SELECT WATER SOLUTIONS INC (WTTR)
US81617J3014 - Common Stock
WTTR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WTTR was profitable.
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.
Of the past 5 years WTTR 4 years had a positive operating cash flow.
1.2 Ratios
WTTR has a better Return On Assets (5.08%) than 63.08% of its industry peers.
With a Return On Equity value of 8.52%, WTTR perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
With a Return On Invested Capital value of 4.25%, WTTR is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 8.52% | ||
| ROIC | 4.25% |
ROA(3y)1.87%
ROA(5y)-6.57%
ROE(3y)2.94%
ROE(5y)-9.6%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 4.27%, WTTR perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
In the last couple of years the Profit Margin of WTTR has grown nicely.
With a Operating Margin value of 3.78%, WTTR is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
WTTR's Operating Margin has declined in the last couple of years.
The Gross Margin of WTTR (14.64%) is worse than 84.62% of its industry peers.
In the last couple of years the Gross Margin of WTTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.78% | ||
| PM (TTM) | 4.27% | ||
| GM | 14.64% |
OM growth 3YN/A
OM growth 5Y-5.04%
PM growth 3YN/A
PM growth 5Y14.47%
GM growth 3YN/A
GM growth 5Y2.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WTTR is destroying value.
The number of shares outstanding for WTTR has been reduced compared to 1 year ago.
WTTR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WTTR has been reduced compared to a year ago.
2.2 Solvency
WTTR has an Altman-Z score of 2.64. This is not the best score and indicates that WTTR is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.64, WTTR is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
The Debt to FCF ratio of WTTR is 0.39, which is an excellent value as it means it would take WTTR, only 0.39 years of fcf income to pay off all of its debts.
WTTR has a better Debt to FCF ratio (0.39) than 93.85% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that WTTR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.10, WTTR is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.46
WACC9.3%
2.3 Liquidity
WTTR has a Current Ratio of 1.94. This is a normal value and indicates that WTTR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.94, WTTR perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
WTTR has a Quick Ratio of 1.76. This is a normal value and indicates that WTTR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WTTR (1.76) is better than 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.37% over the past year.
The Earnings Per Share has been decreasing by -3.22% on average over the past years.
WTTR shows a small growth in Revenue. In the last year, the Revenue has grown by 1.72%.
Measured over the past years, WTTR shows a small growth in Revenue. The Revenue has been growing by 0.73% on average per year.
EPS 1Y (TTM)20.37%
EPS 3YN/A
EPS 5Y-3.22%
EPS growth Q2Q-66.67%
Revenue 1Y (TTM)1.72%
Revenue growth 3Y37.86%
Revenue growth 5Y0.73%
Revenue growth Q2Q-12.01%
3.2 Future
WTTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.26% yearly.
Based on estimates for the next years, WTTR will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
EPS Next Y2.91%
EPS Next 2Y30.2%
EPS Next 3Y15.26%
EPS Next 5YN/A
Revenue Next Year-0.49%
Revenue Next 2Y3.37%
Revenue Next 3Y3.96%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
WTTR is valuated correctly with a Price/Earnings ratio of 16.00.
63.08% of the companies in the same industry are more expensive than WTTR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WTTR to the average of the S&P500 Index (28.67), we can say WTTR is valued slightly cheaper.
A Price/Forward Earnings ratio of 8.40 indicates a reasonable valuation of WTTR.
Based on the Price/Forward Earnings ratio, WTTR is valued a bit cheaper than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, WTTR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WTTR indicates a somewhat cheap valuation: WTTR is cheaper than 64.62% of the companies listed in the same industry.
WTTR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WTTR is cheaper than 87.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.39 | ||
| EV/EBITDA | 6.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WTTR does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as WTTR's earnings are expected to grow with 15.26% in the coming years.
PEG (NY)5.5
PEG (5Y)N/A
EPS Next 2Y30.2%
EPS Next 3Y15.26%
5. Dividend
5.1 Amount
WTTR has a Yearly Dividend Yield of 2.32%.
WTTR's Dividend Yield is a higher than the industry average which is at 3.14.
Compared to an average S&P500 Dividend Yield of 2.32, WTTR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
WTTR has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WTTR pays out 39.94% of its income as dividend. This is a sustainable payout ratio.
DP39.94%
EPS Next 2Y30.2%
EPS Next 3Y15.26%
SELECT WATER SOLUTIONS INC
NYSE:WTTR (5/20/2024, 3:10:02 PM)
After market: 10.4 0 (0%)10.4
+0.39 (+3.9%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 8.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 8.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.78% | ||
| PM (TTM) | 4.27% | ||
| GM | 14.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)20.37%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y2.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.72%
Revenue growth 3Y37.86%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y