WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe - EPA:WAVE - FR0013357621 - Common Stock
47.975 EUR
-0.07 (-0.16%)
We assign a fundamental rating of 6 out of 10 to WAVE. WAVE was compared to 72 industry peers in the IT Services industry. WAVE gets an excellent profitability rating and is at the same time showing great financial health properties. WAVE has a decent growth rate and is not valued too expensively. This makes WAVE very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year WAVE was profitable.
In the past year WAVE had a positive cash flow from operations.
In the past 5 years WAVE has always been profitable.
WAVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WAVE has a Return On Assets of 7.71%. This is amongst the best in the industry. WAVE outperforms 83.33% of its industry peers.
The Return On Equity of WAVE (11.96%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 10.71%, WAVE is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WAVE is in line with the industry average of 11.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 11.96% | ||
| ROIC | 10.71% |
ROA(3y)7.66%
ROA(5y)7.8%
ROE(3y)12.97%
ROE(5y)14.22%
ROIC(3y)11.44%
ROIC(5y)12.28%
1.3 Margins
With an excellent Profit Margin value of 8.01%, WAVE belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of WAVE has grown nicely.
WAVE has a better Operating Margin (11.61%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of WAVE has declined.
WAVE's Gross Margin of 84.64% is fine compared to the rest of the industry. WAVE outperforms 77.78% of its industry peers.
In the last couple of years the Gross Margin of WAVE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.61% | ||
| PM (TTM) | 8.01% | ||
| GM | 84.64% |
OM growth 3Y-9.16%
OM growth 5Y-1.75%
PM growth 3Y-9.65%
PM growth 5Y1.65%
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.
WAVE has less shares outstanding than it did 1 year ago.
WAVE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WAVE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.05 indicates that WAVE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.05, WAVE belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
WAVE has a debt to FCF ratio of 0.96. This is a very positive value and a sign of high solvency as it would only need 0.96 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.96, WAVE belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that WAVE is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.10, WAVE belongs to the best of the industry, outperforming 84.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 4.05 |
ROIC/WACC1.39
WACC7.69%
2.3 Liquidity
A Current Ratio of 1.49 indicates that WAVE should not have too much problems paying its short term obligations.
WAVE's Current ratio of 1.49 is fine compared to the rest of the industry. WAVE outperforms 70.83% of its industry peers.
A Quick Ratio of 1.49 indicates that WAVE should not have too much problems paying its short term obligations.
WAVE has a better Quick ratio (1.49) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
WAVE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.07%, which is quite good.
WAVE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.55% yearly.
WAVE shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.60%.
WAVE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.46% yearly.
EPS 1Y (TTM)15.07%
EPS 3Y6.62%
EPS 5Y14.55%
EPS Q2Q%29.86%
Revenue 1Y (TTM)34.6%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%14.49%
3.2 Future
Based on estimates for the next years, WAVE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.86% on average per year.
Based on estimates for the next years, WAVE will show a small growth in Revenue. The Revenue will grow by 3.38% on average per year.
EPS Next Y6.02%
EPS Next 2Y8.21%
EPS Next 3Y11.86%
EPS Next 5YN/A
Revenue Next Year1.24%
Revenue Next 2Y2.56%
Revenue Next 3Y3.38%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.48, WAVE is valued correctly.
Based on the Price/Earnings ratio, WAVE is valued a bit cheaper than the industry average as 73.61% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.07. WAVE is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.36 indicates a correct valuation of WAVE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAVE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.08. WAVE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 14.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WAVE.
WAVE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.15 | ||
| EV/EBITDA | 9.89 |
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)2.57
PEG (5Y)1.06
EPS Next 2Y8.21%
EPS Next 3Y11.86%
5. Dividend
5.1 Amount
WAVE has a yearly dividend return of 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 3.84, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
On average, the dividend of WAVE grows each year by 10.75%, which is quite nice.
Dividend Growth(5Y)10.75%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
12.41% of the earnings are spent on dividend by WAVE. This is a low number and sustainable payout ratio.
