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. While ARIS is still in line with the averages on profitability rating, there are concerns on its financial health. ARIS has a decent growth rate and is not valued too expensively.
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.
- ARIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ARIS has a worse Return On Assets (1.88%) than 60.66% of its industry peers.
- The Return On Equity of ARIS (7.65%) is comparable to the rest of the 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.
- ARIS had an Average Return On Invested Capital over the past 3 years of 5.83%. This is significantly below the industry average of 12.77%.
- The 3 year average ROIC (5.83%) for ARIS is below the current ROIC(7.39%), indicating increased profibility in the last year.
| 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 of 5.61%. This is comparable to the rest of the industry: ARIS outperforms 54.10% of its industry peers.
- ARIS's Profit Margin has declined in the last couple of years.
- The Operating Margin of ARIS (23.95%) is better than 90.16% of its industry peers.
- In the last couple of years the Operating Margin of ARIS has grown nicely.
- ARIS's Gross Margin of 39.67% is fine compared to the rest of the industry. ARIS outperforms 78.69% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARIS is destroying value.
- Compared to 1 year ago, ARIS has more shares outstanding
- The number of shares outstanding for ARIS has been increased compared to 5 years ago.
- ARIS has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.42, we must say that ARIS is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of ARIS (1.42) is worse than 65.57% of its industry peers.
- ARIS has a debt to FCF ratio of 4.38. This is a neutral value as ARIS would need 4.38 years to pay back of all of its debts.
- ARIS has a Debt to FCF ratio (4.38) which is comparable to the rest of the industry.
- ARIS has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.27, ARIS is doing worse than 81.97% of the companies in the same industry.
| 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.
- A Quick Ratio of 1.22 indicates that ARIS should not have too much problems paying its short term obligations.
- ARIS has a worse Quick ratio (1.22) than 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.96% over the past year.
- ARIS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.41% yearly.
- 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.
- The Revenue is expected to grow by 6.30% on average over the next years.
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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- With a Price/Earnings ratio of 18.08, ARIS is valued on the expensive side.
- ARIS's Price/Earnings ratio is a bit cheaper when compared to the industry. ARIS is cheaper than 60.66% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ARIS to the average of the S&P500 Index (27.54), we can say ARIS is valued slightly cheaper.
- ARIS is valuated correctly with a Price/Forward Earnings ratio of 15.47.
- ARIS's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of ARIS to the average of the S&P500 Index (24.31), we can say ARIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARIS is valued a bit more expensive than the industry average as 72.13% of the companies are valued more cheaply.
- ARIS's Price/Free Cash Flow ratio is in line with the industry average.
| 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.
- The decent profitability rating of ARIS 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 1.21, ARIS pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.92, 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
- ARIS pays out 111.96% of its income as dividend. 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)08-11 2025-08-11/amc
Earnings (Next)11-04 2025-11-04/amc
Inst Owners106.35%
Inst Owner Change-0.03%
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-DateN/A
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 for 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.
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.
How sustainable is the dividend of ARIS WATER SOLUTIONS INC-A (ARIS) stock?
The dividend rating of ARIS WATER SOLUTIONS INC-A (ARIS) is 2 / 10 and the dividend payout ratio is 111.96%.