WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:WAVE - FR0013357621 - Common Stock
54.9 EUR
+0.2 (+0.37%)
Taking everything into account, WAVE scores 6 out of 10 in our fundamental rating. WAVE was compared to 76 industry peers in the IT Services industry. WAVE has an excellent financial health rating, but there are some minor concerns on its profitability. WAVE is not valued too expensively and it also shows a decent growth rate.
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 84.21% of the companies in the same industry.
With a Return On Equity value of 12.11%, WAVE perfoms like the industry average, outperforming 51.32% of the companies in the same industry.
WAVE has a better Return On Invested Capital (11.40%) than 73.68% 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 82.89% of its industry peers.
In the last couple of years the Profit Margin of WAVE has grown nicely.
WAVE's Operating Margin of 11.76% is amongst the best of the industry. WAVE outperforms 84.21% of its industry peers.
In the last couple of years the Operating Margin of WAVE has declined.
Looking at the Gross Margin, with a value of 85.38%, WAVE is in the better half of the industry, outperforming 77.63% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WAVE is still creating some value.
The number of shares outstanding for WAVE has been reduced compared to 1 year ago.
Compared to 5 years ago, WAVE has more shares outstanding
Compared to 1 year ago, WAVE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.91 indicates that WAVE is not in any danger for bankruptcy at the moment.
The Altman-Z score of WAVE (4.91) is better than 88.16% of its industry peers.
WAVE has a debt to FCF ratio of 0.39. This is a very positive value and a sign of high solvency as it would only need 0.39 years to pay back of all of its debts.
WAVE has a better Debt to FCF ratio (0.39) than 97.37% of its industry peers.
WAVE has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.03, WAVE belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 4.91 |
ROIC/WACC1.49
WACC7.67%
2.3 Liquidity
WAVE has a Current Ratio of 1.37. This is a normal value and indicates that WAVE is financially healthy and should not expect problems in meeting its short term obligations.
WAVE has a Current ratio of 1.37. This is in the better half of the industry: WAVE outperforms 61.84% of its industry peers.
WAVE has a Quick Ratio of 1.37. This is a normal value and indicates that WAVE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.37, WAVE is in the better half of the industry, outperforming 67.11% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 15.06% on average over the past years. This is quite good.
WAVE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.99%.
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)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.
The Revenue is expected to grow by 3.67% on average over the next years.
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.
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 17.00 indicates a correct valuation of WAVE.
Based on the Price/Earnings ratio, WAVE is valued a bit cheaper than the industry average as 67.11% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.57. WAVE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.13, which indicates a correct valuation of WAVE.
Based on the Price/Forward Earnings ratio, WAVE is valued a bit cheaper than 64.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, WAVE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 14.13 |
4.2 Price Multiples
63.16% of the companies in the same industry are cheaper than WAVE, based on the Enterprise Value to EBITDA ratio.
WAVE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WAVE is cheaper than 60.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.1 | ||
| EV/EBITDA | 10.75 |
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)1.9
PEG (5Y)1.13
EPS Next 2Y11.04%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
WAVE has a yearly dividend return of 0.90%, which is pretty low.
WAVE's Dividend Yield is comparable with the industry average which is at 2.27.
With a Dividend Yield of 0.90, WAVE pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
On average, the dividend of WAVE grows each year by 10.95%, which is quite nice.
Dividend Growth(5Y)10.95%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
14.10% of the earnings are spent on dividend by WAVE. This is a low number and sustainable payout ratio.
The dividend of WAVE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.1%
EPS Next 2Y11.04%
EPS Next 3Y10.93%
EPA:WAVE (12/24/2025, 7:00:00 PM)
54.9
+0.2 (+0.37%)
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 Cap1.37B
Revenue(TTM)943.85M
Net Income(TTM)78.00M
Analysts80
Price Target63.36 (15.41%)
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 | 17 | ||
| Fwd PE | 14.13 | ||
| P/S | 1.45 | ||
| P/FCF | 13.1 | ||
| P/OCF | 12.6 | ||
| P/B | 2.12 | ||
| P/tB | 26.3 | ||
| EV/EBITDA | 10.75 |
EPS(TTM)3.23
EY5.88%
EPS(NY)3.89
Fwd EY7.08%
FCF(TTM)4.19
FCFY7.64%
OCF(TTM)4.36
OCFY7.94%
SpS37.89
BVpS25.85
TBVpS2.09
PEG (NY)1.9
PEG (5Y)1.13
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 | 4.91 |
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 8 / 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%.