WEBSTEP ASA (WSTEP.OL) Stock Fundamental Analysis
OSL:WSTEP - Euronext Oslo - NO0010609662 - Common Stock - Currency: NOK
WSTEP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 industry peers in the IT Services industry. WSTEP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on WSTEP. With these ratings, WSTEP could be worth investigating further for value and quality 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.
Each year in the past 5 years WSTEP had a positive operating cash flow.
1.2 Ratios
WSTEP has a better Return On Assets (9.79%) than 92.96% of its industry peers.
With a decent Return On Equity value of 17.90%, WSTEP is doing good in the industry, outperforming 78.87% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.05%, WSTEP belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WSTEP is below the industry average of 10.64%.
The 3 year average ROIC (7.26%) for WSTEP is below the current ROIC(12.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.79% | ||
| ROE | 17.9% | ||
| ROIC | 12.05% |
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 5.93%. This is in the better half of the industry: WSTEP outperforms 70.42% of its industry peers.
WSTEP's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 8.05%, WSTEP is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
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 91.55% 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 below the Cost of Capital (WACC), which means it is destroying 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
An Altman-Z score of 3.85 indicates that WSTEP is not in any danger for bankruptcy at the moment.
WSTEP has a Altman-Z score of 3.85. This is amongst the best in the industry. WSTEP outperforms 80.28% of its industry peers.
The Debt to FCF ratio of WSTEP is 0.40, which is an excellent value as it means it would take WSTEP, only 0.40 years of fcf income to pay off all of its debts.
WSTEP has a Debt to FCF ratio of 0.40. This is amongst the best in the industry. WSTEP outperforms 92.96% 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.
The Debt to Equity ratio of WSTEP (0.14) is better than 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 3.85 |
ROIC/WACC0.83
WACC14.55%
2.3 Liquidity
WSTEP has a Current Ratio of 1.13. This is a normal value and indicates that WSTEP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WSTEP (1.13) is worse than 61.97% 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 43.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.22% over the past year.
WSTEP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.69% yearly.
The Revenue has grown by 16.59% in the past year. This is quite good.
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
WSTEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.60% yearly.
WSTEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.20% yearly.
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.
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
The Price/Earnings ratio is 13.81, which indicates a correct valuation of WSTEP.
Based on the Price/Earnings ratio, WSTEP is valued cheaply inside the industry as 80.28% of the companies are valued more expensively.
WSTEP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.91, the valuation of WSTEP can be described as very reasonable.
WSTEP's Price/Forward Earnings ratio is rather cheap when compared to the industry. WSTEP is cheaper than 87.32% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WSTEP to the average of the S&P500 Index (21.60), we can say WSTEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 9.91 |
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 73.24% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WSTEP is valued cheaper than 90.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.62 | ||
| EV/EBITDA | 6.12 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WSTEP has a very decent profitability rating, which 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)0.55
PEG (5Y)2.43
EPS Next 2Y18.08%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.20%, WSTEP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.93, WSTEP pays a better dividend. On top of this WSTEP pays more dividend than 95.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, WSTEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
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 42.17% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.17%
EPS Next 2Y18.08%
EPS Next 3Y15.6%
OSL:WSTEP (6/30/2025, 12:19:13 PM)
25
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners24.11%
Inst Owner ChangeN/A
Ins Owners0.65%
Ins Owner ChangeN/A
Market Cap704.75M
Analysts84
Price Target30.6 (22.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
Yearly Dividend1.02
Dividend Growth(5Y)-8.63%
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.81 | ||
| Fwd PE | 9.91 | ||
| P/S | 0.63 | ||
| P/FCF | 4.62 | ||
| P/OCF | 4.52 | ||
| P/B | 1.91 | ||
| P/tB | 12.93 | ||
| EV/EBITDA | 6.12 |
EPS(TTM)1.81
EY7.24%
EPS(NY)2.52
Fwd EY10.09%
FCF(TTM)5.41
FCFY21.64%
OCF(TTM)5.54
OCFY22.14%
SpS39.39
BVpS13.06
TBVpS1.93
PEG (NY)0.55
PEG (5Y)2.43
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)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%
ROICexcg growth 3Y20.13%
ROICexcg 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-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 | 3.85 |
F-Score9
WACC14.55%
ROIC/WACC0.83
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%