WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:WAVE - FR0013357621 - Common Stock
54.6 EUR
-0.9 (-1.62%)
We assign a fundamental rating of 6 out of 10 to WAVE. WAVE was compared to 76 industry peers in the IT Services industry. WAVE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WAVE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WAVE was profitable.
WAVE had a positive operating cash flow in the past year.
In the past 5 years WAVE has always been profitable.
In the past 5 years WAVE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.35%, WAVE belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
The Return On Equity of WAVE (12.11%) is comparable to the rest of the industry.
WAVE's Return On Invested Capital of 11.40% is fine compared to the rest of the industry. WAVE outperforms 74.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WAVE is significantly below the industry average of 26.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.35% | ||
| ROE | 12.11% | ||
| ROIC | 11.4% |
ROA(3y)7.68%
ROA(5y)7.81%
ROE(3y)13%
ROE(5y)14.23%
ROIC(3y)11.48%
ROIC(5y)12.31%
1.3 Margins
The Profit Margin of WAVE (8.26%) is better than 82.67% of its industry peers.
WAVE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.76%, WAVE belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
WAVE's Operating Margin has declined in the last couple of years.
WAVE has a Gross Margin of 85.38%. This is in the better half of the industry: WAVE outperforms 78.67% of its industry peers.
In the last couple of years the Gross Margin of WAVE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.76% | ||
| PM (TTM) | 8.26% | ||
| GM | 85.38% |
OM growth 3Y-9.04%
OM growth 5Y-1.67%
PM growth 3Y-9.48%
PM growth 5Y1.77%
GM growth 3Y-4.64%
GM growth 5Y-2.67%
2. Health
2.1 Basic Checks
WAVE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, WAVE has less shares outstanding
The number of shares outstanding for WAVE has been increased compared to 5 years ago.
WAVE has a better debt/assets ratio than last year.
2.2 Solvency
WAVE has an Altman-Z score of 4.90. This indicates that WAVE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WAVE (4.90) is better than 88.00% of its industry peers.
The Debt to FCF ratio of WAVE is 0.39, which is an excellent value as it means it would take WAVE, only 0.39 years of fcf income to pay off all of its debts.
WAVE's Debt to FCF ratio of 0.39 is amongst the best of the industry. WAVE outperforms 94.67% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that WAVE is not too dependend on debt financing.
WAVE has a Debt to Equity ratio of 0.03. This is amongst the best in the industry. WAVE outperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 4.9 |
ROIC/WACC1.49
WACC7.67%
2.3 Liquidity
A Current Ratio of 1.37 indicates that WAVE should not have too much problems paying its short term obligations.
WAVE has a Current ratio of 1.37. This is comparable to the rest of the industry: WAVE outperforms 60.00% of its industry peers.
A Quick Ratio of 1.37 indicates that WAVE should not have too much problems paying its short term obligations.
The Quick ratio of WAVE (1.37) is better than 65.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
WAVE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.75%, which is quite impressive.
WAVE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.06% yearly.
The Revenue has been growing slightly by 6.99% in the past year.
The Revenue has been growing by 17.46% on average over the past years. This is quite good.
EPS 1Y (TTM)23.75%
EPS 3Y7.41%
EPS 5Y15.06%
EPS Q2Q%14.81%
Revenue 1Y (TTM)6.99%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%0.04%
3.2 Future
WAVE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.93% yearly.
Based on estimates for the next years, WAVE will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y8.93%
EPS Next 2Y11.04%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue Next Year1.71%
Revenue Next 2Y2.92%
Revenue Next 3Y3.67%
Revenue Next 5YN/A
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
The Price/Earnings ratio is 16.90, which indicates a correct valuation of WAVE.
Based on the Price/Earnings ratio, WAVE is valued a bit cheaper than 68.00% of the companies in the same industry.
WAVE 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 14.05, which indicates a correct valuation of WAVE.
WAVE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WAVE is cheaper than 65.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, WAVE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.9 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WAVE is valued a bit more expensive than the industry average as 62.67% of the companies are valued more cheaply.
WAVE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.02 | ||
| EV/EBITDA | 10.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WAVE may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)1.12
EPS Next 2Y11.04%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, WAVE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.27, WAVE has a dividend in line with its industry peers.
With a Dividend Yield of 0.90, WAVE pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of WAVE is nicely growing with an annual growth rate of 10.95%!
Dividend Growth(5Y)10.95%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
WAVE pays out 14.10% of its income as dividend. This is a sustainable payout ratio.
