SELECT WATER SOLUTIONS INC (WTTR) Stock Fundamental Analysis
NYSE:WTTR - New York Stock Exchange, Inc. - US81617J3014 - Common Stock - Currency: USD
Taking everything into account, WTTR scores 4 out of 10 in our fundamental rating. WTTR was compared to 63 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of WTTR have multiple concerns. WTTR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WTTR had positive earnings in the past year.
WTTR had a positive operating cash flow in the past year.
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's Return On Assets of 2.30% is on the low side compared to the rest of the industry. WTTR is outperformed by 61.90% of its industry peers.
The Return On Equity of WTTR (4.49%) is worse than 63.49% of its industry peers.
WTTR has a worse Return On Invested Capital (3.68%) than 73.02% of its industry peers.
WTTR had an Average Return On Invested Capital over the past 3 years of 3.87%. This is below the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 4.49% | ||
| ROIC | 3.68% |
ROA(3y)4.1%
ROA(5y)-6.17%
ROE(3y)6.6%
ROE(5y)-8.89%
ROIC(3y)3.87%
ROIC(5y)N/A
1.3 Margins
WTTR has a worse Profit Margin (2.44%) than 68.25% of its industry peers.
In the last couple of years the Profit Margin of WTTR has grown nicely.
The Operating Margin of WTTR (4.56%) is worse than 71.43% of its industry peers.
WTTR's Operating Margin has improved in the last couple of years.
WTTR has a worse Gross Margin (15.24%) than 84.13% of its industry peers.
In the last couple of years the Gross Margin of WTTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.56% | ||
| PM (TTM) | 2.44% | ||
| GM | 15.24% |
OM growth 3YN/A
OM growth 5Y8.23%
PM growth 3YN/A
PM growth 5Y58%
GM growth 3Y76.83%
GM growth 5Y5.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WTTR is destroying value.
WTTR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WTTR has more shares outstanding
The debt/assets ratio for WTTR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.94 indicates that WTTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.94, WTTR perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
WTTR has a debt to FCF ratio of 22.49. This is a negative value and a sign of low solvency as WTTR would need 22.49 years to pay back of all of its debts.
The Debt to FCF ratio of WTTR (22.49) is worse than 60.32% of its industry peers.
WTTR has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
WTTR has a Debt to Equity ratio (0.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 22.49 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.23
WACC15.85%
2.3 Liquidity
WTTR has a Current Ratio of 1.83. This is a normal value and indicates that WTTR is financially healthy and should not expect problems in meeting its short term obligations.
WTTR has a Current ratio (1.83) which is comparable to the rest of the industry.
A Quick Ratio of 1.67 indicates that WTTR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.67, WTTR is doing good in the industry, outperforming 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The earnings per share for WTTR have decreased strongly by -47.69% 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
WTTR shows a decrease in Revenue. In the last year, the revenue decreased by -4.91%.
The Revenue has been growing slightly by 2.37% on average over the past years.
EPS 1Y (TTM)-47.69%
EPS 3YN/A
EPS 5Y33.78%
EPS Q2Q%100%
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y23.84%
Revenue growth 5Y2.37%
Sales Q2Q%2.14%
3.2 Future
The Earnings Per Share is expected to grow by 51.46% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.11% on average over the next years.
EPS Next Y91.59%
EPS Next 2Y60.03%
EPS Next 3Y51.46%
EPS Next 5YN/A
Revenue Next Year1.77%
Revenue Next 2Y3.39%
Revenue Next 3Y4.11%
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 quite expensively with a Price/Earnings ratio of 26.82.
Based on the Price/Earnings ratio, WTTR is valued a bit more expensive than 61.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.32, WTTR is valued at the same level.
Based on the Price/Forward Earnings ratio of 11.87, the valuation of WTTR can be described as reasonable.
WTTR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, WTTR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WTTR.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WTTR indicates a slightly more expensive valuation: WTTR is more expensive than 63.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.22 | ||
| EV/EBITDA | 5.83 |
4.3 Compensation for Growth
WTTR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WTTR's earnings are expected to grow with 51.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)0.79
EPS Next 2Y60.03%
EPS Next 3Y51.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.93%, WTTR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.47, WTTR pays a bit more dividend than its industry peers.
