SELECT WATER SOLUTIONS INC (WTTR) Stock Fundamental Analysis
USA - NYSE:WTTR - US81617J3014 - Common Stock
9.55 USD
+0.27 (+2.91%)
9.55 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to WTTR. WTTR was compared to 61 industry peers in the Energy Equipment & Services industry. The financial health of WTTR is average, but there are quite some concerns on its profitability. WTTR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WTTR had positive earnings in the past year.
In the past year WTTR had a positive cash flow from operations.
In multiple years WTTR reported negative net income over the last 5 years.
WTTR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
WTTR has a Return On Assets (2.14%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 4.13%, WTTR is doing worse than 62.30% of the companies in the same industry.
With a Return On Invested Capital value of 3.42%, WTTR is not doing good in the industry: 72.13% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for WTTR is below the industry average of 8.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.14% | ||
| ROE | 4.13% | ||
| ROIC | 3.42% |
ROA(3y)4.1%
ROA(5y)-6.17%
ROE(3y)6.6%
ROE(5y)-8.89%
ROIC(3y)3.94%
ROIC(5y)N/A
1.3 Margins
WTTR's Profit Margin of 2.26% is on the low side compared to the rest of the industry. WTTR is outperformed by 65.57% of its industry peers.
WTTR's Profit Margin has improved in the last couple of years.
WTTR has a Operating Margin of 4.29%. This is in the lower half of the industry: WTTR underperforms 70.49% of its industry peers.
In the last couple of years the Operating Margin of WTTR has grown nicely.
WTTR has a Gross Margin of 15.09%. This is amonst the worse of the industry: WTTR underperforms 80.33% of its industry peers.
In the last couple of years the Gross Margin of WTTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.29% | ||
| PM (TTM) | 2.26% | ||
| GM | 15.09% |
OM growth 3YN/A
OM growth 5Y8.42%
PM growth 3YN/A
PM growth 5Y57.64%
GM growth 3Y76.83%
GM growth 5Y5.59%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WTTR is destroying value.
WTTR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WTTR has been increased compared to 5 years ago.
The debt/assets ratio for WTTR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.98 indicates that WTTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of WTTR (1.98) is better than 60.66% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that WTTR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.34, WTTR perfoms like the industry average, outperforming 57.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.98 |
ROIC/WACC0.38
WACC8.89%
2.3 Liquidity
WTTR has a Current Ratio of 2.01. This indicates that WTTR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.01, WTTR is in line with its industry, outperforming 59.02% of the companies in the same industry.
A Quick Ratio of 1.82 indicates that WTTR should not have too much problems paying its short term obligations.
The Quick ratio of WTTR (1.82) is better than 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The earnings per share for WTTR have decreased strongly by -46.55% in the last year.
The Earnings Per Share has been growing by 33.78% on average over the past years. This is a very strong growth
Looking at the last year, WTTR shows a decrease in Revenue. The Revenue has decreased by -2.46% in the last year.
The Revenue has been growing slightly by 2.37% on average over the past years.
EPS 1Y (TTM)-46.55%
EPS 3YN/A
EPS 5Y33.78%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y23.84%
Revenue growth 5Y2.37%
Sales Q2Q%-0.25%
3.2 Future
The Earnings Per Share is expected to grow by 37.46% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.05% on average over the next years.
EPS Next Y48.44%
EPS Next 2Y40.99%
EPS Next 3Y34.99%
EPS Next 5Y37.46%
Revenue Next Year-4.03%
Revenue Next 2Y-2.49%
Revenue Next 3Y1.32%
Revenue Next 5Y-0.05%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.81, which means the current valuation is very expensive for WTTR.
WTTR's Price/Earnings ratio is a bit more expensive when compared to the industry. WTTR is more expensive than 62.30% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. WTTR is around the same levels.
The Price/Forward Earnings ratio is 16.01, which indicates a correct valuation of WTTR.
WTTR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WTTR to the average of the S&P500 Index (22.70), we can say WTTR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.81 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
WTTR's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.95 |
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.
A more expensive valuation may be justified as WTTR's earnings are expected to grow with 34.99% in the coming years.
PEG (NY)0.64
PEG (5Y)0.91
EPS Next 2Y40.99%
EPS Next 3Y34.99%
5. Dividend
5.1 Amount
WTTR has a Yearly Dividend Yield of 3.29%.