WAVE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.1%
EPS Next 2Y11.04%
EPS Next 3Y10.93%
EPA:WAVE (12/19/2025, 7:00:00 PM)
54.6
-0.9 (-1.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners15.85%
Inst Owner ChangeN/A
Ins Owners44.17%
Ins Owner ChangeN/A
Market Cap1.36B
Revenue(TTM)943.85M
Net Income(TTM)78.00M
Analysts80
Price Target63.36 (16.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.39
Dividend Growth(5Y)10.95%
DP14.1%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.85%
PT rev (3m)-3.76%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.75%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.9 | ||
| Fwd PE | 14.05 | ||
| P/S | 1.44 | ||
| P/FCF | 13.02 | ||
| P/OCF | 12.53 | ||
| P/B | 2.11 | ||
| P/tB | 26.16 | ||
| EV/EBITDA | 10.7 |
EPS(TTM)3.23
EY5.92%
EPS(NY)3.89
Fwd EY7.12%
FCF(TTM)4.19
FCFY7.68%
OCF(TTM)4.36
OCFY7.98%
SpS37.89
BVpS25.85
TBVpS2.09
PEG (NY)1.89
PEG (5Y)1.12
Graham Number43.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.35% | ||
| ROE | 12.11% | ||
| ROCE | 15.63% | ||
| ROIC | 11.4% | ||
| ROICexc | 11.4% | ||
| ROICexgc | 68.62% | ||
| OM | 11.76% | ||
| PM (TTM) | 8.26% | ||
| GM | 85.38% | ||
| FCFM | 11.06% |
ROA(3y)7.68%
ROA(5y)7.81%
ROE(3y)13%
ROE(5y)14.23%
ROIC(3y)11.48%
ROIC(5y)12.31%
ROICexc(3y)13.04%
ROICexc(5y)23.01%
ROICexgc(3y)170.72%
ROICexgc(5y)N/A
ROCE(3y)15.74%
ROCE(5y)16.87%
ROICexgc growth 3YN/A
ROICexgc growth 5Y-18.02%
ROICexc growth 3Y-39.72%
ROICexc growth 5Y-10%
OM growth 3Y-9.04%
OM growth 5Y-1.67%
PM growth 3Y-9.48%
PM growth 5Y1.77%
GM growth 3Y-4.64%
GM growth 5Y-2.67%
F-Score9
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.39 | ||
| Debt/EBITDA | 0.13 | ||
| Cap/Depr | 20.55% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 94.87 | ||
| Cash Conversion | 82.86% | ||
| Profit Quality | 133.89% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 4.9 |
F-Score9
WACC7.67%
ROIC/WACC1.49
Cap/Depr(3y)28.51%
Cap/Depr(5y)20.81%
Cap/Sales(3y)0.55%
Cap/Sales(5y)0.39%
Profit Quality(3y)107.65%
Profit Quality(5y)141.71%
High Growth Momentum
Growth
EPS 1Y (TTM)23.75%
EPS 3Y7.41%
EPS 5Y15.06%
EPS Q2Q%14.81%
EPS Next Y8.93%
EPS Next 2Y11.04%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue 1Y (TTM)6.99%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%0.04%
Revenue Next Year1.71%
Revenue Next 2Y2.92%
Revenue Next 3Y3.67%
Revenue Next 5YN/A
EBIT growth 1Y17.36%
EBIT growth 3Y14.74%
EBIT growth 5Y15.5%
EBIT Next Year21%
EBIT Next 3Y14.66%
EBIT Next 5YN/A
FCF growth 1Y92.92%
FCF growth 3Y14.63%
FCF growth 5Y10.01%
OCF growth 1Y87.07%
OCF growth 3Y16.47%
OCF growth 5Y9.99%
WAVESTONE / WAVE.PA FAQ
What is the ChartMill fundamental rating of WAVESTONE (WAVE.PA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to WAVE.PA.
What is the valuation status for WAVE stock?
ChartMill assigns a valuation rating of 4 / 10 to WAVESTONE (WAVE.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for WAVESTONE?
WAVESTONE (WAVE.PA) has a profitability rating of 6 / 10.
How financially healthy is WAVESTONE?
The financial health rating of WAVESTONE (WAVE.PA) is 7 / 10.
Is the dividend of WAVESTONE sustainable?
The dividend rating of WAVESTONE (WAVE.PA) is 3 / 10 and the dividend payout ratio is 14.1%.