Share is expected to grow by 15.39% on average over the next years. This is quite good.
WSTEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.47% yearly.
EPS Next Y16.09%
EPS Next 2Y15.15%
EPS Next 3Y15.39%
EPS Next 5YN/A
Revenue Next Year-4.39%
Revenue Next 2Y0.82%
Revenue Next 3Y3.47%
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 accelerating.
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
The Price/Earnings ratio is 10.17, which indicates a very decent valuation of WSTEP.
WSTEP's Price/Earnings ratio is rather cheap when compared to the industry. WSTEP is cheaper than 94.44% of the companies in the same industry.
When comparing the Price/Earnings ratio of WSTEP to the average of the S&P500 Index (25.65), we can say WSTEP is valued rather cheaply.
WSTEP is valuated cheaply with a Price/Forward Earnings ratio of 7.67.
WSTEP's Price/Forward Earnings ratio is rather cheap when compared to the industry. WSTEP is cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.45. WSTEP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WSTEP indicates a somewhat cheap valuation: WSTEP is cheaper than 68.06% of the companies listed 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 81.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.9 | ||
| EV/EBITDA | 6.17 |
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 15.39% in the coming years.
PEG (NY)0.63
PEG (5Y)1.79
EPS Next 2Y15.15%
EPS Next 3Y15.39%
5. Dividend
5.1 Amount
WSTEP has a Yearly Dividend Yield of 11.50%, which is a nice return.
In the last 3 months the price of WSTEP has falen by -21.37%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.92, WSTEP pays a better dividend. On top of this WSTEP pays more dividend than 98.61% 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.5% |
5.2 History
The dividend of WSTEP decreases each year by -8.63%.
Dividend Growth(5Y)-8.63%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WSTEP pays out 122.52% of its income as dividend. This is not a sustainable payout ratio.
DP122.52%
EPS Next 2Y15.15%
EPS Next 3Y15.39%
OSL:WSTEP (11/24/2025, 7:00:00 PM)
18.4
+0.6 (+3.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners28.4%
Inst Owner ChangeN/A
Ins Owners0.65%
Ins Owner ChangeN/A
Market Cap518.70M
Revenue(TTM)874.13M
Net Income(TTM)50.87M
Analysts84
Price Target30.6 (66.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.5% |
Yearly Dividend1.02
Dividend Growth(5Y)-8.63%
DP122.52%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.02%
Min EPS beat(2)-18.45%
Max EPS beat(2)4.41%
EPS beat(4)1
Avg EPS beat(4)-5.86%
Min EPS beat(4)-18.45%
Max EPS beat(4)4.41%
EPS beat(8)2
Avg EPS beat(8)-18.16%
EPS beat(12)2
Avg EPS beat(12)-25.95%
EPS beat(16)5
Avg EPS beat(16)-21.87%
Revenue beat(2)0
Avg Revenue beat(2)-6.81%
Min Revenue beat(2)-9.23%
Max Revenue beat(2)-4.38%
Revenue beat(4)0
Avg Revenue beat(4)-6.25%
Min Revenue beat(4)-9.23%
Max Revenue beat(4)-4.38%
Revenue beat(8)0
Avg Revenue beat(8)-5.79%
Revenue beat(12)0
Avg Revenue beat(12)-4.48%
Revenue beat(16)1
Avg Revenue beat(16)-4.01%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 7.67 | ||
| P/S | 0.6 | ||
| P/FCF | 7.9 | ||
| P/OCF | 7.52 | ||
| P/B | 1.61 | ||
| P/tB | 62.42 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)1.81
EY9.84%
EPS(NY)2.4
Fwd EY13.04%
FCF(TTM)2.33
FCFY12.66%
OCF(TTM)2.45
OCFY13.3%
SpS30.73
BVpS11.42
TBVpS0.29
PEG (NY)0.63
PEG (5Y)1.79
Graham Number21.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.54% | ||
| ROE | 15.8% | ||
| ROCE | 18.23% | ||
| ROIC | 10.28% | ||
| ROICexc | 12.03% | ||
| ROICexgc | 760.8% | ||
| OM | 7.85% | ||
| PM (TTM) | 5.87% | ||
| GM | 93.09% | ||
| FCFM | 7.58% |
ROA(3y)4.7%
ROA(5y)5.56%
ROE(3y)8.36%
ROE(5y)9.41%
ROIC(3y)7.26%
ROIC(5y)7.18%
ROICexc(3y)8.81%
ROICexc(5y)8.53%
ROICexgc(3y)457.53%
ROICexgc(5y)353.79%
ROCE(3y)12.88%
ROCE(5y)13.16%
ROICexgc growth 3Y20.13%
ROICexgc growth 5Y43.18%
ROICexc growth 3Y7.75%
ROICexc growth 5Y12.22%
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-Score7
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 19.03% | ||
| Cap/Sales | 0.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.74% | ||
| Profit Quality | 129.12% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 3.19 |
F-Score7
WACC8.12%
ROIC/WACC1.27
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)14.56%
EPS 3Y0.31%
EPS 5Y5.69%
EPS Q2Q%-50%
EPS Next Y16.09%
EPS Next 2Y15.15%
EPS Next 3Y15.39%
EPS Next 5YN/A
Revenue 1Y (TTM)1.45%
Revenue growth 3Y4.09%
Revenue growth 5Y5.76%
Sales Q2Q%-5.84%
Revenue Next Year-4.39%
Revenue Next 2Y0.82%
Revenue Next 3Y3.47%
Revenue Next 5YN/A
EBIT growth 1Y81.54%
EBIT growth 3Y0.4%
EBIT growth 5Y6.32%
EBIT Next Year34.81%
EBIT Next 3Y18.92%
EBIT Next 5YN/A
FCF growth 1Y12.6%
FCF growth 3Y-19.48%
FCF growth 5Y-8.42%
OCF growth 1Y4.62%
OCF growth 3Y-19.87%
OCF growth 5Y-7.57%
WEBSTEP ASA / WSTEP.OL FAQ
What is the fundamental rating for WSTEP stock?
ChartMill assigns a fundamental rating of 6 / 10 to WSTEP.OL.
What is the valuation status for WSTEP stock?
ChartMill assigns a valuation rating of 9 / 10 to WEBSTEP ASA (WSTEP.OL). This can be considered as Undervalued.
What is the profitability of WSTEP stock?
WEBSTEP ASA (WSTEP.OL) has a profitability rating of 7 / 10.
What is the financial health of WEBSTEP ASA (WSTEP.OL) stock?
The financial health rating of WEBSTEP ASA (WSTEP.OL) is 6 / 10.
Is the dividend of WEBSTEP ASA sustainable?
The dividend rating of WEBSTEP ASA (WSTEP.OL) is 5 / 10 and the dividend payout ratio is 122.52%.