Compared to an average industry Dividend Yield of 3.34, WTTR pays a better dividend. On top of this WTTR pays more dividend than 83.61% of the companies listed in the same industry.
WTTR's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
5.2 History
WTTR has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
WTTR pays out 95.70% of its income as dividend. This is not a sustainable payout ratio.
DP95.7%
EPS Next 2Y40.99%
EPS Next 3Y34.99%
9.55
+0.27 (+2.91%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.98%
Inst Owner Change-2.56%
Ins Owners6.59%
Ins Owner Change0.37%
Market Cap1.16B
Analysts85
Price Target14.28 (49.53%)
Short Float %4.7%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP95.7%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.08%
Min EPS beat(2)-16.33%
Max EPS beat(2)24.49%
EPS beat(4)2
Avg EPS beat(4)-27.16%
Min EPS beat(4)-122.49%
Max EPS beat(4)24.49%
EPS beat(8)4
Avg EPS beat(8)-13.47%
EPS beat(12)5
Avg EPS beat(12)-14.28%
EPS beat(16)7
Avg EPS beat(16)30.61%
Revenue beat(2)1
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)1.73%
Revenue beat(4)3
Avg Revenue beat(4)1.44%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)3.75%
Revenue beat(8)3
Avg Revenue beat(8)-1.06%
Revenue beat(12)5
Avg Revenue beat(12)-1.07%
Revenue beat(16)9
Avg Revenue beat(16)0.46%
PT rev (1m)-6.67%
PT rev (3m)-7.89%
EPS NQ rev (1m)-39.26%
EPS NQ rev (3m)-71.81%
EPS NY rev (1m)-11.76%
EPS NY rev (3m)-22.52%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-17.59%
Revenue NY rev (1m)-5.95%
Revenue NY rev (3m)-5.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.81 | ||
| Fwd PE | 16.01 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | 5.87 | ||
| P/B | 1.45 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 5.95 |
EPS(TTM)0.31
EY3.25%
EPS(NY)0.6
Fwd EY6.24%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)1.63
OCFY17.05%
SpS12.03
BVpS6.59
TBVpS5.49
PEG (NY)0.64
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.14% | ||
| ROE | 4.13% | ||
| ROCE | 4.71% | ||
| ROIC | 3.42% | ||
| ROICexc | 3.55% | ||
| ROICexgc | 3.97% | ||
| OM | 4.29% | ||
| PM (TTM) | 2.26% | ||
| GM | 15.09% | ||
| FCFM | N/A |
ROA(3y)4.1%
ROA(5y)-6.17%
ROE(3y)6.6%
ROE(5y)-8.89%
ROIC(3y)3.94%
ROIC(5y)N/A
ROICexc(3y)4.07%
ROICexc(5y)N/A
ROICexgc(3y)4.68%
ROICexgc(5y)N/A
ROCE(3y)5.43%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y4.33%
ROICexc growth 3YN/A
ROICexc growth 5Y11.06%
OM growth 3YN/A
OM growth 5Y8.42%
PM growth 3YN/A
PM growth 5Y57.64%
GM growth 3Y76.83%
GM growth 5Y5.59%
F-Score6
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 133.31% | ||
| Cap/Sales | 14.94% | ||
| Interest Coverage | 4.42 | ||
| Cash Conversion | 87.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 1.98 |
F-Score6
WACC8.89%
ROIC/WACC0.38
Cap/Depr(3y)89.59%
Cap/Depr(5y)66.57%
Cap/Sales(3y)8.56%
Cap/Sales(5y)6.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-46.55%
EPS 3YN/A
EPS 5Y33.78%
EPS Q2Q%-23.08%
EPS Next Y48.44%
EPS Next 2Y40.99%
EPS Next 3Y34.99%
EPS Next 5Y37.46%
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y23.84%
Revenue growth 5Y2.37%
Sales Q2Q%-0.25%
Revenue Next Year-4.03%
Revenue Next 2Y-2.49%
Revenue Next 3Y1.32%
Revenue Next 5Y-0.05%
EBIT growth 1Y20.19%
EBIT growth 3YN/A
EBIT growth 5Y10.99%
EBIT Next Year323.28%
EBIT Next 3Y69.3%
EBIT Next 5Y51.5%
FCF growth 1Y-224.7%
FCF growth 3YN/A
FCF growth 5Y-8.03%
OCF growth 1Y58.44%
OCF growth 3YN/A
OCF growth 5Y2.87%