WAVESTONE (WAVE.PA) Stock Fundamental Analysis
EPA:WAVE - Euronext Paris - Matif - FR0013357621 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to WAVE. WAVE was compared to 70 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
WAVE had positive earnings in the past year.
WAVE had a positive operating cash flow in the past year.
Each year in the past 5 years WAVE has been profitable.
In the past 5 years WAVE always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.59%, WAVE is doing good in the industry, outperforming 72.00% of the companies in the same industry.
WAVE has a Return On Equity of 10.80%. This is comparable to the rest of the industry: WAVE outperforms 50.67% of its industry peers.
The Return On Invested Capital of WAVE (9.71%) is better than 65.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WAVE is above the industry average of 11.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 10.8% | ||
| ROIC | 9.71% |
ROA(3y)8.54%
ROA(5y)7.64%
ROE(3y)15.61%
ROE(5y)15.34%
ROIC(3y)13.27%
ROIC(5y)12.88%
1.3 Margins
Looking at the Profit Margin, with a value of 7.08%, WAVE is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
WAVE's Profit Margin has been stable in the last couple of years.
WAVE's Operating Margin of 10.67% is fine compared to the rest of the industry. WAVE outperforms 78.67% of its industry peers.
WAVE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 85.32%, WAVE is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
WAVE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.67% | ||
| PM (TTM) | 7.08% | ||
| GM | 85.32% |
OM growth 3Y5.71%
OM growth 5Y-1.79%
PM growth 3Y10.96%
PM growth 5Y1.1%
GM growth 3Y-2.23%
GM growth 5Y-1.38%
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 more shares outstanding
Compared to 5 years ago, WAVE has more shares outstanding
The debt/assets ratio for WAVE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.88 indicates that WAVE is not in any danger for bankruptcy at the moment.
WAVE's Altman-Z score of 3.88 is amongst the best of the industry. WAVE outperforms 84.00% of its industry peers.
The Debt to FCF ratio of WAVE is 1.64, which is an excellent value as it means it would take WAVE, only 1.64 years of fcf income to pay off all of its debts.
WAVE's Debt to FCF ratio of 1.64 is fine compared to the rest of the industry. WAVE outperforms 80.00% of its industry peers.
WAVE has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WAVE (0.12) is better than 82.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 3.88 |
ROIC/WACC1.28
WACC7.56%
2.3 Liquidity
WAVE has a Current Ratio of 1.28. This is a normal value and indicates that WAVE is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.28, WAVE is doing good in the industry, outperforming 62.67% of the companies in the same industry.
A Quick Ratio of 1.28 indicates that WAVE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.28, WAVE is in the better half of the industry, outperforming 70.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
WAVE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.74%.
Measured over the past years, WAVE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.97% on average per year.
WAVE shows a strong growth in Revenue. In the last year, the Revenue has grown by 54.26%.
WAVE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.36% yearly.
EPS 1Y (TTM)-4.74%
EPS 3Y28.71%
EPS 5Y11.97%
EPS Q2Q%-4.43%
Revenue 1Y (TTM)54.26%
Revenue growth 3Y18.85%
Revenue growth 5Y12.36%
Sales Q2Q%65.46%
3.2 Future
The Earnings Per Share is expected to grow by 13.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.43% on average over the next years. This is quite good.
EPS Next Y11.69%
EPS Next 2Y11.69%
EPS Next 3Y13.22%
EPS Next 5YN/A
Revenue Next Year26.2%
Revenue Next 2Y14.04%
Revenue Next 3Y10.43%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.43, WAVE is valued on the expensive side.
WAVE's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of WAVE to the average of the S&P500 Index (29.35), we can say WAVE is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.12 indicates a correct valuation of WAVE.
The rest of the industry has a similar Price/Forward Earnings ratio as WAVE.
WAVE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WAVE is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as WAVE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.74 | ||
| EV/EBITDA | 11.88 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WAVE may justify a higher PE ratio.
A more expensive valuation may be justified as WAVE's earnings are expected to grow with 13.22% in the coming years.
