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 60 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ARIS had positive earnings in the past year.
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.
With a Return On Equity value of 7.65%, ARIS perfoms like the industry average, outperforming 57.38% of the companies in the same industry.
ARIS's Return On Invested Capital of 7.39% is fine compared to the rest 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 in line with the industry average of 7.66%.
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 of 5.61%. This is comparable to the rest of the industry: ARIS outperforms 54.10% of its industry peers.
In the last couple of years the Profit Margin of ARIS has declined.
Looking at the Operating Margin, with a value of 23.95%, ARIS belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
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
ARIS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, ARIS has an improved debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 1.42, ARIS is doing worse than 65.57% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 4.38, ARIS perfoms like the industry average, outperforming 50.82% of the companies in the same industry.
A Debt/Equity ratio of 1.27 is on the high side and indicates that ARIS has dependencies on debt 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
ARIS has a Current 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.
ARIS has a Current ratio of 1.22. This is amonst the worse of the industry: ARIS underperforms 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
The Earnings Per Share has grown by an nice 16.96% over the past year.
The Earnings Per Share has been growing by 27.41% on average over the past years. This is a very strong growth
The Revenue has grown by 16.42% in the past year. This is quite good.
Measured over the past years, ARIS shows a very strong growth in Revenue. The Revenue has been growing by 29.67% on average per year.
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
The Earnings Per Share is expected to grow by 19.34% on average over the next years. This is quite good.
ARIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.30% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.08, the valuation of ARIS can be described as rather expensive.
Based on the Price/Earnings ratio, ARIS is valued a bit cheaper than 60.66% of the companies in the same industry.
ARIS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.41.
With a Price/Forward Earnings ratio of 15.47, ARIS is valued correctly.
ARIS's Price/Forward Earnings ratio is in line with the industry average.
ARIS is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| 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.
The rest of the industry has a similar Price/Free Cash Flow ratio as ARIS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.62 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
The 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%.
ARIS's Dividend Yield is a higher than the industry average which is at 2.95.
Compared to an average S&P500 Dividend Yield of 2.32, ARIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
ARIS 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 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)
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.