WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:WAVE • FR0013357621
60.3 EUR
+1.3 (+2.2%)
Last: Jan 30, 2026, 05:23 PM
WAVE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 70 industry peers in the IT Services industry. While WAVE has a great health rating, its profitability is only average at the moment. 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.
- 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 better Return On Assets (8.42%) than 84.29% of its industry peers.
- The Return On Equity of WAVE (12.21%) is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 11.36%, WAVE is in the better half of the industry, outperforming 72.86% of the companies in the same industry.
- WAVE had an Average Return On Invested Capital over the past 3 years of 11.44%. This is significantly below the industry average of 26.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 12.21% | ||
| ROIC | 11.36% |
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 a decent Profit Margin value of 8.33%, WAVE is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- WAVE's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 11.74%, WAVE belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
- In the last couple of years the Operating Margin of WAVE has declined.
- Looking at the Gross Margin, with a value of 85.44%, WAVE is in the better half of the industry, outperforming 75.71% of the companies in the same industry.
- WAVE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.74% | ||
| PM (TTM) | 8.33% | ||
| GM | 85.44% |
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.
- The number of shares outstanding for WAVE has been increased compared to 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 5.12 indicates that WAVE is not in any danger for bankruptcy at the moment.
- WAVE has a Altman-Z score of 5.12. This is amongst the best in the industry. WAVE outperforms 91.43% 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 95.71% of its industry peers.
- A Debt/Equity ratio of 0.03 indicates that WAVE is not too dependend on debt financing.
- The Debt to Equity ratio of WAVE (0.03) is better than 94.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 5.12 |
ROIC/WACC1.45
WACC7.81%
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.
- Looking at the Current ratio, with a value of 1.37, WAVE is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
- A Quick Ratio of 1.37 indicates that WAVE should not have too much problems paying its short term obligations.
- WAVE's Quick ratio of 1.37 is fine compared to the rest of the industry. WAVE outperforms 70.00% 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 22.20%, which is quite impressive.
- Measured over the past years, WAVE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.55% on average per year.
- Looking at the last year, WAVE shows a small growth in Revenue. The Revenue has grown by 7.00% in the last year.
- Measured over the past years, WAVE shows a quite strong growth in Revenue. The Revenue has been growing by 17.46% on average per year.
EPS 1Y (TTM)22.2%
EPS 3Y6.62%
EPS 5Y14.55%
EPS Q2Q%11.64%
Revenue 1Y (TTM)7%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%0.06%
3.2 Future
- The Earnings Per Share is expected to grow by 11.42% on average over the next years. This is quite good.
- WAVE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.67% yearly.
EPS Next Y10.61%
EPS Next 2Y11.85%
EPS Next 3Y11.42%
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
- Based on the Price/Earnings ratio of 18.73, the valuation of WAVE can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of WAVE indicates a somewhat cheap valuation: WAVE is cheaper than 61.43% of the companies listed in the same industry.
- WAVE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- WAVE is valuated correctly with a Price/Forward Earnings ratio of 15.29.
- The rest of the industry has a similar Price/Forward Earnings ratio as WAVE.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. WAVE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 15.29 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WAVE is valued a bit more expensive than 64.29% of the companies in the same industry.
- WAVE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.38 | ||
| EV/EBITDA | 11.6 |
4.3 Compensation for Growth
- WAVE's 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.
PEG (NY)1.76
PEG (5Y)1.29
EPS Next 2Y11.85%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.77%, 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.
- Compared to an average S&P500 Dividend Yield of 1.82, WAVE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
- WAVE pays out 14.36% of its income as dividend. This is a sustainable payout ratio.
- The dividend of WAVE is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP14.36%
EPS Next 2Y11.85%
EPS Next 3Y11.42%
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.
Can you provide the valuation status for WAVESTONE?
ChartMill assigns a valuation rating of 3 / 10 to WAVESTONE (WAVE.PA). This can be considered as Overvalued.
Can you provide the profitability details for WAVESTONE?
WAVESTONE (WAVE.PA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of WAVESTONE (WAVE.PA) stock?
The Price/Earnings (PE) ratio for WAVESTONE (WAVE.PA) is 18.73 and the Price/Book (PB) ratio is 2.33.
Can you provide the financial health for WAVE stock?
The financial health rating of WAVESTONE (WAVE.PA) is 8 / 10.