WAVE's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP12.41%
EPS Next 2Y8.21%
EPS Next 3Y11.86%
EPA:WAVE (11/21/2025, 5:21:18 PM)
47.975
-0.07 (-0.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners15.55%
Inst Owner ChangeN/A
Ins Owners44.17%
Ins Owner ChangeN/A
Market Cap1.20B
Revenue(TTM)943.67M
Net Income(TTM)75.56M
Analysts80
Price Target65.22 (35.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.38
Dividend Growth(5Y)10.75%
DP12.41%
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)0%
PT rev (3m)0.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.8%
EPS NY rev (3m)-3.82%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 14.36 | ||
| P/S | 1.27 | ||
| P/FCF | 14.15 | ||
| P/OCF | 13.39 | ||
| P/B | 1.89 | ||
| P/tB | 28.96 | ||
| EV/EBITDA | 9.89 |
EPS(TTM)3.1
EY6.46%
EPS(NY)3.34
Fwd EY6.97%
FCF(TTM)3.39
FCFY7.07%
OCF(TTM)3.58
OCFY7.47%
SpS37.88
BVpS25.37
TBVpS1.66
PEG (NY)2.57
PEG (5Y)1.06
Graham Number42.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 11.96% | ||
| ROCE | 14.7% | ||
| ROIC | 10.71% | ||
| ROICexc | 10.71% | ||
| ROICexgc | 51.64% | ||
| OM | 11.61% | ||
| PM (TTM) | 8.01% | ||
| GM | 84.64% | ||
| FCFM | 8.95% |
ROA(3y)7.66%
ROA(5y)7.8%
ROE(3y)12.97%
ROE(5y)14.22%
ROIC(3y)11.44%
ROIC(5y)12.28%
ROICexc(3y)13%
ROICexc(5y)22.97%
ROICexgc(3y)170.44%
ROICexgc(5y)N/A
ROCE(3y)15.72%
ROCE(5y)16.86%
ROICexgc growth 3YN/A
ROICexgc growth 5Y-18.03%
ROICexc growth 3Y-39.81%
ROICexc growth 5Y-10.07%
OM growth 3Y-9.16%
OM growth 5Y-1.75%
PM growth 3Y-9.65%
PM growth 5Y1.65%
GM growth 3Y-4.64%
GM growth 5Y-2.67%
F-Score8
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 24.72% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 102.88 | ||
| Cash Conversion | 69.14% | ||
| Profit Quality | 111.75% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 4.05 |
F-Score8
WACC7.69%
ROIC/WACC1.39
Cap/Depr(3y)28.68%
Cap/Depr(5y)20.92%
Cap/Sales(3y)0.55%
Cap/Sales(5y)0.39%
Profit Quality(3y)107.99%
Profit Quality(5y)141.92%
High Growth Momentum
Growth
EPS 1Y (TTM)15.07%
EPS 3Y6.62%
EPS 5Y14.55%
EPS Q2Q%29.86%
EPS Next Y6.02%
EPS Next 2Y8.21%
EPS Next 3Y11.86%
EPS Next 5YN/A
Revenue 1Y (TTM)34.6%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%14.49%
Revenue Next Year1.24%
Revenue Next 2Y2.56%
Revenue Next 3Y3.38%
Revenue Next 5YN/A
EBIT growth 1Y27.73%
EBIT growth 3Y14.59%
EBIT growth 5Y15.41%
EBIT Next Year24.15%
EBIT Next 3Y13.82%
EBIT Next 5YN/A
FCF growth 1Y5.57%
FCF growth 3Y14.75%
FCF growth 5Y10.08%
OCF growth 1Y7.44%
OCF growth 3Y16.59%
OCF growth 5Y10.05%
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 7 / 10.
How financially healthy is WAVESTONE?
The financial health rating of WAVESTONE (WAVE.PA) is 8 / 10.
Is the dividend of WAVESTONE sustainable?
The dividend rating of WAVESTONE (WAVE.PA) is 4 / 10 and the dividend payout ratio is 12.41%.