WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:WAVE - FR0013357621 - Common Stock
61.3 EUR
+1.2 (+2%)
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
- WAVE had positive earnings in the past year.
- In the past year WAVE had a positive cash flow from operations.
- 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
- WAVE's Return On Assets of 8.42% is amongst the best of the industry. WAVE outperforms 84.21% of its industry peers.
- WAVE's Return On Equity of 12.21% is in line compared to the rest of the industry. WAVE outperforms 48.68% of its industry peers.
- WAVE has a Return On Invested Capital of 11.36%. This is in the better half of the industry: WAVE outperforms 69.74% of its industry peers.
- 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
- WAVE has a better Profit Margin (8.33%) than 81.58% 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 11.74%, WAVE belongs to the top of the industry, outperforming 82.89% of the companies in the same industry.
- In the last couple of years the Operating Margin of WAVE has declined.
- With a decent Gross Margin value of 85.44%, WAVE is doing good in 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 | 11.74% | ||
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WAVE is destroying value.
- Compared to 1 year ago, WAVE has less shares outstanding
- Compared to 5 years ago, WAVE has more shares outstanding
- WAVE has a better debt/assets ratio than last year.
2.2 Solvency
- WAVE has an Altman-Z score of 5.24. This indicates that WAVE is financially healthy and has little risk of bankruptcy at the moment.
- WAVE has a Altman-Z score of 5.24. This is amongst the best in the industry. WAVE outperforms 92.11% 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's Debt to FCF ratio of 0.39 is amongst the best of the industry. WAVE outperforms 96.05% 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 92.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 5.24 |
ROIC/WACC0.79
WACC14.43%
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 60.53% 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.
- The Quick ratio of WAVE (1.37) is better than 67.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 22.20% over the past year.
- 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.
- 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)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
- WAVE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.42% yearly.
- 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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 19.04, the valuation of WAVE can be described as rather expensive.
- WAVE's Price/Earnings ratio is a bit cheaper when compared to the industry. WAVE is cheaper than 60.53% of the companies in the same industry.
- WAVE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 15.55 indicates a correct valuation of WAVE.
- WAVE's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. WAVE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 15.55 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WAVE indicates a slightly more expensive valuation: WAVE is more expensive than 64.47% of the companies listed in the same industry.
- WAVE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.62 | ||
| EV/EBITDA | 12.04 |
4.3 Compensation for Growth
- WAVE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- WAVE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)1.31
EPS Next 2Y11.85%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
- WAVE has a yearly dividend return of 0.77%, which is pretty low.
- 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 1.81, WAVE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
- The dividend of WAVE is nicely growing with an annual growth rate of 10.75%!
Dividend Growth(5Y)10.75%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 14.36% 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.
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 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.
What are the PE and PB ratios of WAVESTONE (WAVE.PA) stock?
The Price/Earnings (PE) ratio for WAVESTONE (WAVE.PA) is 19.04 and the Price/Book (PB) ratio is 2.37.
Can you provide the financial health for WAVE stock?
The financial health rating of WAVESTONE (WAVE.PA) is 7 / 10.