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%)
Overall ARIS gets a fundamental rating of 4 out of 10. We evaluated ARIS against 62 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of ARIS while its profitability can be described as average. ARIS is not valued too expensively and it also shows a decent 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
With a Return On Assets value of 1.88%, ARIS is not doing good in the industry: 60.66% of the companies in the same industry are doing better.
ARIS's Return On Equity of 7.65% is in line compared to the rest of the industry. ARIS outperforms 57.38% of its industry peers.
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 significantly below the industry average of 12.77%.
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
With a Profit Margin value of 5.61%, ARIS perfoms like the industry average, outperforming 54.10% of the companies in the same industry.
In the last couple of years the Profit Margin of ARIS has declined.
ARIS has a better Operating Margin (23.95%) than 90.16% of its industry peers.
ARIS's Operating Margin has improved in the last couple of years.
ARIS has a better Gross Margin (39.67%) than 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
ARIS has more shares outstanding than it did 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.
ARIS's Altman-Z score of 1.42 is on the low side compared to the rest of the industry. ARIS is outperformed by 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 of 4.38. This is comparable to the rest of the industry: ARIS outperforms 50.82% of its industry peers.
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's Current ratio of 1.22 is on the low side compared to the rest of the industry. ARIS is outperformed by 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.
ARIS's Quick ratio of 1.22 is on the low side compared to the rest of the industry. ARIS is outperformed by 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.
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%.
The Revenue has been growing by 29.67% on average over the past years. This is a very strong growth!
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.
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.
Compared to the rest of the industry, the Price/Earnings ratio of ARIS indicates a somewhat cheap valuation: ARIS is cheaper than 60.66% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. ARIS is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.47 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, ARIS is valued a bit 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.
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
With a Yearly Dividend Yield of 2.36%, ARIS has a reasonable but not impressive dividend return.
ARIS's Dividend Yield is a higher than the industry average which is at 1.21.
ARIS's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| 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-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%.