PEG (NY)1.66
PEG (5Y)1.62
EPS Next 2Y11.69%
EPS Next 3Y13.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, WAVE is not a good candidate for dividend investing.
WAVE's Dividend Yield is comparable with the industry average which is at 4.29.
With a Dividend Yield of 0.75, WAVE pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
The dividend of WAVE is nicely growing with an annual growth rate of 10.78%!
Dividend Growth(5Y)10.78%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
WAVE pays out 15.02% of its income as dividend. This is a sustainable payout ratio.
WAVE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.02%
EPS Next 2Y11.69%
EPS Next 3Y13.22%
EPA:WAVE (3/7/2025, 7:00:00 PM)
51.3
+0.4 (+0.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners15.62%
Inst Owner ChangeN/A
Ins Owners44.17%
Ins Owner ChangeN/A
Market Cap1.28B
Analysts83.64
Price Target57.65 (12.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.34
Dividend Growth(5Y)10.78%
DP15.02%
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)3.44%
PT rev (3m)-14.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.75%
EPS NY rev (3m)-19.47%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-4.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 15.12 | ||
| P/S | 1.45 | ||
| P/FCF | 17.74 | ||
| P/OCF | 16.76 | ||
| P/B | 2.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.88 |
EPS(TTM)2.64
EY5.15%
EPS(NY)3.39
Fwd EY6.61%
FCF(TTM)2.89
FCFY5.64%
OCF(TTM)3.06
OCFY5.97%
SpS35.41
BVpS23.22
TBVpS-0.63
PEG (NY)1.66
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 10.8% | ||
| ROCE | 13.38% | ||
| ROIC | 9.71% | ||
| ROICexc | 10.47% | ||
| ROICexgc | 116.75% | ||
| OM | 10.67% | ||
| PM (TTM) | 7.08% | ||
| GM | 85.32% | ||
| FCFM | 8.16% |
ROA(3y)8.54%
ROA(5y)7.64%
ROE(3y)15.61%
ROE(5y)15.34%
ROIC(3y)13.27%
ROIC(5y)12.88%
ROICexc(3y)25.7%
ROICexc(5y)24.38%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)18.29%
ROCE(5y)17.76%
ROICexcg growth 3YN/A
ROICexcg growth 5Y15.81%
ROICexc growth 3Y-27.56%
ROICexc growth 5Y-13.49%
OM growth 3Y5.71%
OM growth 5Y-1.79%
PM growth 3Y10.96%
PM growth 5Y1.1%
GM growth 3Y-2.23%
GM growth 5Y-1.38%
F-Score5
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 22.1% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 118.12 | ||
| Cash Conversion | 67.35% | ||
| Profit Quality | 115.31% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 3.88 |
F-Score5
WACC7.56%
ROIC/WACC1.28
Cap/Depr(3y)25.41%
Cap/Depr(5y)19.61%
Cap/Sales(3y)0.41%
Cap/Sales(5y)0.43%
Profit Quality(3y)107.24%
Profit Quality(5y)153.12%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.74%
EPS 3Y28.71%
EPS 5Y11.97%
EPS Q2Q%-4.43%
EPS Next Y11.69%
EPS Next 2Y11.69%
EPS Next 3Y13.22%
EPS Next 5YN/A
Revenue 1Y (TTM)54.26%
Revenue growth 3Y18.85%
Revenue growth 5Y12.36%
Sales Q2Q%65.46%
Revenue Next Year26.2%
Revenue Next 2Y14.04%
Revenue Next 3Y10.43%
Revenue Next 5YN/A
EBIT growth 1Y17.39%
EBIT growth 3Y25.63%
EBIT growth 5Y10.35%
EBIT Next Year41.59%
EBIT Next 3Y16.52%
EBIT Next 5YN/A
FCF growth 1Y63.17%
FCF growth 3Y4.51%
FCF growth 5Y20.74%
OCF growth 1Y68.21%
OCF growth 3Y5.47%
OCF growth 5Y20.56%