ARIS WATER SOLUTIONS INC-A (ARIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARIS - US04041L1061 - Common Stock
23.69 USD
+0.24 (+1.02%)
23.6 USD
-0.09 (-0.38%)
We assign a fundamental rating of 4 out of 10 to ARIS. ARIS was compared to 62 industry peers in the Energy Equipment & Services industry. ARIS has a medium profitability rating, but doesn't score so well on its financial health evaluation. ARIS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARIS was profitable.
In the past year ARIS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ARIS reported negative net income in multiple years.
Each year in the past 5 years ARIS had a positive operating cash flow.
1.2 Ratios
ARIS has a Return On Assets of 1.88%. This is in the lower half of the industry: ARIS underperforms 60.66% of its industry peers.
Looking at the Return On Equity, with a value of 7.65%, ARIS is in line with its industry, outperforming 57.38% of the companies in the same industry.
ARIS has a Return On Invested Capital of 7.39%. This is in the better half of the industry: ARIS outperforms 65.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARIS is significantly below the industry average of 13.09%.
The last Return On Invested Capital (7.39%) for ARIS is above the 3 year average (5.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 7.65% | ||
| ROIC | 7.39% |
ROA(3y)1.1%
ROA(5y)0.45%
ROE(3y)4.51%
ROE(5y)1.92%
ROIC(3y)5.83%
ROIC(5y)4.48%
1.3 Margins
ARIS has a Profit Margin (5.61%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ARIS has declined.
ARIS has a Operating Margin of 23.95%. This is amongst the best in the industry. ARIS outperforms 90.16% of its industry peers.
ARIS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.67%, ARIS is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
In the last couple of years the Gross Margin of ARIS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.95% | ||
| PM (TTM) | 5.61% | ||
| GM | 39.67% |
OM growth 3Y6.73%
OM growth 5Y20.3%
PM growth 3YN/A
PM growth 5Y-12.32%
GM growth 3Y6.48%
GM growth 5Y12.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARIS is destroying value.
Compared to 1 year ago, ARIS has more shares outstanding
ARIS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ARIS has been reduced compared to a year ago.
2.2 Solvency
ARIS has an Altman-Z score of 1.42. This is a bad value and indicates that ARIS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ARIS (1.42) is worse than 65.57% of its industry peers.
The Debt to FCF ratio of ARIS is 4.38, which is a neutral value as it means it would take ARIS, 4.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.38, ARIS is in line with its industry, outperforming 50.82% of the companies in the same industry.
ARIS has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.27, ARIS is not doing good in the industry: 81.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.83
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.22 indicates that ARIS should not have too much problems paying its short term obligations.
ARIS has a worse Current ratio (1.22) than 83.61% of its industry peers.
ARIS has a Quick Ratio of 1.22. This is a normal value and indicates that ARIS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ARIS (1.22) is worse than 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
ARIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.96%, which is quite good.
Measured over the past years, ARIS shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.41% on average per year.
ARIS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.42%.
ARIS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.67% yearly.
EPS 1Y (TTM)16.96%
EPS 3YN/A
EPS 5Y27.41%
EPS Q2Q%13.79%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y23.83%
Revenue growth 5Y29.67%
Sales Q2Q%22.72%
3.2 Future
Based on estimates for the next years, ARIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.34% on average per year.
Based on estimates for the next years, ARIS will show a small growth in Revenue. The Revenue will grow by 6.30% on average per year.
EPS Next Y16.05%
EPS Next 2Y10.24%
EPS Next 3Y15.21%
EPS Next 5Y19.34%
Revenue Next Year13.96%
Revenue Next 2Y8.75%
Revenue Next 3Y8.08%
Revenue Next 5Y6.3%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
A Price/Earnings ratio of 18.08 indicates a rather expensive valuation of ARIS.
60.66% of the companies in the same industry are more expensive than ARIS, based on the Price/Earnings ratio.
ARIS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.47, which indicates a correct valuation of ARIS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARIS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ARIS to the average of the S&P500 Index (23.84), we can say ARIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARIS indicates a slightly more expensive valuation: ARIS is more expensive than 72.13% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARIS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.62 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
ARIS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ARIS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ARIS's earnings are expected to grow with 15.21% in the coming years.
PEG (NY)1.13
PEG (5Y)0.66
EPS Next 2Y10.24%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
ARIS has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.32, ARIS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, ARIS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
ARIS 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
111.96% of the earnings are spent on dividend by ARIS. This is not a sustainable payout ratio.
