WEBSTEP ASA (WSTEP.OL) Stock Fundamental Analysis
OSL:WSTEP - Euronext Oslo - NO0010609662 - Common Stock - Currency: NOK
We assign a fundamental rating of 7 out of 10 to WSTEP. WSTEP was compared to 71 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making WSTEP a very profitable company, without any liquidiy or solvency issues. WSTEP is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make WSTEP a good candidate for value and quality 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.
In the past 5 years WSTEP has always been profitable.
In the past 5 years WSTEP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WSTEP (9.79%) is better than 91.55% 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.
With an excellent Return On Invested Capital value of 12.05%, WSTEP belongs to the best of the industry, outperforming 83.10% 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 11.19%.
The last Return On Invested Capital (12.05%) for WSTEP is above the 3 year average (7.26%), which is a sign of increasing profitability.
| 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
The Profit Margin of WSTEP (5.93%) is better than 70.42% 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's Operating Margin of 8.05% is fine compared to the rest of the industry. WSTEP outperforms 60.56% of its industry peers.
In the last couple of years the Operating Margin of WSTEP has remained more or less at the same level.
WSTEP has a better Gross Margin (93.11%) than 91.55% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WSTEP is destroying value.
The number of shares outstanding for WSTEP has been reduced compared to 1 year ago.
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 3.79 indicates that WSTEP is not in any danger for bankruptcy at the moment.
The Altman-Z score of WSTEP (3.79) is better than 78.87% 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.
The Debt to FCF ratio of WSTEP (0.40) is better than 94.37% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that WSTEP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, WSTEP belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 3.79 |
ROIC/WACC0.83
WACC14.46%
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 (1.13) which is in line with its industry peers.
A Quick Ratio of 1.13 indicates that WSTEP should not have too much problems paying its short term obligations.
WSTEP has a Quick ratio (1.13) which is comparable to the rest of the 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 44.96% over the past year.
The Earnings Per Share has been growing slightly by 5.69% on average over the past years.
The Revenue has grown by 16.59% in the past year. This is quite good.
The Revenue has been growing slightly by 5.76% on average over the past years.
EPS 1Y (TTM)44.96%
EPS 3Y0.31%
EPS 5Y5.69%
EPS Q2Q%10.53%
Revenue 1Y (TTM)16.59%
Revenue growth 3Y4.09%
Revenue growth 5Y5.76%
Sales Q2Q%-9.75%
3.2 Future
The Earnings Per Share is expected to grow by 15.60% 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 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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WSTEP is valuated correctly with a Price/Earnings ratio of 12.83.
Based on the Price/Earnings ratio, WSTEP is valued cheaper than 84.51% of the companies in the same industry.
When comparing the Price/Earnings ratio of WSTEP to the average of the S&P500 Index (28.05), we can say WSTEP is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.51, the valuation of WSTEP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, WSTEP is valued cheaply inside the industry as 84.51% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WSTEP to the average of the S&P500 Index (37.67), we can say WSTEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 9.51 |
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 74.65% of the companies listed in the same industry.
WSTEP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WSTEP is cheaper than 91.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.44 | ||
| EV/EBITDA | 5.86 |
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.
The decent profitability rating of WSTEP may justify a higher PE ratio.
WSTEP's earnings are expected to grow with 15.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)2.25
EPS Next 2Y18.08%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.58%, WSTEP is a good candidate for dividend investing.
WSTEP's Dividend Yield is rather good when compared to the industry average which is at 6.88. WSTEP pays more dividend than 95.77% of the companies in the same industry.
WSTEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.58% |
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
42.17% of the earnings are spent on dividend by WSTEP. This is a bit on the high side, but may be sustainable.
DP42.17%
EPS Next 2Y18.08%
EPS Next 3Y15.6%
OSL:WSTEP (7/25/2025, 7:00:00 PM)
24
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 Cap676.56M
Analysts84
Price Target30.6 (27.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.58% |
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)0
Avg EPS beat(2)-10.68%
Min EPS beat(2)-18.45%
Max EPS beat(2)-2.91%
EPS beat(4)0
Avg EPS beat(4)-11.4%
Min EPS beat(4)-18.45%
Max EPS beat(4)-2.91%
EPS beat(8)1
Avg EPS beat(8)-22.14%
EPS beat(12)1
Avg EPS beat(12)-30.87%
EPS beat(16)4
Avg EPS beat(16)-23.95%
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)-7.02%
EPS NQ rev (3m)-7.02%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.54%
Revenue NQ rev (3m)-2.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 9.51 | ||
| P/S | 0.61 | ||
| P/FCF | 4.44 | ||
| P/OCF | 4.34 | ||
| P/B | 1.84 | ||
| P/tB | 12.41 | ||
| EV/EBITDA | 5.86 |
EPS(TTM)1.87
EY7.79%
EPS(NY)2.52
Fwd EY10.51%
FCF(TTM)5.41
FCFY22.54%
OCF(TTM)5.54
OCFY23.06%
SpS39.39
BVpS13.06
TBVpS1.93
PEG (NY)0.52
PEG (5Y)2.25
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 | 3.79 |
F-Score9
WACC14.46%
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)44.96%
EPS 3Y0.31%
EPS 5Y5.69%
EPS Q2Q%10.53%
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%