WTTR's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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 Years2
Div Non Decr Years2
5.3 Sustainability
WTTR pays out 87.30% of its income as dividend. This is not a sustainable payout ratio.
DP87.3%
EPS Next 2Y60.03%
EPS Next 3Y51.46%
9.12
-0.08 (-0.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners88.59%
Inst Owner Change0.9%
Ins Owners6.59%
Ins Owner Change1.97%
Market Cap1.10B
Analysts85.45
Price Target15.5 (69.96%)
Short Float %4.26%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP87.3%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-49%
Min EPS beat(2)-122.49%
Max EPS beat(2)24.49%
EPS beat(4)3
Avg EPS beat(4)-19.96%
Min EPS beat(4)-122.49%
Max EPS beat(4)24.49%
EPS beat(8)4
Avg EPS beat(8)-13.15%
EPS beat(12)6
Avg EPS beat(12)1.5%
EPS beat(16)7
Avg EPS beat(16)28.2%
Revenue beat(2)2
Avg Revenue beat(2)2.15%
Min Revenue beat(2)1.73%
Max Revenue beat(2)2.57%
Revenue beat(4)3
Avg Revenue beat(4)1.11%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)3.75%
Revenue beat(8)3
Avg Revenue beat(8)-1.47%
Revenue beat(12)6
Avg Revenue beat(12)-0.59%
Revenue beat(16)9
Avg Revenue beat(16)0.33%
PT rev (1m)-10.59%
PT rev (3m)-15.08%
EPS NQ rev (1m)-4.43%
EPS NQ rev (3m)-19.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-34.15%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 11.87 | ||
| P/S | 0.75 | ||
| P/FCF | 100.22 | ||
| P/OCF | 5.54 | ||
| P/B | 1.38 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 5.83 |
EPS(TTM)0.34
EY3.73%
EPS(NY)0.77
Fwd EY8.42%
FCF(TTM)0.09
FCFY1%
OCF(TTM)1.65
OCFY18.05%
SpS12.14
BVpS6.6
TBVpS5.46
PEG (NY)0.29
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 4.49% | ||
| ROCE | 5.15% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.76% | ||
| ROICexgc | 4.21% | ||
| OM | 4.56% | ||
| PM (TTM) | 2.44% | ||
| GM | 15.24% | ||
| FCFM | 0.75% |
ROA(3y)4.1%
ROA(5y)-6.17%
ROE(3y)6.6%
ROE(5y)-8.89%
ROIC(3y)3.87%
ROIC(5y)N/A
ROICexc(3y)4%
ROICexc(5y)N/A
ROICexgc(3y)4.61%
ROICexgc(5y)N/A
ROCE(3y)5.42%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y4.14%
ROICexc growth 3YN/A
ROICexc growth 5Y10.86%
OM growth 3YN/A
OM growth 5Y8.23%
PM growth 3YN/A
PM growth 5Y58%
GM growth 3Y76.83%
GM growth 5Y5.59%
F-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 22.49 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 117.61% | ||
| Cap/Sales | 12.81% | ||
| Interest Coverage | 6.11 | ||
| Cash Conversion | 87.72% | ||
| Profit Quality | 30.73% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 1.94 |
F-Score5
WACC15.85%
ROIC/WACC0.23
Cap/Depr(3y)89.6%
Cap/Depr(5y)66.58%
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)-47.69%
EPS 3YN/A
EPS 5Y33.78%
EPS Q2Q%100%
EPS Next Y91.59%
EPS Next 2Y60.03%
EPS Next 3Y51.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y23.84%
Revenue growth 5Y2.37%
Sales Q2Q%2.14%
Revenue Next Year1.77%
Revenue Next 2Y3.39%
Revenue Next 3Y4.11%
Revenue Next 5YN/A
EBIT growth 1Y14.76%
EBIT growth 3YN/A
EBIT growth 5Y10.8%
EBIT Next Year325.52%
EBIT Next 3Y69.3%
EBIT Next 5YN/A
FCF growth 1Y121.66%
FCF growth 3YN/A
FCF growth 5Y-7.95%
OCF growth 1Y485.62%
OCF growth 3YN/A
OCF growth 5Y2.88%