DP111.96%
EPS Next 2Y10.24%
EPS Next 3Y15.21%
23.69
+0.24 (+1.02%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners106.35%
Inst Owner Change-8.29%
Ins Owners4.15%
Ins Owner Change-37.87%
Market Cap1.40B
Revenue(TTM)475.50M
Net Income(TTM)26.66M
Analysts71.25
Price Target27.09 (14.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend0.42
Dividend Growth(5Y)N/A
DP111.96%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.73%
Min EPS beat(2)10.74%
Max EPS beat(2)16.71%
EPS beat(4)3
Avg EPS beat(4)5.86%
Min EPS beat(4)-16.05%
Max EPS beat(4)16.71%
EPS beat(8)7
Avg EPS beat(8)15.16%
EPS beat(12)9
Avg EPS beat(12)9.68%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.8%
Min Revenue beat(2)1.26%
Max Revenue beat(2)4.35%
Revenue beat(4)4
Avg Revenue beat(4)4.57%
Min Revenue beat(4)1.26%
Max Revenue beat(4)6.5%
Revenue beat(8)8
Avg Revenue beat(8)4.11%
Revenue beat(12)11
Avg Revenue beat(12)4%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-9.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.24%
EPS NY rev (1m)0%
EPS NY rev (3m)4.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 15.47 | ||
| P/S | 2.95 | ||
| P/FCF | 13.62 | ||
| P/OCF | 7.5 | ||
| P/B | 4.02 | ||
| P/tB | 11.8 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)1.31
EY5.53%
EPS(NY)1.53
Fwd EY6.46%
FCF(TTM)1.74
FCFY7.34%
OCF(TTM)3.16
OCFY13.33%
SpS8.03
BVpS5.89
TBVpS2.01
PEG (NY)1.13
PEG (5Y)0.66
Graham Number13.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 7.65% | ||
| ROCE | 8.66% | ||
| ROIC | 7.39% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 9.2% | ||
| OM | 23.95% | ||
| PM (TTM) | 5.61% | ||
| GM | 39.67% | ||
| FCFM | 21.65% |
ROA(3y)1.1%
ROA(5y)0.45%
ROE(3y)4.51%
ROE(5y)1.92%
ROIC(3y)5.83%
ROIC(5y)4.48%
ROICexc(3y)5.9%
ROICexc(5y)4.57%
ROICexgc(3y)7.47%
ROICexgc(5y)6.05%
ROCE(3y)6.84%
ROCE(5y)5.25%
ROICexgc growth 3Y14.01%
ROICexgc growth 5Y32.54%
ROICexc growth 3Y22.24%
ROICexc growth 5Y40.48%
OM growth 3Y6.73%
OM growth 5Y20.3%
PM growth 3YN/A
PM growth 5Y-12.32%
GM growth 3Y6.48%
GM growth 5Y12.28%
F-Score9
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 4.38 | ||
| Debt/EBITDA | 2.29 | ||
| Cap/Depr | 105.22% | ||
| Cap/Sales | 17.65% | ||
| Interest Coverage | 3.5 | ||
| Cash Conversion | 96.52% | ||
| Profit Quality | 386.19% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 1.42 |
F-Score9
WACC8.89%
ROIC/WACC0.83
Cap/Depr(3y)188.27%
Cap/Depr(5y)201.28%
Cap/Sales(3y)37.3%
Cap/Sales(5y)45.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.96%
EPS 3YN/A
EPS 5Y27.41%
EPS Q2Q%13.79%
EPS Next Y16.05%
EPS Next 2Y10.24%
EPS Next 3Y15.21%
EPS Next 5Y19.34%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y23.83%
Revenue growth 5Y29.67%
Sales Q2Q%22.72%
Revenue Next Year13.96%
Revenue Next 2Y8.75%
Revenue Next 3Y8.08%
Revenue Next 5Y6.3%
EBIT growth 1Y14.41%
EBIT growth 3Y32.17%
EBIT growth 5Y55.99%
EBIT Next Year98.33%
EBIT Next 3Y31.41%
EBIT Next 5Y20.48%
FCF growth 1Y320.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.43%
OCF growth 3Y44.89%
OCF growth 5Y112.28%
ARIS WATER SOLUTIONS INC-A / ARIS FAQ
Can you provide the ChartMill fundamental rating for ARIS WATER SOLUTIONS INC-A?
ChartMill assigns a fundamental rating of 4 / 10 to ARIS.
What is the valuation status of ARIS WATER SOLUTIONS INC-A (ARIS) stock?
ChartMill assigns a valuation rating of 4 / 10 to ARIS WATER SOLUTIONS INC-A (ARIS). This can be considered as Fairly Valued.
How profitable is ARIS WATER SOLUTIONS INC-A (ARIS) stock?
ARIS WATER SOLUTIONS INC-A (ARIS) has a profitability rating of 6 / 10.
What is the financial health of ARIS WATER SOLUTIONS INC-A (ARIS) stock?
The financial health rating of ARIS WATER SOLUTIONS INC-A (ARIS) is 2 / 10.
Can you provide the expected EPS growth for ARIS stock?
The Earnings per Share (EPS) of ARIS WATER SOLUTIONS INC-A (ARIS) is expected to grow by 16.05% in the next year.